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1.1 Uganda Macroeconomic

Uganda’s economy is projected to grow by 6.2% this financial year 2020/21. The economic
outlook for 2021 is very positive thanks to a recovery in the agriculture sector, the sustained
growth in services, and the continued huge investment by the government into public
infrastructure.
According to Uganda Bureau of Statistics’ (UBOS) latest data, the economy grew by 6.4% year
on year in the first quarter of FY20/21, continuing with the same momentum from the last
quarter of FY19/20. This was a major improvement from the 4.5% growth that was realized in
the first quarter of FY19/20. The Government is now projecting the economy to grow by 6.2% in
the FY2020/21. This prediction is contained in the National Budget Framework Paper 2020/21
(BFP) published by the Ministry of Finance in December 2020.
The projected growth will be driven mainly by the continued recovery in the agriculture sector.
The agriculture sector largely benefiting from favorable weather conditions, is currently the
major driver of economic growth having recorded a 1.2% growth in the second quarter of
FY20/21, up from the 0.6% growth registered in the first quarter. This recovery in the
agricultural sector and the associated exports has given a major boost to the economy.
The Medium-term growth of the economy is also very positive. The government is projecting
the economy to grow by 6.2% in the next financial year 2019/20, with agriculture, industry and
services projected to grow at 3.8%, 5.6% and 7.8% respectively. Domestic demand supported
by healthy private sector credit (PSC), as well as investments in public infrastructure together
with Foreign Direct Investment (FDI) inflows are also expected to drive growth of the economy
in FY19/20.
This positive outlook assumes continued good weather conditions, robust external demand,
increase in FDI inflows as oil exports draw closer, and public infrastructure spending is properly
executed as planned.
At the moment, most macroeconomic fundamentals in the country remain positive. For
example, foreign exchange reserves are adequate currently at 5.3 months of import cover;
consumer price inflation is comfortably below the BoU’s medium term target of 5.0%; and
public debt though increasing, is still considered sustainable.
Over the next two years, massive investments in infrastructure development related to the oil
and gas sector and the related expected increase in FDI inflows have the potential to drive
Uganda’s economic growth to 7.0% or more.

In the last six months (first half of FY18/19), annual headline and core inflation averaged 3.0%
and 3.4% respectively.
The low inflation recorded during the period was mainly due to the relatively stable exchange
rate and favorable weather conditions, which resulted in an increase in food supplies. On this
account, annual inflation remains within BoU’s medium term target rate of 5.0%.
Annual headline inflation is projected to rise to 5.1% mainly on account of increasing oil prices
and increase in domestic demand following a rebound in economic growth. However, in
FY19/20 and the medium term, headline inflation is projected to remain stable within single
digits and core inflation remaining close to BoU’s policy target rate of 5.0%.
The country’s macroeconomic policy stance remains focused on containing inflationary
pressures, enhancing exchange rate stability, and stepping up domestic resource mobilization
growth by 0.5% points of GDP per annum.
The Shilling has remained relatively stable despite external pressures. After a record low of
UShs 3,897 to the USD, back in September 2018, the Shilling has recovered, and even
appreciated since then. This slight appreciation of the shilling is on account of increased dollar
inflows mainly from coffee export receipts, off shore portfolio investors and private transfers.
The Shilling is projected to remain stable for the remainder of FY18/19 and probably even
appreciate in the medium to long run, as a result of
increased dollar inflows from exports, remittances, FDI and tourism; as well as the
commencement of oil production.
Despite this optimism, the shilling remains susceptible to external shocks. It is therefore
possible that we could see further sharp depreciations of the shilling due to the stronger than
expected US dollar as well as the continuing global trade policy, uncertainty emanating from
escalating trade tensions, tightening global financial conditions and rising geo-political risks.
A continuation of the weak current account position resulting from the higher import growth
may also result in a depreciation of the shilling. Any renewed exchange rate volatility of the
shilling will be bad news for the economy and inflation in particular, as it could further weigh
down on consumer demand by raising prices for imported consumer goods.

 Product description
Sesame seeds (scientific name: Sesamum indicum) are grown primarily for their use
as a food ingredient. In Europe, sesame seeds are very common as a topping on
bakery products such as bread, bagels and hamburger buns, and can be used in food
preparations such as snacks, crackers, confectionery (sweets) and salads (seed,
dressings and sauces). Restaurants, food manufacturers and consumers also
purchase sesame seeds for use in food from various ethnic cuisines products
like tahini, for example in hummus or baba ghanoush, sushi, Greek or Arabian pastry
such as halva and Asian desserts.

Sesame seeds are supplied by countries in Africa, Latin America and Asia. There are
different types and qualities of sesame seeds. White seeds are a white-to-golden
colour and receive a higher market price than mixed seeds, which range from yellow
to dark brown. White seeds are used primarily in natural or hulled form because of
their aesthetic value, whereas mixed seeds are generally crushed into oil.

Black sesame seeds are an excellent source of magnesium and calcium and serve
very well for non-dairy milk powders and other premium applications. The black seed
is smaller than the white seed. 

This study focuses mainly on the sesame seeds for direct use in food manufacturing
and as a raw or whole seed (without processing). It does not cover sesame oil.
Sesame seeds (excluding for sowing) are traded under the Harmonised System (HS)
code 1207 4090.

Image 1: White sesame seeds

Image 2: Black sesame seeds

Source: Pixabay

 2. What makes Europe an interesting market for sesame

seeds?
Sesame seeds are a well-known ingredient in Europe with a stable demand that
almost completely depends on a foreign supply. It is an unmissable seed for the
bakery industry and has growth opportunities as an ingredient in new or ethic food
preparations.

 Sesame is primarily an import product

The dependence on sesame import in Europe is high. Almost the entire demand is
fulfilled by sourcing sesame seeds in India and a number of African and Latin
American countries.

In 2019, the sesame import into the European Union was 132 thousand tonnes.
Europe’s own sesame production is limited to less than one thousand tonnes, mainly
from Greece and Italy.

Because of this, European sesame buyers will have a wide international scope and be
used to operating in a global supply market. It offers opportunities for all countries
that are able to produce and export sesame seeds that comply with the European
standards.

 Europe has a stable demand and long-term growth

The European sesame market is relatively mature, with little annual growth. This is
good for suppliers with a long horizon.
Europe has had a long-term demand for 100+ thousand tonnes of sesame seeds on
an annual basis. Since 2013, the import volume increased structurally above 120
thousand tonnes. This volume is needed to fulfil a basic demand from food
manufacturers and bakers to use in existing sesame products such as branded snacks
and standard bakery products.

Despite the recently strong fluctuation in value, there is positive growth visible over
a longer period. This provides opportunities for sesame in new products, but it also
confirms an increasing consumption of foreign ethnic products with sesame such as
tahini, hummus and sushi.

Figure 1: Import of sesame seeds into the European Union

Source: Market Access Database / Eurostat

 Sesame is important as a whole seed ingredient

Sesame has an important role as a whole seed ingredient. The main opportunities for
sesame in Europe can be found, for example, in the bakery sector or as a topping.

Sesame is the 6th largest oilseed in European import after soybean, rapeseed, linseed,
sunflower seeds and groundnuts. But unlike most of these seeds (except for
groundnuts), sesame is barely used for crushing. According to Fediol, the EU
vegetable oil and protein meal industry association, only nine thousand tonnes of
sesame were used in the crushing industry in 2019.

As a whole seed ingredient, sesame holds an important position. In bakery products,

snacks and as a topping, it often plays a bigger role than several other seeds such as
pumpkin, chia or poppy seed. Seeds that have higher import rates, such as sunflower
and linseed, usually have a primary destination as a vegetable oil. And groundnuts
are often used as an ingredient or snack, but have little significance in the bakery
sector.

Table 1: European Union import of common seeds used as whole-seed ingredient,

in 1000 tonnes (excl. intra-EU trade)

Import volume in
2019
  Use as a whole-seed ingredient
(in 1,000 tonnes)

Linseed / flax 716 Bakery; Also largely used for oil-making

Sunflower
697 Bakery as secondary use; Mostly pressed for oil
seed

As a snack; Can be used as an ingredient but not much u

Groundnuts 697
sector

Sesame seed 132 Bakery, topping, ingredient for snacks

Pumpkin seed 55* Bakery, topping, as a snack

Chia seed 18* Topping, health ingredient

 Poppy seed 10 Bakery

Pine nuts 8 Topping (for example in salads)

Hemp seed 7 Bakery, topping

Melon seed 1 Bakery, as a snack

Source: Market Access Database / Eurostat *estimation

 Tips:
 Present yourself as a reliable partner. The sesame market is a mature market
that allows you to build strong and long-lasting buyer relations. Read more
about Entering the European market for sesame seeds on the CBI website.
 Stay informed about news in the bakery and snack market
on bakeryandsnacks.com (search for sesame) and the developments of food
ingredients on the European market by visiting the websites of Nutra
Ingredients and the Food Ingredients First.
 3. Which European countries offer most opportunities for
sesame seeds?
Most demand for sesame seeds comes from traditional consumption in Greece and a
diverse German market. Potential growth can be expected from, for example,
processors in Poland, niche markets in France and in Italy due to foreign influences.
Part of the sesame supply is traded or re-exported by the Netherlands.

 COVID-19 Note:

The demand from food service providers drastically lowered in the second quarter of 2020 due to
pandemic and the closure of restaurants, but it is still a required ingredient for many bakery and r
the end, the impact of COVID-19 will not only depend on the changes in demand in European coun
the supply and logistics during lockdowns in the supplying countries. In Fall 2020, India, Europe’s m
supplier, became one of the most affected countries by the pandemic.
Figure 2: European importers of sesame seed (including European trade / re-
export)in 1.000
tonnes20152016201720182019GermanyGreeceNetherlandsPolandFranceItaly01020
3040Source: ITC Trademap
 Greece: Europe’s number 1 user of sesame seeds

Greece is the largest European importer of sesame seeds due to a very strong
consumption of traditional local sesame products. The trade values per ton are lower
than the other main importing countries.

Sesame is an often-used ingredient in Greece for popular oriental and Greek

products such as Tahini, pasteli, koulouri or halva (see table 2). Several of these
foods have found their way to other European countries as well.

Table 2: Popular sesame products in Greece

Sources: Aziz1005; Mushushu; Barbarossa~commonswiki (modified); A.Savin (modifi
ed)

One of the companies that is responsible for sesame processing is Haitoglou Family
Foods, producer of various sesame products such as tahini, sesame butter, halva,
fruit-nut bars with sesame and sesame oil.

Because, in many of these products, sesame seeds are grounded into a paste, the
seed appearance is less important. This explains a higher demand for cheaper
sesame (processing quality). Sesame paste (or: Tahini) is served by itself (as a dip) or
used as a major ingredient in hummus, baba ghanoush, and halva.

Important suppliers to Greece are Sudan with 12.2 thousand tonnes in 2019, India
(9.7 thousand tonnes), Nigeria (5.5 thousand tonnes) and Ethiopia (2.4 thousand
tonnes). Greece barely exports whole sesame seeds, which means that most seeds
are locally consumed or processed. The demand should remain strong towards the
future, but the maturity of the market does not allow for exceptional growth figures.

 Germany: leading importer for a diverse market

Germany has the largest consumer population in Europe. It is a diverse market, and
Germany is the largest user of whole sesame seeds after Greece.

Germany imports a stable 32 to 34 thousand tonnes of sesame seeds on an annual

basis. In 2019, the net import was 25.8 thousand tonnes (import minus export),
which is approximately 20% of the European consumption. Around 8.0 thousand
tonnes were re-exported, mainly to Austria, Poland and the Netherlands.

A large quantity of sesame seeds is used in the bakery sector, for example for bread
buns and pretzels. In 2019, the bakery and confectionary sector represented 9.8%
and 7.2% respectively of the value of the German food and drink industry according
to the Federation of German Food and Drink Industries (BVE). German companies
that sell ingredients to these sectors are an important target group for sesame
exporters.

Additionally, you can find demand in other sectors. There is demand for sesame in
ethnic products, which is driven by foreign influences, such as by a large Turkish
community. And there are vegetable oil companies such as Gustav Heess that work
directly with sesame farmers in Ethiopia and Uganda. However, the main suppliers to
Germany in 2019 were India, Nigeria, the Netherlands (as a trade hub) and
Guatemala. Suppliers that can also offer organic sesame have the advantage of
entering Germany’s growing niche market for organic food.

 Netherlands: re-exporter with craving for hummus

The Netherlands import a relatively high share of sesame seeds because of its key
role as a hub for food ingredients. That is why, as an exporter, you can count on the
Netherlands for extensive logistical and trade services.

The sesame import fluctuates more than in other European countries. The Dutch
trade is often an exponent of the sentiment in Europe. The import of 26.1 thousand
tonnes in 2019 was slightly less than in 2018, but it continued the growth line that
has picked up again after 2016. There is a long list of countries that supply to, or via,
the Netherlands. However, India remains leading with 10.9 thousand tonnes.

No less than 65% of the imported seeds were distributed throughout Europe. The
rest ends up in the Dutch market, for example with producers of bakery products or
popular ethnic products such as hummus and tahini. Hummus (although not always
authentic) has become a popular product in particular, with brands such as Garden
Gourmet (Tivall/Nestlé), the Dutch brand Maza with Mediterranean food products
and the organic brand Florentin. Between 2016 and 2019, the sales value of hummus
in Dutch supermarkets more than doubled to a value of 21 million euros.

 Poland: sesame popular in confectionery

Sesame is a well-known seed in Poland in the confectionery industry. The popularity

of sesame seeds makes Poland one of the larger importers.

There are several Polish sweets that use sesame as an ingredient, such as ‘Sezamki’.
Sezamki is a sesame seed candy that consists of layers of seeds with honey, much
like the pasteli in Greece. In addition, Polish versions of Halva and Tahini are
regularly sold. The Polish cuisine is famous for its different types of bread, among
which several seeds such as poppy and sesame seeds are extensively used. The
influence of different sesame seed-using products and the high consumption of
bakery products makes the Polish market interesting for sesame seed exporters.

In Europe, Poland is cost-competitive in food processing and, with it already having a

good supply of sesame, there are opportunities to increase the import for processing
activities. The current import includes supply countries such as India, Nigeria and
Mozambique.

 France: potential for niche markets and long-term growth

France is not one of the top users of sesame seeds, but the potential should not be
underestimated. Opportunities may be more indirect, but also touch niche markets
and could be long term.

The French sesame consumption is still far behind the frontrunners Greece and
Germany. However, over a five-year period, it has shown better growth figures (14%)
and fewer signs of being a saturated market. French imports include sesame from
India (4.8 thousand tonnes in 2019) and Mali (1.2 thousand tonnes), but there is also
significant indirect import via the Netherlands (1.5 thousand tonnes) and Belgium
(800 tonnes).

Surely sesame seeds are used in several snack products such as breadsticks, crackers
and biscuits or in the more ethnic products such as hummus. But it is also packed for
consumers by organic brands such as Markal and the social brand Ethiquable,
showing possibilities for fair trade and organic certified sesame seeds.
What may hamper the French consumption is the strong consumer preference for
local products. Sesame is not a local crop, in contrast to (for example) sunflower
seeds and linseed, which are produced in France. Linseed is also more widely
perceived as a healthy seed than sesame. However, sesame seeds could also
complement these local oilseeds in new multiple seed product launches.

 Italy: positive growth and foreign influence

Italy’s sesame consumption is gradually increasing. Historic and current influences

from abroad could contribute to a further growth.

Italy imported 9.6 thousand tonnes of sesame in 2019, and has had positive import
growth since 2016. India is the most important supplier with 4.6 thousand tonnes,
followed by Sudan (1.4 thousand tonnes). Italian producers annually add around 300
tonnes of local sesame seeds.

Being part of the Mediterranean and close to northern Africa and the Middle East,
where sesame is a commonly used ingredient, Italy has several potential influencers.
Currently, sesame seeds are especially popular in southern Italy, which has been
most strongly influenced by Greece.

Sesame seeds in Italy are sold by retailers in consumer packing or in bakery products,
but it is also used for typical Sicilian products such as sesame seed cookies “biscotti
regina” and the nougat-like candy “giuggiulena”.

 Tips:

 Visit international trade fairs to find potential buyers, for example at one of
the main food fairs in Europe such as SIAL, Anuga, Biofach or Food Ingredients
Europe, or at a specific bakery fair such as Südback and iba.
 Check the assortment of products with sesame of leading supermarkets and
see which products and brands are common per country. Use this information
to find potential channels and clients for your product. Most retail chains have
their assortment and product information online, such as the
French Carrefour. See the list of supermarket chains in Europe on Wikipedia.

 4. Which trends offer opportunities on the European

sesame seed market?
The market drivers for sesame can be found in the increasing popularity of ethnic
foods with general consumers and the growing awareness of healthier vegan food
options. Technological innovation will contribute to a reliable supply of sesame,
which is needed for the development of new products with sesame as an ingredient.

 The mainstreaming of non-traditional foods fuels demand for sesame

Europe has a flourishing demand for authentic Mediterranean and Arabic sesame-
based products like Tahini, Halva and Hummus (which uses tahini). The
mainstreaming of these non-traditional or foreign ethnic foods have contributed to
the expansion of the sesame seed market.

The influence of other food cultures makes European consumers curious about
different non-traditional products from abroad. Food brands, supermarkets and
restaurants adopt or copy these products, flooding the conventional food channels
all over Europe with new flavours and culinary experiences.

For example, hummus has been thriving in northern Europe; the supermarket sales
in the Netherlands doubled in three years’ time, and in the United Kingdom, two in
five households are said to have a pot of hummus at home. The global sales are
expected to grow over 3% annually (see figure 3), and much of this growth can be
expected in the European region. In addition, niche products with sesame are
becoming more popular, such as black sesame ice cream (example: YeeKean Honest)
and the condiment Gomasio (sesame salt seasoning; example: Lima Food Gomasio).

Figure 3: Sales value of hummus worldwidein US$ millionSales

value20192020*2021*2022*2023*2024*02505007501000Source: Statista

*estimated forecast

 Health awareness increase sesame

The consumer awareness of a healthy diet is increasing. There is a high demand for
vegan products (often organic) and a growing market for high-protein and plant-
based products.

Sesame has potential as a vegan ingredient because of its high value in calcium and
protein, which means that it can substitute both meat and dairy products. This is
reflected in the development of products such as the sesame (energy) bars of
Sunita and the dairy-free Ecomil sesame drink. The health trend also boosts the
demand for natural, organically grown sesame seeds.

As a supplier, you can choose to emphasise the nutritional benefits of sesame seeds
to help promote them among food developers. This is done, for example, by HL Agro
Products from India, which uses its website to promote sesame as a source for vegan
nutrition.

 Diversifying consumption drives innovation in varieties

Sesame seeds can be used as an ingredient in many food applications. A diversifying

market in Europe calls for versatile ingredients, but in the case of sesame seeds also
for a reliable quality and stable prices.

To secure future supply and stable prices, improvement of sesame varieties and
breeding methods are important factors. Companies such as Equinom in Israel are
responding to this with innovative breeding technology to optimise the yields and
nutrient profile of sesame, making them ideal for use in baking, confectionary, tahini,
oil and flour. Staying up to date with seed varieties and production methods will help
you distinguish yourself from other producers.

 Tips:

 Make yourself more appealing as a supplier by combining the supply of

sesame seeds with other ingredient such as chickpeas, bakery seeds or health
ingredients.
 Keep up to date on technological developments and new food trends in
Europe by visiting news websites, such as Food Navigator, Organic & Wellness
News and Food Manufacture. Being well informed is part of becoming a
successful supplier.
 Go to the CBI trend study for more insights in the European trends for grains,
pulses and oilseeds.

1.1.1 Export market prices for Uganda sesame seeds

Prices for Uganda sesame seeds have changed over time. Prior to 2019, 1 kilo of
sesame seeds was going for US$0.78 in 2017 and US$1.26 in 2018. In 2019 the
export price changed to $1.43 per kilo, by 13.59%.
 High return markets in 2019 for Uganda sesame seeds for each kilo were fetched
from exports to Norway, Serbia, Bosnia and Herzegovina, Switzerland and
France. The sesame seeds exports from Uganda are categorised as:

 Sesamum seeds, whether or not broken (HS code 120740)

1.1.2 Export values for Uganda sesame seeds
The total values in export for sesame seeds in Uganda were US$ 14,563, US$
17,287, US$ 26,614 and US$ 32,739 in US dollar thousand for the years 2016,
2017, 2018 and 2019 in that order.

Export Values of Uganda sesame seedsvalue in '000 USD100,000,000-100,000,000-

50,000,000050,000,000100,000,000150,000,000200,000,000400,000,000300,000,000-
200,000,000L20102011201220132014201520162017201820192020Sesamum seeds,
whether or not broken
1.1.2.1 ARE YOU A PRODUCER OF SESAME SEEDS OR
OTHER PRODUCTS?

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Export Prices of Uganda sesame seedsprice in $ per kgL-2-1012846-

4L20102011201220132014201520162017201820192020Sesamum seeds, whether or not
broken
The prices of sesame seeds in Uganda per tonne for the years 2016, 2017, 2018
and 2019 were US$ 903.80, US$ 782.50, US$ 1,255.85 and US$ 1,426.47 in
that order.

1.1.3 Uganda sesame seeds export values

The total values in export for sesame seeds in Uganda were US$ 14,563, US$
17,287, US$ 26,614 and US$ 32,739 in US dollar thousand for the years 2016,
2017, 2018 and 2019 in that order.

Uganda sesame seeds producer pricevalue in kg1,000-2,000-

1,00001,0002,0003,0004,00010,0006,0008,000-
4,000L20102011201220132014201520162017201820192020Sesame Seeds
1.1.4 Uganda sesame seeds wholesale price
In 2021, the approximate price range for Uganda Sesame Seeds is between US$
1.43 and US$ 1.26 per kilogram or between US$ 0.65 and US$ 0.57 per
pound(lb).

The price in Uganda Shilling is UGX 5094.55 per kg. The average price for a
tonne is US$ 1426.47 in Jinja and Kampala.

Uganda's import price for sesame seeds in 2019 was US$1.50 per kilo.

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