MS Uganda Newsletter July 2008

Meet a Ugandan exporter

Nkata Edson, the managing director of the successful exporting company, London Fruits shares his experience of exporting agricultural products in an interview with Massy-Moses Kasule

31. July 2008

Q: What is London Fruits Ltd?
In 1995 I registered and incorporated London Fruits (U) ltd as a single proprietor. London fruits exports mainly to United Kingdom thus the name of the company “London Fruits”. We export a range of fruits and vegetables like, hot pepper,chillies, fresh ground nuts, avocados, sugar-cane stems, okra, matooke (green bananas) and many others depending on the in-coming orders from our customers in UK.

Q: Who are your suppliers and how much do you pay them for their products?
We buy from farmers at the different collection centres we have established in the different areas of our operations. The farmers come with their products to us on an agreed date and time. This enables us to collect the right supplies for the ordered consignment in order not to disappoint our customers with
unfulfilled orders. The prices differ from season to season depending on the quantities and qualities of the produce available during that particular season.

Q: Do you feel that the farmers are paid a “fair price” for their products and if so why?
Yes, the farmers receive a fair price, at least those we are dealing with, given the demand and supply relationship at that point in time. They determine the prices at which we buy their products. Our suppliers (farmers) are more of price-givers than pricetakers.

Q: How does the Export Promotion Board, National Chamber of Commerce assist you?
Exporters are tax-exempted on all export and this cuts down on the already very high operational costs, that is positive assistance. And through seminars and workshops our employees are trained and get skills in quality control, hygiene and learn more about intensive farming. Such skills are passed on to our farmers and this helps in maintaining a relatively regular supply of fair quality of both fruits and vegetables. On the negative side, there are very limited marketing efforts to expose exporters to the markets abroad. This is counterproductive when it comes to the exporters understanding of the quantity, quality and packaging of the product most suited for the different export markets.
In extreme situations export promotion trips abroad are sometimes attended by only the officials from the government bodies with neither the exporter nor the farmers. So the real stakeholders are neglected in such important happenings.

Q: Do you have an independent exporters’ association and if so what is it called?
The association is there on paper and it is not active. Unfortunately, I have to say that the export trade, especially for fruits and vegetables is still not organised as in having one voice. I think it is here we need professional assistance.

Q: In your opinion what is the key to success for an exporter in your line?
Being able to identify the availability of export markets; control price fluctuations; reliable and inexpensive aviation services and being able to control both product qualities, quantities and a hygienically good basis. Lastly, packaging of the product is also of utmost importance for all intending exporters.

Q: As an exporter what are your suggestions as to how donors can help the export industry, especially the agriculture sector?
Every exporter has unique and divergent challenges, thus there is an urgent need to identify such challenges through baseline studies. However, the immediate areas of intervention are; assistance in streamlining the exporters association, direct intervention or assistance in identifying open export market availability and inexpensive airfreight to export markets.