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

Abstract

The food and livestock sub-sectors are crucial for food self-sufficiencyand foreign exchange earnings in agrarian economies like Uganda.Using an augmented gravity model, the overall objective was toestablish the determinants of Uganda ' s export of food and livestockproducts and the potential for exporting these commodities to hertrading partners. The findings reveal that trading partners ' GDP,importer ' s population and regional trade agreements enhance thecountry ' s export trade. Historical and cultural similarities of tradingpartners impact bilateral trade positively. Uganda has the potential toexport food and livestock commodities to over 85 countries worldwide. In the EAC, Uganda has the potential to export food and livestockcommodities to Tanzania. From a policy perspective, the results of thisstudy suggest that the government should take advantage of theidentified export potential markets by increasing production to achievean overall growth in trade. Agricultural support in the form of tradefacilitating infrastructure, value-addition, investment in exportstandards and augmented funding for the agricultural sector wouldincrease domestic production and therefore enhance Uganda ' s exportof food and livestock products.Key words: Food and Livestock, Export Potential, Gravity Model, AugmentedGravity Model, Panel Data and Uganda