Uganda's horticultural export earnings from the European Union are on the wane, the Uganda Export Promotions Board (UEPB), has warned.
The board said this was due to stringent consumer protection measures by the EU, which is impacting on export quantities.
Until 2003, more than 90 per cent of Ugandan exports went to the EU, the majority being horticultural products.
However, Florence Kata, executive director of the UEPB, said: “The EU, which has been a traditional market, is steadily shrinking. We need to look for an alternative before its too late.”
Kata said more laws are still coming which are likely to eliminate many players in the market, including Uganda.
“There is a new regulation called the feeds and food control, then the EurepGAP regulation, and all these are increasingly replacing the non-tariff barriers,” she said.
There are also further hurdles for the sector: “The high cost of production and poor infrastructure, high freight rates compared to the main competitors like Ghana and Kenya, and the irregular supply caused by over dependency on natural weather, coupled with limited value addition need urgent attention.”
One producer said the high freight rates were simply cutting Uganda out of the market.
Amin Shivji, a fruit and veg producer and exporter of horticultural products to the EU, said: “Other countries are taking up our export markets, because of the high freight costs. Now for each kilogramme of hot pepper, they are charging us $1.89 up from $1.60.”
