The document provides an overview of analyzing Uganda's cotton value chain. It discusses mapping the cotton value chain, which involves identifying the key processes, actors, and margins at each stage from input supply to final products. It also outlines questions the value chain analysis can answer, such as which exported cotton products have the highest value globally and which EAC countries are dominating certain cotton value chains. Graphs and tables presented show trends in global and regional demand for cotton yarn, fabrics, and apparel. Data on the main importers and exports of EAC countries for different cotton products are also presented.

1. TIC – STATISTICs COMMITTEE
Cotton Value Chain
Analysis
1

2. PRESENTATION OVERVIEW
Attractive Market
Imports & Exports
Value Chain Approach
Cotton Analysis
Introduction
Justification
2

3. What is a Value Chain ?
Can be described as a sequence of related activities or
products from the provision of specific inputs for a
particular product to primary production, transformation
and marketing, up to the sale of the particular product to
the final user.
Introduction
3
 Instead of focusing on individual stages (e.g.
production), all stages of a production process are
covered in the Value chain approach i.e. the
producers, processors, traders and distributors of the
commodity.

4. Mapping the Value Chain
4
Input supply
Raw material
Semi-processed products
Final processed products
Packaging, marketing, distribution
IdentifyProcesses
Value chain
governance
Identify
main actors
Margin
analysis at
firm level
Products
By-product
(e.g. waste)

5. EAC Heads of states
Summit JOINT COMMUNIQUÉ OF THE 17TH
ORDINARY SUMMIT – 2nd March, 2016
15. Directed the partner states to ensure that all
imported second hand shoes and clothes comply
with sanitary requirements, in the partner states;
- directed the partner states to consider banning the
export of raw hides and skins outside the EAC
region.
16. Directed the partner states to procure their
textile and footwear requirements from within
the region where quality and supply capacities
are available competitively;
- with a view to phasing out importation of used textile
and foot wear within three years.
5

6. According to the Cotton Development Organisation (CDO)
the national body mandated to regulate cotton
production, processing, and marketing, Cotton is Uganda’s
third largest export crop after coffee and tea.
Cotton is important not only for the textile industry and
export, but also for several other products such as cooking
oil, cotton seed cake, animal feeds and other by-products.
6

7. SNAP SHOT OF QUESTIONS WE’LL BE
ABLE TO ANSWER
1) In a given value chain, which exported sub-product(s) have globally,
regionally and nationally the highest value (unit price)?
2) Is our country/region exporting the most dynamic, demanded
products, and with the highest value?
3) In the EAC region which country(ies) are dominating a certain value
chain in terms of exports? Which countries are reaping the highest
value?
4) Is the EAC as a region moving up strategic value chains?
7

8. VALUE CHAIN DISTRIBUTION
8

9. 10

10. ASSESSING VALUE DISTRIBUTION OF
COTTON PRICES
11

11. WORLD DEMAND OF COTTON PRODUCTS
12
im

12. EAC EXPORTS OF COTTON VC PRODUCTS
13

13. DYNAMISM OF COTTON VALUE CHAIN
14

14. EAC MEMBER CONTRIBUTION TO THE
VALUE CHAIN
15

15. UGANDA EXPORTS OF COTTON VC
PRODUCTS
16
297.48 2,436.96
37,895.38
14.96 377.13 14.69 694.46 0.52 10.57-
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
90,000.00
EXPORTSIN1000USD
Uganda's Exports of Cotton Related Products (2008-2014)
2008 2011 2014

16. Global
Demand
• Regional/Country
• Graph e.g.
attractive matrix
• Table showing
imports from EAC,
COMESA excl. EAC,
SSA excl COMESA,
RoW excl SSA with
the growth
partner
EAC
Performance
• Graph of export by
Member Countries
Intra-
regional
• Graph or Table
showing imports
or exports
between EAC
states, EAC in
comparison to
other intra-
regional blocks

17. Regional Country
 How does demand and
growth of demand varry
across
regions/countries?
 Dominant markets:
 Who are the main
importers?
 How is their demand
changing (increasing or
decreasing, at what
pace?
 How are attractive
markets positioned in
terms of import prices
and import values?
 Is demand saturated,
decreasing or growing? 19

18. COTTON YARN (CY)
21

19. Figure Showing Regional Demand for Cotton Yarn
(2008-2013)
22

20. Table Showing Top 10 Importers of EAC
Cotton Yarn
MAIN IMPORTS OF COTTON YARN (1000 USD)
From the EAC Global
2013 CAGR (08-13) 2013 CAGR (08-13)
China 1,559 42.3% 6,051,237 41.3%
South Africa 1,362 88.7% 32,243 -0.4%
Kenya 1,313 -7.3% 2,097 0.2%
Netherlands 724 - 42,254 -3.7%
Japan 402 56.5% 274,104 13.5%
Germany 365 19.2% 248,779 14.9%
Turkey 364 -19.4% 465,904 5.9%
Macedonia, FYR 348 21.7% 16,900 90.9%
Rwanda 278 137.1% 292 2.4%
Portugal 267 -31.1% 366,228 17.7%
23

21. Exports of Cotton Yarn Nes from EAC Member
Countries to the World
0
1000
2000
3000
4000
5000
6000
7000
8000
2008 2009 2010 2011 2012 2013 2014
CottonYarnexportsin1000ofUSD
Kenya Rwanda Tanzania Uganda
24

22. COTTON FABRICS (WOVEN)
25

23. World Imports of Cotton Fabrics
0
2000000
4000000
6000000
8000000
10000000
12000000
EAP EU LAC NA SADC SSA
Importsin1000USD
Regional Demand of Cotton Fabrics
2008
2009
2010
2011
2012
2013
2014
26

24. EAC Cotton Fabrics To Major Markets
0
1000
2000
3000
4000
5000
6000
7000
EAP EU LAC NA SADC SSA
Amounts(USD)'000
EAC's Exports to Regional Blocks
2008
2009
2010
2011
2012
2013
2014
27

25. 28

26. Performance of EAC Members
0
1000
2000
3000
4000
5000
6000
7000
8000
2008 2009 2010 2011 2012 2013 2014
USD(000)
EAC Partner States’ Export of Cotton Fabrics, Woven to the
World
Burundi Kenya Rwanda Tanzania Uganda
29

27. ARTICLES OF APPAREL
30

28. Market Analysis of Cotton Apparel (2013)
Large market
Low price
31

29. Exports of Articles of Apparel Nes to the
World
0
10000
20000
30000
40000
50000
60000
2008 2009 2010 2011 2012 2013 2014
COTTONAPPAREL(000)USD
EAC Partner States Export Contribution
Burundi Kenya Rwanda Tanzania Uganda
32

30. 4.2%
0.6%
0.1% 0.3% 0.3%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
-
5,000
10,000
15,000
20,000
25,000
30,000
Tanzania Uganda Kenya Rwanda Burundi
Growthinexports
Exportsin1000USD
Cotton VC Exports to the EAC
2000 2005 2010 2014 2014
-
200
400
600
800
1,000
Rwanda Burundi
Intra-regional Trade of Cotton Value Chain
33

31. Origin of Cotton Products Imports in EAC
(2014)
Cotton yarn
nes
Cotton fabrics,
woven
Articles of apparel
nes
India 1900.791 China 198580.2 China 37748.41
Tanzania 1255.852 India 14312.33 India 13012.58
China 367.715 Pakistan 10398.58 European Union 4654.693
Uganda 267.11 Nigeria 6622.933 Kenya 3208.271
Indonesia 127.153 Zambia 5560.907 Pakistan 2709.996
Egypt, Arab Rep. 68.729 European Union 3351.722 South Africa 2640.283
European Union 64.293 Tanzania 2118.064 Tanzania 2237.09
Kenya 59.475 Netherlands 1804.463 Germany 2098.168
Italy 55.752 Belgium 1593.123 Turkey 1951.584
Ethiopia 37.978 Other Asia, nes 1501.144 Thailand 1710.036
Argentina 34.1 Thailand 1432.658 Indonesia 804.371
Oman 16.382 Kenya 1008.49 United States 544.751
Pakistan 13.402 Rwanda 393.324 United Kingdom 542.302
United Kingdom 6.255 Burundi 316.985 Spain 460.19734

32. 35

33. 36