Uganda reports increase in Vanilla exports

Bank of Uganda indicates that the 2022 exports surpassed the Shs16b average earning from vanilla exports in the last 10 years.

A noticeable increase in vanilla exports indicates the return of one of Uganda's largest sources of foreign exchange to the export market. Vanilla is in various supplies including foods, cosmetics and fragrances.

According to the Bank of Uganda, vanilla exports increased to 95.6 million kilograms during the period that ended in December 2022 from 24 million kilograms during the same period in 2021.

The spike returned Shs41.49 billion, a significant increase from the Shs13.18 billion earned during the same period in 2021.

Even if there are still issues that need to be resolved, the growth is anticipated to have an impact on the economy.

However, industry analysts have ascribed the increase to a recent government policy in Madagascar, the world's largest vanilla supplier, which mandates the selling of green vanilla for a minimum of $200, as opposed to $50 in Uganda.

This change may have alarmed investors, who are now looking for cheaper alternatives for vanilla, including Uganda.

The recent cyclone in Madagascar, which harmed the nation's vanilla industry, may also have contributed to the rise in demand.

Most vanilla extract exported from Uganda is of inferior quality and value to vanilla gourmet.

Premature harvesting and ineffective post-harvest processing are blamed for the poor quality.

According to Agricultural State Minister Fred Kyakulaga Bwino, early harvest, which can occasionally be caused by theft fears, seriously damages quality by dropping below the desired 1.6 percent.

Under the National Development Plan III, the government promotes vanilla as a strategic good. Lately, the crop is cultivated in over 32 districts, with a significant portion of those being in western, central, and eastern Uganda.

After Madagascar and Reunion Island, Uganda is the third-largest exporter of vanilla in Africa, and it ranks seventh globally.

The Ministry of Agriculture predicts that from their present level of 1.7 percent, vanilla exports will increase by 5.17 percent annually due to a surge in demand for natural vanillin flavors.

According to Mr. Kyakulaga, quality must be ensured through stakeholder participation and the supply of necessary infrastructure, research, and training by the government if Uganda is to continue the current export pace.