TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

CHART 2
Value chain of chrysanthemum flowers from Uganda
AGRO-CHEMICALS
TWIGA (U) LIMITED
BREEDING NEW
VARIETIES OF
CRYSANTHEMU
M CUTTINGS
HOLLAND
UNITED
Source: Royal Van Zanten Uganda Limited.
The shift suggests that the failure of many
rose growing companies during the 1990s
provided an important lesson for later investors,
who are now concentrating on producing plant
varieties that are better suited to Uganda’s
climate. Uganda’s warm, humid climate 12
is very favourable to the cultivation of
chrysanthemum cuttings and other plant varieties.
Most rose varieties, however, thrive better in
cooler climates, e.g. in the highlands of Kenya
and Ethiopia. There is no evidence of crowding
effects in the flowers and cuttings sector.
Fish subsector
FERTILIZER
PROPOGATING
PLANT
CUTTINGS INTO
SHOOTS
UGANDA
(SUBSIDIARY OR JOINT
VENTURE PARTNER)
The fish value chain consists of five players:
the primary producers (the fishermen), the fish
collection boats (wooden and motorized), the
fish transporters (traders and factory agents), the
local traders and processors, and the regional
and international exporters (Diagram 3). Fish
processors do not operate fishing boats but can
purchase fish from fishermen or middle men.
The fishermen, who were estimated at
about 136 000 in 1997 (National Fisheries Policy
for Uganda, May 2004) – land their catch on
12 Temperatures range from a maximum of 28 ºC during
daytime, down to around 18 ºC at night (UFEA, 2007).
PACKAGING
MATERIALS
GROWING
ROOTING
MATERIALS
PARENT
COMPANY IN
HOLLAND
Part 3: Policies for attracting FDI and impacts
on national economic development
GROWING
CLIENT IN
HOLLAND
FINAL
CONSUMER
various landing sites on three major lakes: Lake
Victoria, Lake Kyoga and Lake Albert. Lake
Victoria is estimated to have about 600 landing
sites (Uganda, Fisheries Resources Research
Institute, 2003). At this stage, the processors
provide ice (from their own icemaking plants)
to fish collection boats to preserve the fish until
it reaches the landing sites. The number of fish
collection boats was estimated at 960 in 2003
(National Fisheries Policy for Uganda, May 2004).
At the landing sites, fish is sold to traders and
suppliers, who in turn supply the fish processors
or domestic traders. The number of fish traders
was estimated at about 20 000 in 2003 (Uganda,
Fisheries Resources Research Institute).
At the processing plants, frozen fish products
for export are packed in corrugated carton
boxes, which are sourced locally, while chilled
fish products for export are packed in styrofoam
boxes, which are also sourced locally. By-products
are also processed and exported; they include
the swim bladders, visceral fat and skins. It is
expected that most of the value is created during
fish processing.
Along the value chain, fish factories are
involved in the provision of inputs (packaging
materials), technical support and quality control
(implementing the EU and USA Hazard Analysis
Critical Control Point System), processing and
135
UGANDA