Organic Farming Practices Meg Jaquay GM, Jakana Foods Ltd

Presentation Outline What defines Organic? What defines Fair Trade? Organic Consumer Demand Uganda’s Current Organic Status Partnerships Needed Summary

Organic and Fair Trade All Natural farming practices – No chemical fertilizers – only natural – No treated seeds – hybrids ok – NO GMO!!! Farm protection – Good Soil/Plant management/protection – Eco-system protection Farmers practice good Social and Environmental Responsibility In fruit drying, Farmers paid 4 times for the same product!!

Consumer Demand Certified Organic USA Organic Market – 81% purchase Organic sometimes – Organic Sales Topped $31B in 2012, up 13.5% – True believers and enlightened environmentalists make up 46% of those purchases EU Organic Market – Second largest market for organic products after the United States valued at EUR 22.7 billion. – Demand for organic products outpaces current supply in the EU.

Consumer Demand FairTrade Fair Trade – The UK is one of the world’s leading Fairtrade markets, – Almost one in three bananas sold in the UK is Fairtrade. – Fairtrade sales in 2014 were 1.57Bn pounds. Fair Trade USA – Fair Trade USA and Partners Drive 18 Percent Growth in Fair Trade Certified Coffee Imports; – Farming Communities Earn Additional $32 Million in Premiums – Fair Trade sales up 350% in 3 years

Uganda Certified Organic 200,000+ Certified Organic farmers Highest in Africa 2 nd only behind India Unique Selling Proposition – but no one knows it! Need to protect this asset

Uganda’s Unique Selling Proposition Nearly 200,000 certified Organic Farmers – 2 nd only behind India (with 650,000) Products include – Pineapple, Jackfruit, Apple Banana, Mango, Papaya, Guava, Goose Berries, Shea Nuts/Shea Butter, Robusta Coffee, Arabica Coffee, Vanilla, others UNBS Standards – Cannot label to be Organic without being certified by a 3 rd party standards body

Partnerships Government to Acknowledge the Asset – Organic/Fair Trade – Higher Quality, No Chemicals, Non- GMO – Vs. Commercial – Higher yield targets, Synthetic inputs One farmer CANNOT do both, jeopardizes organic – must choose – Lower cost/Higher productivity – Vs. premium price Value Addition requires the choice too – Domestic Food Safety – Vs. Global Marketplace

Follow the Leader Key players in the industry, Chiquita and Dole, remain focused on traditional breeding, skeptical that a genetically engineered banana could work for the global market. “We never left traditional breeding,” a spokesman for Chiquita said. “In our core markets, in America and Europe, a genetically modified banana would never be marketable. At the end of the day, we’re interested in continuing to sell bananas.”

More Organic Farmers Needed Our Buyers in the USA want – Dried Dodo Mango to compete with Burkina Faso (they have one growing season, we have two) – Dried Coconut – Dried Guava – Shipping containers of Dried Pineapple (to compete against Thailand) Must be part of a democratically elected farmers association – Must commit to Organic and Fair for Life practices – Training and annual inspections/audits mandatory – Chamber Drying methods only

Summary Organic – Fastest Growing USfood business sector “Solid growth for the US organic food market is expected to continue until 2018, according to a new report that puts a compound annual growth rate (CAGR) of 14% on the sector.” – Non-organic food products has grown only 3% in last 10 years. – Protect Uganda’s USP Fair Trade – Earned Premiums for communities Organic & Fair Trade business directly impacts the growth of rural agriculture – Buy Uganda, Build Uganda (BUBU)