Cotton And Coffee Review Walusimbi

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Cotton And Coffee Review Walusimbi

  1. 1. Alternative Growth Strategies for Uganda Cotton and Coffee Sam Benin Rhona Walusimbi Liang You Simon Bolwig Jordan Chamberlain IFPRI
  2. 2. Background <ul><li>Purpose: </li></ul><ul><li>To support the IFPRI/USAID ongoing research program to identify and monitor sustainable rural livelihoods and land uses in Uganda </li></ul><ul><li>Specific Objectives: </li></ul><ul><li>Review trends in </li></ul><ul><li>- Production ,Consumption/Trade/Value Addition </li></ul><ul><li>- Human Welfare, Ecosystem Welfare </li></ul><ul><li>-Constraints, Opportunities and Development Initiatives </li></ul><ul><li>Asses welfare impacts of alternative growth strategies </li></ul><ul><li>Methodology: </li></ul><ul><li>Literature review </li></ul><ul><li>Discussions with relevant institutions and stakeholders </li></ul><ul><li>Simulation of welfare impacts of alternative strategies using DREAM model </li></ul>
  3. 3. Cotton Production Trends <ul><li>Cotton introduced in Uganda in 1903 </li></ul><ul><li>Peak production in 1970. Large negative growth rates in 1970s and early 80s, recovery thereafter </li></ul>Source: FAOSTAT (2002)
  4. 4. Cotton Export Trends <ul><li>Large negative growth rates in 1970s and early 80s, recovery thereafter </li></ul><ul><li>Export value growth rates lagging behind below volume growth rates </li></ul>FAOSTAT DATA (2002)
  5. 5. Cotton Export trends cont’d Source: UBOS Statistical Abstracts
  6. 6. Farm-Level Cotton Profitability Trends Source: APSEC,
  7. 7. Farm- Level Cotton Profitability cont’d <ul><li>Location and technology affects profits </li></ul>Source APSEC-various Source:NAADS , 2003
  8. 8. Cotton’s Contribution to Household Incomes <ul><li>In past and presently, cotton considered important for poverty alleviation in Uganda </li></ul><ul><li>Trends </li></ul><ul><li>In the 1960’s cotton at least partially the source of income for over 60% of Uganda population (Serunjogi et al 2000). 700,000-800,000 farmers. </li></ul><ul><li>In 2000, contributed to incomes of approx. 10 % of Uganda population (COMPETE, 2002). 400,000 farmers. </li></ul><ul><li>In their analysis of cotton development domains in cotton growing areas (You and Chamberlin, 2002) report that </li></ul><ul><li>cotton contributes modestly to total income modest (2%-13%) and its contribution to total value of production is 2% </li></ul>
  9. 9. Cotton Development Strategies <ul><li>Key Issues : </li></ul><ul><li>Current production below potential, </li></ul><ul><li>Good opportunities- favorable soils and climate, high grade cotton, good regional and international markets </li></ul><ul><li>GOU Strategy : Strengthen Vertical Integration of the sector to serve domestic and international markets through increased profitable cotton production and development of apparel production (CARANA, 2000) </li></ul>
  10. 10. Cotton Development Strategies cont’d <ul><li>Suggested actions by GOU, private sector include: </li></ul>-Improved labor productivity -Renovated or expanded textile and garment factories -Increased access to credit -Improved market information services -Increased farmers’ access to extension and training -Improved cotton research- private sector participation, funding -Increased foreign investment to increase production (area??) -Increased farmers access to production credit -Improved roads , railways -Enhanced cotton quality Improve market information services Increase production of yarn and textile products through: Increase production of cotton lint through :
  11. 11. Coffee Export Trends <ul><li>Coffee has been Uganda’s most important cash crop since the late 1960s. Peak exports in 1995/96 </li></ul><ul><li>Deep decline since 1995 due to collapse of world prices and associated decline in production. Has coincided with spread of coffee wilt disease </li></ul><ul><li>In 2002 coffees share to total exports at historical low – 20.7% </li></ul>(Source: UCDA)
  12. 12. Coffee’s contribution to Incomes <ul><li>It contributes to incomes of approx 2 million people (500,000 households) CARANA, 2003 </li></ul><ul><li>Coffee central to poverty reduction in Uganda </li></ul><ul><li>It is grown by an equal share of poor and less- poor households (DAE, MUK) </li></ul>
  13. 13. Coffee Development Strategies <ul><li>CARANA 2003 reports on coffee competitiveness Strategies agreed upon by GOU, industry and donors in 2002 . They focus on research, farm level production, processing and value addition, infrastructure, markets and regulation and policy </li></ul>
  14. 14. Coffee Development Strategies cont’d <ul><li>Action points under Production Strategies included: </li></ul><ul><li>Replacing wilt affected plants with resistant genotypes </li></ul><ul><li>Improving coffee plant multiplication </li></ul><ul><li>Expanding Arabica area planted </li></ul><ul><li>Supporting development of shade grown coffee </li></ul><ul><li>Strengthening farmer associations </li></ul><ul><li>Action points under Processing and Value Addition Strategies included: </li></ul><ul><li>Assisting firms in exploiting value added processing opportunities </li></ul><ul><li>Supporting expansion of centralized wet milling facilities </li></ul><ul><li>Monitoring and reducing Mycotoxin levels </li></ul><ul><li>Increasing availability of credit to small and micro enterprises </li></ul>

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