The Puzzle in Implementation of Uganda’s Food Security Policy

Impact Analysis of Organic Certification Subsidy on Economic Welfare in Uganda

“…Then, a certificate is issued every year following the successful inspection (René & Els, 2004). This certificate is essential for organic products sales since consumers of organic produce rely on the organic certification proving whether or not the products are literally organic (Tumushabe et al, 2007).…”

“…The group must be large enough to maintain an "Internal Control System" to manage the group, minimum of about 30 farmers (Tumushabe et al, 2007). Then, certification agency investigates a few spots instead of all of the farms belonging to the group, then the costs will be shared.…”

“…As the example to quantify the theory, organic coffee is used, since it is one of the main crops produced and exported by Ugandan organic farms, especially for smallholders. 9) For example, the leading export products of Uganda by value, ranked in order of importance in 2004-05, were coffee, cotton, fresh and dried fruit and vegetables and sesame (each contributing at least US$ 1 million) (Tumushabe et al, 2007).…”

“…There are various organic certification bodies including local and international ones, and each certification of diverse agencies charges the costs dissimilarly and generates different premium price so that farmers have own preferences to choose certification agency. To give an instance, the highest premium in the coffee market is made by the Fair Trade certification (Tumushabe et al, 2007). Hence, total subsidy and income increase can be changed according to the market share of certification agencies.…”

“…Hence, it is required to enhance domestic market by increasing domestic demand. In general, factors that affect demand for organic products in the long run are income growth, relative prices, environmental consciousness and exogenous shocks e.g., food scares (Tumushabe et al, 2007). From the government side, it can be achieved by e.g., enhancing consumer awareness of organic product benefits or VAT reduction.…”