Did you know agriculture is the largest employer globally? This sector provides jobs for about 28% of the world’s population. The ILO (International Labour Organization) reports that 1 billion people work in agriculture. So many countries are involved in agriculture. Among them, Uganda is ideal for agriculture for many reasons.

Uganda is known as a leader in organic farming in Africa. It has over 200,000 certified organic farmers. So, it is the largest exporter of organic products on the continent. Uganda’s organic products include coffee, cotton, cocoa, and various fruits and vegetables. 

The country’s diverse climate and fertile soil make it ideal for many crops. In this article, we will talk about the top five agricultural products in Uganda. Which are transforming Uganda’s economy and its farmers’ lives.

Agriculture as Uganda’s Economic Backbone – Agriculture employs 72% of Uganda’s workforce and contributes 24.1% to GDP, making it the country’s most vital sector.

Coffee – Uganda’s Top Export – Coffee generated nearly $1 billion in exports in 2023, with demand rising in global markets like Italy, Germany, and Spain. Investment in organic coffee farming offers significant growth potential. 

Bananas – A Staple Crop with Economic Value – Uganda is one of the world’s leading banana producers, with exports reaching $7.43 million in 2022. Value addition in banana products can further enhance farmer incomes. 

Dairy Industry Expansion – Uganda’s dairy sector is worth $3.8 billion, with milk production growing at an 11% annual rate. The industry is tapping into international markets, especially in the Middle East and North Africa. 

Cassava & Cotton – Emerging Investment Hubs – Cassava production supports both food security and exports, while Uganda’s cotton sector engages 250,000 farmers. Government strategies aim to boost local textile processing and reduce reliance on raw exports.

Uganda is a country in East Africa. The country has a diverse geography, including mountains, plateaus, lakes, and rivers. Uganda is a lower-middle-income country with a market-based economy rich in natural resources. It has one of the fastest-growing and youngest populations in the world. Its GDP grew by 5.3% a year on average in the five years before the COVID-19 pandemic.

Uganda’s main exports are coffee, cocoa beans, raw sugar, and fish. Its main imports are petroleum products, machinery and equipment, chemicals, and pharmaceuticals. Kenya, the UAE, Italy, Germany and Tanzania are Uganda’s main trading partners.

Agriculture, manufacturing, and services are the country’s main industries. Uganda’s most important sector is agriculture. 72% of the population are employed in it, and it accounts for 24.1% of GDP. Coffee, tea, cotton, tobacco and food crops are the main agricultural products. About 15% of GDP and 10% of the workforce are employed in the manufacturing sector. Food and beverages, textiles, cement and steel are the main manufacturing products. About 60% of the GDP and 18% of the workforce are accounted for by the services sector.

The main services are trade, tourism, and financial services.

Uganda’s can be a major player in East Africa. But the government must address poverty, unemployment, corruption, and infrastructure. It’s vital for sustaining growth and improving citizens’ lives.

Uganda’s coffee industry is a powerhouse. It earned nearly $1 billion in exports in 2023. Coffee is the top export in this country. Both Robusta and Arabica grow in Uganda’s climate. The Uganda Coffee Development Authority (UCDA) reports that coffee exports rose from $883.3 million in 2022 to $952.24 million in 2023. This growth happened because of higher production and favorable global prices. Italy, Germany, and Spain are the top buyers of Ugandan coffee, which shows Ugandan coffee’s huge global demand.

The government and others NGO’s have trained farmers and provided resources. For example they helped them with fertilizers and tools, to boost productivity. This support has boosted yields and quality. It ensures Uganda remains a key player in the global coffee market.

Investing in coffee processing and quality can boost export values. There are opportunities to invest in organic coffee farming. This would meet the rising demand for eco-friendly products.

The East African Highland bananas (also known as Matooke). Banana is also a staple food in Uganda and plays a crucial role in the country’s economy. Uganda is one of the leading banana producers globally. Bananas are the major source of income for millions of smallholder farmers.

In Uganda, bananas are vital to agriculture and the economy. In 2022, Uganda exported $7.43 million in bananas. The country was the 58th largest banana exporter in the world. Most bananas are sold by Uganda to the UK, Germany, Canada, Belgium and Switzerland. 

Uganda’s banana production increased by 28% from 6.5 million tons in 2018 to 8.3 million tons in 2019. This growth illustrates the significance of the crop as a staple food and as a cash crop. In fact, more than half of Uganda’s population depends on bananas as the main food crop.

Rural households depend primarily on bananas for their income. The sale of bananas is used to make household expenditure on education, health and other needs.

There is potential to boost the economy by adding value to bananas. This can be done by making banana flour, chips, and wine. Improving these value chains can boost prices and farmers’ incomes.

Tech and resources can boost smallholder farmers’ productivity and income. The banana sector has vast potential. Investment and innovation in this sector can boost Uganda’s economy which will improve food security and growth.

Uganda’s dairy sector has seen remarkable growth over the years. The country has a great climate and abundant pastures. They make it ideal for dairy farming. Milk production climbs at a consistent rate. 

The dairy sector in Uganda is indeed showing impressive growth. This sector is becoming a major contributor to the nation’s economy. It is the second-highest source of export earnings in agriculture.

The sector’s value is estimated at about US $3.8 billion. From 2018 to 2022, milk production rose from 2.51 billion liters to 3.85 billion liters in 2023, which indicates an average annual growth rate of 11%. This rate is among the highest for any sector in the Ugandan economy. This growth happened because of strategic investments in dairy infrastructure. The government also focuses on improving dairy practices across the country.

Source: Researchtec Global

Figure: Overview of the dairy industry in Uganda

Uganda’s dairy industry has experienced huge growth. With milk production rising by 37% to 3.85 billion liters in the 2022-2023. Despite challenges like drought in some areas, the industry is still doing great.

Uganda’s dairy sector is not just meeting local demand. It is also expanding into international markets. For example, Uganda’s dairy products, especially milk powder are exported to markets beyond East Africa. In the Middle East and North Africa, Uganda’s dairy products are their top priority. The Uganda Dairy Development Authority supports this. The authority helps identify high-potential dairy products and foreign markets for exports.

The sector has attracted investments from major global and regional players. For instance, The Rise Fund and Brookside Dairy have invested in local dairy firms, such as Pearl Dairy. That will help to expand operations and enhance productivity.

Cassava is an important agricultural product in Uganda. It contributes both to food security and the economy. Uganda is the sixth largest producer of cassava in Africa. It produces about 4.2 million metric tonnes each year. This staple crop is vital to many Ugandans’ diets.

Cassava dominates the landscape in Uganda’s eastern and northern regions. The crop is not only essential for local consumption but also for export. In 2022, Uganda exported cassava worth $3.79 million, ranking 33rd in the world for cassava exports. The main export destinations are the UK, Qatar, Belgium, Germany, and the Netherlands. These exports are vital for earning foreign exchange.

The Ugandan government, with World Bank support, launched a project to boost cassava production. The project is named the Agriculture Cluster Development Project. This was funded by a $150 million loan. This initiative’s aim is to commercialize agriculture. They will provide farmers with access to improved planting materials, pesticides, and training. The project has been a success. Farmers like Julius Isudo in Kumi District have expanded their cassava farms, and also significantly increased their income with the help of this project.

High-quality cassava flour (HQCF), starch, and ethanol can boost the cassava market and its profits. The food industry is using more cassava flour as a gluten-free alternative.

Continued support from the government and private investment is crucial. Also, new financial tools and better access to markets can help farmers. They can optimize production and improve their livelihoods.

Cotton is one of the important cash crop in Uganda. It boosts the economy through exports and local industries. Uganda’s cotton production involves about 250,000 smallholder farmers. They mainly grow cotton for export. This sector produces approximately 68,913 bales annually.

Uganda exports 90% of its cotton lint, mostly to Asia. The domestic textile industry processes only 10% of the cotton. This heavy reliance on exports shows the importance of cotton. It also highlights the potential for more local value-added products.

Few efforts are being made to improve the sector. The government and its partners are implementing the Cotton, Textile, and Apparel Strategy (2021-2025). It has a projected investment of UGX 3.9 trillion. This strategy aims to add value, improve efficiency, and create jobs in textiles.

Investment in cotton industries is not extensive. Raw lint exports make it susceptible to global market fluctuations. Local processing could be improved to increase the economic contribution of the sector. It would also cut dependence on unstable international markets.

The by-product of cotton also has an opportunity. Diversification of income and reduction of waste can be achieved through investing in cottonseed oil and cake production. A valuable livestock protein source is cottonseed cake, a by-product of oil extraction. It can be used to invest in the production of its dairy and poultry industries in Uganda.

There are many investment opportunities in Uganda’s agricultural sector. Common high value crops are coffee, bananas, dairy, cotton, and cassava. Investors can potentially earn from these agricultural products if they are properly invested. This can boost Uganda’s economy and food security. It calls for investments in infrastructure, technology, or sustainable practices.

Uganda’s top five agricultural products are coffee, bananas, dairy, cassava, and cotton, and investing in these is an opportunity for economic growth. Coffee continues to be the top earner in the country, while bananas support millions of farmers and offer value-added opportunities. The dairy sector is booming and is now venturing into the international market, providing promising investment opportunities. 

For food security and industrial use, cassava has increasing export demand. At the same time, cotton has the potential for local textile production, and this would reduce dependence on raw exports. Investment in these sectors is strategic for Uganda’s economy, to create jobs and achieve food security, and for agriculture to be a key driver of national growth.

Uganda can promote its agriculture to thrive and drive economic growth. In agriculture, the country will be facing challenges and the key will be its farmers. It is a bright future in Agriculture, their resilience and innovation can be shaped.