Collison Lore explores how Africans abroad can invest in the international honey market through the key role Uganda plays in this sector.

The international honey trade is worth billions of US dollars and Africa is the new frontier of pure, unadulterated honey. Uganda is a key player in this sector too.

Africans in the Diaspora have a unique relationship with the continent and this emerging opportunity can only serve to further cement these crucial ties. With more professional SMEs entering the honey market, the opportunities are numerous.

The commodities trade that has dominated the commercial relationship between Uganda and other international trading partners in Europe and Asia is gradually undergoing transformation. This is owing to the fact that Uganda has begun adding value to commodities that were previously exported as raw.

Uganda is blessed with a pleasant climate and one export that is now thriving is honey. A wide cross section of communities in Uganda has practiced beekeeping since time immemorial. In the 1990s and even earlier, beekeeping was often promoted as being a pro-poor income generating activity for poor communities. Today however Ugandan honey SMEs have developed effective production and marketing systems to be rated as highly commercial. Ugandan SMEs are developing strong linkages with major international buyers of honey as they ready themselves to export to the European Union.

This offers an opportunity to trade for savvy Africans in the Diaspora. Uganda's honey which is undergoing certification (SMEs are working towards stringent EU certification) is organic. Today, in the west, honey remains one of very few totally natural and unaltered foods available in their markets. Part of honey's image and reputation is as a wholesome, natural food, and there is therefore much interest in having sources of honey that are organic and certified.

In the EU, honey is labeled and sold as organic only if it is produced, inspected and certified in accordance with the requirements EU law. The regulation also applies to organic honey imported from outside the EU, which must be demonstrated to have been produced and controlled to equivalent strict standards. Uganda's SMEs, with the support of the Ministry of Agriculture Animal Industry & Fisheries, are working towards conforming to all these requirements.

Uganda's honey is also authentic; honey authenticity has two different aspects. The first of these is authenticity in terms of its content i.e. that it is 100 percent real honey and has not been contaminated with sugar syrup. The second is authenticity concerning its description: geographical and botanical origin. Uganda's honey is sourced from different parts of the country, Arua in the West Nile sub region has a long history of honey production, and other areas include Luwero, Kabarole, Kisoro, and Soroti are among a host of others.

The country's honey SMEs have established internationally recognized honey handling techniques. In organic beekeeping, they pay attention to all aspects known to ensure the best quality. They also apply key principles and well-established practice (maturity of the honey, no brood in the combs, among others) when extracting the honey. The honey's valuable ingredients are not altered during the processes of extraction, storage and conservation.

Ugandan SMEs are cognizant of that fact that honey is a prime target for adulteration. In the past before active sensitization by honey associations and SMEs, there were cases of honey being adulterated with acid-inverted sugar syrups, corn syrups, and syrups of natural origin (such as maple, cane sugar, beet sugar, molasses, etc.).

The country has an equipped laboratory that conducts numerous tests on samples of honey brought from different parts of Uganda. This explains why honey marketing is reliant on building the market's confidence that the product they are buying is pure honey.

Ugandan SMEs focusing on exporting to the EU and beyond appreciate that all honey traders and importers require certification for the honey they intend to buy. This knowledge is important because any partnerships with Africans in the Diaspora are dependent on the certification of the source market, in this case, Uganda.

The EU honey market requires imported honey to be certified that it is free from chemical, antibiotic and other residues: these are the most stringent criteria that are constantly updated as earlier indicated Uganda has a modern laboratory that is well equipped to undertake all the tests required, while SMEs are working towards meeting other set criteria. It is noteworthy that in Uganda honeybees remain relatively disease free, and environments may be relatively unpolluted, therefore SMEs can harvest honey of exceptional quality.

For the wider African Diaspora international honey traders interested in this sector, the most popular payment methods for traders are Letters of Credit and cash against documents. Terms of delivery, whether on CIF or FOB basis, form a subject for negotiation and arrangement between supplier and importer.

Commercial beekeeping in Africa has come of age, with players comprehending the effects of climate change on their business and being at the forefront of conserving their environment. Commercial beekeeping in Africa is presently contributing immensely to poverty reduction and supporting the realization of the much touted UN Millennium Development Goals (MDGs).