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Uganda Grains Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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  • 100 Pages
  • April 2023
  • Region: Uganda
  • Mordor Intelligence
  • ID: 5528978
UP TO OFF until Dec 31st 2023
The Ugandan grains market is projected to register a CAGR of 4.3% during the forecast period.

The COVID-19 pandemic had a negative impact on the Uganda grains market in 2020. The pandemic outbreak led to a slight increase in prices in March and April, followed by a decline in prices in August. The lockdown restrictions have led to an increase in the price of maize due to panic buying. There is a decline in effective demand for food due to the shutting down of schools, restaurants, catering services, etc.

Grains grown in Uganda include maize, millets, sorghum, rice, and wheat. They play a prominent role in increasing the income of smallholder farmers and the national economy. The growing demand for grains, an increase in regional exports to East Africa, and favorable government policies supporting grain production are some of the factors driving the market growth.

Low agricultural productivity due to the high incidences of pests, low-quality seeds, less number of skilled agronomists, and a flawed supply chain are some of the factors restraining the market growth.

Uganda Grains Market Trends

Increase in Regional Maize Exports is Driving the Market

Maize is one of the staple crops grown in Uganda, providing over 45.0% of the country's daily calorie consumption. In order to meet the domestic demand, most farmers grow maize on their farmland. According to International Trade Administration, in the year 2020-2021, agriculture accounted for about 23.7% of GDP and 31% of export earnings. In recent years, there has been an increase in exports of maize to East African countries. The liberalized free trade environment between East African countries is benefitting the maize traders, which is leading to an increase in exports. In March 2021, Kenya banned the import of maize from Uganda due to the presence of aflatoxin, but the ban was lifted in May 2021. After the ban, only grain exports tested and certified by accredited labs in Uganda to meet acceptable safety levels are permitted into Kenya. The opening of the import window from East African countries such as Kenya is boosting the maize production in the country, which is expected to stimulate market growth during the forecast period. Also, within the country, maize production has increased significantly. From 2017 to 2019, maize production has increased by 27.4%, according to the FAO, and the production will be increasing further in the forecast period to meet the export as well as domestic demand.

Favorable Government Policies are Driving the Market

Grain trade and agro-processing play a crucial role in the national economy, but the sector is currently facing challenges such as inadequate supply due to lower production, the volatility of agriculture commodity prices, and inadequate storage facilities. In order to increase agricultural production and address post-harvest challenges, the Ugandan Ministry of Trade, Industry, and Cooperative introduced 'The National Grain Trade Policy' in 2016, which was in line with Uganda's Vision 2040 and the National Development Plan II to improve the food security, income generation, and advancement of industrialization. To address the lack of transportation facilities that the grain commodity sector is facing, the government launched interventions in 2019. The Uganda Railway Corp. has approved the upgrading of its 1266 kilometer gauge rail line for USD 267 million.

Uganda Grains Market Competitor Analysis

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
5.1 Type (Production Analysis, Consumption Analysis, Import Market Analysis by Value and Volume, Export Market Analysis by Value and Volume, and Price Trend Analysis)
5.1.1 Maize
5.1.2 Millet
5.1.3 Sorghum
5.1.4 Rice
6.1 PESTLE Analysis
6.2 Value Chain Analysis
6.3 Government Regulations and Policies
7.1 Distribution Network and Retail Analysis
7.2 Company Profiles