Market Trends of Uganda Agriculture Industry
Agriculture Contributes Highly to Uganda’s GDP
- For several years, agriculture has been the backbone of Uganda. The country has a warm climate, ample fertile land, and periodical rainfall. According to the UN FAO, Uganda's fertile agricultural land has the potential to feed 200 million people. Eighty percent of Uganda's land is arable, but only 35% is cultivated. In 2021-22, agriculture accounted for approximately 23% of GDP and 33% of export earnings. The UBOS (Uganda Bureau of Statistics) estimates that about 70% of Uganda's working population is employed in agriculture.
- The agricultural sector has benefited from government efforts toward strengthening the country's competitive advantage in the agricultural production sector. For instance, in June 2022, the Ugandan government contributed nearly USD 10 million to the latest phase of a South-South Cooperation project focused on crop and animal production with the FAO and the Chinese government after the first two phases yielded dramatic results, including a quadrupling of rice production per hectare.
- An increase in the adoption of good agricultural practices and investments in agriculture by private players are expected to boost the growth of agriculture in Uganda during the forecast period. Based on data from the Uganda Bureau of Statistics in 2022, crop production was the most widespread agricultural activity, with 99% of agricultural households engaged in it. Crops are produced predominantly for their own consumption, with 14% of agricultural households cultivating exclusively for their own consumption and an additional 68% cultivating mainly for own consumption, although with some sales.
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Fruits and Vegetables Dominate the Ugandan Agriculture Market
- In Uganda, consumers are discovering the link between healthy food and their well-being and switching to fruits and vegetables. In addition, with the rising health consciousness, there is an increasing consumption trend of varieties of off-season fruits, which are being met by rising imports. Even a larger number of smallholders are likely to be involved in the production of fruits and vegetables for the domestic and regional markets.
- Uganda produces and processes large quantities and varieties of fruits, including pineapples, mangoes, passion fruit, and tomatoes. There is also much room to improve the use of machinery and advanced technologies in the agriculture sector. The country has made efforts to integrate new agricultural technologies to improve the sector's efficiency and increase land productivity.
- Apples, citrus, grapes, bananas, litchis, peaches, pineapples, potatoes, tomatoes, onions, sweet corn, beetroots, and avocados are some of the major fruits and vegetable crops identified that are expected to show high growth potential in the regional market during the coming years. The growing awareness of healthy diets and environmental issues is predicted to boost the demand for organic fruits and vegetables. Uganda's climate and landscape are ideal for meeting this demand for organic fruits and vegetables. It has a bimodal rainfall pattern, several water bodies and rivers, and large agricultural land.
