POTENTIAL FOR GEOGRAPHICAL INDICATIONS IN AGRICULTURAL SECTOR. Presented by Dr. Mukama P. Charles BVM, MSP(Econ), MABM
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1 POTENTIAL FOR GEOGRAPHICAL INDICATIONS IN AGRICULTURAL SECTOR Presented by Dr. Mukama P. Charles BVM, MSP(Econ), MABM Ministry of Agriculture, Animal Industry and Fisheries 10 th -11 th October 2013
2 Geographical Indications (GIs) Geographical Indications (GIs) -indications due to territory, or a region or locality where quality, reputation or other xtic of the good is attributable to its geographical origin(the TRIPs Agreement in Article 22.1). Name or sign such as symbols, icons, etc on goods geographical information for the identification, reputation, origin and qualities of particular products. GI tag adds to the brand value of the product or the agric commodity and better prices as well as niche markets.
3 GIs and CTM GIs in Use Two pieces of legislation in Argentina Law of 1999 for wines and wine-based alcoholic beverages (spirits), and Law for agricultural and food products In Australia to indicate a good from a region, or overseas region w.r.t beverages, & food produce eg cheese. In Scotland, makers of Dundee cake, Xtic cover with blanched almonds, are set to apply for GI from EU. In Australia to indicate a good from a pregion, or overseas region w.r.t beverages, & food produce eg cheese. In Scotland, makers of Dundee cake, Xtic cover with blanched almonds, are set to apply for GI from EU. GIs for goods but wine may be registered as Certification Trade Marks under the Trade Marks Act 1995 CTMs indicate that goods meet standards of quality, composition or geographical origin eg Parma for meats and Stilton for cheese in Australia.
4 GIs potential for UG s Agric Sector GI should be mainstreamed into the national strategy for high quality agriculture for sustainable Dvpt. Uganda has diverse microclimatic zones - diversity of agricultural products Agricultural prodn, in UG, also generally associated with the different traditions and cultures found in the country. Matooke (banana plantain) -Buganda, cattle and milk Ankole/western Uganda & Karamoja, Cassava, potatoes, ground nuts and maize - eastern Uganda, Sun flower and sorghum- Northern Uganda, Tea with western Uganda while coffee - central Uganda and Mbale.
5 GIs potential for UG s Agric Sector Cnt d For this natural xtic, ten zones - mapped Vs climatic diffs, relief variation, socio-econ, cultural xtics, and acreage The enterprises were selected Vs export market, availability, agro-ecological suitability, resident knowledge, existing production, infrastructure, existing support institutions, supply of inputs, skills and knowledge. There is plan for extraction of higher value derivatives for medicinal and cosmetic plants. Plan targets all farmers, agro-processing and agribusiness, support to public private and agencies,
6 Social Importance of Agricultural Sector Agriculture most important sector in Uganda Uganda agric resilient to major domestic & global shocks, 3% growth 2012/13. Over 22.9% of Uganda s GDP 73% of Uganda population depends on Agriculture 48% of total Uganda exports agriculture growth Agriculture led growth key for Uganda s Development Over 4.2m are small holder farmers At 5.9 percent growth/year, national poverty rate could reduce from the current 24.5% by 8.6%
7 Development Strategy and Objectives The Development Strategy and Investment Plan (DSIP) 2010/ /15 aligned to the NDP and CAADP: o Increasing production and productivity o Improving market access for agricultural products o Creating a favorable legal, policy and institutional framework o Strengthening the sector institutional capacity The main objectives of the plan are: Increase incomes of households thru increased prodn. & prod vity Ensure national food for nutrition security Create on-farm and off-farm employment opportunities Promote value-addition to agricultural products Promote domestic and external trade in agricultural products
8 Handling and Distribution Agricultural production is by many scattered small-scale farmers There is support to form groups for collective production, marketing & ccess to services. PPP is encouraged to encourage increased investment, Contract & out-growers schemes exist eg Kibimba Rice Scheme, Jesa Dairy Farm, Germany Herbal Project in Bushenyi, Sugar factories etc, However, challenges exist in FOs, outgrowers and contracts
9 Marketing structure COMESA - 30% of export earnings worth US$ 151 million. EU- 26.4% of export earnings thru Everything but Arms (EBA) Initiative. AGOA- duty free market access to 1830 products including cotton, textiles and apparels but this is 2% LDC duty free market access thru Generalised System of Preference (GSP) by Canada, Japan, China, Switzerland, Russia, Turkey, Morocco and Norway. EAC) offers around 130 million consumers. EAC-COMESA-SADC tripartite negotiations are going on.
10 Marketing structure Cont d
11 Exports of Traditional cash crops (tonnes) YEAR Commodity Coffee Cotton Cocoa Tea Tobacco Coffee ,540 16,228 9,399 44,015 48, ,640 7,950 8,982 46,022 26, ,324 17,812 11,882 44,446 29, ,433 11,891 16,478 54,555 32, ,623 25,587 17,936 55,650 28, Source: MAAIF (UCDA, CDO), URA
12 Exports value ( 000 US $) Year Commodity Coffee Cotton Cocoa Tea Tobacco ,853 19,568 15,936 47,629 67, ,179 13,160 22,834 47,222 69, ,209 22,718 27,829 59,761 62, ,891 19,919 35,121 68,263 68, ,659 86,011 44,546 72,126 53,981 Source: MAAIF (UCDA, CDO), URA
13 GI Potential for Value addition The market bring together many countries in same market. It is important to add value for competitive advantage Broadly, value addition - economically add value to a product and form Xtics more preferred in the market place. Lack of VA big challenge b se raw exports give away jobs and product ownership. VA increases economic value to our products & a big step to achieving GI, the country keeps the originality of the products GI will permanently lock the products in the competitive mode.
14 GI Potential for Value addition Cont GI as another innovation for UG -to promote VA & competitiveness Take advantage of the diverse microclimatic zones with peculiar socio-econ & cultural Xtics, ability to produce a diversity of products. Our soils- known to produces good organic crops- enjoying int. Market. Products associated with Uganda include: Bark-cloth textiles of central Uganda, West Nile cotton, sesame, Honey, White Perch, Vanilla beans ("Mukono vanilla"),pineapple, Apple Banana, Goose berry (Jack fruit), Matooke (green banana), Honey from Luwero triangle Mount Elgon coffee Ankole
15 Value addition challenges Most agro-processing firms - small and medium on mostly primary products using traditional technologies. The majority operating at capacities of between 25 60%, largely due to a lack of quality and quantity raw materials. Most technologies used - small scale fabricator enterprises which raises the cost of production, so non competitive. Inadquate advanced skills for agro-processing in the region, The costs of finances, ICT and electricity are the highest in the region.
16 Investment Opportunities High potential of producing cheap hydro electricity from several parts of the country to provide rural electrification. Unique products e.g. meat from the Ankole cattle, Arabica coffee, a host of many organically products e.g. fruits and vegetables. Promotion of Public- Private sector partnerships. Fully liberalised economy and conducive political climate. Strong agriculture research system e.g. the Rice f ll l
17 Investment Opportunities Cont d Meat and Meat products; 11.4 m Cattle, goats 12.4 m, sheep 3.4 m, poultry 52 m all ideal for meat exports, leather processing, animal feeds manufacture and commercial breeding, abattoirs operations. Fisheries subsector; Current exports up to over 143 million USD. Uganda has 20% of its surface area as water. Huge potential exists for aquaculture development e.g. aquaculture parks, premium species like cage fish, eel fish, etc.
18 Investment Opportunities Cont d Cotton and textiles; Potential for over 1 million bales produced annually. High class textile manufacture especially for regional markets, mixed fibre production e.g. fibre yarn and fabrics are all huge opportunities. Fruits and vegetables; Including packaging of fruits and vegetables, export of dehydrated fruits & vegetables and export of fruit concentrates. Huge potential for citrus, pineapples, Mangoes, passion fruits, etc organically produced
19 Investment Opportunities Cont d Floriculture; Expansion of Rose Industry, growing of other floriculture plants other than roses, manufacture of green house plastics and manufacture of packaging materials. Cocoa, Coffee and tea; Uganda among the leading countries of the world, 2 nd in the Common Wealth after India and 2 nd in Africa after Ethiopia. Tea exports over 92 million USD. There is high return on investment in processing and k i f h b d i ff
20 Investment Opportunities Cont d Other viable opportunities; Honey processing for export, cassava processing for industrial starch, packaging of beans and pulses for export, Gum Arabic, Bananas Uganda 2 nd largest producer in the world after India Investment in agribusiness services These include; cold chain, packaging, cargo freight, inputs manufacture, e.g. Commercial Seed production, tractors, vaccines, irrigation equipment, chemicals, fertilizers, agricultural banking and insurance and construction of
21 Way Forward A comprehensive marketing strategy for our agricultural commodities in the international market and develop a niche for them. Sustainable supply of VA products, then register for (GI) & lock the products in the competitive position. The Strategic Investment Areas should be comprehensive and along the entire value chains of commodities
22 The Strategic Investment Areas Development Commodity Value Chains Increase agricultural productivity Entrepreneurship Development, Promote contract farming in order to encourage small scale farmers produce on demand basis and this will ensure sustainable supply of products. Human resources and skills Enhancing investment in existing agro processing infrastructure Industrial clusters anchored to areas of large production: Packaging R&D and Efficient supplies of technologies: Investment in agro-economic & industrial development regional database Innovative agricultural financial services Improving infrastructure
23 THANK YOU
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