220 likes | 337 Views
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
E N D
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
Country scope • Uganda since 1995 • Tanzania since 1998 • Zambia starting 2003 • Kenya ? • Ethiopia ? • West Africa ?
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
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
In preparation • Animal Feed Ingredients • CaneSugar • Dried Fruits • Ecotourism • Fresh and processed Peanuts • Herbs, Spices and Essential Oils • Nile Perch Fish • RufijiHoney
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
Projects in Tanzania • Coffee, Instant Coffee & Dried Fruit, Bukoba • Arabica Coffee, Kilimanjaro • Canned Pineapple, Iringa • Cashew nuts, Kerekese & Honey, Rufiji River
Flanking activities • Limited support to exporters • National development • Organic sector development training • Certification development
Limited Support • BioUganda, fresh pineapple & ginger • Ibero, vanilla • Matunda Mema, dried fruit • Tanica, instant coffee • Zanzgerm, essential oils • Hope, arabica coffee
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
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
Focus • Commodity cash crops backbone of rural economy & national economy • Large groups of smallholders • large impact • whole village conversion
Extended focus • Value addition • Canned pineapple • Dried fruits • Chilli sauce • High value, low volume • Essential oils • Herbs & spices
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 ?
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
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
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
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