Market Opportunities for African Agriculture - International Food ...

More documents

Recommendations

Info

the high value (nutrient value per unit of weight) vegetables and fruits. Uganda’s Domestic Resource Cost Ratios (DRC) for producing fresh vegetables and fruits are well below the unity (Dijkstra, 2001). Still the prospect of this sub-sector depends on (i) fierce international competition, (ii) seasonality of supply and demand, (iii) perishability and demand for high quality, and (iv) volatile contract coordination in the supply chain. Fish and Fish Products The surface area (69,000 sq. km.) of Lake Victoria is shared by Uganda (45%), Tanzania (49%) and Kenya (6%). Over the past two decades, these three countries have developed into major exporters of Lake Victoria fish, mainly Nile Perch. The fish exporting industry first developed in Kenya, and Uganda and Tanzania have followed the Kenyan example. The government-owned Uganda Fisheries Enterprise Ltd. first started operation in 1990 (Dijkstra, 2001). By 1996, Uganda had 11 fish processing industries, exporting US$46 million worth of fish and fish products, about 7 percent of Uganda’s total exports. Uganda is heavily dependent on the European Union for its fish sales. In 1996, the EU imported 85 percent of Uganda’s exported chilled fish products, and 24 percent of its frozen products. The Netherlands, Belgium, and the United Kingdom were the biggest European importers of Ugandan fish. Outside the EU, only Australia and Israel were major consumer markets. This heavy dependency on the European market appeared to be disastrous for Ugandan fish industry as three successive bans on fish export hit the East African Countries in the second half of 1990s. Learning the lessons from bans on fish exports, most of the fish processors of Uganda have adopted Hazard Analysis and Critical Control Point (HACCP) procedures establishing their own laboratories. FAO and UNIDO are also providing technical supports on sanitary and health requirements for fish exports both through the provision of a central laboratory and upgrading facilities at 18 key landing beaches (USAID, 2002). As a result, Ugandan fish exporters have already started regaining the confidence of the importers. However, the sustainability of Uganda’s fish export is still in question. The optimal harvest of fish is not determined yet because the actual stock of fish in Lake 94
Victoria and their Natural Carrying Capacity are unknown and the government estimate of the Maximum Sustainable Yield (MSY) is not reliable. As a result, it is very likely that over fishing will exhaust the potential for fish exports soon. Moreover, enforcement of property rights over the fish of Lake Victoria among Uganda, Tanzania and Kenya is another issue. Hides and Skins On an average, Uganda produces 1 million cattle hide and 3.4 million goat/sheep skins annually, most of which are exported (Dijkstra). Uganda’s exports of hides and skins more than doubled between 1995 and 2000. During the same period, the export value of Uganda’s hides and skins increased from US$ 9.92 million to US$ 13.72 million. This is mainly because of the volatile price movements on the international market with a depression in the period of 1998-2000. Three-fourths of Uganda’s export of hides and skins are destined to countries in the Far East with large industries producing cheap footwear for export (Dijkstra). In 1998 Pakistan was the largest importer of Ugandan hides and skins, followed by China. By 1999, China had taken over as the most important trading partner. Within Africa, Kenya is the main importer, where hides and skins are used for leather industry (USAID, 2002). However, Uganda’s hides and skins have little demand in the European market as European industries increasingly prefer wet blue (half-finished leather) instead of dried or salted hides and skins. With the exception of 1997, at least 95 percent of exports by weight were raw hides and skins (salted or dried) while the rest consisted of wet blue hides and skins. Ugandan hides and skins obtain the lowest grades and prices in the international market because of poor quality (USAID, 2002). The Uganda Leather and Allied Industries Association (ULAIA) has estimated that the average loss due to flay damages in Uganda varies between 60 to 80 percent. Lack of skilled manpower is another reason for poor quality leather production (USAID, 2002). Export earnings from hides and skins could be substantially increased through quality improvement alone. 95
Page 1 and 2:
DSGD DISCUSSION PAPER NO. 1 MARKET
Page 3:
ACKNOWLEDGEMENTS We wish to thank t
Page 6 and 7:
LIST OF TABLES Table 1: Some basic
Page 8 and 9:
LIST OF FIGURES Figure 1: Monthly a
Page 10 and 11:
imports 25 percent of its food grai
Page 13 and 14:
MARKET OPPORTUNITIES FOR AFRICAN AG
Page 15 and 16:
Table 1—Some basic facts about Su
Page 17 and 18:
We begin with a review of broad tre
Page 19 and 20:
Table 2—World and Sub-Saharan cou
Page 21 and 22:
Table 3—Composition of exports fr
Page 23 and 24:
This is mainly because of a signifi
Page 25 and 26:
Staples Non-traditional Traditional
Page 27 and 28:
impact on export earnings and incom
Page 29 and 30:
ooms of the 1970s, but the trends f
Page 31 and 32:
produced by smallholders, resulting
Page 33 and 34:
Table 7—Export of fish and fisher
Page 35 and 36:
Table 8—Summary of food safety re
Page 37 and 38:
flowers and foliage to the EU. The
Page 39 and 40:
The emergence and growth of the Ken
Page 41 and 42:
SUMMARY Currently, the agricultural
Page 43 and 44:
Table 12—Sub-Saharan African majo
Page 45 and 46:
Besides the demand-side constraint,
Page 47 and 48:
percent. However, because rapid gro
Page 49 and 50:
pace, by 4.15 percent per year thro
Page 51 and 52:
equivalent to 9 to 11 percent of ma
Page 53 and 54:
esult in increased imports of lives
Page 55 and 56: this study is to evaluate African c
Page 57 and 58: In this scenario, where non-traditi
Page 59 and 60: more employment opportunities for u
Page 61 and 62: of SSA (4 percent). No additional p
Page 63 and 64: d. Combining high growth livestock
Page 65 and 66: output (Table 20). Because the chan
Page 67 and 68: This increase in TFP in the transpo
Page 69 and 70: scenarios, we find that some countr
Page 71 and 72: Per capita annual growth of cereal
Page 73 and 74: Figure 3—Impact of TFP growth on
Page 75 and 76: too long to make a significant cont
Page 77 and 78: particularly important, and better
Page 79 and 80: Franco, M., and R. Godoy. 1993. “
Page 81 and 82: Staples Non-traditional Traditional
Page 87 and 88: Appendix I Table 7—Baseline Proje
Page 89 and 90: Appendix I Table 9—Projected annu
Page 91 and 92: Appendix I Table 11—Projected ann
Page 93 and 94: Appendix I Table 13—Agricultural
Page 99 and 100: Appendix II Table 1—Agricultural
Page 101 and 102: and in 1998 Mozambique contributed
Page 103 and 104: from 56.5 percent in 1981-83 to 40.
Page 105: Uganda has distinct competitive adv
Page 109 and 110: Macroeconomic Policies In 1991, tax
Page 111 and 112: Appendix II Table 4—Agricultural
Page 113 and 114: inappropriate seeds and fertilizers
Page 115 and 116: i.e. upgrading equipments and labor
Page 117 and 118: 9. Ghana 10. Guinea 11. Guinea-Biss
Page 119: 21. Sugar 22. Processed food produc
show all

Market Opportunities for African Agriculture - International Food ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?