Uganda’s Agriculture Sector Grows by 6.5% as Government Reports Shs4.6 Billion in Export Earnings

Uganda’s agricultural sector expanded by 6.5 per cent in the financial year 2025/26, with its contribution to the national economy rising to 26.2 per cent of Gross Domestic Product (GDP), according to a performance statement presented to Parliament by the Minister of Agriculture, Animal Industry and Fisheries, Hon. Frank K. Tumwebaze. 

The statement, covering achievements, ongoing interventions and challenges in the agricultural sector, highlights growing export earnings, increased investment in irrigation and mechanisation, new crop varieties, livestock breeding programmes and measures to combat counterfeit agricultural inputs.

According to the minister, agriculture remains one of Uganda’s most important economic sectors, supporting livelihoods, creating employment, ensuring food security and supplying raw materials to the country’s growing industrial sector.

The report indicates that 7.12 million of Uganda’s 10.8 million households are engaged in agriculture, with the sector supporting more than 70 per cent of the population through its various value chains, including crop production, livestock and fisheries.

Tumwebaze told Parliament that the sector’s growth rate in FY2025/26 was higher than its 10-year average of 4.2 per cent, reflecting increased production, expansion of cultivated land, growing demand and stronger linkages across agricultural value chains.

Fishing recorded the strongest growth at 17.8 per cent, followed by cash crops at 9.9 per cent, largely driven by coffee and cocoa. Livestock grew by 8.8 per cent, mainly on account of dairy production, while food crops expanded by 4.8 per cent.

Agriculture continues to account for an average of 40 per cent of Uganda’s export earnings, reinforcing its importance to foreign exchange generation and economic development.

Agricultural exports more than double

The minister reported that the value of agricultural exports increased by more than 100 per cent over the past decade, rising from an average of US$2.5 billion to US$4.609 billion in calendar year 2025.

Coffee remained the leading export earner, with its export value increasing from US$845.6 million in FY2022/23 to US$2.211 billion in FY2024/25, representing a 161 per cent increase.

Cocoa beans registered an even sharper rise, with export earnings growing from US$93.1 million to US$620.8 million over the same period, a 567 per cent increase. 

Dairy exports rose from US$102 million to US$285 million, while fish and fish products increased from US$164.4 million to US$209.83 million.

Exports of fruits and vegetables also improved, rising from US$78.9 million in FY2022/23 to US$102.6 million in FY2024/25.

The five reported export categories—coffee, cocoa, dairy, fish, and fruits and vegetables—recorded combined earnings of US$3.429 billion in FY2024/25, up from US$1.284 billion in FY2022/23.

The minister attributed the sector’s performance partly to government policies intended to move households from subsistence production into the money economy, particularly through the Parish Development Model (PDM).

Shs4.4 trillion injected into Parish Development Model

Tumwebaze said the government had cumulatively injected Shs4.4 trillion into the Parish Development Model, which has been the principal intervention targeting smallholder farmers over the past five years.

According to the minister, the programme has expanded financial inclusion by enabling households previously underserved by formal financial institutions to access funds through parish-level PDM SACCOs.

The ministry is pursuing a dual approach that supports both smallholder farmers and large-scale commercial producers.

Smallholder farmers are encouraged to concentrate on suitable, high-value enterprises such as coffee, fruits and vegetables, dairy production under zero-grazing systems, poultry, piggery, fish farming and beekeeping, depending on their landholdings and local conditions.

Medium and large-scale farmers are supported through programmes including the Agricultural Credit Facility, Uganda Development Bank loans and an Shs176 billion interest-free financing facility administered through Housing Finance Bank, Pearl Bank and Pride Microfinance.

The minister said support for commercial farmers was also intended to strengthen links with smallholders through produce markets, agricultural extension services and value-chain development.

However, the ministry acknowledged challenges in ensuring that PDM beneficiaries use funds for their intended agricultural activities. It is engaging the PDM Secretariat and the Ministry of Local Government to develop mechanisms that discourage diversion of funds from approved purposes.

New crop varieties target higher yields and resilience

The government has continued to invest in agricultural research through the National Agricultural Research Organisation (NARO) and the National Animal Genetic Resources Centre and Data Bank (NAGRC&DB).

According to the statement, NARO has released 20 new crop varieties since 2021, targeting higher yields, improved nutritional value, resistance to pests and diseases, and adaptation to different growing conditions.

Among the varieties highlighted is Maize 63 Vita, which has a reported yield potential of 7.0 to 7.8 tonnes per hectare and contains provitamin A.

Maize 64STR was developed for resistance to Striga, a parasitic weed that affects crop production, with a reported yield potential of 6.5 to 7.5 tonnes per hectare in Striga-infested areas.

New rice varieties include WDR 73, with a reported potential yield of 10 tonnes per hectare, and the aromatic KF 20039, with a potential yield of six to seven tonnes per hectare.

The ministry also highlighted improved sweet potato varieties, including NAROSPOT 6 and NAROSPOT 7, which are rich in beta-carotene and have reported yield potentials of approximately 32.49 to 36.20 tonnes per hectare.

In banana production, NAROBan 6 has a reported average bunch weight of 32.5 kilogrammes, compared with 21.8 kilogrammes for the baseline variety NAROBan 5. The new variety is also tolerant to black Sigatoka, nematodes and weevils.

New Irish potato varieties have been developed with improved yields and processing qualities, including suitability for making crisps and chips.

The ministry said these innovations are intended to increase productivity, strengthen food and nutrition security, and provide farmers with planting materials better suited to changing climatic conditions and emerging agricultural threats.

Government expands livestock breeding and poultry production

The agricultural sector’s livestock interventions have focused on improving animal genetics, increasing access to breeding materials and strengthening the supply of animal feeds.

The statement reports that liquid nitrogen plants established in Mbarara and Buikwe have a combined production capacity of 500 litres per day and serve more than 6,000 PDM farmers.

The government has also expanded the National Semen Collection and Evaluation Laboratory in Entebbe, established an embryo transfer services unit with a mobile laboratory and created the Teso Animal Breeding and Demonstration Centre in Bukedea District.

The Bukedea facility is intended to improve livestock genetics in eastern Uganda while providing farmers with access to breeding stock, training and better animal husbandry practices.

The government has procured 22 exotic bulls, with semen production capacity estimated at between 800,000 and one million doses annually.

Through subsidised access programmes, NAGRC&DB has supplied farmers with 5.1 million multipurpose poultry chicks, 18,659 improved meat goats, 28,139 fast-maturing piglets and 14,972 improved dairy and beef heifers and bulls.

The ministry also reported supplying 1,595,272 doses of bull semen and 1,472,276 litres of liquid nitrogen.

In addition, 4,028 cattle were inseminated, directly benefiting 451 farmers, while 1,975 artificial insemination kits were distributed across 10 sub-regions.

A further 1,382 para-veterinarians, artificial insemination technicians and embryo-transfer professionals were trained, reaching 37,243 farming households.

The government has also developed the Kasolwe Brown goat, a dual-purpose breed noted for its ability to produce twins, resistance to intestinal worms, good mothering ability and faster growth. More than 1,000 animals had been multiplied and were available for further breeding by farmers and private breeders.

Northern Uganda receives 24.4 million coffee seedlings

The ministry reported a special intervention to expand coffee production in Northern Uganda, a region traditionally regarded as a non-coffee-growing area.

During FY2025/26, the government distributed 24,437,367 coffee seedlings to 49,695 beneficiaries across Acholi, Lango and West Nile under the Northern Uganda Coffee Programme.

The Mid North region received 12.26 million seedlings for 24,510 beneficiaries, while West Nile received 12.17 million seedlings distributed among 25,355 beneficiaries.

Tumwebaze said the programme was intended to promote coffee as a commercial enterprise and expand opportunities for household income generation.

He added that similar affirmative-action interventions could be extended to sub-regions without an established perennial cash crop, including Teso and Bukedi, depending on available budget resources.

Government intensifies fight against fake agricultural inputs

The ministry has stepped up efforts to protect farmers from counterfeit seeds, fertilisers, agrochemicals and other substandard agricultural inputs.

The National Seed Laboratory at Kawanda has been upgraded to test seed germination, purity and health. Under the strengthened quality-assurance system, only seeds meeting prescribed standards are expected to receive official labels, seals and certificates.

The ministry has also operationalised 10 zonal offices to strengthen inspection, regulation and enforcement, working with district technical teams to monitor agricultural input suppliers and distribution channels.

Tumwebaze urged Parliament to prioritise consideration of the proposed Food and Agriculture Regulatory Authority (FARA) Bill, which is intended to give the authority powers and resources to fight counterfeit products and contaminants in food, agricultural and veterinary inputs.

The minister also reported progress in improving the quality of agricultural exports through an internationally accredited National Metrology Laboratory at the Uganda National Bureau of Standards.

According to the statement, interceptions of Ugandan exports in European Union markets declined from 54 cases in 2024 to 11 in 2026. The 11 cases comprised two involving harmful organisms, seven documentation errors and two instances of pesticide exceedance.

On fertiliser access, the government contracted 347,826 bags of 50 kilogrammes each, equivalent to 17.39 million kilogrammes, for distribution to smallholder farmers growing strategic crops such as tea, coffee, cocoa and horticultural products. Distribution was ongoing at the time of the report.

Government rolls out mandatory livestock vaccination measures

Livestock disease control remains another priority, particularly the fight against Foot and Mouth Disease (FMD), which threatens animal health, farmers’ incomes and livestock trade.

The government is implementing a compulsory twice-yearly mass vaccination programme for susceptible domestic animals.

The ministry reported that 44,778,994 vaccine doses had been procured, while vaccine cold-chain facilities had been established at the National Animal Disease Diagnostic and Epidemiology Centre in Entebbe and in 53 districts.

Farmers are expected to pay Shs8,000 per dose for cattle and pigs and Shs4,000 per dose for goats and sheep.

The ministry said 80,000 farmers had so far enrolled and vaccinated their animals through a digital system developed with support from the National Information Technology Authority–Uganda and participating government banks.

However, vaccine uptake has been affected by resistance from stakeholders accustomed to receiving vaccines free of charge, alongside alleged indiscipline and corruption among some lower-level veterinary personnel.

The ministry has developed regulations awaiting clearance from the Solicitor General. Once in force, proof of FMD vaccination is expected to become a requirement for obtaining livestock and livestock-product movement permits.

Meanwhile, NARO has developed VAROVAC, an anti-tick vaccine, and established a manufacturing facility at Nakyesasa with a production capacity of three to six million doses per month. The facility had five million doses in stock, according to the statement, but further financial support was still being pursued to facilitate commercial production and rollout.

The government has also distributed 13,000 litres of deltamethrin to 41 high-risk districts to control tsetse flies and other biting flies, with four million cattle reportedly sprayed.