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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

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Development through Organic Trade

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Development through Organic Trade


Export Promotion ofOrganic 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

  • 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


Cost building


Organic extra costs


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


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