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Development through Organic Trade
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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
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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
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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 ?
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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, + 15-30% over world market price Quality ‘premium’, + 5-20% Direct trading links with importers Fair trade ?
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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
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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
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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
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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
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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 34.000 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
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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.
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