Uganda Seed Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Uganda Seed Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Ugandan seed market is estimated to register a CAGR of 2.5% during the forecast period, 2022-2027.

The COVID-19 pandemic has caused a serious impact on the production, certification, distribution, and cost of seeds, which play a key role in developing the agricultural sector in Uganda. International trade has suffered due to slow or lack of transportation, labor shortages, and a contraction in the market for plants and seeds.

The seed industry in Uganda is characterized by the production and marketing of major and minor crop species ranging from agronomic crops to vegetables. In general, the Ugandan seed industry can be described as quite diverse comprised of privately owned seed companies, ranging from small to medium scale companies and a few multinationals.

Uganda’s seed industry is fully privatized with two distinct seed supply systems, the informal seed supply system, and the formal system. The formal system, which is fully regulated covers 20% of the market at the present, is fast-growing and has registered local and international seed companies operating under this segment. National Seed Certification Service (NSCS) is the government entity under the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), responsible for certifying body for the seed varieties and regulating the seed sector in the region.

Uganda’s draft National Seed Policy of 2016 holds a seed class called the Quality Declared Seeds (QDS). An organization called The Integrated Seed Sector Development (ISSD) has organized and empowered seed producers, farmer organizations, and co-operatives into Local Seed Businesses (LSBs) to promote the QDS in order to meet the demand for quality seeds within the region. Maize, Beans, Finger Millet, and Sorghum are the four priority crops grown in Uganda. LSB produces only the bean varieties and in 2017, it produced 237.1MT of bean seeds and sold around 217.8MT of the seeds the same year. QDS makes sure that the seeds produced in an area are sold only in that area and not to the government under the OWC program. The QDS acts as an alternate for providing the seed quality assurance and quality control of crops for the regions that are limited in resources. The National Seed Certification Service (NSCS) develops the regulations specifically for QDS. Uganda's government was paying subsidies to improve small farm productivity, which was also supported by World Bank under Agriculture Cluster Development Project, through these it provides hybrid seeds, pesticides, fertilizers, and machinery at subsidized prices. These project mainly focuses on the productivity of cash crops, maize, etc. Due to these, the production of maize in the country has increased drastically.

The Uganda Seed Trade Association (USTA) coordinates and oversees the development of a seed industry by bringing in the Private sector players in seed trade in and around Uganda. In 2017, it is seen that the sale of Hybrid maize seeds rose to 10,721MT from 309MT in 2015, which is a 97% increase. In the same year, an 81% increase is seen in the sale of Open-pollinated seed to 4339 MT from 835MT. Comparatively, the sale of hybrid seeds is higher than the sale of open-pollinated seeds indicating the rise in demand for the hybrid seed within the region and that the farmers are moving towards the use of Hybrid seeds over the traditional seeds. The International Maize and Wheat Improvement Center (CIMMYT) has been working with Uganda’s National Agricultural Research Organization (NARO) and local seed companies to develop hybrid maize seeds. Presently the farmers are using varieties such as the UH5051 hybrid, known locally as Gagawala, meaning “get rich.” Uganda has made an agreement with the Indian government, through the National Biodiversity Authority of Centre and State, in which, the country got two germplasm technology of sunflower hybrids (KBSH - 53 and KBSH - 43).

The key seed sector actors in the country include government agencies under the Ministry of Agriculture Animal Industry and Fisheries (MAAIF), as well as national and multinational seed companies, seed multiplication farmer associations, seed dealers; farmers, and civil society. The Uganda seed market is fragmented with local and multi-national players' presence in the market. Victoria Seeds, NASECO, FICA Seeds, Seed Co., and East African Seed Company Ltd are the few active players in the market.

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