Competitiveness of Cotton in Organic and Conventional Production Systems in Uganda

Abstract

A bs trac t O r ga nic co t t on p r odu c t i o n i n U ga nda i s r i s ing ma in l y du e t o t h e p r omot i o na l ef f or t s of p r iva t e mu l t ina t io na l co t t o n ex p or t in g c o mp a ni es . N on et h e l es s , th e s u s ta ina b i l i t y of or ga ni c c o t t on p r o j ec t s a nd t h ei r u l t i ma t e i mp a c t on p o v er t y r edu c t i o n w i l l d ep en d on t h e r ela t iv e p r of i t a b i l i t y of or ga nic c o t t o n p r odu c t i o n s ys t em. T his p a p er t her ef or e a t t emp t s t o ex a mi n e t h e co mp et i t i v en es s of c o t t o n in co nv ent i o na l a nd or ga nic p r o du c t io n s ys t ems i n U ga nda . A s u r vey of 1 6 0 cot t o n f a r mer s wa s d on e i n N or t h er n Uga n da w h er e or ga ni c c o t t on ha s b een i n t r odu c ed . Us i n g w ho l e f a r m c r op b u d g et s a nd t h e l i n ea r pr ogr a mmin g me t h o d, i t wa s fou n d t ha t co t t o n wa s co mp et i t i v e w i t h o t h er ‘ ca s h’ c r op s on ly u n d er or ga n ic p r odu c t i o n s ys t e m ma i n ly b eca u s e of t h e ex i s t enc e of p r ice p r emiu m. G r os s r e t u r ns t o or ga ni c c o t t o n w er e a p p r ox i ma t el y 7 %. I n t h e a b s enc e of p r i c e p r emiu m, or ga n ic c o t t on wa s a n u na t t r a c t ive en t er p r i s e s inc e f a r mer s ma d e los s es of ov er 1 3 %. P ol i cy r eco mmen da t i o ns w er e t hu s for wa r d ed t o p r omot e or ga ni c co t t o n p r odu c t i on i n U ga nda .