MUKONO ZONAL AGRICULTURAL RESEARCH
AND DEVELOPMENT INSTITUTE
UNDERSTANDING THE DYNAMICS OF PINEAPPLE PRODUCTION AND MARKETING IN
UGANDA
September 2010
Prepared
By
Damalie Magala
Beatrice Akello
Sarah Mayanja
Losira Nasirumbi Sanya
Phyllis Kasambula
Pascal Joseph Bemba
Peter Seruwagi
ACKNOWLEDGMENT
The study team would like to acknowledge and extend appreciation to all the key market players
including pineapple farmers, traders, processors, Non-government Organizations, district officials,
NAADS extension officials in Kampala, Iganga, Luwero and Bushenyi districts for providing such
valuable information in this report. All MUZARDI research assistants who were involved in the data
collection exercise are greatly cherished.
Funding for this work was provided by National Agricultural Research Organisation (NARO)
under the Competitive Grant Scheme. Special thanks go to the Director of Research Mukono
ZARDI, Mr. Peter Lusembo for his continuous encouragement and guidance in carrying out
this assignment.
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CONTENTS
ABBREVIATIONS AND ACRONYMS ................................................................................................................II
1.0
INTRODUCTION AND BACKGROUND...............................................................................................1
2.0
METHODOLOGY...............................................................................................................................2
2.1
Review of available literature ...............................................................................................................2
2.2
Pineapple Market Chain Survey...........................................................................................................2
2.3
Definition of thematic groups ...............................................................................................................3
2.4
Final event..........................................................................................................................................3
3.0
MARKET CHAIN FINDINGS (ACTIVITIES, CONSTRAINTS AND OPPORTUNITIES ...........................4
3.1
Production of fresh pineapples in Uganda ............................................................................................4
3.2
Seed production ..................................................................................................................................9
3.3
Commercialization...............................................................................................................................9
3.4
Pineapple products and Processing ...................................................................................................10
3.5
Marketing and marketing channels ....................................................................................................13
3.6
Opportunities and constraints along the market chain .........................................................................18
3.6.2
Constraints ......................................................................................................................................18
4.0
CONCLUSIONS AND RECOMMENDATIONS ...................................................................................21
LIST OF RESPONDENTS ..............................................................................................................................22
REFERENCES...............................................................................................................................................24
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ABBREVIATIONS AND ACRONYMS
A2N
Africa 2000 Network
BDLG
Bushenyi District Local Government
BUDIFA
Bushenyi District Farmers’ Association
DFID
Department for International Development.
DSIP
Development Strategy and Investment Plan
JICA
Japan International Cooperation Agency
HPOU
Horticultural Promotional Organization of Uganda
HORTEXA
Horticultural Exporters Association
LUDIFA
Luwero District Farmers’ Association
NARO
National Agricultural Research Organisation
MUZARDI
Mukono Zonal Agricultural Research and Development Institute
MAAIF
Ministry of Agriculture, Animal Industry and Fisheries
NAADS
National Agricultural Advisory Services
NaCRRI
National Crop Resources Research Institute
NOGAMU
National Organic Agricultural Movement of Uganda
PMCA
Participatory Market Chain Approach
UEPB
Uganda Export Promotion Board
PRAPACE
Regional Potato and Sweet Potato Improvement Network in Eastern and
Central Africa
UNBS
The Uganda National Bureau of Standards
UIRI
Uganda Industrial Research Institute
VEDCO
Volunteer Efforts for Development Concerns
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1.0
INTRODUCTION AND BACKGROUND
NARO-Mukono Zonal Agricultural Research and Development Institute (Mukono ZARDI) is implementing
the ‘Understanding the dynamics of pineapple production and marketing in Uganda’ project in
collaboration with three partner organizations.
These organizations are National Crop Resources
Research Institute (NaCRRI), Agri-net Uganda Ltd and Volunteer Efforts for Development Concerns
(VEDCO). The overall objective of the project is to enhance collaboration among R&D actors and
market chain actors to jointly improve the competitiveness of the pineapple sub-sector sector.The
project is based on a qualitative action research approach, where opinions from different stakeholders
are discussed and consolidated in a participatory framework. The methodology used is based on the
principles of Participatory Market Chain Approach (PMCA).
PMCA is a research and development method involving different actors of market chains. The approach
seeks to generate group innovations in a participatory process that stimulates interest, trust and
collaboration amongst members of the market chain. The Approach further seeks to generate group
innovations by identifying and implementing viable market opportunities. . It follows a three step
generic process which (1) identifies (2) analyzes and (3) implements the most appropriate innovations
along the chain. PMCA was tried and tested with reasonable success in the Andes, which resulted in
better innovations and market opportunities for small-scale potato farmers, and other actors in the
market chain.
Following the successful interventions in the Andes,
PMCA was introduced in Uganda by the Papa
Andina Initiative and PRAPACE with DFID funding. The first applications of PMCA in Uganda on Sweet
potato, Solanum potato and vegetables (hot pepper and tomato) proved that the methodology is useful
for building multi-stakeholder platforms and generating pro-poor innovations. A subsequent project
was therefore proposed to enhance the productivity and marketability of pineapple using the PMCA.
This report outlines the activities, findings and outcomes of applying the PMCA approach (Phase 1) to
the Pineapple sub-sector in Uganda. The major outcomes include:
i.
Better understanding of the pineapple sub-sector upon identification of major actors
along the chain, their activities, interests and constraints.
ii.
Generated interest as a result of interaction amongst the market chain actors in the
final event.
iii.
Identification and formation of 2 thematic groups along potential innovation lines.
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iv.
Increased awareness of PMCA to a wider audience.
2.0 METHODOLOGY
During the period July- September 2010, the three leading institutions implemented the first phase
of PMCA on the pineapple sub-sector in Uganda. The main activities included;
a. Review of available literature
b. Preparation and planning for the survey
c. Development and pre-testing survey instruments
d. Conducting the survey
e. Data analysis and identification of thematic groups
f.
2.1
Planning and holding the final event
Review of available literature
A literature review was carried out to obtain available and relevant information on what has been done
at national and district level (i.e. proposed operational areas). To get updated statistical figures and
strategies, on electronic search was done to obtain information on pineapple production and marketing
worldwide, at regional and nation al levels. Such documents included investments reports, MAAIF DSIP
(2009 -13) as well as in the National Development Plan (2010 -14), Uganda Export Promotion Board
documents and district profiles.
2.2
Pineapple Market Chain Survey
The study team carried out a rapid market survey, on the pineapple sub-sector in Bushenyi, Iganga,
Luwero and Kampala districts.
The main objective of conducting the survey was to identify the major
key market players in the pineapple sub-sector chain, understand their activities, challenges and
solutions to these problems.
PMCA tools were used to identify major actors in the market chain, their activities, inputs, outputs,
level of governance in the chain, collaboration within the chain, problems encountered as well as
possible solutions and innovations along the chain. Checklists for different categories were developed
to guide the interviews. Face-to-face interviews were held with different market chain actors including
processors, producers, traders (retailers, wholesalers and bicycle assemblers) and research and
development institutions. Altogether, the team interacted with 131 persons. Details of the findings are
provided in the next chapter.
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2.3
Definition of thematic groups
Survey data was analyzed and synthesized to identify possible thematic areas for further discussions at
the final event. Two thematic groups were formed at the final event i.e. fresh pineapple and processed
pineapple group. The groups will create platforms for participants to evaluate and fine tune concrete
market options for Uganda pineapples.
2.4
Final event
In light of the survey findings, key respondents were invited to participate in the final event, which was
held at NARO- Mukono ZARDI, in Mukono district.
A total of 70 participants attended the function.
During the meeting, survey findings were presented and participants made positive comments to enrich
the findings. Basing on the ideas of different actors on possible marketing opportunities, two broad
thematic areas for future action were identified i.e. fresh pineapples and processed pineapples.
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3.0
MARKET CHAIN FINDINGS (ACTIVITIES, CONSTRAINTS AND
OPPORTUNITIES)
3.1 Production of fresh pineapples in Uganda
At global level, Pineapple is the second harvest of importance after bananas, contributing to over 20 %
of the world production of tropical fruits (Coveca, 2002). Pineapple production in Uganda has no clearly
documented history. What is known is that the crop has traditionally been grown for home
consumption until the last two decades when the fruit assumed commercial importance in Luwero and
Kayunga districts. It is now by far the most widely grown fruit in Uganda. Current Pineapple production
is estimated at 190Ha and 1,600MT mainly in 2,500 smallholdings of Luwero and Kayunga as shown in
Table 1. Given the favorable climatic conditions, Uganda still registers low production level of the crop
compared to other east African countries.
In most production areas, pineapples are grown as a sole crop or intercropped with bananas. In Uganda,
there are no large scale pineapple growers at the moment and pineapples are produced exclusively as a
smallholder crop. Available literature shows there a high level of participation of small-holder farmers
in the production process. The total number of organic farmers has increased from 15,000 in 2001/3 to
206,803 in 2007/08 (NOGAMU). Varieties of pineapples grown currently include: the small sized spiked
(Sasilimu) also known as ‘Queen Victoria’ variety and the large smooth Cayenne (smooth, spineless
leaves). However, farmers generally prefer the smooth cayenne which allows ratoon cropping, is larger
and juicier while Queen Victoria gives one fruit in its life time and the farmer has to cut back or replant
after each harvesting cycle (UIA, 2009).
Pineapples prefer well drained sandy loam soils with high organic matter content and a pH between 4.5
and 6.5. In Uganda, particularly in Kayunga, Luwero and Kasese districts the climate is favorable for
planting at any time. Irrigation has the added advantage of planting any time, early maturity and
harvesting through out the year.
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Table 1. Pineapple production trends in East African Countries
Country
Kenya
Uganda
Tanzania
Rwanda
Year
2005
2006
2007
2008
Area harvested (Ha)
14,500
15,123
14,271
14,271
Yield Hg/Ha)
413,793
276,307
300,655
300,655
Production (MT)
600,000
417,860
429,065
429,065
Area harvested (Ha)
194
190
190
190
Yield Hg/Ha)
85,051
84,210
84,210
84,210
Production (MT)
1650
1600
1600
1600
Area harvested (Ha)
9,000
9,000
9,000
9,000
Yield Hg/Ha)
86,666
86,666
86,666
86,666
Production (MT)
78,000
78,000
78,000
78,000
Area harvested (Ha)
1,600
1,750
1,850
1,961
Yield Hg/Ha)
93,750
91,428
91,891
92,850
Production (MT)
15,000
16,000
17,000
18,208
Source: FAO Statistics Division, 2010
3.1.1 An over view of pineapple production in survey districts
Bushenyi
In Bushenyi, pineapples were grown alongside with tea, banana, coffee and dairy farming in
Kyamuhunga and Nyarubaale sub-counties with an estimated acreage of 1000Ha (BDLG 2004). Farmers
mainly re-cycled planting materials for smooth cayenne. Apart from NAADS, the district had no other
collaborators and promoters of pineapple production. Bushenyi District Farmers’ Association (BUDIFA)
was active during the period of 1998-2005, but most its groups now belong to NAADS. There were no
NGO’s involved in agricultural production largely because the Bushenyi. But all pineapple stakeholders
in the district noted an increasing trend in the production and demand of pineapples both within and
outside the district. Collaboration with other organizations like Uganda Investment Authority, Uganda
Industrial Research Institute, Ministry of Tourism Trade and Industry, Uganda National Bureau of
Standards and One village One Product-JICA project was noted in the district.
Pineapples were sold locally to individual traders within and outside the district and roadside markets.
Most traders who bought Bushenyi fresh pineapples came from Kampala, while others were from
Rukungiri and Kasese districts. A few if any pineapples were sold to neighboring districts of Mbarara
and Masaka districts. Schools and tertiary institutions were the major consumers within the district.
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Regional and cross-border trade was reported as well but no concrete information was given on the
final destination of the commodity beyond Sudan, Congo and Rwanda borders.
In terms of processing, Bushenyi District Local Government tried to support farmers to add value to
pineapple in form of solar drying. One farmer was exporting solar dry chips to German through Fruits of
the Nile but was currently out of production due to structural problems at Fruits of the Nile (FON).
Bushenyi pineapples were known to be more acidic compared to those from other production areas.
This may be attributed to a higher altitude of the area among other factors. This attribute negatively
affect the quality marketing of Bushenyi pineapples.
Iganga
Pineapple, though deemed as a lucrative enterprise that offers high returns to investment, had not
been given adequate attention by technocrats in the past. This is exhibited by the fact that the district
is a net importer of the fruit – sourcing it mainly from Kayunga and Luwero Districts. Most pineapple
growers commenced on doing so out of their own initiative, and as a result there a few scattered cases
of commercial production, mainly in Makuutu Sub County.
Whereas attempts have been made to increase production and commercialization of pineapples by
A2N-Uganda through the establishment of a fruit drying factory and support in acquisition of inputs,
this has not yielded any notable results. To compliment these efforts, NAADS was also supporting
farmers in the sub counties of Makuutu, Bulamagi, Namungalwe and Nabitende with improved suckers.
Given the gestation period of the crop, it will take a while before any significant increase in production
is registered. Pineapple suckers were sourced from Kayunga District, but also from Makuutu.
In terms of quality, both processors and traders however were not very satisfied with pineapples from
Makuutu. This could be as a result of agronomic practices – e.g. planting density in Makuutu was
reported to be 18,000 suckers in an acre, as opposed to 13,000 reported in Luweero (wider spacing is
believed to increase the shamba life). In addition, other practices like mulching with freshly milled
coffee husks at the recommended levels were not observed in Makuutu. Whereas farmers in Kayunga
are reported to use fresh coffee husks (these generate heat which kills of the nematodes) to a thickness
of at least 4mm, farmers in Iganga use decomposed husks, with less than 1mm thickness. These and
other factors have led to production of smaller and less succulent fruits.
This survey found out that farmers space their fruits according to purpose and target markets. Farmers
hence establish pineapples in different blocks to target these markets i.e. first generation yields are
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generally larger since the pineapples have wider space to grow. The bigger fruits were sold to traders
from Nakasero market. Second and third generations have less space as suckers grow and take up
some of the space. The smaller fruits were sold to exporters. Phasing planting periods/production
therefore enabled the farmers to serve different markets at the same time. Markets were generally
available both in the district and surrounding areas, right up to Kenya. Producers were exploiting this
virgin market in that during slow seasons, the price can shoot up to as high as Ushs. 800 for a small
sized fruit. As such, farmers sell ex farm gate to traders from Bugiri, other parts of Eastern Uganda and
Kenya.
Luwero
Pineapple was one of the most income generating crop in Luwero district. Luwero was ranked among
the top 5 districts producing pineapple in Uganda. The crop had recently gained attention from
government, NGOs and private sector. It had a high market potential both in its fresh and processed
forms, in local and export markets. It was not yet fully exploited as a cash crop due to challenges along
the market chain. There were number of key players that support pineapple production and marketing.
They include SULMA Foods, VEDCO, CARITAS, Nature Uganda and Luwero District Farmers’ Association
(LUDIFA).
SULMA Foods is a private company which emphasized on organic products and has 83 certified farmers.
It exported both fresh and dried pineapple to UK and Middle East. Her weekly exports ranged between
1500 – 3000Kg of fresh pineapples. It supplied its products to supermarkets like UCHUMI, Nakumatt,
and Italian supermarket. SULMA was challenged by limited markets, higher freight costs compared to
her competitors and farmers sometimes use chemicals.
VEDCO was a leading NGO supporting pineapple farmers in Luwero district. It provided services in
farmer extension and training, provision of market information, linking farmers to buyers e.g. to
BIOFRESH, provides credit to farmers and Institutional development. The major markets were
neighboring trading centers e.g. Kasana, Luwero, Wobulenzi where farmers themselves delivered them
to whole salers and retailers. Markets outside Luwero included Kampala city, Sudan and Kenya where
wholesale traders buy them from farmers.
3.1.2
Seasonality
Uganda's climate favours pineapple production with moderate temperatures (15 -30ºC) throughout the
year and a bi-modal rainfall pattern. The soils have low levels of contamination due to prolonged
periods of minimal use of chemical fertilizers, pesticides and herbicides. The climate and agronomic
Pineapple Market Survey -PMCA Phase I Report
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practices favor large sized fruits, which are unsuitable for export, but fruit size can be influenced by
plant spacing. The November to February harvest period in Uganda coincides with the northern
hemisphere winter - a period of peak demand for fresh fruits and vegetables in Europe. Economies of
scale can be reached easily because of availability of planting materials for smallholders as out-growers
with some knowledge on pineapple agronomy.
In Bushenyi, the major production months are September- December and March – May in the first
season. In Luweero the first season commences in December– April, and the second runs from July to
Mid October. In Iganga on the other hand, the peak season runs from mid October thru to February.
But generally the traders were of the view that all areas come into peak production at the same time,
with slight variations due to differences in soil fertility and rain intensity.
Table 2 shows the pineapple production calendar for sampled districts
District
Months
Jan
Feb
Mar
April
May
June
July
Aug
Sept
Oct
Nov
Dec
Bushenyi
Luwero
Iganga
Source: Farmer and Trader interviews, 2010
3.1.3
Farm activities and Inputs
Field/agronomic activities were manually carried out and they included land clearing, ploughing,
planting, weeding, spraying, pruning, harvesting, pre-sorting and grading at harvest time. The basic
inputs were farm tools (hoes, pangas, knapsack sprayers etc), planting materials (suckers, slips or
crowns), fertilizer (mainly coffee husks and grass), agrochemicals and labor. Unlike Iganga and Luwero,
Bushenyi district largely used grass for mulching due to high soil fertility in the production areas. In
addition, Bushenyi farmers practiced organic farming. This could partly explain why pests and diseases
were reported as a major challenge in their production system.
3.1.4
Average holding and planting material
The average land holding in Bushenyi district was 2 acres, while Iganga and Luwero districts reported an
estimated acreage of 1 and 8 acres respectively. In all districts, smooth cayenne was the main variety
planted by the farmers. The main source of planting material was from fellow farmers, which they recycle in subsequent seasons.
There was no clear seed system across districts.
Iganga farmers
outsourced planting materials from Kayunga, the major pineapple producing district in the country. The
cost of planting materials at farm gate across district was Ushs.50-70 per sucker. There were variations
in plant spacing of 3ft x 3ft, 3ft x4ft with a plant density of 12,000 suckers per acre in Bushenyi while in
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Makuutu, Iganga, farmers reported a plant density of 18,000 suckers in an acre. In Luwero, farmers
reported a density of 13,000 suckers in an acre; and indicated that wider spacing increases the shamba
life. Using the seed rate of 35,000 suckers /Ha at a cost of ushs.50 per sucker, on average, a farmer
would need Ushs.700,000 to purchase planting materials for an acre.
Besides the problems associated with acquisition of seed, farmers also mentioned low yields, weather,
access to water for production and diseases as being other factors that greatly curtail production.
3.2 Seed production
Seed is one of the major inputs in pineapple production and a critical factor in enhancing crop
productivity. Still, the public sector lacks facilities to produce clean basic seed and supplies of tissuecultured materials. According to UIA investment plan (2009), planting materials for estate production
could easily be obtained through tissue culture for which technical capacity is already available in
Uganda at The National Crops Resources Research Institute of NARO at Namulonge and at a private
tissue culture laboratory i.e. AGT located at Buloba.
However none of the farmers interviewed
reported to have obtained planting material from either source, hence the need for increased research- farmer linkage. Farmers generally preferred to grow suckers because they take a shorter duration (17
months) compared to crowns and slips which require nearly 23 and 20 months respectively for fruit
maturity. (SARH, 1994).
3.3 Commercialization
The Government’s intervention in the marketing of fruits is supported by Uganda Export Promotion
Board (UEPB) and the National Crops Resources Research Institute (NARO) at Namulonge (NaCRRI). The
Uganda National Bureau of Standards (UNBS) at Nakawa is a public sector institution responsible for
providing services for the effective implementation and enforcement of standards. Uganda Industrial
Research Institute (UIRI) based at Nakawa was principally concerned with value addition technology and
practices. Other key private sector institutions in this area are Horticultural Promotional Organization of
Uganda (HPOU) and the Horticultural Exporters Association (HORTEXA). Bushenyi farmers collaborated
with UIRI, Ministry of Tourism, Trade and Industry, One Village One Product/ JICA project, Uganda
Investment Authority and major processing companies like Britania and Fruits of the Nile.
At national level, there are investment potentials in pineapple farming, and pineapple is one of the key
commodities that has been identified for commercialization in the MAAIF DSIP (2009 -13) as well as the
National Development Plan (2010 -14).
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3.4 Pineapple products and Processing
3.4.1
Post harvest handling and processing of Pineapples
Changes in maturation stage are evident when peel color turns from green to yellow at the base of the
fruit. Pineapple is a non-climacteric fruit and can be harvested as soon as it is ready for consumption.
Changes in chemical composition occur when half of the peel turns yellow. Chlorophyll, carotenes,
xanthophiles and anthocyanines are the main pigments found in pineapple. Their presence changes the
external color of the fruit from green, green-yellow, or yellow, to a mixture of yellow and purple with or
without green (Gortner, 1967).
According to the producers in all districts, harvesting was done when a buyer has been identified.
Pineapples are judged mature when they have reached full size and a nice yellow colour, depending on
variety. During maturation, chlorophyll fades out and total and pulp carotenes increase, while peel
carotenes decrease. Both peel and pulp carotenes rise at senescence (Dull, 1971). These changes define
the four stages in fruit development.
Figure 1. Stages in pineapple maturation (SARH,1994)
According to survey findings, farmers confirmed that timely weeding was essential to pest control and
better yields. Harvesting was normally done when the ‘skirting’ is about one third. Pineapples meant
for export were cut with a knife to leave a sizeable stalk of 2 to 3 inches long. The stalk was used for
holding the fruit during movement from the field; while those for the local market the stalk was simply
broken off. Harvested fruits were not put on the ground but rather in a container usually box, basket or
wheel barrow.
The products for the local market got no pre-treatment prior to marketing. Those for export purposes
were however brushed before packing and trimmed to leave a stalk of 1 inch. Grading for local markets
took place at the retail level. Furthermore, fruits destined for export were graded according to colour
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and size; and normally pineapples of 2 – 2.5 kg wt are exported (DFID, 2005B). The fruits were then
directly packed into cartons and transported by trucks or pickups to the airport. Produce destined for
the local market was loaded on pick-ups or lorries and the loading and off-loading is done manually.
3.4.2
Pineapple processing
Pineapples generate substantive income as a fresh fruit as well as in form of processed products and by
products.
They are consumed in fruit salads, processed into dry products or juices, jams, pulps,
marmalades, fillings, vinegar, toffee, jellies and wines. They can also be used as tenderizers and known
to have medicinal values. But the main processed products from Uganda are juices, jams, wines and
dried fruits. Stems and leaves are used as a source of fibre that is white, creamy, and lustrous and can
be processed in paper with excellent qualities. Pineapples also are used for silage as cattle feed. Two
processors/exporters i.e. FLONA commodities and AMFRI Farms are engaged in pulp processing.
3.4.3
Pineapple products
a. Dried pineapple: In this product, most of the free water of the fruit is eliminated using solar
power. Usually, chunks or slices are prepared for better presentation and make handling easier.
Final moisture is about 5%, and this allows the dried fruit to have a long shelf life as long as
proper packing and storage is done in a fresh place. Sulma Food Ltd., Flona Commodities,
RUCID and Soleil are some of the processors engaged in producing dried pineapple.
b. Juice: Pineapple juice is obtained from crushing fruit pieces after which physical separation of
the solids is done. Juice must be pasteurized and packed to extend its shelf life and a
preservative or refrigerated storage may be used as additional barriers to microbial spoilage. No
juice should reach the market if it becomes fermented or mixed with water. Packing may be
done in plastic bottles or bags, coated cans, multilaminate (plastic, paper, metal foil) or any
other appropriate materials. The pH values of the product must be controlled so that the juice
remains agreeable for human consumption. It is a common practice to blend batches of juices
to attain optimal acidity and sensory qualities. Juices from other fruits can be blended with
pineapple to obtain interesting mixtures make novel products. There are existing products on
the market by Jakana Foods, Sarmalina Beverages, RUCID, to mention but a few. Table 2 and 3
show the quantities pineapple juices imported into Uganda for 2002-2006.
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Table 2. Fruit juices imported into Uganda for the period 2002-2006
Fruit juices imported in Uganda
Year
Quantity (Kgs)
Value (Ushs)
2002
895,358
911,167,908
2003
1,346,088
1,276,206,042
2004
1,128,158
1,536,868,458
2005
1,631,973
2,169,668,040
2006
1,892,994
2, 807,973,035
Source: Uganda Revenue Authority Customs Department
Though information on actual figures on pineapple juices imported was not clearly aggregated, it
showed that the demand for fruit juice consumption was increasing and hence the need to address the
gaps which the country has to exploit this opportunity for local fruit processing.
c. Jam: Jam is made by boiling fruit pulp together with water, citric acid and sugar. Jam is packed
in glass or plastic jars. Both sole fruit and mixed fruit jams are produced and are available on
the market. But most of the products are imported from South Africa, Kenya, and Pakistan.
d. Pulp: Is the product of the basic processing of peeled pineapple pulp by crushing. Pulp may be
preserved by thermal treatment, or by preservatives in addition to proper handling. Packaging
is done in either small packages, or in bulk packages for further industrial processing and
formulations as ice cream mixes, jellies, jams, sodas, etc.
e. Wines: There is also upcoming processing into wine but on small scale. Wine is made from
fermenting juice/pulp over a given time, after which the product is bottled and corked in clean
bottles. Results from the survey indicate that some small holder farmers are engaged in
pineapple wine processing especially in Bushenyi and Kayunga. Bella wine was one of the major
Ugandan brands on the market. Imported products were also common in the major Kampala
supermarkets and shop organic in Kabalagala.
3.4.4
Other pineapple products
In the study areas of Bushenyi, Iganga, Luwero and Kampala there was a big gap in processing jam and
marmalade and other products mentioned below. All these value addition activities may need to be up
scaled and tried out for addressing some of the challenge in dealing with fresh pineapple marketing.
a. Marmalades: This is also considered as a fruit preserve using the same proportions of fruit and
sugar, and cooked until the same solids content as jams. Consistency is semi-fluid and not a gel
as jellies. Preservation criteria and shelf life considerations are similar as for jellies.
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b. Fillings: Pineapple pieces mixed with bakery cream may be used as cake fillings for institutional
service and large-scale production of bakery goods. Stability of the product depends on the
cleanliness and hygiene of the manufacturing process. Product may be packed in plastic bags,
plastic containers or metal bins. If no additives are used, the fillings must be kept refrigerated.
Due to its elevated nutrient and water content, shelf life is not very long.
c. Vinegar: Vinegar is prepared by an acetic fermentation of alcohol solutions derived from sugar
or starchy materials (fermentable sugar content of 8-20%). This is done by strains isolated from
the raw materials. Peel and other pineapple by-products from processing can be used as raw
materials to prepare natural vinegar and thus make a proper use of residuals. Vinegar must be
pasteurized once it is prepared and bottled. It is stable at ambient temperature (Coveca, 2002).
d. Sauce: Sauce is made by boiling fruit pulp together with sugar, spices, onions, garlic, ginger and
chillies. Salt and vinegar are subsequently added as well as a preservative before hot-packing.
Other products include jellies, toffies and candy.
3.5
Marketing and marketing channels
3.5.1
International and region trends
Global pineapple fruit, fresh or dried demand (2008) is estimated at 2.5 Billion MT and valued at USD
2.08 Billion. Internationally, the market for pineapples was growing in all EU counties. Germany, Italy
and the UK were the largest markets, while the new EU members offered good prospects for the future
as shown Table 3 demonstrated that since 2002 imports of pineapples doubled in volume but the value
increased by just 50%. There is extensive trade of pineapples in the EU, with a few EU countries acting
as suppliers. Belgium and the Netherlands were the leading importers and distributors of pineapples in
the EU. The leading global pineapple country markets were; USA (25%) Belgium 11 5%) (11.5%),
Germany (9.3%), Netherlands (7.9%) and UK (6.5%) (CBI, 2008).
Supermarkets were the main outlets for pineapple sales, but they are also sold through greengrocers,
street markets and catering outlets. The supply of pineapples to large supermarkets was highly
concentrated. They were supplied by large agro-multinationals. Aside from these companies, many
importers are active in trading pineapples. Developing countries were the main suppliers of pineapples.
Costa Rica was, by far, the leading supplier. Other Latin American countries had a strong position, while
imports from African countries were declining. Globally Costa Rica (31.9%) was the leading pineapple
exporter, followed by Belgium (17.3%), Netherlands (12.5%), USA (6.4%), Philippines (3.8%), and Ghana
(3.7%) (CBI, 2008).
Pineapple Market Survey -PMCA Phase I Report
13
In Africa, the main importers of pineapples were Egypt, Seychelles, Libya, Zimbabwe, Kenya and Zambia.
At regional level Tanzania, Kenya, South Sudan and Rwanda were the main pineapple exporters to EU
markets.
Table 3. Main importers of fresh pineapples
Country
Demand size (MT)
Demand
(US$)
Global
USA
Belgium
Germany
Netherlands
Egypt
Seychelles
Libya
Zimbabwe
Kenya
2.5 Billion
0.71 million
0.29 million
0.20 million
0.19 million
0.82 million
0.08 million
0.11 million
0.09 million
0.38 million
2.08 Billion
0.53 million
0.23 million
0.19 million
0.16 million
0.29 million
0.20 million
0.06 million
0.05 million
0.03 million
value Percentage share
100%
25%
11.5%
9.3%
7.9%
0
0
0
0
0
Average
annual
growth
(20052009)
9%
12%
2%
12%
24%
94%
92%
114%
44%
108%
Source: CBI, 2008
Only a very small fraction of Ugandan pineapples were exported but growing at an average rate of 11%.
Uganda’s pineapple exports consisted of fresh pineapples and dried pineapples. Among the exports,
the largest volume went to the regional market through the informal trade. Uganda was ranked 33rd
and contributing 0.08% of the world pineapple exports. Uganda’s leading global export markets
included; Germany (55.9%), Belgium (21.4%), Austria (10.7%), Denmark (4.4%) USA (1.6%) (CBI, 2008).
While in the COMESA Region, Uganda, Mauritius, Kenya, Egypt, Ethiopia, Eritrea and Madagascar were
leading pineapple exporters, so the country needed to explore this market whose conditions are not as
stringent as the international market. The major areas where pineapples were sourced for the national
and regional markets are Kayunga and Luwero districts. In addition, pineapples from Iganga district and
fewer quantities from Bushenyi are exported to Kenya by Ugandan and Kenyan traders. Notably, the
higher demand in Kenya for the processing and export market creates a gap in the fresh fruit market.
3.5.2
National trends
In Uganda, pineapple trade is a seasonal activity with the first season commencing in January – April,
and the second running from June to Mid August. Periods of low sales were recorded in the rainy
season and also at the commencement of school term. High sales were registered during festive
periods and also during the dry seasons. On the domestic scene, pineapple was a popular fruit
consumed in many households. Information from small scale processors who were interviewed in
Kampala city, indicate that the fruit is consumed in form of sliced fresh fruit. The nationals bought fruits
Pineapple Market Survey -PMCA Phase I Report
14
at farm gate, from markets in form of cut slices sold to travelers and people living in urban areas.
Pineapples were also sold in form of fruit salads in supermarkets and offices in Kampala. The current
trends in fresh fruits trade indicated that more and more urban fruits consumers demand a quality
finished product of slices and fruit packs. However, no adequate research has been done on this
emerging trend.
Processed pineapple juices were also being traded on the national market. The major brands on market
were Jakana mixed pineapple juice, Britannia pineapple juice, and RUCID juice. These products fell
within a price range of Ushs 600 for 500ml – 3,600 per litre. NOGAMU has maintained a shop for
organic products. Nonetheless, the volume of processed juices consumed was not documented. The
trend points to an increase arising out of increased volume among current processors and also new
processors on the market. Yet, in major supermarkets the major brands observed were imported juices
especially from South Africa, Kenya and United Arab Emirates as shown in table 4. Wine processing at
cottage industry was slowly emerging in predominantly in various urban areas of the country.
Table 4. Fruit juices imported into Uganda by brand and source
Brand
Country of Origin
Category
Manufacturer
Del Monte
Kenya
Fresh & Natural
Del Monte
Ceres
South Africa
Fresh & Natural
Ceres Fresh
Juice (Pty)
Quencher
Kenya
Concentrate
Excel
Chemicals Ltd
Highland
Kenya
Concentrate
Highlands Ltd
Source: Pineapple Market survey, 2010
3.5.3
Marketing channels
The pathway for pineapples and pineapple products in Uganda were categorized by three channels; the
farmer to consumer national channel, conventional export channel and organic export channel.
3.5.3.1 Channel one: Domestic markets channel
Pineapple Market Survey -PMCA Phase I Report
15
The domestic pineapple market chain was firmly led by the wholesalers in the district central markets
and the central markets and there was considerable evidence that the consumers drive the freshness
and size requirements. The supply chain begins with pineapples sold at farm gate to wholesalers or
middlemen or bicycle assemblers. However, for other areas with large commercial volumes, farmers
collect their fruits in the local trading centre and sell to traders at market agreed prices, for instance in
Nyarugoote parish in Nyarubaale sub-county in Bushenyi district. The wholesale market, where farmers
collect produce is a source for wholesalers to the local and national central markets. The wholesaler
traders from urban markets may use the services agents to guide them to farmer fields at fee
depending on the time spent in the field.
Wholesale traders outsourced pineapples form different production areas. For example Iganga traders
sourced pineapples from Luweero – Kikyusa, Ishaka, Masaka and Kayunga. Fruits from Kayunga were
the most preferred mainly because of their shelf life and low bruise-ability, sweetness and availability in
large quantities. Pineapples from Bushenyi were the least desired coz of their high bruise ability and fast
degeneration. The national central markets provided stores for wholesalers. Retailers bought fruit from
the wholesalers in central markets such as St. Balikuddembe and Nakasero in Kampala. The wholesalers
also had stalls for retailing to consumers and they also supplied food shops, restaurants and hotels.
Wholesalers in the urban markets such as the Nakulabye and Nakasero markets purchased their fruit
from farmers. Some traders dub into both wholesale and retail activities for example in Iganga central
markets. The price offered for retailers was slightly lower than that for the consumers, because in many
cases they sold to the same consumers in the same markets.
3.5.3.2 Channel two: Regional market channel
Fruit importers from Kenya and Southern Sudan bought their produce from the pineapple market in
Kayunga, Luwero and Bushenyi districts. In fact, exporters and importers went up to the farm gate
when the fruit is scarce in the off peak seasons and at times may book fields with a down payment.
Indeed, sometimes the foreign traders were blamed for the rising price of fresh pineapples that farmers
negotiate for.
3.5.3.3 Channel three: Export channel (fresh and dried conventional pineapples)
In Kangulumira sub-county and in Luwero sub-county there were attempts by export companies and
non-governmental organizations. Such companies included SULMA Foods, Fruits of the Nile and BioFresh and FLONA commodities.
Pineapple Market Survey -PMCA Phase I Report
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3.5.3.4 Channel four: Organic export channel
This includes both fresh and dried pineapples. The farmers were mobilized by the exporter to produce
under the organic system of production and later certified under the exporting company. In most cases
the farmers were tied to an individual exporter on contract. There was a close working relation between
the exporter and the farmer here the farmers’ acts as an out grower receiving training and sells at
premium prices. Farmers in Luwero received trainings from VEDCO which enhanced their capacity to
produce quality. The trainings ranged from production, post-harvest, storage, to marketing. The
activities were done for specific markets and at particular time. Some farmers in Luwero sub-county
had direct with exporters like AMFRI, Fruits of the Nile and Sulma Foods but they were also supplying
the conventional market while Iganga farmers had direct links with Soleil.
This survey found that farmers who successfully sold fresh organic pineapples at Ushs. 600800 while in the non-organic market the fruit was sold at an average Ushs. 300-500 per head.
Lusanja Pineapple Organic Farmers’ Association in Luwero sub-county was visited. The group
started in 2000 and comprises of 25 farmers with an estimated acreage of 300-400 acres. It
received technical extension support from VEDCO, an NGO operating in 14 districts of Uganda.
VEDCO linked the group to BIOFRESH in 2003, a processor who exports fresh pineapples to
Europe. For fresh pineapples farmers were provided with exporter’s boxes and to the central
collection point where the exporter picks consignments. The group delivered produce on a
weekly basis of 200-300 boxes per week, about 1,800 fresh pineapple heads. BIOFRESH niche
lies on the weight of pineapple fruit of 1-1.5kgs and they pay a premium price of Ushs.600/-, so
the group earned a gross income of 18-20 million shillings per consignment. But, a large
volume of the fruit organic or non-organic was still sold as non-organic due to quality concerns
and limited requirements of the exporters. The figure below illustrates a typical market chain for
fresh and dried pineapple in Uganda.
Pineapple Market Survey -PMCA Phase I Report
17
Regional consumers
Domestic consumers
International organic
consumers/ super markets
Traders in smaller
markets and kiosks
Organic exporters (processed and
fresh pineapples)
Retailers in central
and local markets
Processors:
juices, jams and
Regional exporters/importers
(Sudan, Kenya, Rwanda)
Organic exporters and processors
(dried and canned pineapples)
Traders or wholesalers in
the local and central
markets
Traders/ bicycle
assemblers based in
pineapple producing areas
Organic farmers
Conventional farmers
Channel 1:
Farmer to consumer domestic channel
Channel 2:
Regional exporters and importers
Channel 3:
Organic export channel
Figure 1. Structure of the pineapple supply chain and their participants in Uganda
3.6 Opportunities and constraints along the market chain
3.6.1
Opportunities
1. Expanding and growing regional market opportunities.
2. There is good long-term potential for processing and exporting pineapple fruit juice and
concentrate.
3. A growing international organic market for the fruits.
4. A distinct tropical climate with excellent soils.
5. Leading pine apple producers in COMESA region hence boosting of a regional comparative
advantage.
6. Government’s increasing focus on value addition to boost earnings.
3.6.2
Constraints
Production
1. Apart from organic farmers in Luwero there was no clear strong exporter – farmer support with
planting & input materials and technical support. At market level, traders reported reliability
and quality of supply from individual farmers largely due to the seasonality of fruit. The peak
season is associated with low demand and negative effect on the price of fresh pineapples. The
Pineapple Market Survey -PMCA Phase I Report
18
inadequate capacity to supply consistently to small scale producers, affect exporters’ ability to
meet orders; hence the small niche market for organic products.
2. There was general lack of strong pineapple farmers’ groups to enable them benefit from group
bargaining power. Most of the farmers depend on the conventional market and sell their
produce at farm gate and no effort was made to penetrate a better market on their own.
3. The sub-sector was faced with high rates of informal cross border trading, affecting capturing of
actual data on the regional pineapple trade flows. Farmers did not have clear information on
where the produce ends beyond the borders. Moreover some of them do not have strong
bonds/contacts so following up the chain was impossible beyond the farms.
4. The cost of inputs especially labor, mulching materials, chemical was relatively high. For
example, the cost of some chemicals used is 10-30% higher than in Kenya and Zimbabwe.
However, as the buying power of growers’ increases, prices can come down.
Quality and Standards
Pineapple exports are becoming highly scrutinized and standards of food products entering markets in
Europe and elsewhere in the industrialized economies are becoming more stringent and in some cases
numerous. The increasing requirement for traceability by European supermarkets affects small- farmers
to directly export their pine apples. It is important to align our products to Uganda National Bureau of
Standards/EU standards.
Imported pineapple juice is competitive because it out matches local
products in pricing, attractive and right-sized packaging.
There is inability of strong entrepreneurs to invest in value addition. Most processors still use
rudimentary technology to process their product. Most pineapple wine processors still conduct their
business on cottage basis. Low Technology affects the level of value addition thus affecting the level of
earnings.
Infrastructure
As Uganda is dependent on airfreight for nearly all its horticultural exports, the sector will always be
restricted to very high value products that can support the cost of airfreight. This is around $2.50/kg for
fruits and vegetables. Hence the need for private sector investments in modern commercial farms,
irrigation systems, pack-houses, refrigerated stores, pre-packing lines, packaging plants and other
related facilities.
Pineapple Market Survey -PMCA Phase I Report
19
Finance/credit
Finance and credit services still remain a challenge for agribusiness investors, due to the intrinsic risks
involved.
Pineapple Market Survey -PMCA Phase I Report
20
4.0
CONCLUSIONS AND RECOMMENDATIONS
1. With this growth, Uganda only needs to improve efficiency along the value chain to be able to
benefit from the global market. Stakeholders need to come together to identify strategies that may
target the regional market given its growth rates and ease to access.
2. More emphasis should be put on organizing farmers into supplying clusters, registered exporters/
processors. Intensive education of technicians and training of growers is needed and major
improvements in adopting proper agronomic practices will be needed. The more pineapples
produced the higher the chances of attracting processing industries.
3. Improvements in codes of practice; quality assurance; airport handling and private sector research
will foster many new market linkages.
More focus should be on solving the value addition
challenge.
4. There is urgent need to support sustainable organic pineapple production so that Ugandan
processors can earn premium incomes. Increased support to companies/cooperatives so as to raise
processing capacity (especially for dried and pulp products) is necessary to reduce on post-harvest
losses.
5. Research is needed into appropriate post harvest handling technologies and crop management
models (sanitation, fertility management without clearing forests).
6. Strategic market penetration and branding of Uganda pineapple to export markets needs to be
addressed for product competitiveness.
Pineapple Market Survey -PMCA Phase I Report
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LIST OF RESPONDENTS
1.
2.
3.
4.
5.
Name
Mutuuzi Ephrahim
Kamashaza Angella
Kundabo George
Dr. Muhumuza
Actor
Farmer
Extension
Farmer
Production District
Coordinator
6.
Dr. Byamukama David
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
Laban Butamanya
Kabise Fred
Dobodo Robert
Galubaale Dan
Isabirye Richard
Dr. Robinah Sonko
Ssekate Sunday
Jemba David
Nyombi Experito
Byansi Vincent
Kakande Godfrey
Kawuki Ronald
Semaganda Richard
Byamukama Ronald
Fred Tabalamule
Kasirye Haruna
Kasule Robert
Mubangizi Robert
Kabbaya Patrick
Nakigozi Fatuma
Kasule Dennis
Nabatanzi Judith
Lubwama Ritah
Mubiru Richard
Meme Hadijah
Sekitoleko Dan
Namubiru Sarah
Margaret Bamukyawa
Kisitu Dan
Kawendeke Mariam
Matovu Sam
Abraham Salomon
Lusanja Organic Farmers’ Group
Makuutu pineapple farmers group
District Commercial
Officer
Pineapple wine processor
Trader (exporter)
Farmer/trader
Trader
Trader
R&D
Farmer/trader
Farmer
Farmer
Farmer
Farmer/trader
Farmer /trader
Service provider/farmer
R&D
Extension
Extension
Farmer
Farmer/processor
Farmer
Processor
Processor
Organic/processor
Processor
R&D
R&D
Farmer
Extension
Farmer
Extension
R&D
Farmer
R&D
Farmers
Farmers
41.
Nyarubaale pineapple farmers
group
Kyamuhunga pineapple farmers
group
Tusitukire wamu Farmers’ group
42.
43.
Pineapple Market Survey -PMCA Phase I Report
Telephone No.
07010557148
0772552720
0772657431
Home district
Bushenyi
Bushenyi
Bushenyi
Bushenyi
Bushenyi
0758939674
0788846880
0782725685
Bushenyi
Iganga
Iganga
Iganga
Iganga
Kampala
Luwero
Luwero
Luwero
Luwero
Luwero
Luwero
Luwero
Luwero
Luwero
Luwero
Luwero
Bushenyi
Iganga
Iganga
Kampala
Kampala
Kampala
Kampala
Kampala
Luwero
Luwero
Luwero
Luwero
Luwero
Luwero
Mukono
Luwero
Iganga
Farmers
0772657431
Bushenyi
Farmers
0783559470
Bushenyi
Farmers
0774287707
077690007
0774901800
0782445665
0772684633
0774764548
0788846880
0712496034
0782822554
0787615544
0774791562
0782481168
0782880816
0772325660
0752875594
0772180962
0783559470
0782725685
0701056589
0782135593
0772402528
0772407017
0772650411
0759766168
0774639939
0772862279
0772622412
0772334284
0774083718
Luwero
22
44.
Namubiru Kisakye Promise
Retailer
Kampala
45.
Oliver Nakanwagi
Retailer
Kampala
46.
47.
48.
Isiko Godfrey
Lubega Moses
Denis Ochan
Kampala
Kampala
Kampala
49.
50.
51.
52.
Damulira Gordon
Mr. Kassaijja Charles
Cathy Zunina
Sharifah Kazibwe
Retailer
Wholesaler
Operations manager
Freshmark (Shoprite)
Retailer
Retailer
Juice and salad processor
Retailer
53.
Mr. Sebugenyi Joseph
54.
Masembe John Baptist
55.
56.
Bazalaki Sulaiman Nantatya
Habajja Samuel
Pineapple Market Survey -PMCA Phase I Report
Progressive pineapple
farmer
Progressive pineapple
farmer
DAO
DNC
0772325407
Kampala
Kampala
Kampala
Kampala
0782962114
Luwero
0782-824534
Luwero
0772693773
0772342228
Iganga
Iganga
23
REFERENCES
Bushenyi District Local Government Strategic Plan, 2004
CBI market survey (2008) Fresh fruit and vegetables: The EU market for pineapple,
Coveca. (2002). Veracruz agricultural marketing commission. State Government of Veracruz,
Mexico
Dull, G. G. , The pineapple: general. In: A. C. Hulme (ed.). 1971, The biochemistry of fruits and their
products, Academic Press, New York. vol. 2: p. 303-324. Veracruz agricultural marketing commission.
State Government of Veracruz, Mexico
FAO. Statistical database. 2009. Trade in Commodities
Gortner, W.A., G.G. Dull, and B.H. Krauss. (1967). Fruit development, maturation, ripening and
senescence
Ribbink, G., Nyabuntu, P., and Kumar, S., (2005) Successful Supply Chains in Uganda A study of three
successful chains in the coffee, dried fruit and fresh vegetables sectors Studies for Department for
International Development (DFID) and the International Labour Organisation (ILO), Business Services
Market Development (BSMD) May 2005
Bernet, T., Thiele, G. and Zschocke, T. (2006). Participatory Market Chain Approach (PMCA) User Guide.
Lima, Peru. International Potato Center (CIP).
Websitewww.ugandainvest.com Uganda Investment Authority; Fruits and Vegetables Sector
SARH. (1994). Uriza A.D., Rebolledo M.A., Mendez R.Z., Moreno J.D., Montesinos J.J y Mosqueda V.R.
Manual production of Veracruz and Oaxaca pineapple: Bajo Papaloapan Taiwan Turnkey Project
Association, 2004. tpc-canning.com
Ssemwanga Consulting (2007). Study for fruits sub-sector-pineapples, Passion Fruits, Mangoes; FIT
Uganda Ltd
Pineapple Market Survey -PMCA Phase I Report
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