Emerging markets for agricultural products: What farmers in Uganda need to know.

 As the becomes increasingly interconnected, emerging markets present exciting opportunities for farmers. For Uganda, a country rich in agricultural resources, understanding these emerging markets can lead to lucrative ventures. This blog aims to shed light on international agricultural trends and what farmers should keep in mind to tap into these rising opportunities.

Understanding Emerging markets.

Emerging markets are countries or regions that are in the process of rapid growth and industrialization, often characterized  by arising middle class and increasing consumer demand for diversified agricultural products. In recent years, several countries have been identified as having a global appetite for agricultural products that Uganda can supply.

Key factors driving demand in emerging markets

• Population growth; According to the United nations, the global population is expected to reach approximately 9.7 billion by 2050, with Africa's population projected to double significantly increasing food demand.
• Changing diets; With rising incomes, consumers are shifting towards more varied diets, including higher consumption of fruits, vegetables and dairy.
• Urbanization; According to the World Bank, by 2050, nearly 68% of the global population will be urban, creating larger markets for processed foods and convenience.

Potential markets for Ugandan products

• East African Community(EAC); The EAC has a collective population of over 177 million, with a rising demand for Ugandan agricultural products due to improves trade relations  and concerted effort toward regional integration.
• Middle East; As per the World Trade Organization(WTO), the GCC( Gulf Cooperation Council) imports around 90% of its food requirements. Countries like the UAE and Saudi Arabia are potential markets for fresh produce and specialty crops, with UAE's agricultural imports hitting $ 11 billion in 2020.
• Asia; the Asian development bank reports that by 2030, Asia will account for over 60% of the world's middle-class population driving demand for diverse agricultural products like fruits and spices.
• Europe; Europe's organic food market is growing, valued at $46 billion in 2020, and is expected to continue expanding as consumers demand higher quality products.

What farmers need to consider.

To effectively engage in these emerging markets, farmers should consider the following;

• Market research, Understand the demands and preferences of target markets. A 2021 study showed that 80% of consumers in the UAE prefer organic and naturally grown food products over conventional ones.
• Quality  Standards; different markets have varying quality and safety standards. According to a report from the FAO, approximately 30% of food products are rejected at borders due to failure to meet international quality standards an aspect that needs attention particularly for markets like Europe.
• Training and resources; investing in training can lead to higher yields. Statistics show that farms using best practices can achieve yields that are up to 50% higher than traditional farming methods.
• Building Networks; establish connections with exporters and rural cooperatives. The international fund for agricultural development(IFAD) indicates that cooperatives can increase farmer's income by up to 30% through better negotiating power and access to markets.
• Use of technology;  a recent survey revealed that 75% of farmers who adopted digital technology saw improvements in their income or farm productivity, highlighting the importance of leveraging available tools   for market access.

Emerging markets present incredible potential for farmers seeking to diversify their income and expand their reach. By staying informed about global trends and being proactive in their approaches, farmers can position themselves favorably to take part in the growing international demand for agricultural products.

Call to action: What challenges are you currently facing exploring new markets?