By Joan Abaasa
Communications Intern - ICPAU
The global market size for processed cassava was 261 million tons in 2020, projected to grow to 335 million tons by 2026. However, Uganda has a global market share of only 0.07%, and by 2020, Uganda’s global contribution to cassava trade was only 0.04%, a drop from 0.11% in 2019 (Trade map).
In a recent presentation at the 11th CPA Economic Forum, Ms Noela Victoria Ojara, the Managing Director of Divine Organic Foods encouraged Ugandans to explore the missed potential of the cassava crop.
“Currently, 50% of cassava processing investments remain idle due to low farm production and productivity in addition to limited access to climate-smart technologies,” Ms Ojara said.
Ms Ojara highlighted the investment opportunities in the cassava value chain, namely: growing input market due to high demand for certified seed and fertilizer, post-harvest market due to high demand for high-quality cassava chips, high potential local and export demand for fresh roots and cassava associated products, Gluten Free High-Quality Cassava Flour (HQCF) for domestic and industrial markets (biscuits, ethanol, paperboards (starch-based adhesives), pharmaceutical products, animal feeds, breweries and agri-foods, and specialised cassava value-chain support services which include trainings, provision of machinery, organisational and business development service, governance, and financing and other professional services.
She emphasised the need to address challenges in the cassava value chain, such as low fresh farm gate prices as compared to final-end consumer price, high cost of value addition technologies and limited knowledge in application, limited market appreciation of cassava value addition and cassava-based products, cheap imported starch from India and Thailand which makes local cassava starch production highly uncompetitive, and lack of suitable cassava varieties that meet the specific quality attributes for industrial uses.
Ms Ojara highlighted the crucial role of Uganda's agricultural sector in contributing to the country's economy. She emphasised that agriculture accounts for 24.06% of the Gross Domestic Product and 54% of export earnings. However, despite its significance, the growth in agricultural value chains has been constrained by internal and external factors.
Uganda's demographic makeup is heavily engaged in agriculture, with 70% of the population between 15 and 24 years old involved in this sector. Additionally, women constitute 73% of the agricultural labour force, underlining the importance of harnessing the potential of this sector to drive overall economic prosperity.
The National Development Plan III (NDP III) has identified tea, cotton, coffee, cassava, cocoa, rice, maize, and beans as priority crops vital for Uganda's agricultural and economic development. Among these, cassava emerges as a national priority crop due to its significance in the global market.
Ms Ojara stressed the need to promote organic products and value-addition, urging the government to create incentives for the development of sustainable food systems. These measures not only enhance export earnings but also contribute to improved nutritional outcomes, benefiting both local communities and international consumers.
To amplify agricultural products' marketing, Noela Victoria Ojara called for stronger collective voices and support for the government's Buy Uganda, Build Uganda (BUBU) policy. She noted that effective marketing strategies and branding will enhance Uganda's visibility in global markets, attracting more consumers to its high-quality agricultural products.
She also recommended collaboration between farmers and the private sector to ensure consistent production as this partnership facilitates knowledge sharing, and resource optimisation, and instills a greater sense of ownership in the sector's success.
Ms Ojara emphasised the significance of affordable inputs at every node of the agricultural value chain and advocated for a circular economy approach to ensure sustainability.
She advised the government to establish a wheat substitution policy and effectively implement it. She argued that reducing reliance on imported wheat products and promoting locally-produced alternatives will enhance food security and reduce Uganda's import bill.
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