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Development through Organic Trade

Development through Organic Trade. Export Promotion of Organic Products from Africa. 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

brynn-farrell
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Development through Organic Trade

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  1. Development through Organic Trade

  2. Export Promotion ofOrganic Products from Africa

  3. 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

  4. Country scope • Uganda since 1995 • Tanzania since 1998 • Zambia starting 2003 • Kenya ? • Ethiopia ? • West Africa ?

  5. 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 Bo Gunnar

  6. 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 Export projects

  7. In preparation • Animal Feed Ingredients • CaneSugar • Dried Fruits • Ecotourism • Fresh and processed Peanuts • Herbs, Spices and Essential Oils • Nile Perch Fish • RufijiHoney

  8. Projects in Uganda • Arabica Coffee, Nebbi • Sesame, Ochero • Arabica Coffee, Sipi Falls • Vanilla, Kikyusa • Bark Cloth & Fresh Pineapple, Masaka • Vanilla & Cocoa, Bundibugyo • Processing Pineapple & Papaya, Kasese • Robusta Coffee, Bushenyi

  9. Projects in Tanzania • Coffee, Instant Coffee & Dried Fruit, Bukoba • Arabica Coffee, Kilimanjaro • Canned Pineapple, Iringa • Cashew nuts, Kerekese & Honey, Rufiji River

  10. Flanking activities • Limited support to exporters • National development • Organic sector development training • Certification development

  11. Limited Support • BioUganda, fresh pineapple & ginger • Ibero, vanilla • Matunda Mema, dried fruit • Tanica, instant coffee • Zanzgerm, essential oils • Hope, arabica coffee

  12. 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

  13. 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

  14. Focus • Commodity cash crops backbone of rural economy & national economy • Large groups of smallholders • large impact • whole village conversion

  15. Extended focus • Value addition • Canned pineapple • Dried fruits • Chilli sauce • High value, low volume • Essential oils • Herbs & spices

  16. 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 ?

  17. 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

  18. 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

  19. Cost building

  20. Organic extra costs

  21. 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

  22. 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. Profitable development

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