Previously dominated by the West African states of Cote d'Ivoire, Ghana, and Nigeria, Uganda is taking on an increasing role in cocoa production. More Ugandan farmers are now engaged in cocoa production to supplement their household incomes. "Cocoa presents Ugandan smallholder farmers with relatively strong commercial opportunities," said John Muwanga of the Cocoa Development Organisation.
Cocoa export earnings have almost doubled in the last two years, jumping from Shs12.7 billion (US$7 million) in 2004 to Shs16 billion in 2005 and Shs21 billion in 2006. It is projected that earnings will reach Shs30 billion by 2009.
Augustine Chaiga, the export manager of Esco Uganda Ltd, one of the leading exporters of cocoa, said, " We used to get 400 tonnes from farmers but now we get 4,000 tonnes. We have also increased our capacity to buy." All the cocoa is exported as raw bean to be used in the manufacture of chocolates and beverages and mainly exported to Europe, Japan and the United States.
The world cocoa trade has been growing at an average of 5 per cent per year and is currently worth about $30 billion annually. Some of the major Cocoa dealers include Esco Uganda Ltd, Olam (U) Ltd, Ugacof (U), and Bakwanye. A kilogramme of dried cocoa goes for Shs1, 800. "The drier the cocoa bean the better the quality," Chaiga said.
The recent fortunes in cocoa production began in 2001 when government started a massive campaign to diversify the export sector. More than one million cocoa seedlings were planted whose dividends are now paying off. Cocoa dealers remain upbeat about the long-term market prospects for Ugandan cocoa as production improves. But the absence of commercial large-scale producers is worrisome.
Semei Mumbere, a resident of Kikyo village in Bundibugyo town is one of the many farmers who have benefited from cocoa growing. He started growing cocoa five years ago and now owns 3,015 plants on a 6 acre piece of land. Last season, Mumbere realised Shs6.3 million from the sale of 3 tonnes of cocoa grown on a 6 acre piece of land. "I have never regretted growing cocoa. I have
graduated from a grass thatched hut to a better house. My children go to school, I clothe and feed them from cocoa."
Bndibugyo district accounts for 60 per cent share of all the cocoa grown in Uganda. In order to maintain the quality of cocoa Esco Ltd. has established a factory in the area to dry the beans to international standards. We had to set up our base in here to be closer to the farmers and be able to offer them training on how to maintain the quality of the cocoa," said a company official.
The Monitor
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