Fish Exports Hit By Low Prices
allafrica.com
Lillian Nsubuga, Special Correspondent
Nairobi
UGANDAN FISH processors say their exports to Europe have reduced considerably and blame the situation on competition from Kenya and Tanzania.
The processors are accusing Kenya and Tanzania fish exporters of quoting a much lower price for fish fillet, making Uganda's fillet uncompetitive in Europe - the biggest destination for fish exports from the region.
For the past two weeks, Uganda's fish fillet has been selling at between $3 and $3.30 per kilogramme in Europe, while Kenya and Tanzania have been selling at between $2.60 and $2.80 per kilogramme.
"September to February are our most lucrative months because of the extreme cold in Europe, but our exports did not increase last year and the situation has not improved," said Moyez Kassam, the chairman of the Uganda Fish Processors and Exporters Association (UFPEA).
In recent weeks, fish supply in Uganda has exceeded demand and processors and exporters are stuck with large stockpiles they cannot sell.
Because it is landlocked, the cost of transporting fish from Uganda is much higher than from Kenya or Tanzania both of which have ports on the coastline. Fish exporters in Uganda either airfreight their cargo or consign it by ship to Europe through Mombasa.
Airlines charge a much higher price for cargo from Uganda to Europe than for cargo from Kenya because air traffic in Nairobi is a lot heavier making the economies of scale much better and lower prices more feasible. Aviation fuel is also more expensive in Uganda translating into higher freight costs per tonne.
"We are trying to negotiate for lower rates with the airlines with assistance from the Ministry of Trade and Industry but it is still too early to comment on the outcome," said Moyez Kassam, the chairman of the Uganda Fish Processors and Exporters Association.
Kenya has more flights going to Europe because of the large volumes of export cargo from horticulture and fish. Airlines operating from Uganda argue that the only way to make the route profitable is by raising air freight charges.
While Kenya and Tanzania export an average of 400,000 tonnes each of fish weekly to Europe, Uganda is currently exporting less than 200,000 tonnes.
Ugandan exporters are hoping that the bird flu epidemic currently sweeping some East Asian countries will somehow translate into increased demand for Uganda's fish fillet.
In 2001, Uganda's fish exports revenue reached $78 million, making the sector the second leading foreign exchange earner. It is still not certain how the recent low season will affect the overall performance of the sector this financial year. |
