TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

UGANDA
Trends and impacts of foreign investment in
developing country agriculture
BOX 1
TNCs in the coffee processing and export sector in Uganda, 2009 *
Kyagalanyi Coffee Ltd (www.volcafe.com), is a subsidiary of ED & F Man Holdings Limited, United
Kingdom, which bought VOLCAFE in 2004. Kyagalanyi was the first coffee exporter to be certified under
the ISO:9001:2000. The enterprise is also certified and verified under the OQS, a member of the Australian
member of the International Certification Network - IQNET. In 2007, Kyagalanyi started Project Nakanyonyi to
train farmers on improved farming practices in order for them to receive better prices for their produce.
ED & F Man is the market leader in procurement and preparation of green coffee. The company has
operations in 21 countries worldwide.
Olam (U) Ltd (www.olamonline.com), a subsidiary of Olam International Ltd in Singapore. Olam International
specializes in 17 agricultural products. The enterprise’s strategy is to manage each activity in the supply
chain, from origination to processing, logistics, marketing and distribution. This has allowed for operational
efficiencies, and value addition. Olam Uganda has its head office in Kampala and its procurement/distribution
units are spread over the entire country. The first product on Olam Uganda’s portfolio was Robusta coffee.
Subsequently Arabica coffee, cotton, sesame, rice and sugar were added on to its products. Olam has invested
in a state-of- the-art coffee processing facility in Kampala.
Kawacom (U) Ltd (www.kawacom.com), a subsidiary of Swiss based ECOM Agroindustrial Corp. Ltd Kawacom
was established in 1996. The enterprise spearheaded the development of the first organic coffee farm in
the country, and was the first exporter of organic coffee. Four buying centres. Kawacom currently operates
processing mills and one central processing mill for the preparation of export coffee. By procuring the coffee
directly from the source, Kawacom can offer guaranteed quality and timely delivery to its buyers. Since 1998,
Kawacom has expanded its trading business from the better known Ugandan Robusta into washed Arabicas.
At the time of writing, the company is developing three organic coffee projects in partnership with small
farmers. Two of these projects focus on washed Arabicas, and the third on Robusta – the first organic Robusta
from Africa.
ECOM is among the leading supply chain managers in the world and an integrated supplier of both raw and
semi-processed agricultural commodities
UGACOF Ltd (www.ugacof.com) is a subsidiary of Sucafina, a Swiss based enterprise. UGACOF has been in
the coffee business since 1994, exporting both coffee and cocoa. The enterprise is also engaged in transport
and shipping services through its sister company UGATRANS. To improve on the quality and yield of the
coffee, UGACOF installed demonstration plots and developed training sessions for farmers.
Ibero (U) Ltd (www.nkg.net) is a subsidiary of Neumann Kaffee Group. In addition to Ibero (U), Neumann
Kaffee Group (NKG) operates Kaweri Coffee Plantation Limited in the Mubende district. This is a large-scale
Robusta coffee farm, established in 2001 as part of the NKG farming strategy.
NKG operates an arm’s length relationship with its 40 subsidiaries. Each subsidiary is run as its own profit
centre within the Neumann Gruppe GmbH, the holding company of Neumann Kaffee Gruppe. Neumann
Gruppe GmbH is located in Hamburg, and directs and coordinates all activities of the group.
Great Lakes Coffee Company Ltd was established in 1999 by two Greek nationals with a 50:50
shareholding. The company is engaged in coffee buying, processing and export. Great Lakes sells about half of
its total production (57 percent in 2008) on the domestic market to Kawacom, Olam and Kyagalanyi Coffee
Ltd and exports the rest, mostly to customers in Italy, the United Kingdom, Germany and Switzerland.
* This information was primarily obtained from the companies’ websites
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