Uganda takes lead against Madagascar in vanilla exports

Bank of Uganda indicates that vanilla exports surged from 24 million kilogrammes in 2021 to 95.6 million kilogrammes in the period that ended December 2022.

The increase returned Shs41.9 billion indicating massive growth from Shs13.18 billion in 2021, which is expected to impact the economy despite existing challenges.

This surge surpassed the Shs16b average earnings from vanilla exports in the last 10 years.

However, the surge has not impressed some industry experts who attributed it to a recent stringent government policy in Madagascar.

Madagascar is the world's largest exporter of vanilla. They dropped from this position when the government announced that the sale of green vanilla cannot be less than $200 compared to Uganda's $50 selling price.

Experts say that this policy could have scared investors who started looking for alternative suppliers including Uganda.

Furthermore, experts attribute the increase in demand to a recent cyclone in Madagascar which left a dent in the country's vanilla sector.

Uganda's vanilla exports consist mainly of vanilla extract which is low in value and quality to vanilla gourmet due to premature harvesting and poor post-harvesting handling.

For example, premature harvesting which includes theft threats, comprises quality dropping below the desirable 1.6 per cent, according to Agriculture State Minister Fred Kyakulaga Bwino.

A big piece in the economy cog machine

Under the National Development Plan III, the government has earmarked vanilla for strategic promotion. It is currently grown in 32 districts with density in western, central, and eastern Uganda.

Uganda is the third largest vanilla exporter in Africa behind Reunion Island and Madagascar, and seventh globally.

A forecast from the Agriculture ministry indicates that exports will grow by 5.17 percent annually from the current 1.7 percent.

The government has been urged to maintain the current momentum through quality assurance, stakeholder engagement, resources, and infrastructural integrity.