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Session ii ndebesa presentation


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Session ii ndebesa presentation

  2. 2. INTRODUCTION <ul><li>Economic, Trade and Social Profile of Agriculture Sector </li></ul><ul><ul><li>Trends in the production, exports and imports of major crops/products </li></ul></ul><ul><ul><li>Trends in agricultural productivity with a focus on developments in the productivity of main crops in the last ten years </li></ul></ul><ul><ul><li>Trends in formal and informal employment in agriculture, rural poverty, nutrition and food security status . </li></ul></ul><ul><li>Landlockedness and trade facilitation issues </li></ul><ul><ul><li>main physical, infrastructural and institutional constraints </li></ul></ul><ul><ul><li>Policy framework with a focus on: </li></ul></ul><ul><ul><li>Key features of existing development, trade, agriculture and trade facilitation policies </li></ul></ul>
  3. 3. METHODOLOGY <ul><li>General methodology guidelines for the project including, literature search, Data collection, and consultations with different stakeholders; </li></ul><ul><li>Interview with civil society activists including Farmers association members; </li></ul><ul><li>Interview with individual agricultural produce exporters; </li></ul><ul><li>Presentation of draft findings to National Stakeholders Dialogue for validation and finalization. </li></ul>
  4. 4. FINDINGS <ul><li>GDP GROWTH RATE TRENDS </li></ul><ul><li>From the late 1980s, Uganda registered high growth rates until the 2000s when the growth rates slowed down as shown in the Figures </li></ul><ul><li>Economic growth raised from Us $ 2 billion in 1980s to Us $12 billion in 2007 </li></ul>
  5. 5. <ul><li>Agricultural productivity has been on the decline for much of the last decade as shown in the Figures below </li></ul><ul><li>Between 1999 and 2006, the major export crops have experienced double digit drops in productivity </li></ul><ul><li>The General cause of low productivity levels is theorized to be lack of improved inputs application </li></ul><ul><li>Uganda’s application of improved inputs is one of the lowest in the region </li></ul>PRODUCTIVITY OF THE MAIN AGRICULTURAL CROPS
  6. 6. PRESENT FARM YIELDS AGAINST ATTAINABLE POTENTIAL FOR SELCTED CROPS <ul><li>According to the Agricultural Sector Investment Plan 2009/10 -2013/14; a comparative analysis of farm level yields and research station yields reveals a huge gap. </li></ul><ul><li>As table below illustrates, productivity at the farm is far much lower than the attainable potential </li></ul>
  8. 8. CHALLENGES OF AGRICULTURAL PRODUCTIVITY <ul><li>Prevalence of animal and plant diseases </li></ul><ul><li>Reliance on unpredictable weather </li></ul><ul><li>Price fluctuations </li></ul><ul><li>Lack of input applications, e.g. fertilizers, pesticides and improved seeds </li></ul><ul><li>Poor skills, knowledge and attitudes </li></ul><ul><li>Absence of agricultural mechanization </li></ul><ul><li>Land tenure systems </li></ul><ul><li>Wrong policies </li></ul>
  9. 9. LANDLOCKEDNESS CONSTRAINTS AND THEIR EFFECT ON AGRICULTURAL TRADE <ul><li>LANDLOCKEDNESS STATUS </li></ul><ul><li>Uganda is critically dependent on its neighbors—Kenya and Tanzania for transportation of her goods and services. </li></ul><ul><li>The main routes used for Uganda’s external trade are: -the Northern Corridor </li></ul><ul><li>The Central Corridor that comprises similar services, other than pipeline, pertaining to the Port of Dar Es Salaam </li></ul><ul><li>An air corridor out of Entebbe International Airport </li></ul><ul><li>Road services between Uganda and countries further inland </li></ul>
  10. 10. Map of Main Regional Road and Rail Routes
  11. 11. THE MAIN CONSTRAINTS UNDER TRANSPORT <ul><li>The share of rail transport to total traffic is only 5 percent </li></ul><ul><li>Operations on railway transport are inefficient and poor </li></ul><ul><li>Internal transport links are mainly by road where more than 30,000 kms of rural community access roads are unpaved </li></ul><ul><li>Most ferries have fallen into disuse </li></ul><ul><li>Road service transport is expensive and exceeds rail rates by 38 to 56 </li></ul><ul><li>Other trade facilitation constraints include customs operations, clearing and forwarding, insurance, post services and telecommunications. </li></ul>
  12. 12. CONSTRAINTS (CONT’D) <ul><li>Congestion at Mombasa Port which handles 95% of Uganda’s external trade traffic </li></ul><ul><li>High cost of road transport due to high tariffs on freight vehicles raised from 7 – 25% with the introduction of the Common External Tariff </li></ul><ul><li>Physical inspection of exports involving duty drawbacks and VAT refunds </li></ul>
  13. 13. LINKAGES BETWEEN AGRICULTURAL PRODUCTIVITY AND TRADE IN AGRICULTURE <ul><li>Positive Linkages </li></ul><ul><li>Agricultural trade liberalisation has provided price incentives to some farmers over some periods </li></ul><ul><li>Liberalisation has attracted investments in no-traditional crop exports especially to the COMESA region </li></ul><ul><li>Trading in live animals has positively contributed to increased production in the animal industry sector </li></ul><ul><li>Trade in agricultural inputs has contributed to agrucultural productivity </li></ul>
  14. 14. LINKAGES (CONT’D) <ul><li>Negative Linkages </li></ul><ul><li>Increased exports have not translated into more earnings for the peasants </li></ul><ul><li>Increased exports coupled with poor management of natural resources have negatively impacted especially on fish stocks </li></ul><ul><li>The greatest beneficiaries of increased exports namely the middlemen do not necessarily invest the proceeds in the agricultural sector </li></ul><ul><li>Liberalisation of agricultural imports has exposed the Ugandan farmers to the vagaries of international competition </li></ul>
  15. 15. LINKAGES BETWEEN TRADE FACILITATION AND LANDLOCKEDNESS <ul><li>Positive Linkages </li></ul><ul><li>Government has recently put in place a well facilitated customs management mechanism. </li></ul><ul><li>Government realizes that ensuring efficiency in customs administration reduces on cost of doing business </li></ul><ul><li>There are efforts to link the northern corridor to trunk roads </li></ul><ul><li>There are efforts to harmonies trade facilitation processes at the EAC level </li></ul>
  16. 16. LINKAGES BETWEEN TRADE FACILITATION AND LANDLOCKEDNESS (CONT’D) <ul><li>Negative Linkages </li></ul><ul><li>Documentation requirements are still many and issued by various institutions </li></ul><ul><li>The cost of exporting is still high and there are a lot of delays </li></ul><ul><li>The majority of feeder roads are not-all weather roads </li></ul><ul><li>There are incidents of corruption that delay clearance of goods </li></ul>
  17. 17. RECOMMENDATIONS <ul><li>Productivity </li></ul><ul><li>Government should prioritize, mainstream and encourage both public and private investment in improved agricultural productivity ( not merely production) </li></ul><ul><li>Formulate and effectively implement a National Policy and funding scheme for Small and Medium Enterprises especially those involved in agro-processing and export </li></ul><ul><li>Development partners such as UN and EU should prioritize Aid targeting improved labor productivity </li></ul><ul><li>Donors should assist government set up an Agricultural Bank to offer soft loans specifically to finance start up projects for improved Agricultural productivity </li></ul><ul><li>There is need for a plan and programs to be put in place for adoption of new seed varieties and improved animal breeds </li></ul>
  18. 18. Productivity (cont’d) <ul><li>There is need for further research on improving Agricultural, and labor productivity </li></ul><ul><li>Government, Donors and Researchers should focus attention to plant and animal disease control </li></ul><ul><li>Efforts should be made to get away from rain fed to irrigation technology </li></ul><ul><li>Farmers associations, social science researchers and government should establish why there is slow or even resistance to adopt modern agricultural technology and management </li></ul><ul><li>Researchers should establish why there is dismal in put application such as fertilizer use in Uganda </li></ul><ul><li>Researchers should find out the specific impact of liberalization of external trade on domestic agriculture </li></ul>
  19. 19. <ul><li>Land-lockedness and Trade Facilitation </li></ul><ul><li>Government should pursue Trade and Transit Agreements at regional as well as International levels to ease movement of goods for the country </li></ul><ul><li>Government should pursue the decongestion of Mombasa port through diplomacy and at EAC levels </li></ul><ul><li>There is need for synergy between the ministries of Agriculture, Trade, Transport and East African Community affairs Ministry </li></ul><ul><li>Government and Donors should prioritize and increase funding the development of trade and Agricultural marketing infrastructure </li></ul><ul><li>Investment in Railway Transport must be undertaken urgently </li></ul><ul><li>Government should come up with a systematic targeted price stabilization fund for strategic crops or livestock sector </li></ul>
  20. 20. <ul><li>Policy and General Recommendations </li></ul><ul><li>More facilitative public investment and intervention in agricultural development such as infrastructure, research and subsides needed </li></ul><ul><li>Control population growth to match economic growth </li></ul><ul><li>Invest in rural areas where the majority of the population is employed </li></ul><ul><li>Need for Government to promote an inclusive agricultural policy making and implementation process </li></ul><ul><li>The policy bodies such as NPA should integrate economic and non-economic factors in their development programmes. </li></ul><ul><li>Research studies should establish how and to what extent farmers earn far less than other players in the value chain and plug these holes </li></ul><ul><li>Government should balance commercial imperatives of agricultural policy with issues of environment to ensure Sustainable Development </li></ul>
  21. 21. <ul><li>Thank You </li></ul>