UGANDA
Looking ahead








Company profile

COTTON DEVELOPMENT ORGANIZATION

Manager



Mrs Jolly SABUNE, Managing Director

Read our exclusive interview.

Contact

Farmer's House
Plot 6/8 Parliament Avenue
P.O. Box 7018,
Kampala - UGANDA

Phone: 256-041 254 383 / 354 335
Fax: 256-041 232975

Activities

Surveillance and promotion of the Ugandan cotton industry.

Facts and figures

see graphic

strategy

INTERVIEW
WITH MANAGING DIRECTOR OF UGANDA COTTON DEVELOPMENT ORGANISATION, MRS. JOLLY SABUNE

(February, 1998)

Q: Please give us a brief historical background of the cotton industry in Uganda.

MD:
The cotton industry was not liberalized until 1993. Initially the Cooperative Movement was in charge of internal marketing and processing and the Lint Marketing Board which was a government owned parastatal was in charge of the marketing link externally and seed for planting. The research aspect was with the research, under the Ministry Agriculture. With the ushering in of the liberalization policy of the present government, cotton subsector was put on the list of 1993. The marketing and processing aspects were liberalized; this meant that the private sector would come in and participate and compete with the Cooperative Unions, market the raw cotton, process and export. The regulatory function of overseeing all activities in the industry e.g. marketing, registration, quality control, seed distribution, were left with a Statutory Body which is now the Cotton Development Organization. CDO was an out come of the liberalization policy of the cotton sub-sector. It was established in October, 1994 to purely regulate the industry, make sure things don't go out of hand, know who the participants are in the industry and then advice government on the right policies. When this happened, problems of marketing which had discouraged cotton farming in Uganda were solved because in the past monopolies reached a level where they were not paying farmers and farmers were not receiving seeds in time and so they abandoned cotton farming. Things became worse because of the wars under bad governance e.g Amin, Obote II which had a very big impact on the cotton crop in Uganda which is a cash income earner. Unlike tea and coffee the traditional crops, cotton is an annual crop so if you have wars and disturbances you cannot get the right seed to plant the next year. With time, annual crops disappeared much faster that perennial crops, that is why coffee and tea remained and peoples attitudes changed towards cotton. With liberalization of marketing which ushered in competition and brought in multi national investors and rehabilitated the processing plants, farmers regained confidence in cotton as a cash crop once more. The year prior to liberalization 15,000 bales of cotton were produced; in the first year of liberalization we went up to 33,000 bales and the following year 60,000 bales, the culture of liberalized marketing and processing caught up and farmers became well informed, the country produced 110,000 bales this last season.

Q: What do you think will be the main challenges CDO will have to face liberalization of the market and what are the main focus you are undertaking?

MD: The major issue that really counts for cotton production as an annual crop is seed for planting. Every year fresh seed has to be made available so we have to work hand in hand with researchers and inform them of what the industry and international markets need, so that they develop the seed that can be planted and good yields produced which would benefit the farmers, the country and produce lint that is competitively marketed internationally.
Q: What are the main regions is cotton grown in? (Answered later)

MD: Before I answer you that, I would like to inform you that it is not only seed and quality that is the main aspect but also the inputs for production. We have to make sure that the farmers do not only receive seeds but must also access inputs for helping them to open up land, weeding, extension messages for good agronomy and husbandry and also inputs for fighting pests because cotton is a crop which is liked by pests, we must ensure that farmers are on regular basis advised on the new developments in the industry and also harmonize the private sector into what they are doing and make sure that they don't do things in an anarchy way but do them in an organized manner.
Cotton is grown mainly in the Eastern, Northern and West Nile parts o f Uganda. In the West, Kasese is a predominant area and cotton production is being re-introduced in the Central zone. Two thirds of Uganda can literally grow cotton. There are about 23 major districts that grow cotton that is 50% of the whole country. This shows that if the right policies are put in place and the marketing is good, Uganda's 50% subsistence farming community can depend on cotton as a cash crop and this would go along way in poverty eradication.

Q: We have seen that coffee in Uganda is one of the best in the world, what is the case (quality) for cotton?

MD: As I had earlier told you the quality of cotton had degenerated so badly in the past years. Our primary duty was seed and quality and since we came into being we have been trying to get back Uganda cotton into the premium quality that it used to be in the good years for example in 1969-70 season, Uganda produced up to 467,000 bales. Quality for the last 3 years has been our biggest fight with the industry participants. Last year nearly 70% of Uganda's cotton was marketed in the first three grades. Uganda cotton is a premium cotton on the international market.

Q: As you said last year 110,000 bales where produced, what are the expectation of this year?

MD: This year we had a very bad drought. Planting time which is mainly between April, May, June, July and late planting areas in August and September was characterized in Uganda by drought which went as far as causing famine in some areas so there was limited planting all over the country. This was made worse by floods at harvest time in November and December. For this year production has been affected by the El Nino phenomenon which claimed about 50% of the expected crop. This is purely a weather problem, the farmers enthusiasm is there, the marketing policy is right, international demand is there and the internal demand is developing.

Q: As an American Magazine we are interested in knowing what type of co-operation exist between Ugandan and American institutions, what has been the case with the cotton industry?

MD: We have not really had a lot of trading partners with the States. We have had a company called Dunavant and also Cargill which is in coffee and it also has some affection for cotton. Once in a while our scientists talk to the USA inquiring on what is happening, we interact with Americans by attending international conferences. The Cotton Subsector Development Project is funded by the World Bank, jointly with IFAD and Uganda Government. In the processing and technology side we deal a lot with the Americans who are Lummus, Eagle Continental etc as the manufacturers of high speed gins.

Q:What message would you send to our readers, in order to encourage them to follow Clinton's Visit and make good investment in Uganda?

MD: Uganda is open and they should not look at the past but the present because we have done a lot to join our country with the rest of the World, after a long time of wastage and destruction. We now have good leadership. Since we an agriculturally based economy we need to become very technical, high tech and industrialised. With our policies Americans should not think about Uganda as an "Amin" Uganda but as a friendly partner that is open with investment potentials. On cotton in particular, cotton in Uganda is grown by small scale farmers, we have been trying to interest the big companies that come in to go into large scale production. Whoever wants to grow cotton should come in because we have enough land. We want to add value to our lint products and also increase on our production because that is the way forward for industrialization.



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This is the electronic edition of the special country report on Uganda published in FORBES Magazine's
June 1st  issue.
© World INvstment NEws, 1998.
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