Uganda Grains Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Uganda Grains Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Uganda grains market is projected to register a CAGR of 4.2% during the forecast period, 2021-2026.

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

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

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

Key Market TrendsIncrease in Regional Maize Exports is Driving the Market

Maize is one of the staple crops grown in Uganda, providing over 45.0% of the country's daily calorie consumption. In order to meet the domestic demand, most farmers grow maize in their farmland. In recent years, there has been an increase in exports of maize to East African countries. The liberalized free trade environment between East African countries is benefitting the maize traders, which is leading to the increase in exports. According to the Bank of Uganda, total exports to Kenya rose to USD 719.0 million in 2018 compared to USD 551.1 million in 2017. The opening of the import window from East African countries such as Kenya is boosting the maize production in the country, which is expected to stimulate the market growth during the forecast period.

Favorable Government Policies are Driving the Market

Grain trade and agro-processing play a crucial role in the national economy, but the sector is currently facing challenges such as inadequate supply due to lower production, the volatility of agriculture commodity prices, and inadequate storage facilities. In order to increase agricultural production and address post-harvest challenges, The Ugandan Ministry of Trade, Industry, and Cooperative introduced The National Grain Trade Policy in 2016, which was in line with Uganda's Vision 2040 and the National Development Plan II to improve the food security, income generation, and advancement of industrialization.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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Companies Mentioned

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