Evaluating the Marketing Opportunities for Banana & its Products in the Principle Banana Growing Countries of ASARECA

(Uganda)

J.S. Spilsbury J.N. Jagwe R.S.B. Ferris

November, 2002

Table of Contents Table of Contents List of Figures List of Tables Executive Summary 1 2 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 INTRODUCTION METHODOLOGY SUB SECTOR ANALYSIS Rapid Overview Of The Economic Status Of The Countries Trade And Competitiveness: Recent Reforms, Performance And Market Access Types Of Banana Production Zones Production Levels Importance Of The Sub-Sector To Earnings, Rural Livelihoods, Poverty Alleviation And Economic Growth Consumption Production Constraints 3.8.1 Soil fertility 3.8.2 Pests and Diseases Marketing Constraints DEMAND ANALYSIS Size of National Markets Size and Growth Rates of Regional Markets Size and Growth Rates of World Markets Market Price Trends Major Products Overview of Market Potential for Banana and Banana Based Products SUPPLY ANALYSIS Analyse of the supply chain Market Linkages Production costs Trading Costs and Margins in the Supply Chain MAJOR FINDINGS RECOMMENDATIONS 2 3 3 4 6 6 6 6 7 7 9 11 12 13 14 14 14 17 20 20 22 24 25 27 29 33 33 36 37 37 41 44 50 53 56

3.9 4 4.1 4.2 4.3 4.4 4.5 4.6 5 5.1 5.2 5.3 5.4 6 7

Information Gathered with Businesses involved in Banana Markets References Appendix

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List of Figures Figure One Figure Two Production of Matooke by Region Volume of Ugandan Exports of Apple Banana and Bogoya Exports to Kenya Figure Three Value of Ugandan Exports of Apple Banana and Bogoya Exports to Kenya Figure Four Fresh Matooke and Apple Banana Export Volumes Figure Five Real Retail Prices for Selected Commodities (Kampala) Figure Six Grand Seasonal Index from Kampala Matooke Retail Prices Figure Seven The Banana Supply Chain List of Tables Table One Table Two Table Three Table Four Ugandan Banana Area Planted and Production Level Ugandan Banana Production (Tonnes) Crop Area, Plot Number and Size Percentage of Staple Food Consumption as a Percentage of Household Monthly Consumption Table Five Volume and Market Values For Three Main Kampala Markets Table Six Combined Present and Future Volumes for Three Main Kampala Markets Table Seven World Markets for Banana and Plantain Table Eight Approximate Kampala Prices of Local Waragi Table Nine Approximate Kampala Prices of Tonto Table Ten Correlation Coefficients for Matooke Prices in Selected Towns Table Eleven Gross Margins Under Hired and Family Labour for Matooke Table Twelve Trading Costs and Margins 11 12 12 13 20 21 24 27 28 36 37 38 10 22 22 24 25 26 33

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Regional export opportunities appear for matooke in Rwanda and for dessert varieties to Kenya. Primary data has been obtained through interviews with producers. Kenya. International banana markets appear as increasingly competitive. However exports of fresh sukali ndizi to Europe have declined due to quality issues. regional and international markets. Sales of matooke to Europe have almost doubled in the past five years with potential seen for further increase. Price peaks for the food staple matooke are found in April and December as demand increases with Easter and Christmas festivals. New areas are planted further to the south and west of Uganda increasing transport distances to urban consumption centres. The main reason for production area shifts is declining soil fertility. processing and marketing in Uganda. Farmers show little or no production response to these predictable and significant price movements. Major findings include evidence for continuing shifts in the location of matooke production. The report specifically explores the current market status and investment options for the sub-sector. Continued research and support to extension in encouraging better pest and disease cultural control is suggested for weevils. nematodes and black sigatoka. Recent changes in European Union banana policy reducing preferential access are seen to further increase competition. Further research is suggested to better establish what changes in soil fertility status are occurring and to determine why farmers do not manage soils in a sustainable manner through recognised soil management practices. Secondary data was acquired by literature review and the collection of available statistics. If these quality requirements can be achieved European market prices appear as attractive. The methodology employed by the study was based on a rapid assessment technique using primary and secondary data. Additional production constraints are weevils. Market coverage includes banana and banana-based products in local. This Ugandan study represents one component of a regional initiative that includes Tanzania. Recommendations highlight the importance of addressing soil fertility issues to guarantee sustainable production systems. traders. Fusarium wilt is a major threat to sukali ndizi and bogoya (Gros Michel) production and hence a deterrent to investment in these dessert bananas. and Rwanda. European markets require sukali ndizi to have large unblemished fingers of uniform ripening and size. Analysis of net and gross margins for supply chain participants reveals that brokers who organise transport from rural to urban areas can make attractive daily incomes. nematodes and black sigatoka. 4 . retailers and exporters. Within this context market potential for Ugandan bananas is seen in markets segments including organic or health focused fruit and ‘naturally’ solar dried dessert bananas. In established production areas planting is moving away from main roads increasing reliance on muram tracks that become difficult to use in the wet season.Executive Summary This report provides a review of banana production.

timing of de-suckering to control new growth and the use of appropriate irrigation systems to control water stress that stimulates fruiting is suggested. To increase farm incomes. This research should actively involve private sector exporters. In addition improvement of fruit handling through out the supply chain is forwarded by use of capacity building approaches with fruit handlers. Further research into the timing of planting new gardens. improve consistency in monthly volumes and reduce consumer price peaks development of a production response to seasonal price variation is recommended. In urban markets efforts should be made to allow sufficient space for retailers. which may lead to the restriction of new entrants into the broker role. This report should be used as a lobby tool to emphasis the importance of Entebbe airport in the export of fresh fruit and vegetables. On international markets focus is given to health focused naturally dried dessert banana markets. Further research is suggested to determine possibilities for further expansion of matooke sales in European markets particularly into UK based West Indian and Belgium based Congolese ethnic markets. Provision of gross and net margin information to potential entrepreneurs is suggested.To reduce excessive margins existing within the market chain the involvement of government is recommended to find ways of reducing informal collusion between brokers. as is contact with micro finance providers to ensure potential new entrants can access credit. 5 . Recommendations include better design of product packaging to compete in snack and sweet market outlets and improving the appearance of naturally dried banana through better drying techniques with plant breeding for visual characteristics. Recommendations for the involvement and lobbying of regional governments to reduce border barriers including tariffs with efforts to ensure quick and efficient boarder crossing are made. To benefit all Ugandan fresh fruit and vegetable exports it is suggested that the Civil Aviation Authority and relevant government representatives are encouraged to facilitate competition in the airfreight market and ensure efficient airport freight administration and handling. To improve the quality of fresh sukali ndizi destined for international markets further research is recommended into the control of fruit ripening after harvest by exploring post harvest packaging and temperature control. To support regional exports of matooke to Rwanda and dessert varieties to Kenya the provision of regional market price information using mediums currently giving Ugandan price information is put forward. This is seen to be increasingly important as significant volume increases are expected with the increasing urbanisation of a growing population. exports of fresh organic sukali ndizi and the further growth of matooke markets in Europe. Recommendations are made to maintain and improve roads and reduce theft especially in rural areas.

To achieve this the project reviewed market segments that include: (i) (ii) (iii) (iv) Fresh cooking bananas Dessert bananas Processed banana fruit products Non-food banana based products. 3 3. Major findings are summarised with recommendations made in the form of suggested ways forward. retailers and exporters (see appendix two). Due to it’s rapid nature the review is illustrative as opposed to rigorous. The market coverage includes local. Requirements placed on road infrastructure and transport vehicles will rise as will the need to deal with banana related refuse in major cities. 6 . An important element of the work is to examine the comparative and competitive advantages of specific products both spatially and in terms of economic gain based on investment.5% per annum. for national. regional and export trade.2 % per annum from 1990 to 2000 (Collinson et al 2000).1 INTRODUCTION This report represents one output from a regional banana study that includes Tanzania. Kenya. It uses both secondary and primary data to determine the market prospects for bananas and banana products. demand and supply side analysis and the medium and long term market outlooks across the sub-sector. An increasingly urban population will lead to higher volumes of bananas being transported from rural to urban areas. Urbanisation is occurring with 16% of the population living in urban areas in 2000 and forecasts predicting this will rise to 22% by 2010 (Collinson et al 2000). It then examines production zones.1 SUB SECTOR ANALYSIS Rapid Overview Of The Economic Status Of The Countries Uganda’s per capita GDP measured in constant prices has risen by an average of 3. the importance of the sub-sector. The countries population of 24 million people is growing at approximately 2. 2 METHODOLOGY As with the other commodity studies in this series the methodology is based upon a rapid assessment technique developed by Holzman (1995). Therefore it is suggested that food demand will continue to rise through both a population and income effect. The report begins with a broad overview of the economic situation of Uganda. and Rwanda. Secondary data was acquired through literature review and the collection of available statistics. principle production and marketing constraints. traders. regional and overseas markets. The purpose of the study is to provide a review of the current status and investment options for the banana sub-sector. Primary data has been obtained through limited interviews using a structured informal questionnaire (see appendix one) with producers.

Robbins and S. The Cotonou agreement substantially altered Lome banana protocol arrangements.2 Trade And Competitiveness: Recent Reforms. The UK traditionally buys bananas from the Caribbean while German purchases from Central and South America. These exporters have a comparative advantage over East African producers due to production economies of scale and lower sea based transportation costs. These pressures will be felt most by Caribbean countries whose economies rely heavily on banana exports to Europe. organic food and food produced in an environmentally conscious manner. Performance And Market Access The main dessert banana exporters to world markets are the Caribbean. With reference to fresh fruit a number of trends in European consumer demand have been distinguished by (Abbenhuijs 2001). Ferris 2002). The past disputes over Lome and bananas is seen to relate to protection of former traditional colony based supplies and European attitudes to genetically modified foodstuffs. Banana imports to the European Union are influenced by the Cotonou agreement. Two of the main European consumers are the UK and Germany.3. For bananas this will be phased in with a gradual reduction of import tariffs on fresh bananas to zero by cutting the tariff rate by 20% every year between 1st January 2002 and 1st January 2006 (P. fibres and essences could therefore become increasingly competitive. International markets for banana products such as flours. botulism and most notably the BSE crisis. European consumers are cautious with regard to the way their food is produced. salmonella. Since the signing of the Cotonou agreement the EU has made special provisions for Least Developed Countries under an ‘Everything but Arms’ measure. Caribbean and Pacific (ACP) country bananas. which had given preferential access to EU markets for Africa. which replaced the Lome Convention in February 2000 after a lengthy dispute with the USA. This stems from a background of food scares. These trends would appear to offer potential for Ugandan banana producers who currently use largely organic methods of production. Potential is seen for Uganda to benefit as an LDC from tariff reductions for fresh bananas exports to the EU under the ‘Everything but Arms’ measure. These include rising consumption trends for food perceived as being healthy. the removal of preferential access arrangements under the Cotonou agreement is seen to place pressure on some ACP countries to improve their competitive strength in bananas and find new market outlets. This amends the EU General Scheme of Preferences to extend duty free access to all LDC imports. Chiquta are currently looking for possible production sites in African Less Developed Countries from which to supply European Union markets. 7 . However. Central and South America countries that supply importers in North America and Europe.

boiled or steamed and can be mashed before eating. Sweet (Dessert) bananas These are eaten when ripe.3 Types Of Banana Rubaihayo (1993) classified four major types of bananas as cooking. Cooking Bananas (Matooke) The mature fruits are harvested when green. Those commonly found are sukali ndizi (AB group. Farmers plant brewing types where soil fertility has declined. which includes both cooking (‘matooke’) and brewing (‘mbidde’) types. This group constitutes the majority of the East African Highland Bananas (AAA-EA group). also known as the apple banana).3. Beer bananas are found in the AAA. They are peeled. roasting and dessert types. gros michel (AAA group) and cavendish (AAA group). As Lynam (2001) points out the marketing of these fruit (dessert) types is more exacting that cooking types because of increased importance of bruising to fruit quality during the ripening process. 8 . AB and ABB groups. Interviewees suggested the increasing numbers of brewing bananas particularly seen at roadsides are an indication of reductions in matooke yields. Production in Uganda is dominated by the East African Highland cooking banana (Gold et al 2002). Roasting bananas These belong to the plantain (AAB) group. brewing. ripened and squeezed to produce juice that is fermented with sorghum to make beer. Brewing bananas (Mbidde) The fruit is harvested when mature. The fruit is harvested and ripened before roasting and eating.

Since that time production has shifted south and west due to a combination of: i. Kibale on the Congolese border is a notable producer of banana beer. v. iv. iii. ii. Until the 1970’s matooke production was traditionally performed in the central region of Uganda. Declining soil fertility Increase in pest and disease levels Changes in migrational labour patterns Increased competitiveness of growers in the west Cultural attitudes of central region farmers being against own family labour input 9 .3. Key Areas of Major Matooke Production Areas of Major Beer Production Areas of Major Dessert Banana Significant quantities of the dessert types bogoya (Gros Michel) and apple banana (Sukali Ndizi) are produced in Mukono to the east of Kampala.4 Production Zones Matooke production is primarily in the southwest of the country focused around Mbarara and Masaka as shown in the map below.

The survey also shows the Central region as producing the highest levels of ‘other’ banana types. Major Ugandan matooke exports cross into Rwanda with minor flows of roasting bananas reported entering from the Congo. This suggests the presence of beer types. Figure One Production of Matooke by Region 4000 3500 Production ('000 tonnes) 3000 2500 2000 1500 1000 500 0 Central Eastern Northern Western 360 481 18 14 15 192 1687 Matooke Others Banana Types 3363 Source UBOS Ugandan National Household Survey 1999/2000 Major routes for the movement of bananas are show on the map below. These names refer to different sized banana fingers that are from the two different areas in the southwest.000 tonnes or 30% of total matooke output.South-western production areas tend to be at higher altitudes meaning lower incidence of the major pest and diseases namely weevil. ‘Mbarara’ refers to a large finger and is from an area further from Kampala where matooke production is comparatively new. Major trade flows destined for Kampala originate from the southwest. where matooke production has taken place for a longer period of time. This perception is corroborated by traders in Owino market who sell matooke in two grades called ‘Masaka’ and ‘Mbarara’. Significant movement is seen to consumption zones east of Kampala as far as the Kenyan border. which accounts for 61% of total matooke output. Soils around Mbarara are currently seen as being fertile. 10 . The Central region produces 1. verified by field observation. are now suffering yield reduction. which are grown where soil fertility has declined and dessert varieties reported by traders as focused in Mukono district. Market traders stated that south-western areas closer to Kampala. black sigatoka and the most damaging nematode species. ‘Masaka’ is a smaller banana from an area closer to Kampala where matooke production has been longer established.687. Banana production is significantly less common in Eastern and Northern regions where agro-climatic factors constrain production. Ugandan National Household Survey statistics presented in figure one show matooke production to be focused in the west region of the country.

303 9.732 National household survey figures (Table two) show how production is divided between banana types. 11 .622 9.524 1.5 Production Levels Ugandan production levels appear to be gradually increasing (see table one below).428 2001 (Projection) 1.553 1. UBOS Statistical Abstract June 2001 1.570 Production ('000 Tonnes) 9.3. The National Household Survey report attributes the fall over the past five years to drought and the ‘dynamics’ in the producer market. Table One Ugandan Banana Area Planted and Production Level 1996 1997 1998 1999 2000 (estimate) Area Planted ('000 Hectares) 1.538 1. followed by brewing and dessert bananas. The statistics presented appear to suggest that over the past decade more land is being allocated to banana production.949 Source. however this cannot be fully confirmed. Matooke is the main banana produced.598 9.144 9.318 8. This data also shows a significant decline in total production levels.

6 Importance Of The Sub-Sector To Earnings. house thatch and to weave ropes.820 1999/2000 5.164.545.600 110. The commercial removal of bunches means soil nutrient replenishment is important for sustainable production.26 0.Table Two Ugandan Banana Production (Tonnes) Banana Type Matooke Brewing bananas Sweet (Dessert) bananas Total 1995/1996 7.949 9.754.457.000 Average plot size (hectares) 0.134 538. minimal planting cultivation requirements and the perennial nature of the crop mean it can assist in preserving soil structure by reducing sheet erosion and oxidative insolation (Karamura EB in Gold 1991). medicine.724 % (1999/2000) 90% 9% 1% 100% Source: Ugandan National Household Survey 1999/2000 3.908. Poverty Alleviation And Economic Growth Most bananas are produced on small plots of <0.5 ha (Gold et al) details of crop area and number of plots is provided in table three.129.29 0.286 6.984 1. The crop is seen as an all-purpose plant for resource poor farmers who may additionally use it as a mulch. Plot Number and Size Crop Type Matooke Brewing bananas Sweet (Dessert) bananas Crop area (hectares) 449.800 11.000 76.304 46. Continuous cropping of bananas throughout the year offers significant food security and income generation advantages. Table Three Crop Area.000 374. Rural Livelihoods. However.887 383.500 Number of Plots 1.15 Source: Ugandan National Household Survey 1999/2000 12 .

77 8.7 Consumption The East African Highland Cooking Banana is an important food staple in Uganda.69 5.57 8.32 Kampala 6. As no wastage of production has been found as part of this study. the above total consumption figure supports Ugandan annual production figures of five to six million tonnes as opposed to estimates of approximately ten million tonnes.35 Uganda 8.4 – 493.5 kg/year has surpassed that of rural consumption levels. It also displays the traditional high consumption zones in the western and central regions of the country.91 2.56 4.46 0. 13 .15 Northern 0.84 8.27 4.35 Central 8. With a total population of twenty-two million people this suggests total consumption of 4.58 6.54 Eastern 5.000 tonnes.7 0.64 4.95 4.79 3.7 Source: Integrated household survey 1992-1993 A report by the CTA (2001) suggests that per capita consumption in urban areas of 354. Table Four Percentage of Staple Food Consumption as a Percentage of Household Monthly Consumption Region Matooke Cassava Sweet Maize Millet Potato Western 17. The FAO estimated average per capita consumption at 207 kg/year in 1999. Household survey data in Table four shows matooke as the main staple food in Kampala.93 4.4 4.3. It should be noted that matooke is a high cost staple compared with cassava and sweet potato.15 2.67 6.55 1.31 5.87 5.57 7.04 5.554.22 5.83 4.

3. areas of soil fertility and pest and disease should continue to be addressed.8 Production Constraints 3. Beer. Bogoya) appear less susceptible to weevil attack. rotating cropping and improved livestock integration.8. manuring. Priorities exist to establish what changes in soil fertility status are being caused by banana production and what production location shifts are continuing to occur. It is suggested this may include establishing why farmers do not manage soils in a sustainable manner through recognised practices of mulching. incentives to farmers regarding reinvestment in bananas and farmer attitudes particularly towards risk and the future.2 Pests and Diseases Weevils Weevils are commonly seen as the most destructive pest of matooke and are considered the most economically important pest in East African Highland banana plantations. as an unresolved issue. Interventions Support extension and delivery of information to encourage cultural control including: - Use of clean healthy planting material 14 . Lack of nutrient replenishment can lead to a non-sustainable situation reducing yields and productive life. Given the important position of matooke in the diet of Ugandans. To achieve sustainable production. within the time frame of this study. Reduced levels of Magnesium and Potassium may have weakened resistance to banana weevil (Bosch et al 1995). Lack of re-investment in soils suggests farmers view future benefits from any investment as smaller than the current investment cost. Interventions Existing evidence for continued declining in soil fertility caused by bananas is contested and appears. Studies exploring the shifts in Ugandan production found Magnesium as a key constraint with Nitrogen and Potassium deficient on most farms in central Uganda. 3. efforts to ensure sustainability and improve production methods have a high priority. Other banana types (Cavendish. If soil fertility levels are continuing to decline a priority is to establish why and design appropriate responses.8.1 Soil fertility Bananas remove large amounts of soil nutrients with the harvest of fruit bunches. Further exploration is suggested of farmer’s current knowledge of soil management. Results and observations from fieldwork conducted as part of this study support existing concerns expressed by Gold et al for a lack of nutrient replenishment leading to a non-sustainable situation evolving in southwest Uganda.

large plantation owners in South and Central America replaced bogoya (Gros Michel) with resistant Cavendish varieties. Development of nematode resistant banana cultivars is a priority objective of the Ugandan bananabreeding project. sukila ndizi) and for brewing. 15 . pruning.- Paring of corms at planting Destruction of post-harvest residues Trapping of adult weevils. Black Sigatoka This air borne fungal disease was first reported in Uganda in 1989 when it made an economically important impact by causing incomplete fruit filling. (Resistant highland bananas are being developed. This factor may lead to an underestimation of yield loss caused by nematodes. which is sometimes incorrectly blamed by farmers for nematode damage. desuckering.asl and where mean minimum temperatures exceeded 15 Ο C (Tushemereirwe et al 1993 and 1996 from CTA). kayanja (Kangire and Rutherford). e. Support to extension services encouraging good crop husbandry that is seen to lead to a more vigorous plant better able to outgrow attack.g. To avoid this disease. Black sigatoka is considered a key constraint to banana production worldwide and is sensitive to altitude and temperature. The pest is less easily recognised than the weevil. manuring and mulching to produce vigorous plants. Sward strips Nematodes Nematodes are an important banana production constraint worldwide. Interventions Support extension and delivery of information to encourage cultural control including: - Crop rotation Use of clean planting material (removal of roots and outer layer of the corm) Soil amendments through weeding and manuring Continued research into and promotion of resistant cultivars. Diagnostic survey results show black sigatoka to be absent at elevations above 1450 m . Fusarium wilt (Panama disease) In Uganda Fusarium wilt is prevalent on introduced banana cultivars that are used primarily as dessert bananas (bogoya. Resistant hybrids developed from exotic banana do exist with ongoing work suggesting some of these are acceptable to consumers (CTA 2001)). Good crop husbandry such as weeding. Interventions Continued development of resistant cultivars.

which have previously been considered to be resistant to the disease (Kangire et al). Wilt of highland cultivars was only observed in western Uganda at altitudes greater than 1300 meters above sea level and mainly within 30 meters of homesteads. personal comment). including sanitary practices and the use of pathogen-free planting material. Note on Chemical Control of Banana Pest and Disease Interventions relating to inorganic inputs have not been included in the suggested interventions. Availability of chemicals is limited in many rural areas Chemicals are largely unaffordable to small-scale producers Farmers in Tanzania (Kagera) are reported as not being willing to apply inorganic inputs due to previous bad experiences when inappropriate chemical input destroyed crops (Blomme G. less susceptible to pests and diseases the use of inorganic inputs is questioned. With the shift in production zones in Uganda to higher altitude fertile soils.Symptoms similar to those of Fusarium wilt have also been observed on endemic AAA highland banana cultivars. This is due to the following considerations: Banana production in Uganda is largely organic with export opportunities seen to exist in this market niche. animal kraals and garbage dumps (Kangire et al). Further development and widespread implementation of appropriate management strategies. may reduce losses and should be used in support of host resistance wherever possible. - 16 . Interventions Development of host plant resistance Cultural approaches.

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Marketing Constraints

Bulkiness Bananas have a relatively low value compared to their volume/weight which influences transportation cost making commodities with higher value but lower volume and/or weight more attractive. Perishability Bananas are a perishable crop with limited time between harvest and the onset of deterioration. The constraints of perishability and bulkiness have led to efforts to reduce bulk and improve storage through drying and alcohol production. Poor Infrastructure Those involved in transporting bananas highlighted feeder roads as areas for attention as they become impassable in times of rain. The declining yields of plots close to main roads and planting of new areas with poorer transport access will increase the importance of feeder roads. Embrecht et al (1996) ranked poor infrastructure as the number one constraint limiting market development in the majority of rural areas in Uganda. Uganda currently has some main roads in relatively good condition leading to the southwest and central regions. Any further movement of production areas further to the south and west will increase importance of main roads. Previous commodity studies in this series and the recent Transaction Cost Analysis Report (2002 NRI, IITA) have called for the appraisal of, and investment in, feeder and trunk road, which this study supports. Security Traders and Brokers entering rural areas are recognised targets for thieves as they carry large amounts of money. A regularly mentioned deterrent to traders is risk of thuggery. Legal requirements Traders, wholesalers and retailers of bananas and banana products require: - Trading license from the city authority (K.C.C.). - Permit from the area local council from where the bananas, waragi or tonto (beer) is purchased.

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Access to Credit The initial capital required to enter many of the trading roles in the supply chain represents a barrier to entry to those with insufficient funds to make initial investments. In additions to the above constraints of bulk, perishability, poor infrastructure and security the following constraints apply to exports. Air Freight Cost to European Markets Airfreight charges from Entebbe to London are currently US$ 1.50 to 1.70 / kg making Ugandan bananas uncompetitive with Caribbean countries who have better access to the sea ports as a cheaper means of transport. Mombassa to Felixstowe sea freight costs approximately $0.40 / kg. Research by Merck and Icemark – Africa Ltd suggest transport by sea from Kamala to Felixstowe takes approximately thirty-five days. Icemark – Africa Ltd consider this time period as too long to allow sale in Europe before fruit deterioration begins. Continuity of Supply (Market Organisation) For export produce targeting retail or supermarket outlets via air freight there is a need for a regular and reliable flow of produce to meet defined buyer and air carriers’ timetable requirements. A need exists for producers to plan ahead to ensure they supply what the market wants in terms of quality and quantity when it is required. For small-scale producers to meet these market requirements marketing group / cooperative formation is one way of combining and coordinating selling of required volumes. Farmers involved in this planned coordinated marketing will require appropriate capacities that some key informants felt were currently absent. Cooperative marketing arrangements have had a poor past record as incentives exist for individuals to sell independently especially at times of high prices. Another alternative would be exporters developing contractual arrangements with large farmers. These people are seen to possess the resources necessary to produce sufficient volumes, the management skills for contractual negotiation and production planning and have incentives to maintain long-term contractual relationships. Certification for Organic Produce To sell organic produce in Europe a certificate of authentication is required. This has a high cost ($US 5,000 per farm) and is controlled by European institutions. The process of attaining a certificate can take from one to five years. The National Organic Agricultural Movement of Uganda (NOGAMU) is currently active in drawing up a Ugandan national standard with local group accreditation to reduce certification costs. A number of exporters currently cover or subsidize farmer’s organic certification costs. Depending of which European institution is involved; inspectors may have to visit every farm so costs rise with the number of farmers.

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Specific Constraints of Sukali Ndizi Exports to Europe Exports to Europe of sukali ndizi are currently seen to face three main barriers related to inconsistent and poor quality fruit supplied to wholesale markets. These are: 1. Difficulty in controlling and predicting the ripening of sukali ndizi 2. Rough and untrained handling from growers and transporters damaging fruits that are very susceptible to blemish 3. Current Ugandan varieties having the characteristic of forming unattractive skin blotches as opposed to giving a speckled appearance on ripening Investment in research into ripening control and plant breeding for skin colouration characteristic could overcome two of these barriers. Increased farmer / transporter training in handling requirements should assist these people to receive higher prices for their products. One possible answer to the above hurdles is slicing and drying. This opportunity is discussed in section 4.6.

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056 145 1.000.000 348.056 2.475.000 ^^ US $1 = Ug Sh 1800 20 .500 819.962 627.064.000 588.4 4.141 365. Ndizi 4000/bunch.650 15.625 40 290 10.778 7.681 At Roadside Matooke 1.370 At Entrance 800 20 150 970 Nakawa Market Total Daily Volume 1500 35 385 430 Total Annual Total Annual Volume Retail Value US (Tonnes)* (Ug Sh)** Dollars^^ 13.729 1.500 50 90 821 344.000 202.500 2.608.605.800 3. calculated at Matooke 4500/bunch.241.335 28.675 6.585 1.125.278 127.729 250 1.000.000 191.105 4.390 37.645 Total Annual Total Annual Kafumbe Road Total Daily Volume Retail Value US Volume (Tonnes)* (Ug Sh)** Dollars^^ spot 650 1.316.972 3.500 2.500.750. Prices and daily volumes are averages that vary according to season.5 kg bunches equals one tonne ** Values are retail.000 1.200 Bogoya 20 S Ndizi 150 Total 1.925.000 4.463.281 730.368.467.058.1 DEMAND ANALYSIS Size of National Markets The three main markets for bananas were visited in Kampala.323 555.505.337. Volumes of the three main banana types traded in these markets are shown below in table five. Table Five Volume and Market Values For Three Main Kampala Markets Kalerwe Market (Approx number of bunches / day) Locations at Market Total In Fresh Items Total Daily Annual Total Annual US Section (Within Volume Volume Retail Value Dollars Market) (bunches) (Tonnes)* (Ug Sh)** ^^ 1.750.000 250 145 250 1.800.000 70.000 3.778 20.625 200 500 2. Bogoya 10500/bunch ^ One sack of Matooke equals approximately 100kg with a value of Ug Sh 10.710.425.188 Bunches Matooke Sacks^ Bogoya Bunches S Ndizi Bunches Total * Annual volume in tonnes is calculated at: Matooke and Bogoya: 40 x 25kg bunches equals one tonne Ndizi: 80 x 12.000 1.800 34.229 Bunches Matooke Sacks^ Bogoya Bunches S Ndizi Bunches Total Owino / Balikuddembe Market Locations at Market Fresh Commodity yard 1.712.750 1.694.812.689.500.688 2.556 2.513 1.500 308.440 4.778 690 2.512.050 4.000 405.

This represents a healthy rate of demand growth of thirty two percent over eight years.803 2. Mondays and Wednesdays. Predicted annual volume figure calculations for market turnovers in 2010 are based on 2002 volumes.098 89 86.384 67 7.756 Matooke Bogoya S Ndizi Total Combined volume figures for the three markets are given in table six. These population dynamics are seen to raise market turnover that is closely related to consumption by 27.657 141 7.247 2. Table Six Combined Present and Future Volumes for Three Main Kampala Markets Total Number of Total Weight Total Number of Total Weight Bunches 2002 2002 (Tonnes) Bunches 2010 2010 (Tonnes) 75. Main sources of supply to this market for dessert banana are Mbarara and Kyagwe (Mukono).282 1. It is suggested that the three markets represent approximately twenty percent of total Kampala consumption.In Nakawa market major delivery days for bogoya and sukali ndizi are Saturdays.882 99.458 186 5.480 tonnes per annum.323 2. 21 .091 113. annual population growth of three percent and an increase in urbanisation from sixteen percent to twenty two percent of the population.481 5.

The tastes of Congolese Bantu related tribes favour matooke as a dietary staple. Results from the Rwandan component of this regional study suggest significant volumes of Ugandan matooke entering Rwanda. Kenyan figures are presented in two figures below. Some observers view the Congo as a potential export market for Ugandan matooke if Congolese purchasing power increases.4.2 Size and Growth Rates of Regional Markets Kenya Data is gathered by the USAID funded Agribusiness Development Centre (ADC) IDEA project at selected Ugandan border points for volumes and values of bananas. Figure Two Volume of Ugandan Exports of Apple Banana and Bogoya to Kenya 1200 1000 800 Tonnes 600 400 200 0 2000 2001 2002 Year Figure Three Value of Ugandan Apple Banana and Bogoya Exports to Kenya 600 Value Millions Ugandan Shillings 500 400 300 200 100 0 2002 Year Data Source: ADC IDEA Project 22 . ADC data shows fluctuating trade with Rwanda with data not collected since mid 2001. Key informants report small levels of Ugandan imports of roasting banana from Congo. a period of political tension between the two states. Minimal banana trade is seen with Tanzania.

The following taxes existed on Ugandan banana exports to Kenya at January 2000: 3.According to findings from the Rwandan marketing survey in this series an approximate total of 12. Uganda is seen as having few competitors in supplying bananas to western Kenya where the environment is unsuitable for production. This mainly comprises matooke. Lwakhakha and Malaba border points show a fall in total export volumes of 27% from 9. Trade Point:. trends in available data (2000 to mid 2002 shown in figure two) suggest volumes of sukali ndizi and bogoya are flat with volumes increasing towards the end of the year.Figures for Ugandan exports to Kenya.433 tonnes of matooke exports crossing to Rwanda (ADC Idea Project).000 tonnes in 1997 to 6. Figure two and three support ADC field staff observation of rising prices for bananas in Kenya. Interestingly.5% Import duty 2.75% Declaration form payment 1 Kenyan shilling per kilogram horticultural tax. Ugandan dessert banana exports can be consolidated by improvements in product quality and information flows. 23 . Disaggregated data shows sukali ndizi and bogoya types to form over ninety five percent of these exports. ADC data collectors suggested trade with Kenya in sukali ndizi and bogoya had improved. Rwanda Data gathered at Katuna border point for nine months from January to September 1999 shows 2. Trade Point:.500 tonnes of bananas crosses from Uganda into Rwanda annually.600 tonnes in 2001. which include matooke. sukali ndizi and bogoya banana passing through Busia. It should be noted that data sets include informal estimates of both quantities moving by minor trade routes and values of bananas. Further exploration of volumes and prices is suggested to increase the time span and quality of available data. The Rwandan banana market study suggests this export market as having potential for expansion.Ugandan dessert banana exports to Kenya appear to present a good long-term opportunity for Uganda. Trends in the total value of monthly trade appear to be rising (figure three). Exchange rate movements between the Kenyan and Ugandan Shilling between 2000 and mid 2002 suggest a slight depreciation of the Ugandan Shilling making Ugandan exports more attractive.

A small expatriate Congolese based market is suggested in Belgium.990 4. reduction of EU tariffs under the ‘Everything but Arms’ arrangement could assist further sales growth.981 4.237.654.338.533 4.Val (1000$) Source FAO 1995 13.317 4.479.530 14.122 Year 1997 1998 14. FAO data presented in table seven shows an increase in volumes from 1995 to 2000 of seven percent while total market value has declined over the same period by eight percent. London. dependant upon the number of Ugandans living in the UK. However the export volume rises seen above question this hypothesis.789. other ethnic groups such as West Indians increasing matooke consumption and matooke increasingly being transported to other European countries. Although matooke exports are a small proportion of total Ugandan production.569 5.4.413.038. Figure Four Fresh Matooke and Apple Banana Export Volumes 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 J FMAMJ J ASOND J FMAMJ J ASOND J FMAMJ J ASOND J FMAMJ J ASOND J FMAMJ J ASOND 1997 1998 Matooke 1999 2000 Apple Banana 2001 Source: Civil Aviation Figures supplied by IDEA project The UK market for matooke is considered fixed.185. Table Seven World Markets for Banana and Plantain Bananas and Plantains Exports .4).861 2000 14.447 5.993 1996 14.000 (52 tonnes multiplied by US$ 3/kg).950.000 (at one tonne equals US $2.357 In this increasingly competitive market ADC IDEA project figures suggest that Ugandan matooke volumes have risen. Suggested answers are increased consumption by expatriate Ugandans. The value of 2001 matooke exports is approximately US $2. Kg 24 .Qty (Mt) Exports .131 1999 14.500) Sukali ndizi exports have not performed so well with volumes shrinking from 144 tonnes in 1997 to 92 tonnes in 2001 (Prices are discussed in section 4.786. The approximate annual value of this volume fall for sukali ndizi is US$ 156. The main export market for Ugandan bananas in Spitalfield.080. In 2001 Uganda exported 832 tonnes of matooke from a level of 451 tonnes in 1997 (see appendix three).878.3 Size and Growth Rates of World Markets The world export market for bananas is increasingly competitive.674.

4 Market Price Trends Local Markets The following analysis of Kampala matooke prices follows methodologies used in the FoodNet Cassava market study performed in 2000. The GSI result shown below is again based on data from September 1989 to January 2000. The grand seasonal index (GSI) shows seasonal patterns that remain once random.00 250.4.6055x + 169.00 450. 25 . Real Retail Prices for Selected Commodities (Kampala) 500.00 400.00 Price Ugandan Shillings 300. and the two other frequently harvested crops of fresh cassava and sweet potatoes.6 200.00 350.00 50. This suggests supply volumes have been more stable over the time period considered and not as subject to pest and disease attack or abnormal weather conditions as the other two crops. fresh) Linear (Matoke) Linear (Sweet potatoes) Data Source: Ugandan Bureau of Statistics Seasonal retail price movements for matooke in Kampala are shown in figure xx below.15 y = -0.3824x + 245. Matooke prices exhibit less price variation compared to the other two commodities.00 y = 0. cyclical and trend elements have been removed from price series. Figure Five.55 y = -0.00 100. Details of these methodologies can be found in Trotter (1992).285x + 214.00 0. fresh Linear (Cassava.00 150. Real matooke prices appear to slightly decline over the time period suggesting supply increasing faster than demand. Data is for Kampala between September 1989 and January 2000. Figure five below shows real retail food prices (adjusted for inflation) for matooke.00 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Matoke Sweet potatoes Cassava.

prices are highest at Christmas and Easter when consumers increase consumption. Additionally any processing of matooke could best be designed to take advantage of low cost price periods. This price pattern is due to two main reasons.50 and US$ 4.00 to US$ 2. Price movements are significant with index results showing a forty percent rise (based on the mean price) between August and December.46 per kilogram over the same period and markets. London appear as relatively stable throughout the year varying approximate between US$ 2. Trade Point:. Matooke appears to be a preferred food as people who would normally consume cheaper alternatives are said to save money to eat matooke during these festival periods.6.Potential exists to increase production to meet highest price periods. which appears as a major constraint.Results show a twin peaked pattern with high prices in April and December and notably low prices experienced in June to September. Figure Six. Some traders felt farmers exhibited some production response to price by withholding supply for relatively short periods leading up to Christmas. Otherwise farmers are not seen to take any action to attain the higher prices for their production. Grand Seasonal Index from Kampala Matooke Retail Prices 125 120 115 110 GSI 105 100 95 90 85 80 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Data Source: Ugandan Bureau of Statistics International Markets Prices for matooke over a two-year period to March 2002 in Spitalfield market. 26 . Sukali ndizi marketing constraints are discussed in section 4. a period of normally dry weather that puts plants under water stress and stimulates bunch production. Market reports suggest this is due to variable quality.70 per kilogram (see appendix four). Secondly supply is highest from June to September. Sukali ndizi prices fluctuate widely between US$ 0. These results confirm responses from key informant interviews. Firstly.

1996 from CTA). Monday and Sunday being the main delivery days.4. It is estimated that approximately two million litres of local waragi are traded in Kampala with a retail value in the region of three billion shillings (US $1. There are two types of waragi. Mpigi. Masaka.744. 27 Wholesale 25. Rubaga Road. Consumption is reportedly increasing especially in the heavily populated urban areas of Kampala including: Kamwokya.000). a local banana based waragi called ‘Kasese’ and a factory processed waragi. Local Waragi “Kasese” Production areas for local waragi include Kibaalee Fort Portal. Fort Portal. This company used to use local banana based waragi in the production process. which may be consumed at home. Namuwongo and Nsambya. 000-28. Ndeeba. Main production areas include Mityana. Mbarara. Mpigi and Kasese. Tonto Locally brewed banana beer Tonto is made from the juice of beer bananas. Lira and Kitgum in the northern region. Trade extends to Gulu. Kampala trade depots.Congo and Kenya are illegal but are seen to occur. Pricing differs according to the level of distillation. Table Eight Approximate Kampala Prices of Local Waragi Off Lorry ‘Regular’ 20 -22. Regional exports to Rwanda. Wakiso. during different traditional ceremonies or sold. Transport is by truck with Saturday. Volumes of illegal exports are not known. D. Luwero.000 29. Kiboga.000 32. Kisenyi. These beverages are waragi a distilled spirit and tonto a banana beer. Trade is done in twenty litre jerry cans.R. 000 . Masaka. Millet is added during the brewing process. Kampala is the centre of trade. Rural households in banana growing regions traditionally brew this beer. Kibaale. Jinja is a centre for distribution to Eastern Uganda. Mubende. Uganda Breweries is a significant producer of factory-produced waragi and currently use sugar based raw alcohol with added flavourings. Alternatives include sugar or molasses based material. with approximate volumes and values of local waragi traded are shown in appendix five. discontinuing this practice for cheaper sugar based alternatives.000 Prices are for twenty litre jerry cans Factory processed Waragi Factory produced waragi can use banana based raw alcohol. There are two main levels of distilling called ‘regular’ and a higher alcohol content version named ‘super’.000 ‘Super’ 27.000 Retail 27. Mbarara and Rakai.5 Major Products The only pronounced form of banana processing is beverage production (Aked and Kyamuhangire. The brew is transported in twenty litre jerry cans on trucks of sale. Approximate prices are shown below. Kibuli. 000-30.

Roasting Banana According to the findings from the survey. Makerere and Banda.125 per finger. Other raw materials used include water and sorghum.000 ‘Regular’ 5. Prices in Kampala are shown in table xx below. it can be distilled to waragi when past its shelve life. would suggest a decline in tonto consumption. 000 One large bunch of beer bananas valued at Ug Sh 1. Rural prices are around Uh Sh 200 per litre.000 Retail 12 .000). Estimated weekly trade volumes and values for Kampala markets are shown in appendix five.10. Rising average incomes in Uganda.167 per finger. Nsambya. Table Nine Approximate Kampala Prices of Tonto Off Lorry ‘1st grade’ 6 . 28 .There are various temporary depots in Kampala where retailers collect tonto.75 tonnes per week or 975 tonnes per annum. Bwaayise.7.2 kg of sorghum Tonto can be stored for approximately seven days before it becomes bitter. Because of its mode of preparation.000 (US $ 150. this means sales volumes of 18. Kibuli.4 million litres of tonto are annually traded in Kampala with a retail value in the region of eight hundred million shillings (US $437.250. Rubaga. The total demand for roasting banana countrywide could reach 1. it is estimated that 750 bunches of roasting bananas are sold retail through major roadside markets every week.700 Tons per annum. Namuwongo.500 – 1.10. Natete. Twenty two litres of tonto requires approximately 1.000).000 6 . tonto is largely considered to be an inferior drink. The major consumption areas in Kampala are the poorer more densely populated parts of the city namely Kasubi.100 . Bunamwaya. 125 . Road.000 is capable of making 20 to 22 liters of tonto.7. assuming equitable income distribution. However. One bunch has forty to fifty fingers that are bought by retailers at an off lorry price of Ug Sh. It is estimated that approximately 1. Wednesday. Following roasting on a charcoal fire the retail price is Ug Sh. Main trading days are Monday. considering that some it doesn’t go through formal markets. Using these figures an approximate annual retail value for this roadside market is Ug Sh 263. Saturday and Sunday.000 8 .13.000 Prices are for twenty litre jerry cans Wholesale 9 . If a bunch weighs 25 kg. People are seen to switch to alternative forms of alcohol as incomes rise.

Exporters report the variety ‘Kibuzi’ as popular in UK markets. Waitrose. natural products. Removal of EU tariffs under the ‘Everything but Arms’ measure should assist further growth by removing a barrier to European mainland markets. The USAID Agribusiness Development Centre IDEA project in Uganda has considered support to this sector and would revisit this if growers were organised and could develop a business plan. such as Uganda. Organic. These are seen to offer potentially important opportunities for developing country exporters where food production is organic. a leading UK supermarket chain. Wholesale markets have lower quality requirements that Ugandan exports should first achieve before moving to the more rigorous challenges of catering and retail outlets. This variety can be sliced longitudinally giving a unique appearance. ethical sourcing 29 .6 Overview of Market Potential for Banana and Banana Based Products This section provides a summary of the market potential for banana and banana based products in a range of uses locally. International Export Markets for Naturally Dried Bananas Ugandan exporters currently see most potential for naturally solar dried or semi dried chips produced from sukali ndizi. Key informants currently involved in exporting fruit felt most potential exists for Ugandan fresh and dried sukila ndizi within this organic / health market segment. regionally and internationally. International Export Markets for Matooke UK matooke sales show a rising trend for volume with constant prices.00 to US$ 19.1% in 2000 (Carlton 2001).2% of total fruit sales to 7. Exporters of organic solar dried sukali ndizi reported prices of US$ 15. Areas with Good Potential to Increase Banana Sales in the Near Future (<5 years) International Export Markets for Fresh and Organic Fruit For European markets a lasting trend in the food sector is that healthy. is reported to have organic fruit sales growth from 1. environmentfriendly and organic products are becoming increasingly important in the EU. chocolate and sweets are most often bought” (Carlton et al 2002). The organic food sector in the UK is reported to be growing at 40% per year with 69% of organic produce sold in supermarkets (Carlton 2001). A market survey examining dried fruit market potential in Europe sees opportunities in health snack markets particularly if naturally dried fruits can be marketed in “an appealing way through the sales outlets from which snacks.00 per kilogram in Swiss and German markets. Market information providers quote UK retail prices of US$ 10 to US$ 15 per kilo for Tropical Wholefoods sun dried banana chips in April 2002.4. A suggested strategic approach is to initially focus on wholesale markets before any movement to targeting catering / retail / supermarket outlets.

Local Roasting Market Plantain (‘Gonja’) is roasted and sold at roadsides or in markets by small traders. Similar market prospects to matooke. expatriates and wealthy Ugandans. Pancakes (Kabalagala) A traditional food made from ripe bananas and cassava flour. Ugandan Market for Locally Brewed Waragi ‘Kasese’ Traders involved in supply of local waragi felt demand was increasing. constant to moderate growth foreseen. Banana paper Banana paper made from banana fibres.and fairtrade markets are suggested by Carlton et al as areas for technology. managerial and operational development. Future growth in Ugandan incomes and tourism are seen to influence market potential for these product types. Increase in traffic along major routes has potential to increase consumption of this type of banana. Rwandan Market for Matooke The Rwandan banana market survey (Ferris et al 2002) suggests a growing market for Ugandan matooke in Rwanda. Urbanisation will increase demand with any income growth especially by poorer and middle-income families viewed as beneficial to matooke market prospects by making unexpressed demand effective. Locally a relatively small market is seen selling to tourists. Large banana producing countries are seen to have a competitive advantage on international markets. No official / reliable price or volume records were found as part of this study to confirm growth trends. 30 . Sectors Currently Viewed as having Moderate Potential for Growth in the Foreseeable Future (>5 years) Local Market for Matooke The local Ugandan market is viewed as stable with low levels of volume growth and constant to falling real prices providing no serious disturbance to production occurs. Seen as an inferior good compared to wheat flour based cakes and biscuits. Research investment in this area is seen as having negative social implications. West Kenyan Market for Bogoya (Gros Michel) Ugandan based survey results suggest rising prices and values particularly for bogoya exports to Western Kenya.

which can be consumed fresh or fermented to local beer/wine. would suggest a decline in tonto consumption. Rising average incomes in Uganda. These countries are seen to have significant cost advantages Cosmetics i. Replacement flour in bakery products. Banana flour is used experimentally as a potential partial replacement for more expensive flours in bread. No evidence for commercial uptake has been discovered by the study in Uganda for this alternative. On international markets large scale producers such as South and Central American countries are seen to have a competitive advantage in bi-product markets as their quantity of fresh banana rejects gives them a negligible raw material cost for making flour. In 31 . People are seen to switch to alternative forms of alcohol as incomes rise. Again cheaper raw material costs in from South and Central American countries are seen to have cost advantages on world markets. In local markets.Sectors Currently Viewed as having Low Potential for Growth in the Foreseeable Future (>5 years) Juice Selected highland and exotic types can be ripened and squeezed for juice. Banana flavourings / essences Bi-products from Uganda will have to compete on world markets against products from the large plantation countries. Tonto (beer) Viewed as an inferior good compared to bottled beers because of its mode of preparation. cassava flour represents an alternative that is easier to grow on poor soils and requires minimum crop husbandry / management. use in Body shop products Large plantation countries are seen to have the advantage. To compete Uganda would have to make advantage of its largely organic production systems. Short storage period limits market to a local rural level. Banana pulp Research at Makerere University has taken place to produce a dried banana pulp (flour) that can be stored and later re-hydrated and eaten as a matooke substitute. Banana flour used as a constituent in baby/weaning foods Constituent banana flour is seen to have to meet significant health and hygiene requirements to be used in baby and weaning foods.e. cakes and biscuits. assuming equitable income distribution.

the past this was seen to have food security enhancing potential as a food reserve against famine. 32 . Fresh matooke is preferred to the re-hydrated product by consumers. Since this research. Ugandan food production has risen. largely removing the threat of famine.

A general picture was of producers having to sell bunches when ready to meet necessary household expenditure. Figure Seven. sales can be made to passing vehicles including those of brokers or wholesalers. the radio or interaction with other traders. 33 . Negotiation is based on finger and bunch size. The Banana Supply Chain Farmer Bicycle Transporter Rural Retailer Rural Consumer Broker at Road Side Collection Centre Exporter Wholesaler Key Urban Retailer Major Flow Minor Flow Export Market Farmers Urban Consumer Many small scale producers exist who sell bunches of bananas to bicycle traders. Traders mentioned some producers holding back supply for two to four weeks at times of rising prices. banana type and variety. if the farm is conveniently situated next to a road.1 SUPPLY ANALYSIS Analyse of the supply chain Figure seven below shows a generalised picture of the major participants in the banana supply chain. Farmers were aware of consumer preferences for different varieties of matooke such as Nakitembe and Kibuzi. Farmers were found to receive price information from visiting collection centres.5 5. These participants are discussed individually below. Price negotiation is usually performed before the bunch is cut from the plant after which cash is paid and the bunch removed. The farmer is seen to have limited bargaining power as bunches cannot be retained for any significant period of time.

Bicycle Transporters Bicycle transporters buy from dispersed farmer plots and sell to brokers at collection centres or traders in towns. In this case. Large bunches are preferred with one bicycle able to carry up to seven bunches depending on bunch size. Transporters have some control over price in negotiations with farmers especially if other traders do not visit that farm. Bunches purchased are graded according to size and type. increasing prices to farmers and reducing final consumer price. Brokers are in regular contact with farmers who visit collection centres. Many bicycle transporters supply each collection centre. Collusion and informal cartels between brokers can also restrict new entrants wishing to transport bananas. Wholesalers can contact brokers to adjust amounts using phones or truck drivers to deliver messages. Barriers to entry for people wanting to enter this role include the capital required to rent and fill a truck.5 million (US $ 850) for a ten tonne truck capable of carrying six hundred bunches. The small number of brokers and the market information available to them give brokers some ability to influence price. They are seen to have good price information from urban centres. interaction with other traders and the radio. These sacks allow more small bananas to be carried on trucks. A disincentive for brokers is that having to carry relatively large amounts of cash makes them a target for thieves. Competition exists between these people and barriers to entry appear low. Brokers A small number of brokers usually operate at collection centres in production zones where they purchase sufficient bunches to fill rented trucks that are usually destined for Kampala. Wholesalers may engage in vertical integration by renting trucks to collect bananas from production areas to capture brokers margins. truck drivers and wholesalers. These activities should be encouraged as a way to reduce broker margins. bicycle transporters. However at the collection centre they have less power as they cannot store bananas or easily take them elsewhere. This is estimated at approximately Ug Sh 1. 34 . Mobile phones are seen to have improved broker to wholesaler contact. Matooke bunches with small fingers have the fingers removed and put in sacks. Some brokers have repeated delivery schedules whereby regular numbers of bunches are delivered to different urban-based wholesalers at different locations usually in and around Kampala. the broker will rent the lorry and organise loading. This occurs at times of high urban prices when wholesalers and other traders will transport bananas. Typically trucks contain at least ninety percent matooke with bogoya and sukali ndizi filling the remaining space. Wholesaler Kampala based wholesalers purchase bananas from broker lorries and sell bunches to urban retailers or directly to consumers. Informal collusion between brokers is seen to increase their market power allowing them to maintain their high gross and net margins (see table xx).

Small matooke fingers tend to be arranged in piles and sold in smaller quantities to people who use public transport. The exporters vary in their levels of sorting. wholesalers or producers / bicycle transporters living close to borders. Barriers to entry include a local council letter of approval. For European markets. A wide variation of between one to two hundred wholesalers can operate in a large Kampala market who trade around eighty bunches per day. These organisations purchase in urban or rural markets or receive deliveries by farmers or traders to their premises.Trucks usually arrive in Kampala in the early morning when unloading and distribution of bunches to retailers is performed. The final consumer price is negotiable. pack and label produce which is flown to Europe. Most consumer trade is done in the evening and matooke bunches are not usually stored overnight. Luwero). Rwanda. Matooke retailers buy from wholesalers in the morning at a price largely determined by market levels of supply and demand. For matooke the variety Kibuzi is preferred by UK based consumers. These bananas may be grown by the exporter or purchased from out growers who the exporter registers as organic producers. No evidence of price collusion between retailers was found as part of the study. 35 . Bogoya and sukali ndizi are sold in hands. Tanzania or the Congo can be performed by brokers. which are reported to be new in some cases (i. Three main exporting organisations exist for organic bananas. Some retailers access credit from micro finance institutions others receive daily credit from wholesalers. market authority registration and space in the market place. Interviews suggested stronger competition between wholesalers than between brokers. Wholesalers may extend credit to retailers for a day allowing them time for sale. variety and size. Some market retailers were found to have their own associations. grading and packaging of produce. For matooke large bunches with big fingers are generally sold to wealthier people who have their own transport.e. No significant collusion occurs between different wholesalers to fix prices. it is estimated that ten to fifteen trading organisations arrange matooke and sukali ndizi exports. They grade bananas by type. Exporters Regional exports to Kenya. One of these exporters deals in fresh sukali ndizi and all three companies export solar dried sukali ndizi and/or bogoya. usually by separate specialised traders for these banana types. These exporters grade. Urban Retailer Relatively large numbers of specialised banana retailers sell at roadsides or within markets sites. Consumer price will rise through the day if demand is strong or fall if few buyers are present in the market.

Table ten gives correlation coefficients for towns in south-western and central Uganda where we would expect to see moderate and strong correlations between market prices.8 suggest high correlation.59 0. Bicycle traders visiting these people are viewed as having an advantage in price negotiations. correlation coefficients are used to examine if price movements from different towns are consistent with one another.55 1. Mobile phones and text messaging have potential to improve information exchange between participants in the different markets.8 are said to show moderate levels of correlation. while coefficients between 0.82 0. Isolated farmers who do not visit markets possess the least up-to-date market information.74 0.00 RAKAI 0. coefficients of over 0.00 LUWERO 0.70 1.62 0.62 1. Correlation coefficient values close to one indicate movements are similar. Following conventional practice (from Collinson et al). Correlation Coefficients for Matooke Prices in Selected Towns KABALE KASESE LUWERO MASAKA MBARARA RAKAI KABALE 1.18 0.00 MASAKA 0.61 0.76 0.69 0.6 and 0. while those close to zero show no similarity in the direction of movement. which has potential to further increase levels of market integration discussed above. Fieldwork performed during this study shows brokers as having the best market information due to interaction with and connection to most parts of the market chain.33 1.00 Source: Calculations based on FoodNet price data Sept 1999 to April 2002 The correlation co-efficient levels found suggest good information flow between markets.65 1.00 MBARARA 0.00 KASESE 0.56 0. High correlation levels are shown in blue with moderate levels given in green.5.2 Market Linkages To measure market linkage. The majority of market co-efficients show moderate integration suggesting price movements and therefore supply and demand patterns are similar.76 0. 36 . Table Ten.

400 1. 889.400 237.000 Ug Sh / Ha Under family labour Ug Sh / Ha 1. 5. These margins would appear to be attractive to farmers with fieldwork and secondary data suggesting production as rising.200 Ug Sh / Ha 1.3 Production costs Banana production in Uganda is associated with a number of farming systems including.5.800 836.100 356.400 533.370. This suggests possible producer gross margins in excess of one million shillings per hectare.400 237. These farmers were also unlikely to pay for manure or mulch instead using on-farm waste. Pure stands are not common among smallholders (CTA).000 incurred once in three years. Gross Margins Under Hired and Family Labour for Matooke Under hired labour Ug Sh / Ha Total Revenue Costs Labour Animal manure Mulch TOTAL COSTS 479.900 296. Table Eleven. To provide an indication of production costs.4 Trading Costs and Margins in the Supply Chain The information provided below in Table twelve is an indication of the costs and margins incurred by participants in the banana marketing chain.000 per tonne Animal manure calculation is based on a cost of Ug Sh. banana-coffee and banana-millet.200 incurred once in three years. the following gross margin analysis uses figures collected by NARO / ADC in 1998 for Kisekka subcounty in Masaka district. as found by a rapid survey performed in May 2002.000 Gross margin Notes: Total revenue calculation is based on production of 27. Costs and returns are for banana trading between south western Uganda (Mbarara and Masaka) and Kampala.4 tonnes per hectare sold at Ug Sh 50. Fieldwork interviews suggest that the above gross margins may be understated as labour costs for the limited number of farmers interviewed were approximately Ug Sh 200.000 per hectare per year. Mulch calculation is based on a cost of Ug Sh 712. Source: Banana Production Manual NARO / ADC IDEA project Figures used are illustrative as prices and volumes fluctuate. 37 .013.300 296.370.

Table Twelve. Trading Costs and Margins Matooke Ug Sh / % Of selling Bunch price Farmer Selling price Bicycle Transporter Purchase price Selling price Gross margin Costs Market Cost TOTAL COSTS Net margin Broker Purchase price Selling price Gross margin Costs Market Costs at Collection Center Labour to Load Truck* Truck rental** Damaged during Transport^^^ TOTAL COSTS Net margin Wholesaler Purchase price Selling price Gross margin Costs Market Tax at Kampala Labour to Unload Truck*** TOTAL COSTS Net margin^ 100 50 150 600 16% 100 50 150 850 28% 100 50 150 850 12% 3000 3750 750 2000 20% 3000 1000 33% 6000 7000 1000 14% 200 33 667 0 900 600 20% 200 33 667 70 970 330 17% 200 33 667 400 1300 700 12% 1500 3000 1500 50% 700 2000 1300 4000 6000 2000 100 100 650 43% 100 100 200 29% 100 100 650 16% 750 1500 750 50% 400 700 300 43% 3250 4000 750 19% 750 400 3250 Sukali Ndizi Ug Sh / Bunch % Of selling price Bogoya Ug Sh / Bunch % Of selling price 65% 33% 38 .

Retailers sell small fingers in piles that weight 4.000.000 to 8. Wholesalers in Kampala (Kalerwe market) are said to deal in forty-to-eighty bunches of matooke per day. A broker may be able to organise more than one truck per day and if so can make attractive daily incomes. These figures suggest net daily profit of between Ug Sh 24. Breakdown of the bunch and bagging is performed at the collection centre in the production zone to reduce transport bulk. Bicycle transporters are reported to be able to carry up to eighteen bunches of matooke per day depending on season. distance and bunch size. If this is assumed as all matooke a net profit of Ug Sh 360. Lack of coordination by wholesalers was mentioned as a reason for oversupply and subsequent 39 .000 total cost to load 600 bunches ** Based on Ug Sh 400.000 per bag.5 to 5 kg for Ug Sh 500. ndizi and bogoya Prices and costs shown above are mid point values based on supply chain participant responses.700 as achievable.Urban Retailer Purchase price Selling price Gross margin Costs Market fee^^ Storage loss^^^ TOTAL COSTS Net margin^ 50 0 50 700 16% 50 300 350 650 16% 50 700 750 2750 26% 3750 4500 750 17% 3000 4000 1000 7000 10500 3500 25% 33% * Based on Ug Sh 20. This suggests daily net margins of Ug Sh 11. Sales of two to four bags per day suggest retailer daily net profits of Ug Sh 4.000 as possible. Brokers can carry approximately 600 bunches per truck. Gross and net margins per bunch before storage loss for retailers of sukali ndizi and bogoya are expected to be greater than those of matooke as losses from ripening can be significant (fifty percent was quoted during interviews although a more conservative ten percent loss is allowed for in the above calculations).000 and Ug 48. Retailers of matooke bunches make approximately Ug Sh 700 per bunch.000 total cost per truck carrying 600 bunches *** Based on Ug Sh 30.000 per load is possible. These are generally large bunches of large fingered bananas which command a price premium per bunch. Transport and storage losses for matooke are reported as minimal. These are purchased from wholesalers in bags of 100 to 110 kg that cost around Ug Sh 8.000 total cost to unload 600 bunches ^ Before income tax and payment of trading licence ^^ Based on Ug Sh 7000 pre month selling five bunches per day for twenty seven days ^^^ 10% of purchase price for S.

Over ripe sukali ndizi can be sold to makers of pancakes. Recent enforcement of government regulations banning street vendors (hawkers) was said to have negatively influenced sales. as street vendors no longer buy from retailers for this trade. Ensuring low barriers to entry into these markets should ensure excessive margins are eroded through competition. Discouraging cartel type collusion between existing brokers and ensuring credit agencies can operate in these markets to provide necessary working capital are ways of lowering barriers to new entrants.high rates of loss. depending on volumes traded. 40 . Results from the analysis suggest that brokers can make attractive daily net profit margins. Encouraging farmers (or their family members) to perform the bicycle transport role would help producers capture additional margins and give them improved market information.

000 (US $ 168) per load. Matooke varieties are being planted further from main roads increasing reliance on muram roads which are more susceptible to rain damage. – Farmers do not time their production to meet these predictable price spikes 4. – Informal collusion by brokers is suggested as a means of reducing competition from new entrants and ensuring margins. Results suggest falling matooke yields in areas where production is well established (Masaka) with new areas being planted in the southwest further from urban centres (beyond Mbarara). particularly in rural areas. 41 . – Significant annual price variation is seen to follow a cycle reaching a peak in December and lows in August. – Brokers and traders carrying large sums of money are targets for theft. Farmers show little or no production response to predictable and significant annual price movements. Fusarium wilt is a major deterrent to investment in sukali ndizi and bogoya (Gros Michel) production.6 MAJOR FINDINGS Local Markets 1. 3. – Barriers to entry for supply chain participants include local council approval. market authority registration and sufficient space in the market place. – If soil fertility is continually eroded it has serious negative food security implications related to this staple crop. 2. – Sukali ndizi and bogoya are susceptible to Fusarium wilt that currently has no known cure and can devastate plantations. Land next to main tarmac roads is increasingly planted with beer varieties that tolerate lower soil fertility levels. – Production appears to be moving further southward and westward away from Kampala due to declining soil fertility. Daily incomes for brokers appear as attractive when compared to average Ugandan income levels. – Brokers renting ten tonne trucks holding six hundred bunches can make net profits in excess of Ug Sh 300.

or are influenced by. – Minimal potential is seen for Ugandan bananas in alternative food / industrial uses that compete on. Ugandan regional export opportunities appear for matooke to Rwanda and dessert varieties to Kenya – Increasing potential is seen for Ugandan exports of matooke to Rwanda. Increasing international competition is foreseen in banana alternative product markets including fibre craft products and processed goods. World banana markets appear as increasingly competitive. International market potential is suggested for ‘naturally’ dried sukali ndizi. – Solar drying technology challenges exist for Uganda to dry increasingly large volumes consistently when weather conditions may not be favourable. – Introduction of the Cotonou agreement will open new markets in the European Union for Latin American producers and increase pressure on large Caribbean producers to be more competitive.Regional Markets 5. world markets. Market potential for Ugandan bananas is suggested in markets segments that include organic or health focused fruit and ‘naturally’ solar dried bananas. Recent changes in European Union banana policy reducing preferential access are seen to further increase competition. – The recent ‘Everything but Arms’ measure will reduce EU tariffs on fresh bananas to zero for Uganda by 2006. 7. 8. 42 . – European consumers are seen to favour food perceived as being healthy. – International banana markets are found as having increasing volumes and decreasing total values. – Exporters of dried sukali ndizi suggest most potential exists for organic solar dried produce. organic food and food produced in an environmentally conscious manner. Current volumes are estimated at twelve thousand tonnes per year. – Rising prices and falling volumes of bogoya and sukali ndizi exports to Kenya are found due to exchange rate changes?? Check exchange rates International Markets 6. Ugandan banana production is currently largely organic.

Market reports suggest this is due to variable quality.46 per kilogram over a two-year period to March 2002. If quality can be improved UK market prices appear as attractive. rough handling and current Ugandan varieties forming unattractive skin blotches as opposed to developing a speckled appearance on ripening. Export volumes to Europe for fresh sukali ndizi have fallen due to supply of a poor quality product.9. – Export volumes of sukali ndizi from Entebbe airport have fallen by thirty six percent from 1997 to 2001. 10. 43 . – Future sales growth for matooke is suggested into UK West Indian and Belgium Congolese ethnic markets.50 and US$ 4. Sales volumes of fresh matooke exported to the UK have almost doubled in the past five years – Matooke volumes into the UK have increased by eighty five percent to 832 tonnes from 1997 to 2001. – UK prices for Ugandan sukali ndizi fluctuate widely between US$ 0. UK importers require large unblemished fingers of uniform ripening and size. – Quality issues include difficulty in controlling post harvest ripening. – UK matooke prices have been stable over the last two years.

Matooke Sustainable Production Systems Matooke is an important food security crop in Uganda. International efforts should be seen a part of general initiative to increase exports of fresh and dried fruit and vegetables particularly to Europe. manuring. – Establish why farmers do not manage soils in a sustainable manner through recognised practices of mulching. Depending on the quality of existing data: (ii) Establishment of sites to measure changes in soil fertility levels caused by matooke production. Finally international market opportunities should be addressed.7 RECOMMENDATIONS The first priority for Uganda is to ensure sustainable banana production systems and increase the efficiency of the banana marketing chain from rural production areas to urban consumption zones. Population growth rates of three percent per annum suggest significant increases in future demand. A second priority is to capture regional market opportunities that currently appear in Rwanda and Kenya. Domestic Markets – Ensuring Sustainable Production and Increasing Market Efficiency 1. Addressing soil fertility and pest and disease issues are essential to ensure sustainable long-term production. rotating cropping and improved livestock integration with design of appropriate responses. Pests and Diseases Weevils 44 . Regional and International Research. Interventions include: Soil fertility Further research to: – Establish what changes in soil fertility status are being caused by banana production and what production location shifts are continuing to occur. Who How National. (iii) Participatory research with farmers to better understand their choice of soil management techniques with subsequent recommendations for maintaining soil fertility levels. Extension Providers (i) Further consultation with research and relevant stakeholders to access available soil fertility data.

Nematodes Continued support extension and delivery of information to encourage cultural control including: Crop rotation Use of clean planting material (removal of roots and outer layer of the corm) Soil amendments through weeding and manuring Continued research into and promotion of resistant cultivars. Government of Uganda Use of this report as a lobbying tool to engage government in finding methods of facilitating competition especially at a broker / wholesale level. Government and Non Government Extension Providers 45 Who How (ii) Who . Market Authorities. Any restriction of competition is seen to allow existing traders to achieve excessive margins with resultant lower returns to farmers and higher consumer prices. Provision of gross and net margin information to potential new entrants and entrepreneurs FoodNet. Extension Providers Continuation and enhancement of existing initiatives Ensure and encourage competition through out the banana marketing chain Who How 2. manuring and mulching to produce vigorous plants. Regional and International Research. Good crop husbandry such as weeding. Support to extension services encouraging good crop husbandry that is seen to lead to a more vigorous plant better able to outgrow attack.Continued support to extension and delivery of information to encourage cultural control including: Use of clean healthy planting material Paring of corms at planting Destruction of post-harvest residues Trapping of adult weevils. Black Sigatoka Continued development of resistant cultivars. These should include: (i) Ensure existing brokers and traders do not restrict competition through informal cartels that prevent entry of potential competitors FoodNet. To prevent excessive broker or trader margins existing in the medium and long term. National. new entrants should face minimal barriers to entry. pruning. desuckering.

relevant representatives from the Government of Uganda Further contact with market authorities and government to discuss and plan accordingly for growing markets In addition. Who How FoodNet. cooperatives and associations. farmer groups. Market Authorities. Credit Providers Contact with micro finance providers and credit institutions to further explore their role and ensure potential new entrants can access credit. Potential entrants to the banana marketing chain are suggested as farmers. Further contact with relevant government and market authorities aimed at minimising barriers of entry to new entrants. Declining yields of plots close to main roads and planting of new areas with poorer access is seen to increase the importance of feeder roads. regular posters / flyers placed in markets or use of radio broadcasts. relevant representatives from the Government of Uganda Lobbying of government to maintain and improve road infrastructure 46 . This would reduce traffic congestion caused by roadside unloading.How Provision of gross and net margin information to potential new entrants to increase competition where excessive margins occur. existing wholesalers and truck operators. Infrastructure development: maintenance and improvement of road transport Who How 3. relevant representatives from the Government of Uganda and Market Authorities. These initiatives would also enhance marketing of other commodities as suggested in a recent market study using a transaction cost approach. market site management should encourage trading within the market rather than on roadsides. Examples are local council letters of approval and market authority registration FoodNet. Information on banana margins could be part of an initiative covering a range of commodities. Any further movement of production areas further to the south and west will further increase the importance of main roads. (iii) Who How (iv) Who How (v) Ensuring legal / administrative requirements for trader do not unduly restrict new entrants. Delivery of the information should be through extension providers. Appraisal and investment in feeder and main roads is necessary to reduce transport costs and ensure bananas can get to market especially in times of rain when these roads become impassable. Ensuring markets offer sufficient space for traders FoodNet. Providing an enabling environment for micro finance organisations FoodNet.

Relevant lobby groups should encourage local government. improve consistency in annual market volumes and reduce consumer price peaks. Police. Relevant Government representatives from regional countries. Regional and International Research. Development of a farmer production response to predictable annual price variation is a way to increase farm incomes. relevant representatives from the Government of Uganda. Communities. Regional Market Opportunities 6. communities and police services to meet and find ways of reducing rural crime rates.4. traders and transporters particularly in rural areas. relevant NGO’s. 47 Who How (ii) Who How . FoodNet Inclusion of regional price information using existing channels. Who FoodNet. Extension Services. Research should include a farmerbased cost benefit analysis to ensure interventions increase farmer profitability. Lobbying of governments to jointly reduce regional barriers to trade. Support to Regional Export Markets of matooke to Rwanda and Dessert Varieties to Kenya. Potential study areas include timing of planting new gardens. Participatory research with producers. research and extension into controlling the timing of sucker development and the timing of fruiting is suggested to enable farmers to produce for periods of high demand. FoodNet. Removal of this disincentive for trade should increase coverage and levels of trading activity. Who National. Farmers. How Interventions to enhance these markets include: (i) Provision of regional market price information using mediums currently giving Ugandan price information. Improvement or reduction of border barriers including tariffs and quotas. Security Risk of thuggery acts as a deterrent for brokers. relevant donor / technical assistance. timing desuckering to control new growth and use of appropriate irrigation systems to control water stress that stimulates fruiting. Farmer Production Response to Annual Price Spikes How 5.

TEFU and Fruits of the Nile to explore interest in addressing the above areas. IDEA Project. International Markets 7. Continuation and enhancement of existing activities Organic / health focused naturally dried dessert banana markets. Fresh exports of sukali ndizi. Requirements are the development of a consistent supply of a quality product. FoodNet. Potential economic gain from successfully overcoming quality barriers for sukali ndizi is estimated to be approximately US$ 156. Study results suggest attractive prices and growing export markets exist for organic health focused naturally dried banana products. – Improved cultural practices include the use of pathogen-free planting material with the further development and widespread implementation of appropriate management strategies. Options include: i. Addressing Dessert Bananas susceptibility to Fusarium Wilt. Relevant Government representatives from regional countries. Threat of Fusarium wilt attack is a significant disincentive to investment in bogoya and sukali ndizi. ii. Interventions should address: 48 . Who How 9. Work with governments to facilitate trade by looking for realistic ways to enhance border crossing. Based on responses further joint research and market trials are suggested. A study exploring European markets suggests opportunities if packaging and appearance can be made appealing. Improving the appearance of product packaging to compete in snack and sweet market outlets. FoodNet. Relevant International. TEFU and Fruits of the Nile Return visits to Amfri Farms. Who How 8.000 per annum calculated on the basis of lost sales in the past five years. Regional and National research programmes. Amfri Farms. Improving the appearance of naturally dried banana through improved drying techniques and plant breeding for appearance characteristics.(iii) Who How Government efforts to ensure quick and efficient boarder crossing. Required interventions to remove this disincentive include: – Development of host plant resistance.

This could most efficiently form part of a wider study exploring Uganda fresh produce potential in Europe. Relevant Private sector businesses It is suggested that fruit handling issues exist for other fruit and vegetables. in Europe. Further research to determine actual sales potential and how market requirements can best be met is suggested. Suggested initiatives are to lobby government and airport authorities to: – Facilitate competition in the airfreight market by preventing any evolution of monopoly by encouraging new airfreight carriers to enter the freight market. Relevant Government Representatives This document should be used as a lobby tool to emphasis the importance of Entebbe airports position in the export of fresh fruit and vegetables. Who How FoodNet Further market research into the market potential for Ugandan fresh fruit and vegetables. UpTop. 49 . U-Trade. Reducing airfreight cost at Entebbe will increase Ugandan competitive advantage in international fresh produce markets Who How (ii) Who How 10. ADC IDEA Project. Agricultural Extension. Potential is suggested for increased sales of fresh matooke to UK based West Indian and Belgium based Congolese markets in Europe. Improving fruit handling through out the supply chain by capacity building approaches with fruit handlers FoodNet. Civil Aviation Authority. FoodNet. Amfri Farms Return visits to Amfri Farms to explore interest in addressing the above area. including bananas. The above-mentioned actors should be contacted to coordinate and focus further initiatives. If this lobbying is successful action to ensure competition and improve handling should occur. Based on response. – Ensure efficient airport freight administration and handling Who IDEA Project.(i) Control of fruit ripening after harvest by exploring post harvest packaging and temperature control IDEA Project. Further research to determine possibilities for further expansion of matooke sales in European markets How 11. further joint research is suggested. FoodNet.

50 .

ndizi. Amin Shivji Managing Director 077 506644 aminjshivji@yahoo.com Fritz Plattner Consultant 077 502330 fripla@yahoo. stop and restart ripening Suggest research into temperature control and packaging Interest in exploring EU tastes Next steps/ Follow up Return visit to explore interest in research into control of fresh sukali ndizi fruit ripening and packaging of dried products General Remarks 51 . How to start. Relation to Banana Export fresh and solar dried sukali ndizi to Germany (Frankfurt) and Switzerland Solar dried fruits used in Breakfast cereal.co.ug Basic Information Organic fruit and vegetable exporters Own farm in Luwero and 62 Out growers in Rakai and Bugurari. ice cream and snacks.Information Gathered with Businesses involved in Banana Markets Organization & Key Persons Amfri Farms / African Organics PO Box 29078 Kampala Uganda.com Fritzao@africaonline. Volume is growing (Problem is irregular insufficient sunshine) Suggest could double volume if overcome drying problem Potential links to research Collaboration on Fusarium wilt (Panama disease) Research a cure / prevention of spread Need to know how to control ripening. Current Situation Exports: Fresh approximately 2 tonnes per week Solar Dried – about 400 kg / month s.

ndizi (Apple Banana) and Pineapple Relation to Banana S. breakfast cereal. Cautious when working with research Next steps/ Follow up General Remarks Sees Ugandan competitive advantage in Hot peppers. slice. 046 2442 kulikaug@imul. Passion fruit Organization & Key Persons Tropical Ecological Fruits Uganda (TEFU) PO Box 123 Mityana Sam Nyanze 077 469003. ripen. dry.com Basic Information Fish. plan for use in baby food Potential links to research Interest in Increased efficiency in drying process Next steps/ Follow up Return visit to explore interest in development of packaging for dried products Requested copy of report General Remarks 52 . Kristjan Erlingsson Managing Director 077748798 kristjan@icemarkafrica. Fruit and vegetable exporters Trade only no production Relation to Banana Export matooke and s. ndizi to UK Spitalfield market Current Situation Exports: Matooke – approx 6 to 7 tonnes / month Ndizi – approx 1 tonne / month Potential links to research May be interested in controlling ripening of s. 046 2102. ndizi. French beans. Okra.com Basic Information Solar Dried Fruit Exporters to Denmark Main products are S. pack and transport to Entebbe Current Situation Export approximately one tonne per month dry weight Sell to a Danish supermarket for use in snacks.Organization & Key Persons Icemark – Africa Ltd Bukoto Street PO Box 40122 Kampala Uganda. Ndizi – collect from organically registered farmers.

pack and export in containers via Mombassa Relation to Banana Export solar dried Sukila ndizi and Bogoya Current Situation Sell approx five tonnes per month of a mix of S Ndizi and Bogoya. Ndizi seeing increasing volumes. Improving wastage reduction viewed as important extension / research issue Next steps/ Follow up General Remarks 53 . Sell solely to Tropical Wholefruits a UK organic importer and distributor Potential links to research Fusarium and Bacterial Wilt Seen as problem for research involvement On farm drying quality is poor.Organization & Key Persons Fruits of the Nile Angello Ndyaguma MD 071 467499 Office 041 273274 Basic Information Export of Solar Dried Fruits Buy dried fruit from contact farmers/groups Sort.

. Kiggundu..K.K. (2001) Export Diversification in Uganda: Developments in NonTraditional Agricultural Exports. (2000) Proceedings of the First International Conference on Banana and Plantain for Africa.. and Karamura. group AAA-EA) production in Uganda. Y.M. C. D.). A. 3 Gold. and Karamura.S. (2001) Wilt-like disorders of Bananas in Uganda. J. Rutherford. A Guide to Successful Banana Production in Uganda.. C. J.K. Inc. (ed. Experimental Agriculture: 38 Cambridge University Press. Vuylsteke.M.B. with special emphasis on wilt-like symptoms observed on East African highland cooking cultivars. African Studies Centre. Using Rapid Appraisal to Examine Course Grain Processing and Utilisation in Mali. ADC IDEA Project Craenen. (2002) Diversity. (1995).S.J. C. G. Experimental Agriculture: 38 Cambridge University Press.Craenen. International Institute of Tropical Agriculture. Ortiz. Karamura. Gold. J. A. E. R..References Agriculture in Uganda Volume II Crops (2001) Edited by Mukiibi. Karamura.B. A. (1996) Fusarium wilt of banana in Uganda. Monograph on geographic shifts in highland cooking banana (Musa.). Abera.. Fountain Publishers / CTA / NARO Banana Production Manual.). D. A. D. Couvreur. NARO. T. (2002) Selection Criteria of Musa Cultivars through a Farmer Participatory Appraisal Survey in Uganda.A.. Prices Products and People Analysing Agricultural Markets in Developing Countries. A. E. Kiggundu.S.B. and Gemmill.S.) First International Conference on Banana and Plantain for Africa.K.R. From Scott. Bananuka. R.A.S. Service Contract NoSC/26/96 Final Report. Working Paper 47 Embrechts. INIBAP France 54 . A. E. Musa Disease Fact sheet No 10. (ed. (1991) Biological and Integrated Control of Highland Banana and Plantain Pests and Disease. M. Karamura.. et al.. M. F. Distribution and Farmer Preference of Musa Cultivars in Uganda.B. K. (ed. Bagamba.M.. Gold. D. 7 No. Abera.S. J. B. and Abera. Proceedings of a Research Coordination Meeting.. Republic of Uganda / European Union. A. Kangire. Ortiz. African Crop Science Journal September 1999 vol. International Society for Horticultural Science Dijkstra. Holtzman. A. K. Bagamba. and Vuylsteke. Kampala (UGA). F and Lallemand.. (ed. From: Proceedings of the first international conference on banana and plantain for Africa . E. Rutherford. Leuven (BEL) Kangire. Karamura. C. International Society for Horticultural Science. Lynne Rienner Publishers. D. Kiggundu.. (1996) Banana Sub-Sector Review.. C. Gold.. Gold.

esearch Programme.Y. 1998 INIBAP.B.S. Kangire. (2000) Soil Research for Sustainable Banana Production in the Heavy Soils of Uganda. 55 .S. A. diseases and plant growth.). Montpellier (FRA) 1999 Working Document.Makerere University Banana – Based Cropping Systems Research Project No Ref 91056 (1994) Final Report Phase II Mugisha.). E. Nkwiine.A.). Gold. Ferris. (1994) Ugandan National Banana R001. (ed. Karamura. P. FoodNet IITA. M. (1994) Evaluation of the Cooking Banana Marketing Structure in Uganda.P. Preliminary data on Socio-economics. From: Mobilizing IPM for sustainable banana production in Africa: Proceedings of a workshop on banana IPM . E. Germplasm.. Rutherford. (ed. R. J. S.Frison. C. V and Bwamiki.K.M.A. J.. Post harvest. (1998) Prospects for the management of fusarium wilt of banana (Panama disease) in Africa. (ed..) Workshop on banana IPM.B.A. Faculty of Agriculture. Sessanga. IITA and NRI Zake. D. Uganda. R. (ed. (2002) The Impact of Globalisation on the Agricultural Sectors of East and Central African Countries. Diagnostic Survey on Key Constraints of Banana Production in Uganda. Sikora. C. Soils and Agronomy. Pest. Thesis for Masters Degree of Science in Agricultural Economics of Makerere University Robbins. Nelspruit (ZAF). Makerere University. Kasenge.

on prices?) -If so from whom and how? -Is there a relationship between prices in different areas at a given time -Who determines the price? -How is the price determined? -If firm / individual is a price taker. for purposes of future reference How does the respondent add value along the market chain? Does he change the form of product (processor) or just move the product (transporter) or just store the product (wholesaler) or is he a retailer or consumer. -To whom do you sell? -Are there changes in volume of sale over time? -Are there different varieties? -If so what is their respective demand / preference -What is the price variation as per variety differences -Are there changes in prices over time? -If so what are the reasons? -Do you find problems selling your products? -If so which ones? -Which are your supply areas (geographically) -From whom do you buy? -From where do you buy? (Meeting pt. or mobile phone No.Appendix 1 Banana Survey Checklist Topic Personal Information Sub-Topics Name Physical Address Telephone Value addition Physical functions Experience Questions / Comments For established firms try to get a business card. Is there any vertical integration? -Quantity sold normally e. Per day. find out why? -Do you belong to an association? -Are there any market regulations? If so which are they and how do they affect your business? No of sellers -Is there price competition -Is there non-price competition? If so how (interlocking markets) -Are there any credit institutions -Do you use them? -What are their rates of interest? Type of business Demand Quantity Type of buyer Seasonality Variety Consumer Preferences Price data Supply -Source by area -Source by type of person -Price -Quality Quality Storage -Perishability -Post harvest issues -Quantity -Time -Storage problems -Forms -Proportions Grading incentive -Sources -Spatial arbitrage Transaction costs Grading & Sorting Market Information Price Formation Market power Institutional & legal framework Market Structure Associations Competition Credit availability Sources & Type 56 . week.g.) -At what price do you buy the variety? -Does the price change over time? If so why? & How? -Do you have problems getting products? If so which are they? -What is the quality of products along the chain? -What is the shelf life of the products -How much do you usually store? -For how long? -Do you have any storage problems? -Do you experience storage losses? -What are your transaction costs? -What is their proportion? -Do you grade or sort? -Do better grades fetch higher prices? -Do you get market info? (e.g.

Ngambeki Dezi Contact Name Angelo Ndyaguma. Nathan Production Manager Amin Ahivji (MD) / Moses Kigundo (Prod Manager) Mr Fritz Plattner Sam Nyanze is chairperson Kristjan Erlingsson George Farmu (Distilleries Manager) Mr Kayiira (Market master).Appendix 2 Market Chain Interviewees Fruits of the Nile Africa Organics / Amfri Farm Sun-Trade and Consulting Int (U) Ltd TEFU (Tropical Ecological Foods Uganda) Icemark Africa Ltd Ugandan Breweries Owino Market Kalerwi Market Nakawa Market Luwero Kyazanga Masaka Mbizzinnya road side market Rubaare Collection Center Ruti Kampala Waragi and Tonto Markets Institutions / Organisations Contacted ADC IDEA Project FIT Uganda IITA INIBAP Kulika Charitable Trust Makerere University Makerere University Makerere University Makerere University NARO NARO Coordinator of On-Farm Banana Research Steve New. Fred Ssango Mark Blackett Dr CS Gold Guy Bloome Alistar Taylor Dr J Mugisha Dr Serie Maranga JW Muwanga Prof PR Rubaihayo Tushemereirwe W. two traders One producer Beer producer and farmer Roasting banana traders Various traders Bicycle Traders and Broker Various traders 57 . various traders Jakob Kwakonye.K. various traders Various traders Two producers. Harriet Nsubuga.

290 51.788 73.960 31.850 6067 107.898 829.789 84.019 66.243 % Of Total Fresh Export Volume 38% 28% 27% 33% 36% Apple Jan Feb Mar Apr May Jun Jul Aug Banana 1997 7984 6018 17441 11320 10463 17554 11493 11415 1998 12432 5484 6067 7772 11933 8986 11581 7180 1999 9769 9751 7270 5818 6046 8859 9502 8260 2000 5536 5064 3762 4614 7907 8712 8202 5424 2001 3648 3461 4254 6498 5528 6936 9881 11694 Sep Oct Nov 16859 14437 12286 12643 8564 8300 6222 7300 6677 5230 7047 6529 10439 10764 9187 Dec 6454 143.598.058 84.621 Sep 49.050 Dec 36.126 30.188 68.217 4662 72.655 40.288 43.344 Mar 41.510 75.535 Jul 41.728 59.311.871 53.854 6628 88.577 64.Appendix Three Volumes Exported Uganda Matooke 1997 1998 1999 2000 2001 Jan 26.472 5490 90.413 Jun 27.065 Total Fresh Exports 1.847 52.406 68.509 73.663 May 18.850 1.217 2.854 2.560 48.472 2.689 2.197 42.978 35.129 59.002 40.697 67.225 30.217 76.060 Total Matooke 451.598.556 59.424.090 84.349 48.066 62.887 32.796 58.228 487.918 2.434 72.243 Total Apple Banana Total Fresh Exports % Of Total Fresh Export Volume 12% 6% 4% 3% 4% Source: Civil Aviation Figures supplied by IDEA project 58 .702 58.377 Aug 55.328 Oct 45.717.390 82.689 74.434 58.542 71.892 60.663 32.731 Feb 33.009 1.830 62.291 Nov 44.174.879 73.926 76.424.724 1.904 74.964 2.124 52.131 61.188 48.652 Apr 31.717.853 63.174.559 854.258 42.512 664.311.

5 1 0.5 US$ / kg 3 2.Appendix Four Figure xx UK Matooke and Apple Banana Prices 5 4.5 2 1.5 0 M A M J J A S O N D J F M A M J J A S O N D J F M A 2000 Matooke 2001 Apple Banana 2002 59 .5 4 3.

760.000 104.000.000 208.000 93.800 39.200 Tonto Values calculated at an estimated retail value of Ug Sh 550 / litre 60 .000 2.000 624.000 1.000 572.000 1.920.600 27.000 208.104.000 1.000.000 Kampala Depot Nankulabye Kisenyi Rubaga Road Kamwokya Ndeeba Kawempe Total Waragi Values calculated at an estimated retail value of Ug Sh 1.000.600 3.069.000 312.Appendix Five Volumes and Values of Waragi Market in Kampala Estimated Litres Waragi / Week 22.000.000 1.500 / litre Volumes and Values of Tonto Market in Kampala Total Annual Volume Total Retail Annual Value (Ug Sh) (Litres) 1.200 45.000 156.000 4.414.800 Total Annual Volume Total Retail Annual Value (Ug Sh) (Litres) 1.600 4.000.000 83.400.000 156.760.000 Kampala Depot Kisenyi Ndeeba Kawempe Nakulabye Total Estimated Litres Tonto / Week 20.400 777.000 2.000 1.000 416.716.000 8.144.600 140.400.000 104.000.000 2.400.040.000 114.200 45.000 83.

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