|
SECTORAL ACTIVITIES PROGRAMME
Working Paper - WP. 148 |
Patrick K. Asea and Darlison Kaija*
International Labour Office
Geneva
January 2000
Working papers are preliminary documents circulated to stimulate discussion and obtain comments
*The authors are at the Economic Research Centre, Makerere University, Uganda. They thank the following organizations for their cooperation and assistance during the process of data-collection and report-writing: IDEA/ADC project, Uganda Flowers Exporters Association, Uganda Investment Authority, Uganda Export Promotion Board, Ministry of Tourism, Trade and Industry, Ministry of Gender, Labour and Social Development, National Organisation of Trade Unions, National Environment Management Authority, Federation of Uganda Employers, Victoria Flowers (U) Ltd., Harvest International (U) Ltd., Kajjansi Roses (U) Ltd., Flowers of Sunshine (U) Ltd. and Van Zanten (U) Ltd. Editorial work by Dr. Vali Jamal and assistance in data collection by Gloria Kempaka and Fred Muhumuza are also hereby acknowledged. E-mail: EPRCL@imul.com.
Institutions
Others
Uganda is a landlocked country with a total surface area
of 241,038 km2, 43,941 km2 of these under water and swamps.
The census of 1991 estimated total population at 16.48 million, with 51 per
cent women and 49 per cent men. The projection for 1999 is 21.62 million. The
country lies in eastern Africa, astride the equator, much of it a plateau 900-1,500
metres above sea level. It is bounded by five countries -- Sudan in the north,
Kenya in the east, Tanzania in the south, Rwanda in the south-east and the Democratic
Republic of Congo in the west. The climate is tropical, with temperatures moderated
by altitude, varying between 15oC and 30oC and rainfall
between 750 to 2,000 mm/year. Endowed with fertile soil, the country's economy
depends on agriculture from which an estimated 2 to 3 million smallholders (close
to three-quarters of all households) derive their livelihood (MFPED, 1997; MAAIF,
1996). Agricultural output comes almost exclusively from these smallholders,
most of whom have less than 2 ha. Some indicators of the importance of agriculture
in the economy are given in table 1. The sector contributes 42.5 per cent of
the gross domestic product (GDP), a decline from the high of 73 per cent during
1968-79 and an average of 55 per cent in the 1980s. The gradual decline attests
to a much needed diversification of the economy, in consonance with the normal
process of industrialization, recently enhanced by the climate of political
and macroeconomic stability.
Table 1. Role of agriculture, 1987-97
| 1987 | 1988 | 1989 | 1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | |
| Agric. as % of GDP | 54.9 | 54.5 | 54.2 | 53.4 | 52 | 51-2 | 50.4 | 48.8 | 46.6 | 44.7 | 42.5 |
| As % of agric. | |||||||||||
| Food crops | 68.1 | 68.1 | 69.0 | 68.3 | 67.5 | 67.6 | 68.1 | 68.6 | 68.4 | 65.2 | 71.0 |
| Cash crops | 6.1 | 6.0 | 5.9 | 6.1 | 6.5 | 6.5 | 6.1 | 6.7 | 7.0 | 8.9 | 5.0 |
| Livestock | 17.0 | 17.2 | 16.9 | 16.8 | 17.1 | 16.9 | 16.8 | 16.2 | 16.0 | 16.9 | 17.0 |
| Forestry | 3.9 | 4.0 | 3.8 | 3.9 | 3.9 | 4.0 | 4.0 | 3.9 | 4.0 | 4.1 | 3.0 |
| Fisheries | 4.9 | 4.7 | 4.4 | 4.9 | 5.0 | 5.0 | 5.0 | 4.5 | 4.7 | 4.8 | 4.0 |
| Source: Statistical Abstracts, various issues. | |||||||||||
Food crops dominate the agricultural sector, in terms of acreage accounting for 92 per cent of the of the area under cultivation while export crops account for 5 per cent (MAAIF, 1998). The cash crop subsector -- coffee, cotton, tea, and tobacco -- contributes 10 per cent to GDP and is even more important in exports, with 60 per cent of foreign exchange earnings. Principal export markets are the European Union (EU) -- in descending order, United Kingdom, Germany, Italy, France, the Netherlands, and Belgium -- and Kenya and Rwanda.
Food crops contribute 71 per cent of total agricultural GDP, livestock 17 per cent, export crops 55 per cent, fisheries 4 per cent and forestry 3 per cent. Over one-half (56 per cent) of agricultural GDP in 1995-96 consisted of non-monetized production for own consumption. Only a third of food crop output was marketed compared to twice as much of livestock products (MAAIF, 1996). Over the last two fiscal years, monetary food production has shown a slight improvement, from 48.4 per cent of the food crops subsector in 1996-97 to 48.8 per cent in 1997-98 (MFPED, 1998). The flower industry contributed 0.4 per cent to GDP in 1996-97 which fell to 0.18 per cent in 1997-98.
Traditional cash crops like coffee, cotton, tea and tobacco have been the mainstay of foreign exchange earnings for the last 20 years, with coffee dominating at 64 per cent of total exports. This contribution has been unstable due to fluctuations in world prices and local quality. Non-traditional crops come into play to contribute to the diversification of the economy. Maize, sorghum, millet, peanuts and flowers are being targeted to reinforce economic policy reforms as part of the structural adjustment programme.
Commercial floriculture is still a new industry in Uganda, dating back to only 1993. Cut flowers, cut foliage and, to a lesser degree, pot plant cuttings are the main outputs. Cut flowers include a variety of roses, chrysanthemum cuttings, carnations and summer flowers. This study will focus on flowers.
The major flowers grown in Uganda are roses. The total area under production
is estimated at 75 hectares, comprising 35 varieties, divided almost equally
between sweetheart and hybrid tea types (table 2). Around 20 rose projects exist,
located in Kampala, Mpigi and Mukono, the furthest from Kampala being one in
Lugazi, about 30 miles distant.
Table 2. Rose varieties, 1998
| Variety | Area (ha) | Type | Colour | |
| Frisco | 7.3 | Sweetheart | Yellow | |
| Lambada | 6.5 | Sweetheart | Orange | |
| Souvenir | 4.0 | Sweetheart | Purple | |
| Rodeo | 3.0 | Sweetheart | Red/yellow | |
| Dream | 2.8 | Sweetheart | Pink | |
| Sancha | 2.5 | Sweetheart | Red | |
| Europa | 1.9 | Sweetheart | Pink | |
| Escimo | 1.5 | Sweetheart | White | |
| Gabriella | 1.2 | Sweetheart | Red | |
| Golden Times | 1.0 | Sweetheart | Yellow | |
| Steffi | 1.0 | Sweetheart | Pink | |
| Golden Gate | 1.0 | Sweetheart | Yellow | |
| Jaguar | 0.7 | Sweetheart | Red | |
| Vanilla | 0.6 | Sweetheart | Cream | |
| Baronesse | 0.3 | Sweetheart | Red | |
| Royal Dream | 0.3 | Sweetheart | Pink | |
| First Red | 18.0 | Tea | Red | |
| Prophyta | 5.1 | Tea | Cream/pink | |
| Konfetti | 3.5 | Tea | Yellow/red | |
| Nicole | 1.7 | Tea | White/purple | |
| Cream Prophyta | 1.3 | Tea | Cream | |
| Black Magic | 1.2 | Tea | Red | |
| Corvette | 1.1 | Tea | Red | |
| Versilia | 1.0 | Tea | Orange | |
| Ravel | 1.0 | Tea | Purple | |
| Aalsmeer Gold | 0.6 | Tea | Yellow | |
| Escada | 0.5 | Tea | Red | |
| Orange Unique | 0.5 | Tea | Orange | |
| Saphir | 0.5 | Tea | Pink | |
| Ambiance | 0.5 | Tea | Yellow/pink | |
| Laminuette | 0.4 | Tea | White/red | |
| Noblesse | 0.3 | Tea | Pink | |
| Starlite | 0.3 | Tea | Yellow | |
| Naomi | 0.3 | Tea | Pink | |
| Rumba | 1.1 | Spray rose | Yellow | |
| Source: Ugaflor, 1998. | ||||
Under this aspect, temperature, effect of humidity and greenhouses have to be considered.
Temperature: The ideal temperature for flower-growing should be 24°-29°C daytime and 15°-18°C night-time. Roses can be grown in temperatures above 30°C provided humidity is elevated to slow down evaporation. At high temperatures, the post-harvest chain becomes critical, since once cut, roses deteriorate unless cooled immediately. In the Lake Victoria region where temperature is higher than other major rose-exporting countries, earlier findings are that Netherlands yields can be obtained in eight months. Temperatures affect all variables to do with flowers -- quantity harvested, number of petals, stem length, colour, length of the neck, bullheads, blind shoots and vase life.
Humidity: High relative humidity is a major problem in some parts of the tropics. Optimal relative humidity should be 65-70 per cent. Low relative humidity plus high temperature will attract spider mites. High relative humidity exposes the plants to serious fungal diseases. Therefore with the outlined environmental challenges, a compromise must be created if quality production is the target.
Greenhouses: As earlier mentioned, daytime temperatures above 29°C will negatively affect production and quality, as will nighttime temperatures below 10°C. It is therefore essential that greenhouses be equipped with aeration facilities to maintain temperatures within this range. Greenhouses have to have sufficient height to decrease the effect of temperature. Side height should be 3.5 to 4 m with permanently open vents along the ridges and variable vents along the sides.
The effect of high day temperatures can also be reduced by misting. Evaporation reduces the temperature effectively, and also raises the relative humidity. Irrigation should be used only up to early afternoon in order to keep the plants dry during the night, so as to avoid fungus infestation and leaf drop where varieties are so susceptible. Irrigation should be used for short periods only; the idea is only to wet the soil.
Three types of roses grown are: sweethearts (short stem, small to medium flower heads), tea hybrids (long stem, big flower heads) and sprays (medium stem, minimum of four flower heads per stem). Within each of these types, there is a wide range of varieties available in a wide range of colours. The actual types grown depend on adaptation to the climate and market trends.
Two types exist -- promoting and lending institutions and producing and exporting companies. The former have contributed greatly to the success of the industry although they are not directly involved in production. Apart from those mentioned below, the Ministry of Gender, Labour and Social Development, Ministry of Tourism, Trade and Industry, National Environment Management Authority (NEMA), National Organisation of Trade Unions (NOTU) and Federation of Uganda Employers (FUE) also play important roles. MGLSD oversees industrial relations in the sector; MTTI formulates overall policies for the growth and development of the industry; NEMA monitors environmental aspects of the industry; NOTU represents unionized workers and provides training on health and safety; and FUE advises employers on the terms and conditions of workers, safety of workers (use of protectives) and sensitization on child labour.
(a) ADC/IDEA
The Investment in Developing Agriculture (IDEA) project, which is USAID-funded, was established in March 1995. Its goal is to increase rural incomes. As part of this, the Agribusiness Development Centre (ADC) was set up to assist agribusiness growers to expand output and marketing of non-traditional agricultural crops. Products include horticulture, floriculture, and fresh produce. ADC provides assistance to the firms by training their staff, sponsoring overseas visits and providing market research and technical assistance. Annual conferences are organized (so far three) to help the participants in the industry. Close relationship is maintained with collaborators, including USAID and ISC, with the line ministries -- Ministry of Tourism, Trade and Industry (MTTI) and Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) -- and with public institutions -- National Agricultural Research Organisation (NARO) and Makerere University (MU) -- financial institutions, other complementary projects such as Famine Early Warning System (FEWS), and private firms and companies.
ADC has contributed to increased earnings, by encouraging expansion into small flowers which in 1996 earned US$2.9 million, 30 per cent higher than in 1995, and, by introducing direct buyers who paid 20 per cent higher than the auctions and contributed 25 per cent of the farms' earnings in 1996. The following specific activities are carried out by ADC:
(i) analysing world market trends;
(ii) identifying and accessing markets;
(iii) planning annual national flower conferences;
(iv) planning and funding trials of roses, summer flowers and alternative flowers and plants;
(v) training;
(vi) strengthening the Uganda Flower Exporters Association (UFEA).
(b) UFEA
The Uganda Flower Exporters Association was established in 1995 to bring together all the flower growers and exporters in order to foster and promote the flower industry. UFEA is charged with the responsibility of activities such as membership development and promotion of the flower industry both locally and internationally. Close collaboration is maintained with ADC/IDEA and the Uganda Export Promotion Board.
(c) UIA
Uganda Investment Authority (UIA) is the agency set up by the Government to promote investment in Uganda, to market Uganda's investment opportunities to targeted investors, to coordinate the national investment marketing programme and to serve as the point of contact for potential investors. As a business-oriented agency, UIA is manned by professional staff who help investors by facilitating them in implementing their planned investment programmes. UIA also advises the Government on appropriate investment policies and is equipped to handle investors' requirements for information or action. UIA introduced a system of awarding prizes to the best investor of the year. Van Zanten exporters of chrysanthemum cuttings at Mukono won the award in 1998.
(d) Uganda Export Promotion Board
The Uganda Export Promotion Board (UEPB), established in 1996, is responsible for the promotion of Uganda's exports to international markets by providing efficient and timely information to interested parties. UEPB aims at developing non-traditional exports, particularly high-value crops and agro-industry. Private sector participation is encouraged in investigating export opportunities.
The following companies were visited and questionnaires (see appendices III and IV) administered to management and workers: Harvest International (U) Ltd., Victoria Flowers (U) Ltd., Flowers of Sunshine (U) Ltd., Kajjansi Roses (U) Ltd. and Van Zanten (U) Ltd. Other farms in existence are: Nile Roses (U) Ltd., Jambo Roses (U) Ltd., Uganda Horticultural/SCOUL (U) Ltd., Royal Flowers (U) Ltd., NBA Roses (U) Ltd., Equator Flowers (U) Ltd., Mairye Estates (U) Ltd., Pearl Flowers (U) Ltd., Uganda Young Plants (U) Ltd., Nsimbe Estates (U) Ltd., Horizon Roses (U) Ltd., MK Flora Ltd., Ugarose Ltd., and Melissa Flowers Ltd. All these farms are situated within Kampala, Mukono and Mpigi districts, with the majority along the Kampala-Entebbe road, for ease of access to the airport.
Van Zanten, established in October 1995, was accorded the Investor of the Year award in 1998 by UIA. The farm grows chrysanthemum cuttings only. It has branches in South Africa, Italy, the Netherlands and Brazil which has enabled it to widen its market outreach. The award was based on the following considerations:
* strict adherence to the industry Code of Practice;(1)
* 80 per cent women workers;
* above-average salaries;
* 100 per cent production for export.
A number of financial institutions are involved in lending to the flower investors. These include the Development Finance Company of Uganda (DFCU), East African Development Bank (EADB), International Financial Company (IFC), Uganda Development Bank (UDB), PTA Bank, UCB, and Gold Trust Bank.
The projects are financed by a mixture of medium-/long-term loans and short/working capital. The latter in local currency terms currently attract an interest rate of 25 per cent per annum. The development banks offer medium- and long-term loans mainly in foreign currency at 12 per cent. The maximum grace period allowed is two years. The average repayment period is six years, including the grace period. A commission of 1 to 2 per cent is charged, depending on the source of finance.
The terms and conditions of borrowing seem to be unfavourable to the flower companies. The yields may not meet expectations and prices on the world market may come in low, hence often growers are unable to pay their loans in time. The companies are appealing to UFEA and IDEA/ADC to negotiate lower interest rates with banks.
2. Performance of the industry
Rose production is mainly for export markets in Europe. There are a number of marketing strategies for Uganda cut flower exporters: selling through the Netherlands auctions; direct sales through a Netherlands import/export company; and direct marketing to German and British supermarkets. As an ACP country Uganda benefits from preferential tariffs to the European Community markets. Currently, production is geared to supplying the European markets between September and early June when European production is low. Under Ugandan conditions roses have shorter stems than Dutch flowers, but attain higher yields in eight to nine months. The following should be noted as far as marketing is concerned:
Price trends have been unfavourable for the Ugandan growers compared with others (table 3). Margins are narrowing and projected prices have not materialized. Flower production is increasing all over the world and has become a high-volume, low-margin activity. Prices for hybrid tea and sweetheart roses dropped by 20 per cent and 25 per cent respectively over the past three years. However, the price of Dutch hybrid tea increased slightly, illustrating the higher quality awareness of the market. The Dutch sweetheart prices decreased by about 13 per cent which was due to the oversupply of small roses at certain times of the year. In 1997-98, as shown above, Ugandan sweethearts on average were the lowest-priced roses on the market, underlining the need to improve quality.
Table 3. Dutch auction prices, 1995-96 to 1997-98
| Source | 1995-96 | 1996-97 | 1997-98 | ||||||||
| Hybrid tea | Sweetheart | Hybrid Tea | Sweetheart | Hybrid tea | Sweetheart | ||||||
| Uganda | 0.43 | 0.29 | 0.38 | 0.24 | 0.30 | 0.21 | |||||
| Zimbabwe | 0.40 | 0.32 | 0.37 | 0.28 | 0.35 | 0.25 | |||||
| Zambia | 0.41 | 0.34 | 0.38 | 0.32 | 0.36 | 0.27 | |||||
| India | 0.42 | 0.28 | 0.36 | 0.27 | 0.38 | 0.24 | |||||
| Israel | 0.47 | 0.40 | 0.34 | 0.30 | 0.28 | 0.27 | |||||
| Kenya | 0.47 | 0.32 | 0.42 | 0.30 | 0.39 | 0.25 | |||||
| Tanzania, United Rep. of | 0.48 | 0.31 | 0.47 | 0.32 | 0.43 | 0.27 | |||||
| Netherlands | 0.67 | 0.36 | 0.65 | 0.32 | 0.69 | 0.31 | |||||
| All imports | 0.44 | 0.36 | 0.37 | 0.32 | 0.35 | 0.27 | |||||
Incentives to investment in flower production include the following:
-- exemption from import duty on plant and equipment;
-- investment capital allowances at 50-70 per cent, depending on location;
-- protection of investors' assets from acquisition, and, in the unlikely case of acquisition, full compensation at fair market prices within a year.
As a result of increasing costs in the Netherlands and other European countries, the general opinion in the flower industry is that, in future, substantial production will shift from Europe to the southern hemisphere countries such as Uganda. Floriculture produces attractive returns in Uganda (30-40 per cent) but requires high investment. The market can absorb an increase in production which will bring in additional foreign exchange earnings of US$37 million from roses and US$5-10 million from other flowers.
Capital costs (excluding land and land clearance) for establishing a rose project in Uganda range from US$26.55 to 39.25/m2, with an average of US$31.46/m2, depending on the size of the project, type of construction, and equipment (table 4). Planting materials are productive for five to seven years, after which their replacement gives the opportunity to plant new varieties. A majority of roses are grown in greenhouses to protect the blooms from the rain and to yield all-round better quality. Greenhouse structures have to be covered with plastic, with an average life span of three to four years. Additional investment is needed in drip irrigation to apply water, fertilizer and chemicals.
Production costs range from US$66,798 to US$105,865 per hectare with an average of US$84,507 (table 5). Packaging materials cost US$1.60 per kilogram and account for 3.5 per cent of total cost. Air freight costs range from US$1.7 to US$1.8 per kilogram, or 32 per cent of total. Marketing costs account for 16 to 17 per cent of total costs, including clearance and auction costs. This is shown in table 6.
Table 4. Capital costs (US$/m2)
| Item | Years | Range | Average | ||
| Greenhouse (wooden)
(metal) |
10
20 |
3-5
9-13 |
4.05
11.00 | ||
| Plastic | 4 | 2.0-4.5 | 2.60 | ||
| Irrigation/pumps | 10 | 1.5-2.35 | 2.12 | ||
| Electrical supply/generator | 10 | 0.6-1.83 | 1.43 | ||
| Sulphur burners | 10 | 0.23-0.7 | 0.50 | ||
| Grading hall/stores/offices | 20 | 1.25-3.6 | 2.94 | ||
| Staff housing | 20 | 0.92-1.67 | 1.02 | ||
| Tractors | 5 | 0.30-1.5 | 0.72 | ||
| Refrigerated truck | 5 | 0.33-2.83 | 1.09 | ||
| Pick-up truck | 5 | 0.10-0.68 | 0.38 | ||
| Plant supports | 5 | 0.08-0.3 | 0.18 | ||
| Spray equipment | 5 | 0.15-0.10 | 0.32 | ||
| Planting material | 5 | 11.00-13.00 | 12.00 | ||
| Cold store | 10 | 1.67-3.47 | 2.12 | ||
| Total capital costs | 26.55-39.25 | 31.46 | |||
| Annual depreciation | 4.06-5.22 | 4.49 | |||
| Source: Ugaflor, 1996. | |||||
Table 5. Production costs (US$/ha)
| Item | Range | ||
| Manager | 10,000-20,000 | ||
| Field manager | 2,400- 3,000 | ||
| Supervisors/labour | 2,400-3,400 | ||
| Administration | 10,000-19,200 | ||
| Consultants | 6,000-10,000 | ||
| Total management/labour cost | 35,280-50,400 | ||
| Fertilizers/agrochemicals | 11,000-45,000 | ||
| Electricity/diesel | 4,800-13,330 | ||
| Building repairs | 1,200-8,000 | ||
| Machinery repairs | 2,000-4,050 | ||
| Phone/fax | 1,200-8,000 | ||
| Soil analysis | 165-666 | ||
| Total production cost | 67,000-106,000 | ||
| Average | 84,500 | ||
| Depreciation | 40,580-52,210 | ||
| Interest1 | 19,150-23,900 | ||
| Unit cost US$ (based on reported yields) | 6.93-11.253 | ||
| 1 National interest based on 60% of capital borrowed at 12%. | |||
Table 6. Packaging, freight and marketing costs (US$/ha)
| Large | Medium | Small | |||
| Stem yield/m2 | 140 | 200 | 300 | ||
| Average stem size (cm) | 55 | 50 | 40 | ||
| US$/ha | |||||
| Packaging1 | 8 890 | 10 800 | 10 500 | ||
| Freight charges2 | 87 380 | 90 500 | 92 034 | ||
| Marketing3 16-17 per cent | 43 912 | 44 869 | 45 105 | ||
| 1 Carton costs: US$1.90-2.00; Kraft paper US$1.60/kg, 4c/bunch. 2 Freight: US$1.77-1.85. 3 Marketing costs including clearance and all auction charges. | |||||
The existence of flower farms has boosted economic activity of nearby trading centres and provisioning industries supplying packing, chemicals, hardware, food, fuels, electricity, stationery and fertilizers. The infrastructure -- roads, buildings, greenhouses and sheds -- is constructed by local contractors. In some cases, communication also improved through the construction of road networks. A number of shops and other businesses have sprung up in the vicinity of the farms, and residential houses for renting have been built targeting the flower workers.
The period 1993-98 saw the successful development of the industry from one project in 1993-94 growing roses indoors on 2 ha of land to 20 projects in 1997-98 on 75 ha, with an f.o.b. value of nearly US$16 million (table 7). The rate of increase works out at 250 per cent per annum and it is projected that there could be 200 ha under roses by 2001, representing a potential f.o.b. market value of US$37 million. However, achieving this would require higher production efficiency and more quality control.
Table 7. Rose projects and exports, 1993-98
| Year | Number of
projects |
Area (ha) | Stems (millions) | f.o.b. value
(US$ millions) | ||||
| 1993-94 | 1 | 2 | 1.02 | 0.13 | ||||
| 1994-95 | 3 | 8 | 8.50 | 1.11 | ||||
| 1995-96 | 9 | 40 | 26.80 | 3.48 | ||||
| 1996-97 | 12 | 57 | 70.70 | 9.19 | ||||
| 1997-98 | 16 | 75 | 122.50 | 15.93 | ||||
| Source: Ugaflor, 1998. | ||||||||
Thirty-five varieties of roses are commercially grown in Uganda, "First Red" accounting for 20 per cent, Prophyta 12 per cent, Frisco 8 per cent and Souvenir 5 per cent.
Despite the increase in the total volume of cut flower exports, the performance of individual farms has varied, with Van Zanten, Mairye and Melissa the best performing according to IDEA, while some have lagged ever since their establishment and have finally closed, the recent fall in prices being the last straw. The general positive trend in the industry can be attributed to the increased demand, availability of cheap labour and land, uniqueness of Ugandan flowers, and good economic and political climate.
The flower industry faces a number of problems.
(i) Lack of direct markets. This has been identified as the most outstanding problem. All flower exports were designed to supply Dutch flower auctions managed by Dutch growers. Due to stiff competition, the Dutch growers developed strategies to keep non-Dutch growers out of the market by underpricing their own products compared to the imports. The non-Dutch growers are naturally disadvantaged in terms of the grade and prices they obtain at the auctions. Moreover, imports have to pay a commission of 21 per cent on gross sales; whereas payments are made in Dutch guilders, loans are given in US dollars, and with currency rates fluctuating, losses are common. For example, during 1993-94, the rate between the US dollar and the Dutch guilder was 1.4 and during the first half of 1999 2.1.
(ii) Borrowing. Banks like the East African Development Bank (EADB), Development Finance Company, Gold Trust Development Bank and Uganda Commercial Bank (UCB) play a vital role in this sector. However, the formalities in obtaining loans are long and complicated. Interest rates on long-term loans are high whereas inflation is low.
(iii) Inadequate infrastructure. Most flower firms are located in rural areas where facilities like roads, electricity and water are poor. Investors tend to over-borrow in order to meet the cost of these facilities since flowers are perishable commodities and therefore need proper preservation to maintain quality. The problem is aggravated by the lack of facilities at Entebbe airport. Access roads from the main roads to the flower sites need constant maintenance. It was suggested by the sampled farms that the local government of Mpigi should help them to address the problem. The projects have had to install transformers on their sites on behalf of Uganda Electricity Board (UEB) without any compensation. Heavy-duty generators are essential to cater for power cuts and irregular supply (some projects receive UEB power for two to three days a week). There is a need for UIA to create a dialogue with UEB on this issue. Most of the projects do not have access to Uganda Telecommunications Ltd. services and rely on the mobile cellular services. This is a hindrance, especially since export contracts have to be made in a timely manner.
(iv) Airport facilities. The cold storage house, completed in April 1998, is not operating efficiently because of management problems. It functions basically as an offshore facility at the old airport and yet handling, customs documentation and clearance, and health inspections have to be done at the new airport. Flowers are roughly handled by the Entebbe Handling Services (ENHAS). Lack of easy air connections and the low cargo traffic calling at Entebbe are serious problems. Handling charges by ENHAS are said to be high -- according to UFEA, US$0.07 per kg, compared to US$0.03 at Nairobi. Air freight charges also carry a disadvantage -- US$1.7-2.3 per kg in Uganda, compared to US$1.4 per kg in Kenya. It is not known whether this is as a result of the tax system in Uganda, the Civil Aviation Authority, the airlines themselves, or a combination of factors. The cargo space is small and, as a result, in the 1999-2000 budget the cost of jet fuel at Entebbe has been reduced to encourage more flights. Sheds to protect the flowers when they are being processed for loading are lacking.
(v) Taxation. Although import taxes have been reduced, VAT is still charged on items the producers consider plant and equipment (table 8). In addition, they wish to see a VAT deferment system when importing their products instead of cash payment upfront before clearing them.
Table 8. Taxes on materials
| Import duty | PTA | VAT | |
| Rose seedlings (rose bushes) | Free | Free | 17% |
| Fertilizers | Free | Free | Free |
| Pesticides, herbicides and fungicides | Free | Free | Exempt |
| Plastic covering | Free | Free | 17% |
| Plastic tubes and pipes | 15% | 6% | 17% |
| Irrigation pumps | Free | Free | 17% |
| Refrigeration equipment | 7% | 4% | 17% |
| Source: Background to the Budget, 1999-2000. | |||
(vi) Management. The technical management aspect involves the use of technically qualified personnel. These have had to be hired from Kenya, Israel and the Netherlands at high fees. Even then, performance has fallen below expectations, a critical loss considering the initial lack of knowledge on the part of the promoters. The situation is beginning to improve as more Ugandans have gained experience in the flower industry. Financial management has been equally poor. A study by IDEA revealed that most flower projects are over-leveraged and operate at the break-even size (2.5 ha). UIA and banks are advising new promoters to be cautious of this problem. Over-optimistic forecasts in feasibility studies have contributed to the problems. For example, a number of feasibility studies projected returns of US$0.35 per stem but in reality only US$0.08-0.10 was achieved. The repayment period should have been accordingly adjusted to ten years instead of six. The over-projection of returns is causing distortions in fulfilment of the loan repayment schedules by borrowers.
(vii) Weather. Although Uganda is blessed with favourable climatic conditions, recent disturbances associated with the El Niño rains have affected most agricultural production. The Government is trying to help farmers through improved meteorological monitoring. Some current varieties do not suit the local climate, pointing to a need to diversify into other products and introduce better quality seeds. Diversification can take the form of summer flowers and vegetables. IDEA/ADC plans to carry out a trial test of new seeds on five farms.
Despite the above problems, the production of roses in Uganda has considerable potential due to Uganda's comparative advantage, productivity being amongst the foremost. At the beginning of 1997 roses occupied around 50 ha with an output of 67 million stems, giving an average productivity level of 1.3 million stems per hectare. By September 1998, the area had risen to 75 ha with average yield as indicated in table 9. These yields are 5 to 10 per cent above those in neighbouring countries such as Zimbabwe.
Uganda is endowed with a climate suitable for flower production. The annual mean daily temperature (22°C) is moderated by the high altitude and the large mass of water in Lake Victoria. The wide variation of temperatures suggests the possibility of growing a wide range of flowers. The temperature profiles are also quite constant throughout the year, ensuring year-round production. Diurnal variation is small (8-10°C), which results in excellent flower quality. The rainfall pattern is moderate, with precipitation every two to three days and significant fall in most months. Thus, the potential exists to produce high yields of small-flowered roses (sweethearts) with stem length between 40-65 cm, which account for two-thirds of the European market. Uganda has a competitive advantage within this stem range, compared to the other East African producers. In practice, given good management, Uganda can achieve 5-10 per cent higher yields than Zimbabwe or Kenya. For instance, Uganda produces 180-200 stems/m² of "First Red" compared to 120 in Kenya.
Average yield, auction prices and returns are shown in table 9.
Table 9. Average yield, auction prices and returns, 1995-96 to 1997-98
| 1995-96 | 1996-97 | 1997-98 | Average | ||||
| Average yield (stems/m²) | |||||||
| Tea | 108 | 115 | 108 | 110 | |||
| Sweetheart | 225 | 196 | 257 | 226 | |||
| Average auction prices (Dfl) | |||||||
| Tea | 0.43 | 0.38 | 0.30 | 0.37 | |||
| Sweetheart | 0.29 | 0.24 | 0.21 | 0.25 | |||
| Average return (DFl/m²) | |||||||
| Tea | 46.44 | 43.70 | 32.40 | 40.85 | |||
| Sweetheart | 65.25 | 47.04 | 53.97 | 55.42 | |||
| Source: Ugalfor, 1998. |
Sweetheart types in general are significantly more profitable than hybrid tea types. It is also clear that financial returns in guilders have decreased by 12 per cent for tea roses and 15 per cent for sweetheart over the past three years.
Uganda's other advantages are:
(a) Land. Land suitable for cut flower production can be obtained at a cost of UShs.10-20 million per acre in the vicinity of Lake Victoria.
(b) Water. Cut flowers require lots of water for production (60,000 litres/ha/day) which is supplied by Lake Victoria. Reservoirs and wells drilled within the vicinity of the lake can be shallow, hence reducing pumping costs, and are not prone to drying up during periods of drought.
(c) Human resources. There is abundant unskilled and semi-skilled labour, but the industry still lacks qualified skilled personnel, requiring expatriate expertise. Makerere University with the assistance of USAID and ADC/IDEA offers courses in tropical floriculture to managers, supervisors, technicians and researchers.
(d) Inputs. All inputs required for production (fertilizers, planting materials, chemicals, packaging materials, greenhouse plastics, netting) have to be imported but are obtainable from the many foreign companies which have set up business in Uganda.
(e) Infrastructure. There is a fairly good road network. The international airport connects the country to various parts of the world, and an operational cold-storage facility exists there to handle flowers and other perishable commodities.
(f) Technical support. The IDEA/ADC project provides funding and technical support for research on floriculture, monitors production and export statistics for the industry and provides weekly market information.
(g) Small roses. Uganda's small-flowered roses have a ready demand in the EU where they account for more than 60 per cent of the market.
The above advantages translate into a cost advantage over Kenya and Zimbabwe (tables 10 and 11). The full benefits of Uganda's low costs can only be realized if quality standards are maintained. Yields of some rose varieties are shown in table 12.
Table 10. Comparative capital, operating and freight costs, mid-1990s
| Country | Capital costs
(US$/m2) |
Operating costs
(US$/m2) |
Freight charges
(US$/kg) | ||
| Kenya | 29.56 | 39.93 | 1.70 | ||
| Zambia | 29.64 | 30.50 | 2.35 | ||
| Zimbabwe | 36.64 | 30.50 | 2.35 | ||
| Uganda | 27.68 | 22.68-28.12 | 1.77 | ||
| Netherlands | 108.50 | 50.70 | -- | ||
| Source: Ugaflor, 1996. Costs based on metal greenhouses. | |||||
Table 11. Comparative unit costs of production including air freight charges
(US$ cents/stem)
| Type yield (stem/m2) | Large 140 | Small 300 | ||||
| Kenya | 29.79 | 13.90 | ||||
| Zimbabwe | 26.38 | 12.31 | ||||
| Uganda | 25.14-15.69 | 11.84-12.62 | ||||
| Netherlands | 17.07-26.47 | 28.36-40.97 | ||||
| Freight costs based on US$1.70/kg, Kenya; 2.35/kg, Zimbabwe; 1.77/kg, Uganda . | ||||||
Table 12. Yields of rose varieties
| Variety | Area under
cultivation (ha) |
Stems/m2 | ||||
| Sasha | 1.0 | 300-320 | ||||
| Konfetti | 3.0 | 150-200 | ||||
| Nicole | 1.0 | 80-110 | ||||
| Jaguar | 1.0 | 2,000 | ||||
| Gabriella | 1.5 | 180-220 | ||||
| Frisco | 3.0 | 330-350 | ||||
| First Red | 13.5 | 130-200 | ||||
| Cream Prophyta | 3.3 | 220-240 | ||||
| Rumba | 3.3 | 120-140 | ||||
| Vanilla | 0.8 | 220-260 | ||||
| Golden Times | 0.5 | 160-180 | ||||
| Souvenir | 2.8 | 290-310 | ||||
| Saphir | 0.5 | 160-180 | ||||
| Versilia | 1.0 | 150-170 | ||||
| Ambiance | 0.5 | 140-170 | ||||
| Normal Prophyta | 1.0 | 200-250 | ||||
| Rodeo | 0.8 | 300-320 | ||||
| Source: Ugaflor, 1996. | ||||||
There are basically two issues to look at:
-- application and handling of fertilizers, chemicals and pesticides;
-- occupational health and safety of workers.
(a) Fertilizers, chemicals and pesticides
The use of chemicals is imperative in the production of roses to control pests and supply balanced nourishment to the plants. Specific criticism has appeared in the media (New Vision, 7 January 1997) especially about the use of methyl bromide which is harmful to the ozone layer. It has been alleged that two farms had used 2.4 tonnes of this chemical in a period of one year. However, all the firms visited claimed to be following strict rules concerning the use of chemicals, spraying only when needed. All had a pit where packaging materials were destroyed. All gave their employees protective clothing. The following issues were noted about the use of chemicals.
Banned chemicals: Every grower submits a list of chemicals used at his farm to the association's secretariat for guidance. The association in turn obtains its guidance from the Ministry of Agriculture, NARO and NEMA. The association sends periodic bulletins to growers on appropriate usage of chemicals, recommending those known to be environmentally friendly. Banned chemicals are not used by flower growers in Uganda.
Correct use of chemicals: By the nature of the flower industry growers must resort to fertilizers to increase yields and improve quality, and to pesticides and fungicides to control spider mites, caterpillars, and other pests which invade the flower crop. No doubt, these chemicals have a negative effect on the environment, especially soil and ground water systems, but correctly used their harmful effects can be minimized. Growers have to use the right quantity and concentration and at the right time. Chemicals used correctly are taken up by the plant tissue with little risk of spillover, especially if a sufficient interval is allowed to elapse between water applications.
Correct fertilizer rates: Correct amounts of fertilizers help to minimize the accumulation of excess salts in the soil. For example, it is known that a young (two months) rose crop requires 4 kg/ha per day of potassium nitrate. This rate would be taken up by the plant. Excess application of chemicals and pesticides is always minimized in order to save the environment. Recently, the association has asked all growers to dig a catchment trench between the greenhouses and the swamp. The run-off in this trench is tested periodically to discover contamination.
Integrated pest management (IPM): Cultural, mechanical and biological methods of disease control are effectively being used. Infected plants are destroyed and greenhouses kept clean. Success depends on active scout teams in the greenhouses.
Proper disposal of used chemicals: Used chemicals are properly burnt and buried, as the case may require. This is to ensure that the water and the soil are not contaminated by the run-off.
Use of resistant varieties: The companies visited expressed the need for varieties which are more disease-resistant and suitable for Uganda's environment. It was mentioned that UFEA and IDEA/ADC project are at present involved in this research.
Organic fertilizers: There is a need to develop research on use of readily available organic fertilizers in Uganda, e.g. coffee husks, cow manure, etc.
Planting materials: There is a need to raise planting materials suitable for Uganda's ecological zones. Imported planting materials often came with a host of disease problems which emerge soon after planting.
(b) Occupational health and safety
The companies are very conscious of the health and safety of their workers, particularly in the context of the unavoidable use of chemicals and pesticides. This is to ensure a viable labour force in which the growers have invested heavily by way of training on the job. Most chemicals used on the farms are hazardous, therefore a number of measures are in force to avoid accidents:
(i) proper protective clothing when handling or spraying chemicals -- overcoats, gloves, masks, boots, overalls, goggles;
(ii) instructions on the proper use of equipment;
(iii) storage -- chemicals and pesticides to be stored separately from other products;
(iv) shower-room facility to wash off chemicals; drinking water; pit latrines;
(v) first-aid kits for emergencies; periodic medical check-ups;
(vi) workmen's insurance policies.
The flower industry currently employs over 4,000 people and the level of employment in three farms by sex since they started is shown in Appendix I. A majority of the employees (85 per cent) are women, mainly at the unskilled and clerical levels. Table 13 indicates the level of education of the different sexes.
Table 13. Education level (%)
| Primary | O-level (secondary) | A-level (post-secondary) | Tertiary | Total | |
| Female | 0 | 11.6 | 30.8 | 3.8 | 46.2 |
| Male | 3.8 | 19.2 | 23.1 | 7.7 | 53.8 |
| Total | 3.8 | 30.8 | 53.9 | 11.5 | 100 |
Comparing income from roses and other sources, the employees of Nile Roses Ltd., Nsimbe Estates Ltd., and Ziwa Horticulture Exporters ranked roses as number one income generator. Ninety per cent of the employees lived entirely by their jobs on rose farms while the rest had supplementary income, their salaries from roses being the most important (ADC/IDEA, 1997).
Lower-cadre employees earn UShs.1,500-2,000 per day, or UShs.462,000 per year based on 264 days. Spending is mostly on housing, food and education. Supervisors earn UShs.898,000 yearly. Women earn the bulk of the wage bill in the rose industry, but are less well paid than men because their work is confined to unskilled tasks. The jobs created by the rose industry have raised rural incomes. Sixty per cent of employees felt their economic conditions had improved a lot, 20 per cent that they had improved slightly, and 20 per cent that they had remained unchanged (ADC/IDEA, 1997).
The following benefits are provided by some rose companies:
(a) accommodation to half of the workers, mainly those on night shifts. Workers gained in terms of saving rent costs and not having to move long distances at night;
(b) free tea and lunch;
(c) medical attention;
(d) off-duty and leave days;
(e) end of day at 5 p.m. for those working daytime, rather than working long hours;
(f) salary advance in case of need;
(g) prompt payment of salaries.
One-half of the workers felt that their working conditions had improved, 10 per cent that they had not changed and 40 per cent were not sure.
The workers are acquiring skills in combating pests and diseases, fumigation, and grading. Some workers benefit from conferences and visits to other similar companies organized by ADC/IDEA and UFEA.
Most workers do not currently belong to any trade union in Uganda. However, UFEA is in the process of discussing and agreeing with the Ministry of Gender, Labour and Social Development on a harmonized system and integrated approach for the industry in the trade union.
Jambo Roses, which was one of the companies visited, has taken up an insurance policy for workmen's compensation with Goldstar Insurance against liability which may incur to any employee under the Workman's Compensation Act. Employees injured in the course of employment are paid their wages and compensation. Material has been provided for first-aid medicare treatments, and other specialized treatments are normally agreed upon in the employment contracts. Most flower companies insure their employees.
3.1. Policies and contributions
The Government of Uganda's objective for the flower industry is to stimulate its rapid development because of its contribution to the diversification of the export base and rural development. The Government is constantly on the lookout to identify constraints to the development of the sector and advise on the best course of action to facilitate investment in the industry. The Uganda Investment Authority code provides baseline data to enable prospective growers and investors to assemble basic business plans for export-orientated flower projects and improve the quality of floricultural produce exported from Uganda.
The above policy objectives have created an investment climate that encourages project financing through medium-term loans, with interest ranging between 12-14 per cent for foreign-dominated loans. The major lenders in this sector have been DFCU, EADB, IFC, UDB and the PTA Bank. Grants have come from international agencies such as USAID through IDEA/ADB projects for management and technical assistance.
The flower industry has contributed to the above objectives in the following ways:
1. Generation of foreign exchange. Uganda exported over 60 million stems of roses in 1995. At US$0.22 per stem, the c.i.f. value was over US$14 million, and deducting 40 per cent for commission and freight, the f.o.b. value was US$9 million. This was equivalent to 1.6 per cent of the country's foreign exchange earnings in 1995. Earnings have increased due to increased production rather than increased productivity. Quality improvement would contribute to higher prices.
2. Employment for over 4,000 workers, of whom 85 per cent women, contributing over US$2 million in wages to the rural economy.
3. Provision of new opportunities for agricultural graduates and diploma holders to develop technical skills and careers in modern agriculture.
4. Contribution to the build-up in the confidence of air carriers and increase in freight capacity to the benefit of other industries such as fresh produce and fish.
5. Contribution to the Government's objective of widening the tax base.
6. Contribution to rural stability through provision of jobs, incomes, public services and amenities to villages surrounding flower farms.
7. Contribution to the development of other commercial activities in areas adjacent to the flower projects (timber, building blocks, restaurant, farming, etc.).
8. Development of local expertise through on-the-job training of personnel.
9. Contribution to reducing rural-urban migration.
The above positive effects have to be set against negative effects on the local communities. A number of workers at the different farms indicated that they lacked time to work on their own food plots, to the detriment of food supplies. Around 40 per cent also felt that their health was being jeopardized.
Uganda is on target to achieve export earnings of US$30 million from floriculture within the next two harvest seasons. Several factors indicate that market opportunity exists for this: the growing world demand can easily absorb additional production of quality material; Uganda can be highly competitive in the production of short- and medium-stemmed roses; diversification into other floricultural products seems promising. Realizing this opportunity would require improvements in the following key areas: quality assurance in terms of product specification, vase life and presentation; increased competitiveness; better marketing relationships to accommodate the needs of consumers; introduction of new varieties in anticipation of changes in market preferences; adoption of voluntary codes of practice to meet the demands of consumers in relation to environmental management, natural resource conservation and employment conditions. MGLSD will have a vital role here as a watchdog.
On the organization side, a special officer should be appointed at MGLSD to look after occupational safety and health issues in the flower industry. The testing of chemicals needs to be speeded up by taking advantage of results from other countries. The infrastructure should be improved country-wide so that more areas apart from the central region can participate. Some farmers would have to do so as out-growers to overcome the size handicap. Stakeholders should have a regular forum to review the progress of the industry. Makerere University should train the required personnel locally to obviate the need to employ expatriates.
Much could be gained by projecting an optimistic image of the industry. To this end programmes should be sponsored on international television addressing consumer concerns with respect to working conditions in the flower industry. Other programmes could aim to attract investors by emphasizing the low cost of labour and land and the cargo facilities available. Such programmes could be done by UIA or by the Uganda Export Promotion Board. UIA should attempt to attract investors to become co-shareholders to increase market penetration. There is also a need for a databank about seasons, exchange rates and stock prices.
1. The level of productivity in the flower industry is below what could be achieved under optimal conditions if all firms were efficient. Therefore, although production has been rising since the industry started, it has resulted mostly from expanded acreage.
2. The industry is contributing significantly towards foreign exchange earnings, employment and rural development in Uganda.
3. Employees feel better off than before since they have been in a position to improve on their dwellings and invest in education.
4. The industry contributes significantly to the economy by providing business to other sectors, given the fact that they source some of their inputs locally.
5. While there is no evidence of adverse effects on the environment and employees, heavy use of chemicals and fertilizers could pose a danger if farms are concentrated geographically.
ADC/IDEA (1997). "The business and people-level impact of IDEA project interventions on the production and marketing of roses (with emphasis on Ziwa horticultural exporters, Nile Roses and Nsimbe Estates Rose Farms)".
-- (1998). "Performance of rose varieties grown commercially in Uganda 1993-98". Prepared by ADC/IDEA project.
-- (1998). Seventh semi-annual progress report. Prepared by ADC/IDEA project.
EPAU (1995). "A reassessment of GOU investment and export promotion strategy with focus on NTAES". EPAU policy paper as a contribution to the amendment of the Investment Code of 1991.
MPED (1997). "Economics of crops and livestock production". A report prepared by the Agricultural Policy Secretariat of the Ministry of Planning and Economic Development for Agricultural Policy Committee.
Ugaflor (1996). "The status and prospects of the Ugandan rose industry". Conference held 24-25 July 1996 at Sheraton Hotel, Kampala, Uganda. Organized by UFEA and ADC/IDEA project.
-- 1997). "Environment, quality control and labour relations for a vibrant flower export industry in Uganda". Conference held 6 Aug. 1997 at Sheraton Hotel, Kampala, Uganda. Organized by UFEA and ADC/IDEA project.
-- 1998). "Consolidating the Uganda flower export industry". Conference held 16 Sep. 1998 at Hotel Africana, Kampala, Uganda. Organized by UFEA and ADC/IDEA project.
Uganda Export Promotion Board (1998), "A Key to International Business: Uganda Export Directory, 1998/99".
UIA (1998), "Report on Client Facilitation: Floriculture".
Ministry of Finance, Planning and Economic Development, Background to the Budget and Statistical Abstract, various issues.
Number of workers employed by three different farms over time
Van Zanten (U) Ltd.
| 1995 | 1996 | 1997 | 1998 | 1999 | |||||
| Managerial men | 1 | 3 | 3 | 5 | 7 | ||||
| Managerial women | 0 | 0 | 1 | 3 | 4 | ||||
| Non-managerial men | 8 | 8 | 17 | 24 | 30 | ||||
| Non-managerial women | 20 | 20 | 60 | 100 | 140 | ||||
| Total | 29 | 31 | 81 | 132 | 181 |
Victoria Flowers (U) Ltd.
| 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | ||||||
| Managerial men | 2 | 3 | 5 | 5 | 5 | 5 | |||||
| Managerial women | 0 | 0 | 0 | 0 | 1 | 1 | |||||
| Non-managerial men | 0 | 0 | 50 | 50 | 50 | 50 | |||||
| Non-managerial women | 0 | 0 | 100 | 100 | 100 | 100 | |||||
| Total | 2 | 3 | 155 | 155 | 156 | 156 |
Harvest International (U) Ltd.
| 1996 | 1997 | 1998 | 1999 | ||||
| Managerial men | 7 | 4 | 4 | 4 | |||
| Managerial women | 0 | 0 | 0 | 0 | |||
| Non-managerial men | 20 | 90 | 90 | 80 | |||
| Non-managerial women | 80 | 70 | 60 | 50 | |||
| Total | 107 | 164 | 154 | 134 |
1. Name of respondent: ......................................................................................
2. Organization/Ministry: ......................................................................................
3. Position in the organization: .............................................................................
4. What role is your organization/ministry playing in the flower industry?
...............................................................................................................
5. Are there any policies that your organization/ministry has put in place to promote the industry? Yes/No
6. If yes, what are these policies?
...............................................................................................................
7. In your view how are they contributing to the development of the industry?
............................................................................................................... 8. In your view, what is the current trend in the performance of the industry and what could be the factors contributing to this trend?
.................................................................................................................
9. What is the impact of the industry on:
(a) the economy
(i) positive
.............................................................................................................
(ii) negative
..............................................................................................................
(b) Local communities
(i) positive
..........................................................................................................
(ii) negative
..........................................................................................................
10. Is there any way you think the industry is affecting the environment? Yes/No
If yes, in what ways?
...............................................................................................................
11. What do you think can be done to guard against this environmental effect?
................................................................................................................
12. What is the contribution of the industry towards employment?
.................................................................................................................
13. What is your organization/ministry doing in order to protect the workers' welfare?
.................................................................................................................
14. Do you know of any present problems/obstacles faced by cut flower growers and exporters in Uganda? Yes/No
If yes, please mention them
(a) growers
.................................................................................................................
(b) exporters
.................................................................................................................
15. What are your views on the future performance of the Uganda cut flower industry?
.................................................................................................................
16. What measures can be taken to remain internationally competitive?
.................................................................................................................
17. Any other issues.
................................................................................................................
Growers'/exporters' questionnaire
Date: ...................................................
Name of farm: ......................................... Location: ......................................
Name of respondent: .................................
Position in company: .................................
Year when the farm was established: ..............
Information on economic indicators
1. Do you farm anything other than cut flowers?
.................................................................................................................
2. What area of land do you have under cut flowers?
.................................................................................................................
3. How has this changed since you first started in cut flowers?
.................................................................................................................
4. What flowers does your farm grow?
..................................................................................................................
5. What has been your acreage and productivity per year since you started?
| 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | |
| Acreage | |||||||
| Yield (stems/acre) |
6. What changes have you realized in terms of export sales since you joined the flower industry?
| 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | |
| Size (stems per year) | |||||||
| Value |
7. What changes have you realized in terms of local sales since you joined the flower industry?
| 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | |
| Size (stems per year) | |||||||
| Value |
8. What activities were you involved in before joining the cut flower industry?
....................................................................................................................
9. Are you still involved in those activities? Yes/No
What other activities are you involved in as a result of your involvement in the flower industry?
....................................................................................................................
10. How many overseas buyers did you sell to from the time you joined the industry up to 1999?
| Year | |||||||
| Number of buyers |
11. If you have lost buyers in the past, what were the reasons for this?
....................................................................................................................
12. We would like to know how important your income from roses is/has been compared to other sources on the farm over the years? Can you rank them in order of importance?
| Enterprise | Ranking in 1999 | Ranking in 1998 | Ranking in 1997 | Ranking in 1996 | Ranking in 1995 | Ranking in 1994 | Ranking in 1993 |