Development through Organic Trade

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Export Promotion of Organic Products from Africa

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Programme Objectives  To initiate and facilitate export of organic products from Africa in order to increase income for farmers  To expose the country to sustainable agricultural practices  Organize projects through exporters

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Country scope  Uganda since 1995  Tanzania since 1998  Zambia starting 2003  Kenya ?  Ethiopia ?  West Africa ?

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A A programme funded by Sida  Implemented by Agro Eco and Grolink together  Programme Directors  Bo v Elzakker  Gunnar Rundgren  Country Managers  Alan Tulip, Uganda  Marg Leijdens, Tanzania  Consultants BoGunnar

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Export projects  Kawacom, arabica and robusta coffee  Outspan, sesame  ESCO, vanilla and cocoa  RECO processing Pineapple and Papaya  Greenfields, nile perch/tilapia  KCU, robusta coffee  Premier Cashew, cashew nuts  KNCU, arabica coffee  Dabaga, canned pineapple  Bark Cloth

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A In preparation  Animal Feed Ingredients  Cane Sugar  Dried Fruits  Ecotourism  Fresh and processed Peanuts  Herbs, Spices and Essential Oils  Nile Perch Fish  Rufiji Honey

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Projects in Uganda 1.Arabica Coffee, Nebbi 2.Sesame, Ochero 3.Arabica Coffee, Sipi Falls 4.Vanilla, Kikyusa 5.Bark Cloth & Fresh Pineapple, Masaka 6.Vanilla & Cocoa, Bundibugyo 7.Processing Pineapple & Papaya, Kasese 8.Robusta Coffee, Bushenyi

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Projects in Tanzania 9.Coffee, Instant Coffee & Dried Fruit, Bukoba 10.Arabica Coffee, Kilimanjaro 11.Canned Pineapple, Iringa 12.Cashew nuts, Kerekese & Honey, Rufiji River

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Flanking activities  Limited support to exporters  National development  Organic sector development training  Certification development

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Limited Support  BioUganda, fresh pineapple & ginger  Ibero, vanilla  Matunda Mema, dried fruit  Tanica, instant coffee  Zanzgerm, essential oils  Hope, arabica coffee

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Support to export projects  Product identification, project design product, growing area, farmer group, exporter, importers, markets  Feasibility study & project document  Three years project: technical assistance, management support, matchmaking, product development, share in certification costs  Largely by in-country staff + European backstopping

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Arguments I Organic export premium allows for:  Premium price for farmers +  Costs of field organisation +  Higher cost of separate handling +  Costs of certification +  Higher margin exporter

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Focus  Commodity cash crops backbone of rural economy & national economy  Large groups of smallholders  large impact  whole village conversion

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Extended focus  Value addition  Canned pineapple  Dried fruits  Chilli sauce  High value, low volume  Essential oils  Herbs & spices

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Arguments II Better price, three components:  Organic premium, % over world market price  Quality ‘premium’, %  Direct trading links with importers  Fair trade ?

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Organic?  Organic by default (agrochemicals were used but abandoned, due to unavailability & cost)  Promote indigenous knowledge  Traditional & modern techniques  But: active organic management  Making farming systems sustainable needs time

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A The exporters  All kinds of exporters Co-operative Unions, local entrepreneurs, European expatriates, large international trading houses, specific organic export companies  Are not used to work directly with farmers work through agents/middlemen have to organise farmers, inform farmers, assure traceable purchase, organise certification  Trade finance

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Cost building

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Organic extra costs

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Impacts of EPOPA  smallholders earn 25-50% more  Positive impact on conventional price  It’s being copied, there are requests   LSE projects  Improved motivation for farming, to improve livelihood, increase production  Concept for trade in commodities sustainably produced by smallholders

E X P O R T P R O M O T I O N O F O R G A N I C P R O D U C T S F R O M A F R I C A Profitable development  Compared to increased value of the exports, most projects pays back in 5-4 years.  The EPOPA programme allows exporters to enter a new market, for others to follow.