Uganda’s Food and Livestock Export Potential in the EAC Region1

Abstract

The food and livestock sub-sectors are crucial for food self-sufficiency
and foreign exchange earnings in agrarian economies like Uganda.
Using an augmented gravity model, the overall objective was to
establish the determinants of Uganda’s export of food and livestock
products and the potential for exporting these commodities to her
trading partners. The findings reveal that trading partners’ GDP,
importer’s population and regional trade agreements enhance the
country’s export trade. Historical and cultural similarities of trading
partners impact bilateral trade positively. Uganda has the potential to
export food and livestock commodities to over 85 countries worldwide. In the EAC, Uganda has the potential to export food and livestock
commodities to Tanzania. From a policy perspective, the results of this
study suggest that the government should take advantage of the
identified export potential markets by increasing production to achieve
an overall growth in trade. Agricultural support in the form of tradefacilitating infrastructure, value-addition, investment in export
standards and augmented funding for the agricultural sector would
increase domestic production and therefore enhance Uganda’s export
of food and livestock products.

Key words: Food and Livestock, Export Potential, Gravity Model, Augmented
Gravity Model, Panel Data and Uganda