Public-Private Partnership For Shea Value Addition

KAMPALA – Lecturers at Makerere University have suggested a Public-Private Partnership (PPP) approach to develop the shea butter value chain in Uganda, for more earnings, both locally and internationally.

These trees are natural perennial plants and commonly found in northern and eastern Uganda.

Its butter is a famed moisturizer nationally and internationally, because it contains vitamins A, E and F. Other people use this butter for cooking among other things. In Acholi, shea nut trees are held in high cultural regard. The butter is used for rituals, body lotion, medicine and cooking.

Prof. Joseph Obua from the department of Forestry, Biodiversity and Tourism at Makerere University, compared shea nuts with coffee, saying they are all flagship commodities with high market values, providing income to farmers and foreign exchange for the country.

However, Prof Obua argued that shea nuts have not been given the attention it deserves.

“The Ministry of Trade Industries and Cooperatives is working together with private actors like cooperative unions and coffee exporters; shea has not yet brought together private and public actors to work together,” Prof Obua said.

Prof. Obua argued that although some people will argue that coffee is grown, while shea is wild, part of the export earnings from this butter can be invested in research and development of shea trees to enhance its productivity and the market value.

“Through Uganda Coffee Development Authority (UCDA), 1% of export earnings from coffee is given to UCDA and 10 % of that amount which is about Shs 2 billion per annum is given to National Agricultural Research Organization (NARO) which is passed on to National Coffee Research Institute (NCRI) to carryout research on coffee and enhance its productivity and market value. Can we develop a shea nut development authority like UCDA to enhance the productivity and market value of shea products?” he asked.

According to Prof Obua, unlike coffee which is exported as a raw material, shea is exported in processed form, meaning it can have a comparative and competitive advantage over coffee.

He added that the total number of households in Eastern and Northern Uganda involved in managing shea on their farmlands, processing shea and selling its products could even be greater than the number of coffee farmers in this country.

Statistics indicate that the number of coffee farmers in terms of households is 1.7 million, and the acreage is nearly 400,000 hectares. Shea parklands cover 45 districts in Eastern and Northern Uganda, approximately about 30 % of the entire number of districts in the country.

“Therefore, in many respects, shea deserves to have similar organizations like UCDA to leverage greater support for it,” Prof. Obua said.

Dr. Kenneth Okia, an Associate professor at Makerere University, also said sustaining shea productivity and the industry requires recognizing the primary producers, especially women, who have managed the resources for generations.

According to Dr. Okia, there is need to tap into women and youth to undertake value addition, to provide a push back for conservation and improvement in land and tree tenure arrangements in parklands for sustainability.

Dr. Francis Omujal, a Research Officer at Ministry of Health, expressed concern that only about 25% of shea butter products goes for export, leaving a greater percentage to be sold within the local community.

https://thecooperator.news/uganda-doubles-increase-in-coffee-exports/

According to Dr. Omujal, the technology for shelling and processing these nuts should be developed for better results and more income.

“Right now, up to 15% of oils is left in the shea nut cake, because the technology being used cannot extract all the oil. This is a huge loss,” Dr. Omujal said.

These suggestions were raised during the first World Shea Day that was commemorated for the first time in Uganda on Friday, July 16th, 2021. The online event, which was organized by Agro Value Added Association and Extension Services, AVAAES, in collaboration with Makerere University attracted more than 150 participants from all over Africa.

The celebration was based on the theme; Enhancing productivity and market potential of Nilotica Shea for improved livelihoods: Take action now.

However, Jaspher Okello, an official from the Ministry of Science, Technology and Innovation, (MOSTI) said some interventions aimed at increasing productivity in the shea value chain are already underway, starting this financial year.

Okello explained that Shea Development Project, will cover stakeholders’ analysis, feasibility study and stakeholder mapping and setting up an office space to begin with structural design in the first year of the five-year period.

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Uganda Registers Increase In Coffee Exports

UGANDA – Uganda has again registered an increase in coffee exports in June 2021, despite an overall contraction in international trade as a result of the Covid-19 pandemic.

A report from the Uganda Coffee Development Authority (UCDA) yesterday indicates that Uganda bagged a total of 618,38860 kilograms of coffee valued at US$58.56million were exported in June 2021 at an average weighted price of US$1.58kilogram, 1cent lower than US$1.59/kilo in May 2021.

This is the second time Uganda is recording an increase in coffee export as the country registered an increase of 477,561 60-kilogram bags worth US $45.87M [Shs 171bn] in March 2020.

However, according to Dr. Lyamulemye Emmanuel, the Managing Director, UCDA, this is the first time Uganda is recording the highest amount of coffee ever exported in a single month since 1991.

“I am pleased to report that in Financial Year 2020/21 the coffee sub-sector rose above the year’s challenges to record the highest number of exports. In June alone, Uganda exported 618,388 60 kg bags of coffee worth US$ 58.56 million and now a total of 6.1 million 60 kg bags of coffee worth US$ 559.26 million in a single month in 30 years.” Says Lyamulemye

He says the export figures represent an increase of 47.04% and 46.63% in quantity and value respectively compared to the same month last year.

“By comparing quantity of coffee exported by type in the same month of last coffee year (June2020), Robusta increased by 63.89% and 72.56% in quantity and value respectively, while Arabica exports decreased in both quantity and value by 29.93% and 23.16% respectively” says Lyamulemye

The International Coffee Organization (ICO) Composite Indicator price increased by 4.6% to 141.03US cents/lbin June 2021 from US cents/lb134.78US cents/lbin May 2021.

According to UCDA’s Managing Director, accomplishment is attributed to increased yields from newly planted coffee, favorable weather and a positive trend in global coffee.

He says the government’s effort in supplying over 1.5 billion seedlings as an addition to the already existing 220 million coffee plantings has tremendously led to the increase of coffee exportation.

“Over the last five years, the government has deliberately been delivering free coffee seedlings to the farmers and many of them who took on the planting have now increased the production. But the increase also came with more support in extension services by providing farmers with knowledge to understand that coffee is a business which can actually transform their livelihood” Lyamulemye explains

He also says that Uganda’s coffee earned a high demand in international countries as many people do survive on it during Covid-19.

https://thecooperator.news/unbs-reduces-cost-of-product-certification/

“Whereas all over US were moving in a lockdown, people in Italy and United States who were used to drinking coffee in the restaurants were actually having home deliveries and that brought more volumes from Ugandan market of coffee” says Lyamulemye

UCDA is a statutory body established to facilitate increase in quality coffee production, productivity, and consumption. So, the increase of export is part of the journey to Uganda Coffee Development Authority’s milestone says Dr Lyamulemye.

We appreciate our stakeholders including the smallholder farmers, processors, traders, roasters, exporters and consumers of Uganda coffee for this feat. My appreciation also goes out to the UCDA staff who work tirelessly to ensure that we are an agency that is firmly in control of its future and its aspiration to achieve the target of producing 20 million bags by 2025.” he said.

Lyamulemye however says the coffee sector still suffers with lack of enough containers for coffee loading during the Covid-19 pandemic.

“We had a challenge of few containers to load coffee. This was because cargo trucks were being delayed at the borders as drivers were being tested for Covid-19”

UCDA anticipates that in a year 2025-2030 Uganda should reach the 20million bags a year export target with this financial year’s 600 million bags representing 30% of estimate.

“In the next five years, we want to see coffee exports reaching 20 million bags. We want to phase out the distribution of seedlings and focus on productivity per tree. We also want to see Ugandans appreciating a cup of coffee and the consumption moving from the current 6% per capita to 15%. It is our dream as UCDA to see Ugandans walking on the streets and in villages feeling proud to be involved in the coffee value chain”. Lyamulemye emphasized.

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