Entrepreneurship Zone: 13 December 2021 :: The organic food value chain in Uganda – from growing to processing

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Entrepreneurship Zone: 13 December 2021 ::  The organic food value chain in Uganda – from growing to processing

 


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The global organic food market is expected to grow at 14.59% per annum to reach $368.94 billion by 2026, according to a report from Reportlinker.

Tapping into this market presents significant opportunities to agribusiness companies that can put in place the correct systems and support to serve this growing demand. In Africa, Marck van Esch sees specific potential for Uganda. “It is the fastest-growing sector in agriculture worldwide. Even during Covid-19, the market remained strong,” he says.

Van Esch’s company, Shares Uganda Limited, contracts farmers in the country to grow organic bird’s eye chillies, chia and sesame for export to Europe. Additionally, he lists sunflower seeds, beans and fruits as organic items in demand and suited for production in Uganda.

One of the main challenges for organic production in the country is the detrimental impact of the government’s indoor residual spraying (IRS) programme used to combat malaria. If the chemicals are sprayed inside the huts where farmers store their crops, it could lead to cross-contamination that would result in the loss of the buyer’s organic certification.

Shares Uganda has had to move its contract farming hub twice over the years when the IRS programme was deployed in its area of operations.

“So, while there is demand for organic farming, it is not protected and many small-scale farmers, and even larger farms, could miss out on the opportunity,” explains Van Esch.

The key is to build local capacity to add value to the organic agricultural commodities before export.

“Most of the final processed organic products that consumers eat, come from the western world. African countries are hardly producing any end-products that are certified organic and, when they do, it is often aimed at their domestic markets,” he says.

Van Esch recommends starting with partial processing until the factories can meet the required standards and then scale up.

To achieve success with such a business venture, one has to be pragmatic and flexible but also persistent, says Van Esch.

“You have to really believe in what you want, hold on to your vision and not compromise on business ethics, quality and maintenance. This is how you distinguish yourself from other suppliers. When you start, make sure you have everything in place; the management, the quality systems and the infrastructure. Do not promise something you cannot deliver and then disappoint your buyers and yourself.”-Howwemadeitinafrica



Shares Uganda’s processing facility outside the capital Kampala.

 <https://www.howwemadeitinafrica.com/how-this-dutch-entrepreneur-built-an-organic-agribusiness-company-in-east-africa/130160/?relatedposts_hit=1&relatedposts_origin=130486&relatedposts_position=0> 


 


 


 


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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

 


 

 


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