Improving Agricultural Market Performance:
Creation and Development of Market Institutions
117
food products for US$0.45 billion in the same year, indicating to a trade deficit of more than
US$340 million. Food prices have remained rather stable except for last year due to drought.
This has particularly affected urban consumers as they do not conduct subsistence farming.252
Historically, Uganda has been an exporter of a wide variety of raw agricultural products, which
continue to account for nearly half of Uganda’s exports (in 2012).253 Uganda’s key traditional
cash crop is coffee - generating 20 to 30% of Uganda’s foreign exchange earnings254 after
tourism and remittances255 - and is followed by cotton, tea, cocoa, tobacco, and sugar. The
productivity of Uganda’s coffee sector has decreased due to unstable weather conditions,
leached soils, old trees, low tree density, poor farm management practices. and diseases and
pests (e.g. coffee wilt disease and coffee leaf rust fungus). About 56% of the trees has been
destroyed by coffee wilt disease. Still, there is 1.7 million coffee smallholders, which produce
200,000 metric tonnes of coffee annually (world’s eighth largest), of which 97% is exported
(largest in Africa).256
Non-traditional cash crops include maize, rice, beans, soya beans, palms, horticultural
products257 (e.g. roses, carnations, and other exotic plants) cassava, sweet and Irish potatoes,
millet, sorghum, and groundnuts.258 However, a trade deficit of US$185 million was recorded
for cereals for 2014.259 Uganda seems to be a particular net exporter of fish (US$61 million), as
Uganda has a variety of fish resources, fish species, fresh water bio-diversities and eco-
systems.260 Ugandan fish exports have attained safety and quality standards for production,
turning it into the country’s second largest export earner.261 Unfortunately, fish populations in
Lake Edward and Lake George have considerably dwindled as a result of over-fishing, non-
compliance of regulations, destructive fishing practices, and pollution.
Dairy products (US$16 million) and fruits and vegetables (US$13 million), while its meat trade
is more or less equally balanced (trade deficit of only US$1 million). Room for trade exists,
particularly for dairy and meat, but requires disease control, distribution and logistics
infrastructure, and processing facilities.262
Livestock is an import sub-sector of Uganda’s agricultural sector. Uganda’s livestock, which
mainly concerns Ankole cattle, sheep, goats, pigs, and poultry, and dairy sectors are growing263
252 Interview conducted with Ministry of Finance, Planning & Economic Development in Kampala, June 7, 2017
253 FAO (2015), FAOSTAT Uganda, available a Accessed May
2017].
254 New Agriculturist (2012), Country profile – Uganda, available a
Accessed May 2017].
255 Interview conducted with Uganda Coffee Development Authority t in Kampala, June 8, 2017
256 Ibid
257 Government of Uganda (2017), Agriculture, available a Accessed May
2017].
258 Export.gov (2016), Uganda - Agriculture, available a Accessed
May 2017].
259 FAO (2015), FAOSTAT Uganda, available a Accessed May
2017].
260 Government of Uganda (2017), Agriculture, available a Accessed May
2017].
261 New Agriculturist (2012), Country profile – Uganda, available a
Accessed May 2017].
262 Ibid
263 Export.gov (2016), Uganda - Agriculture, available a Accessed
May 2017].