Business
Monday, May
3, 2004
Price Surge Drives Uganda Vanilla Boom
By ESTHER NAKKAZI
SPECIAL CORRESPONDENT
UGANDA IS to double vanilla
production this year and introduce a code of practice for the industry
in order to improve the quality of the product sold on the international
market.
"Production has increased
in most parts of the country," Susan Karungi, an official from the Uganda
National Vanilla Association (UNVA), told The EastAfrican last week.
"We expect to produce about 200 metric tonnes this harvest season, up from
102 tonnes last year."
The co-ordinator of UNVA,
Henry Kibuuka, said production would increase further in coming seasons
as UNVA are embarks on a massive campaign to set up nurseries in each sub
county where vanilla is grown.
More than 200,000 farmers
grow the crop in 30 districts countrywide, and this is expected to increase
with the planned campaign, which will take off after the July harvest season.
Uganda has two vanilla seasons
and produces first class (gourmet) black long beans.
The country exports 99.9
per cent of the vanilla it produces, with the US consuming 70 per cent
of the exports, while the rest go to Canada, France, Germany, Japan, South
Africa and the UK.
Vanilla farmers in Uganda
are first catching up with Madagascar, the world's leading producer
Experts told The EastAfrican
that because Ugandan vanilla is organic, it has a better flavour and, unlike
Madagascar, which has one harvesting season a year, Uganda has two.
The farmers and exporters
also hope to take advantage of the shortfalls on the world market following
the devastating cyclones that hit Madagascar vanilla plantations recently.
A tropical cyclone last month
killed hundreds of people and destroyed 24,000 hectares of the crop.
The cyclone caused Madagascar,
the world's leading producer of vanilla to export only 500 metric tonnes
last season from the usual 1,500 metric tonnes.
An official from UNVA said
the association hopes to increase by at least 50 per cent the number of
vanilla growing farmers in the country during its campaign, as well as
improving the quality of the cured beans.
"With regard to quality,
we have introduced an industry-wide code of practice and we are disseminating
it to all the players in the industry," said Ms. Karungi. "UNVA will also
introduce quality audits and seals as a way of reinforcing work on the
code of practice."
Improvements in quality are
expected to increase prices for farmers but UNVA officials would not commit
themselves to any price projections.
The world price of vanilla
today ranges between $350 and 500 per kg of cured beans while farm gate
prices stand at $280 per kilo in Uganda. Uganda's vanilla earnings have
been growing owing to an ambitious plan to extend farming of the crop beyond
the traditional zones, coupled with the dramatic rise in prices on the
world market.
The Uganda vanilla industry
is still young. Before 1996, annual exports of cured vanilla beans were
generally well under five tonnes. Since then, production and exports have
been increasing rapidly, peaking at 90 tonnes in 2002.
However, the industry's growth
is tainted by increasing theft forcing some farmers to employ armed guards
on their vanilla fields, pushing up their costs.
Other farmers have been discouraged
from growing vanilla after losing most of their crop to thieves. Officials
of UNVA said thefts had also led to harvesting of the pre-mature crop,
which affected the quality of the country's produce.
"We hope that the Uganda
Export Promotion Board (UEPB) can implement a ministerial directive issued
last year to curb the current malpractices before harvest season," said
Ms Karungi.
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