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Uganda: Plans to start growing organic chillies

Outspan Agric Ltd is a Uganda-based company, founded in 1977, which is devoted to the production and export of both conventional and organic products to a number of countries all over the world. “Currently, the organic range consists only of sesame seeds while our conventional range includes products like cocoa beans, chillies or ginger,” states Director Kenneth Kayondo.

Regarding the chillies, the main variety is the Red Birdseye, but they also supplies others, like the Scotch Bonnet and Habanero, to the fresh market. The main chilli season lasts from December to March-April and exports go mainly to Germany and the UK. “We are now focusing on expanding with sunflowers; however, last year I contracted growers to produce about 150 MT. Currently, the plant is to distribute the seedlings in October and these should be ready for trading from mid-2017. It will be an organic product, as well,” affirms Kayondo.



He explains that the key to planning for future seasons is to take into account that growers will only plant products for which they are sure to obtain a good return. “In the past, we had a steady supply of chillies, until several other companies ventured into offering this product. The following year, the Madagascar crop did quite well and prices on the world market fell considerably for the Ugandan chillies which are not considered Grade A. Many farmers were not happy with what they were getting and destroyed their crops to make way for another crop.” Ever since, the demand has grown again steadily, so growers are going back to chilli production.



In the past, the government has organized programs to support fresh chillies. Yet, last year, there was a ban imposed by the European Union on fresh chillies from Uganda. “Growers have been working mainly on improving the conditions which resulted in that ban. Growers are also said to be working hard to correct such issues,” says Kayondo.



Compared to its competitors, Ugandan chillies are described as very pungent and hot; it is a very strong chilli and fairly dark in colour. Each producing country has its own strengths, so demand depends on what each client is looking for,” explains Kayondo. He also added that some markets in Germany don't go for appearance alone as long as it is cleaned and sorted well but more importantly has the parameters that they like, then, they are happy.

Looking to the future, one of the company’s target is to get into the production of organic chillies. The demand is on the rise, especially in Germany, and not many companies are currently involved in organic chilli production. “We are already doing organic sesame seeds, so we shall use similar production methods for the chillies and we actually intend to have the same farmers. It will be an additional crop for them,” states the Director of Outspan Agric Ltd. “Prices have been going up; currently, they stand at about 4 dollars per kilo, and for organic, being premium, I’m hoping for something near 5 to 5.5 dollars per kilo.”

For more information:

Kenneth Kayondo
Outspan Agric Ltd.
Tel: 00256-414-344-959
UK Office: 0044-757-85054489
US Office: 001-781-8016638
Email: kkayondo@outspanagric.com
info@outspanagric.com
www.outspanagric.com

Author: Peter Duivenvoorde / Yzza Ibrahim























 
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