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year book 2011/12<br />

As the Nile finds its way to the<br />

north, it creates some marvelous<br />

waterfalls and later streams that<br />

water the coffee grown in <strong>Uganda</strong><br />

50th Anniversary Edition<br />

<strong>Uganda</strong> at 50 Years:<br />

Milestones of the Century<br />

and Strategies for the Future.<br />

50th Anniversary Edition<br />

A <strong>Uganda</strong> <strong>Coffee</strong> <strong>Federation</strong> publication 1


2 50th Anniversary Edition


50th Anniversary Edition<br />

3


As the Nile finds its way to the north, it creates some<br />

marvelous waterfalls and later streams that help<br />

nourish and water the coffee grown in <strong>Uganda</strong><br />

50th Anniversary Edition<br />

A <strong>Uganda</strong> <strong>Coffee</strong> <strong>Federation</strong> publication<br />

year book 2011/12<br />

<strong>Uganda</strong> at 50 Years:<br />

Milestones of the Century<br />

and Strategies for the Future.<br />

Editorial Team<br />

Editor:<br />

Associate Editor:<br />

Assistant editors:<br />

Betty Namwagala<br />

0414 343 692/8<br />

E: ucf@ugandacoffeetrade.com<br />

Robert Waggwa Nsibirwa<br />

Samson Emong<br />

Helen Mirembe<br />

Design &Layout:<br />

Ideas Advertising<br />

+256 312 109 544<br />

E: info@ideasug.net<br />

Publishers:<br />

<strong>Uganda</strong> <strong>Coffee</strong> <strong>Federation</strong><br />

2nd Floor, <strong>Coffee</strong> House<br />

Plot 35 Jinja Road<br />

Tel: +256 414 343 692/77<br />

E: ucf@ugandacoffeetrade.com<br />

www.ugandacoffeetrade.com<br />

4 50th Anniversary Edition


50th Anniversary Edition<br />

5


Inside<br />

7. President’s Statement<br />

10. UCDA MD’s Statement<br />

11. Executive Director’s Statement<br />

12. <strong>Coffee</strong>: A Commodity that has stood the times<br />

19. <strong>Coffee</strong>’s Contribution To <strong>Uganda</strong>’s Economic Development Since<br />

Independence<br />

26. aBi Trust and <strong>Coffee</strong> Value Chain Development in <strong>Uganda</strong><br />

30. Milestones of the Century in Trade and<br />

Marketing <strong>Coffee</strong> in <strong>Uganda</strong> and Strategies for the next Century<br />

36 Climate Change From A Farming Perspective<br />

41. Third <strong>Uganda</strong> <strong>Coffee</strong> Day<br />

47. Direction Of The <strong>Uganda</strong> <strong>Coffee</strong> Industry From The Farmer’s Perspective<br />

51. Technical overview of environmental impact of land application of<br />

pulping effluent from wet coffee<br />

processing.<br />

56. Production And Processing Problems Of Arabica <strong>Coffee</strong> Farmers In<br />

Eastern <strong>Uganda</strong><br />

66. Apendexes<br />

72. What is UCTF<br />

73. Ucf Member Benefits<br />

74. Ucf Member Profile<br />

78. Advertiser’s Index<br />

6 50th Anniversary Edition


President’s Statement<br />

David Barry<br />

UCF President<br />

<strong>Uganda</strong> exported just over 2.7m bags of coffee during the<br />

coffee year 2011-12 split 70% robusta and 30% arabica<br />

by volume. This was down about 400k bags from the<br />

previous year. Direct export earnings came to a total of $393m of<br />

which Arabica coffees contributed 43%. Volumes produced and<br />

exported were disappointing as most of us had envisaged total<br />

exports a little over the 3.0m bags mark but it seems various<br />

weather factors were adequately negative to severely impact the<br />

size of the Robusta component of the crops.<br />

There were many positive efforts made in the industry by <strong>Uganda</strong><br />

<strong>Coffee</strong> Development Authority and the private sector assisted by<br />

the Government of <strong>Uganda</strong>, Non-Governmental Organisations<br />

and Donors. These multiple efforts combined with relatively<br />

decent prices seem to have rekindled small holder and medium<br />

sized farmer’s enthusiasm for coffee growing. The UCDA report<br />

indicated that about 17million shade and coffee tree seedlings<br />

were planted during the year which is highly significant.<br />

About half of the 44 registered exporters in the country each<br />

exported more than 1% of total country exports with the top 10<br />

exporters responsible for around 80% of exports.<br />

<strong>Uganda</strong> coffee was directly exported to 37 countries outside of<br />

the enlarged EU which accounted for 67.5% of the total. Sudan<br />

remains a key destination for <strong>Uganda</strong> coffees taking over 400,000<br />

bags during the year whilst the USA absorbed about 100,000 bags.<br />

<strong>Uganda</strong> is following the international trend to certify more of<br />

its coffee. <strong>Coffee</strong> exporters and farmer organisations expanded<br />

their sustainable projects. Mr. Robert Waggwa Nsibirwa of the<br />

African <strong>Coffee</strong> Academy who was elected the chairman of the<br />

4C association has brought to the table the issue of low coffee<br />

productivity, a topic largely overlooked by the certification<br />

standards but understood by everyone actually working with<br />

smallholder farmers.<br />

One of the key features of the international market last<br />

year was the pronounced blend, changing from Arabicas to<br />

Robustas which took place in many markets.<br />

250.00<br />

COFFEE FUTURES MARKETS PRICES (Oct 11 - Sep 12)<br />

One of the key features of the international market last year was<br />

the pronounced blend, changing from Arabicas to Robustas<br />

which took place in many markets. Price has been one of the<br />

key drivers of this development as it is increasingly clear that<br />

economically hard-pressed consumers have not stopped drinking<br />

coffee but have rather switched to cheaper blends. The resulting<br />

fall in Arabica prices and differentials has been tough on <strong>Uganda</strong>n<br />

Arabica farmers and dealers but the adjustments have been made<br />

and the business model remains intact and profitable.<br />

US CTS / LB<br />

200.00<br />

150.00<br />

100.00<br />

50.00<br />

-<br />

ROBUSTA - LIFFE ARABICA - ICE ARBITRAGE<br />

Most of the people we speak to seem optimistic about the prospects<br />

for coffee production in <strong>Uganda</strong> and it seems increasingly evident<br />

that the focus on coffee over the last few years is starting to pay<br />

dividends. We are optimistic about volumes in the coming coffee<br />

year; and with decent enough prices and satisfactory weather<br />

we can look forward to both improving volumes and excellent<br />

qualities across the range of coffees produced.<br />

50th Anniversary Edition<br />

7


8 50th Anniversary Edition


Structured<br />

commodity trade<br />

Are you a trader or exporter of products<br />

produced or processed in <strong>Uganda</strong>? Stanbic<br />

Bank provides tailor made trade finance<br />

solutions to meet your specific needs.<br />

Richard Wangwe<br />

Head, Agriculture <strong>Uganda</strong><br />

We offer structured trade and commodity finance:<br />

Warehouse Receipt Financing<br />

To facilitate procurement and bulking of commodities<br />

for export or sold locally.<br />

Pre and Post Season Agricultural Commodity<br />

Financing Facility<br />

Facility to finance the purchase, processing,<br />

packaging and exportation of commodities for<br />

international export.<br />

Collateral Managed Agricultural Commodity<br />

Warehousing Facility<br />

Collateral managed facility to finance the import<br />

of cereals and grains, that will be released against<br />

payment by the client for the purpose of milling and<br />

subsequent distribution to local markets.<br />

Trade Finance <strong>Coffee</strong> Procurement Facility<br />

For procurement of processed coffee produced by<br />

local farmers, for on-sale to international buyers.<br />

Trade Finance Export Facility<br />

To finance the purchase of coffee produced in the<br />

current season by pre-financing firm fixed price,<br />

fixed quantity off take contracts entered into with<br />

international buyers. Stanbic Bank advances financing<br />

to buy coffee from buying companies for export.<br />

The above can either be self liquidating<br />

collateral managed or financed against fixed<br />

assets<br />

Our Structured commodity trade finance solutions<br />

ensure faster payments from international buyers in<br />

addition to providing customized financial solutions to<br />

meet your cash flows needs.<br />

Contacts us at:<br />

Stanbic Bank - Agriculture Financing<br />

9 th Floor, Short Tower, 17 Hannington Road, Crested Towers Building.<br />

P O Box 7131 Kampala. Tel +256 417 154 000/446/210<br />

Stanbic Bank <strong>Uganda</strong> Limited A financial institution regulated by Bank of <strong>Uganda</strong> License Number A1. 013<br />

50th Anniversary Edition<br />

9


UCDA MD’s Statement<br />

Henry Ngabirano<br />

MANAGING DIRECTOR, UCDA<br />

I<br />

wish to congratulate all the coffee stakeholders upon completion<br />

of the 2011/12 coffee year. The year was characterized by reduced<br />

coffee volumes compared to 2010/2011 due to weather related<br />

factors, pests and diseases and price fluctuations. As a result, coffee<br />

exports for the year were down by 13.4% and 12.5 % in volume and<br />

value respectively.<br />

<strong>Coffee</strong> continues to play a vital role in <strong>Uganda</strong>’s economy contributing<br />

to about 20-30% of the foreign exchange earnings and employing<br />

over 3.5 million households. Due to its importance the Government<br />

of <strong>Uganda</strong> has always taken coffee as a priority export crop and it has<br />

featured in its many programs such as: Prosperity for All Programme<br />

(PFA); National Export Strategy (NES); Plan for Modernization of<br />

Agriculture (PMA) and National Agricultural Advisory Services<br />

(NAADS), among others.<br />

In order to increase production, the Government through UCDA, has<br />

increased the momentum in coffee replanting and rehabilitation<br />

programme, through mass production of <strong>Coffee</strong> Wilt Disease Resistant<br />

planting materials using tissue culture and this is aimed at increasing<br />

coffee production and productivity. Support has also been given to<br />

the coffee scientists to do more research given that many challenges<br />

are foreseen as a result of climate change. With this, it is envisaged that<br />

by 2015 coffee exports will have increased to 4.5 million bags from the<br />

current annual average of 3 million bags.<br />

The International <strong>Coffee</strong> Organization (ICO) predicts that, coffee<br />

production for the coming year will increase at an estimated volume<br />

of 144.1 million bags an increase of 7.2% compared to 134.4 million<br />

bags in 2011/12. Global coffee consumption is increasing steadily at<br />

2.4% per annum. There is a growing demand for sustainable coffees<br />

in consuming countries and therefore this is an opportunity that we<br />

need to exploit.<br />

Value addition at all levels of the coffee value chain is being promoted<br />

through wet processing in both Arabica and Robusta coffees, a practice<br />

that has improved on the quality and incomes of the farmers. UCDA<br />

will continue to ensure that quality standards are adhered through<br />

enforcement of <strong>Coffee</strong> Regulations. His Excellence the President has<br />

come out strongly to emphasize the importance of maintaining high<br />

quality <strong>Uganda</strong>n <strong>Coffee</strong> while the Police and Local Authorities have<br />

allied with UCDA to enforce it.<br />

In order to increase production, the Government<br />

through UCDA, has increased the momentum in<br />

coffee replanting and rehabilitation programme,<br />

through mass production of <strong>Coffee</strong> Wilt Disease<br />

Resistant planting materials using tissue culture and<br />

this is aimed at increasing coffee production and<br />

productivity<br />

On behalf of UCDA Board, Management and Staff I wish to thank all<br />

coffee stakeholders who are doing a tremendous work in adding value<br />

to coffee. Special thanks go to all those exporters and development<br />

partners who have taken the initiative of helping farmers in terms<br />

of inputs, trainings and financial assistance. This has tremendously<br />

improved on production and quality of coffee. UCDA will always<br />

partner with you as we strive to make <strong>Uganda</strong> a distinguished<br />

producer of high value coffee. To all the participants in the 10th African<br />

Fine <strong>Coffee</strong>s Conference and Exhibition, I wish you good deliberations<br />

and a pleasant stay.<br />

10 50th Anniversary Edition


ED’s Statement<br />

Betty Namwagala<br />

Executive Director - UCF<br />

At the time of liberalisation of the <strong>Uganda</strong> coffee industry<br />

and the enacting of the UCDA Statute in 1991, it was only<br />

the <strong>Coffee</strong> Marketing Board and the Cooperative Societies<br />

that were eligible to export coffee. When liberalisation took effect,<br />

the private coffee exporters faced tremendous challenges but<br />

had no forum for addressing them and therefore decided to form<br />

an Association that would provide a voice for them and thus the<br />

<strong>Uganda</strong> <strong>Coffee</strong> Exporters Association (UCEA) was born.<br />

However, in 1996 the <strong>Coffee</strong> Exporters realised that they could not<br />

operate in isolation, and therefore the Association resolved to bring<br />

other players on board and these included the farmers, processors,<br />

traders, exporters, logistic companies, insurance companies and<br />

banks. Although the regulatory mandate was maintained by the<br />

Government, the expansion of Membership gave the Association an<br />

edge to take charge of their affairs including efficiency, profitability<br />

and investments. As a result, the expansion rendered the Association<br />

non representative; and therefore the emergence of <strong>Uganda</strong> <strong>Coffee</strong><br />

Trade <strong>Federation</strong> that was emerged and was incorporated in 1996.<br />

The <strong>Federation</strong> developed various systems and instruments aimed at<br />

assisting the coffee traders to work in a professional manner in their<br />

transactions and efficiently respond to the market forces both locally<br />

and globally. UCTF made a landmark in the policy arena through<br />

advocacy that removed many constraints in the coffee business,<br />

contributed to capacity building and helped to build a critical mass<br />

in the industry.<br />

The <strong>Federation</strong> developed various systems and<br />

instruments aimed at assisting the coffee traders<br />

to work in a professional manner in their transactions<br />

and efficiently respond to the market<br />

forces both locally and globally.<br />

Leaving the Comfort Zone-Time for Change<br />

While there has been some landmarks registered, there has also been<br />

growing pressure from some circles within the coffee value chain<br />

demanding for change. Hence at the 2nd <strong>Uganda</strong> <strong>Coffee</strong> Day of<br />

6th October 2011 where the <strong>Coffee</strong> Fraternity was well represented<br />

and under the Nakanyonyi Declaration of 2011, the <strong>Coffee</strong> industry<br />

decided to that it was time for the <strong>Uganda</strong> <strong>Coffee</strong> ‘Trade’ <strong>Federation</strong><br />

to shed off the “Trade” and become <strong>Uganda</strong> <strong>Coffee</strong> <strong>Federation</strong>.<br />

Overall the change was a noble call to better reflect the broad<br />

membership of stakeholders in the coffee industry yet by and large<br />

the <strong>Federation</strong> has continued to serve not only its members but<br />

the entire sub-sector through organising platforms for knowledge<br />

sharing, networking and building business relationships; training,<br />

and promotion among others.<br />

Some of the factors that led to this include but not limited to:<br />

• Both backward and forward integration of members along<br />

the value chain;<br />

• Feeling of exclusion by some members that are not directly<br />

involved in coffee trade;<br />

• Need to appeal to new audience and grow membership.<br />

The future of the <strong>Federation</strong> involves consolidating the past<br />

achievements while scanning the environment for potential<br />

challenges and opportunities at all levels of the coffee value chain<br />

to ensure a thriving and sustainable coffee industry in <strong>Uganda</strong>. The<br />

<strong>Federation</strong> will also continue to offer value for money services so<br />

that members remain competitive in the global coffee industry.<br />

50th Anniversary Edition<br />

11


12 50th Anniversary Edition


“<strong>Coffee</strong>: A Commodity that has stood the times.”<br />

By Frederick S.M. Kawuma,<br />

Secretary General, Inter-African <strong>Coffee</strong> Organisation (IACO).<br />

Introduction<br />

<strong>Coffee</strong> has<br />

its origins<br />

in Africa.<br />

Ethiopia is the<br />

birthplace of<br />

Arabica coffee,<br />

while <strong>Uganda</strong> is<br />

the birthplace of<br />

Robusta coffee. It<br />

is remarkable that<br />

from the humble<br />

beginnings in<br />

Eastern Africa,<br />

the cultivation of<br />

coffee has spread around the globe,<br />

between the Tropic of Cancer and<br />

the Tropic of Capricorn. Nonetheless,<br />

Ethiopia and <strong>Uganda</strong> have an enormous<br />

genetic resource pool, with so many<br />

different coffee varieties some of which<br />

still grow wild, and which provide a<br />

sizeable bank of genetic material for<br />

the coffee researchers in their breeding<br />

programmes, whether for productivity<br />

enhancement, disease resistance or<br />

weather tolerant purposes. While<br />

disease outbreaks have threatened<br />

coffee at different times, and a host of<br />

pests have attacked it, and there had<br />

been fears that the crop could easily be<br />

wiped out, it has remained resilient.<br />

Indeed coffee has weathered many<br />

challenges over the years, but its<br />

production has continued to grow, as<br />

has its consumption. <strong>Coffee</strong> is a tropical<br />

crop, and does well in growing regions<br />

that have moderate sunshine and rain,<br />

steady temperatures, for Arabica around<br />

20ºC and Robusta around 25 ºC. <strong>Coffee</strong><br />

will not appreciate extremes of weather<br />

such as cold winters or extremely hot<br />

temperatures. In addition, to do well, coffee also requires<br />

rich, porous soil, and in return the tree will yield very<br />

good beans. <strong>Coffee</strong> is the economic mainstay for dozens<br />

of countries and employs over 25 million people, most<br />

of who live in rural communities. <strong>Coffee</strong> stands out<br />

among natural commodities, with a reputation of being<br />

the second most traded commodity after oil. <strong>Coffee</strong> has<br />

maintained its important position through the decades.<br />

Arabica coffee is ideally grown at higher altitudes that<br />

Robusta, and tends to be mild in its taste compared to<br />

Robusta which mainly grows in lowland areas and under<br />

harsher conditions. There are exceptions however, where<br />

Arabica coffee is grown at altitudes below 1000 metres<br />

above sea level such as in Costa Rica, and where Robusta<br />

is grown at altitudes above 1000 meters above sea level in<br />

<strong>Uganda</strong>. In fact, the latter explains why <strong>Uganda</strong>’s Robusta<br />

is unique in taste and flavour compared to many other<br />

Robustas. Generally, Arabica coffee trees produce much<br />

bigger beans, which also have higher intrinsic quality and<br />

have lower caffeine. Robusta beans are generally smaller,<br />

and the taste is a bit harsh, and with slightly more caffeine<br />

than Arabica. There are so many coffee varieties some of<br />

which are used for research purposes, and by crossing the<br />

new species with other known coffees, researchers have<br />

been exploring the introduction of two new features to<br />

commercially cultivated coffee plants – coffee beans<br />

without caffeine and coffee trees that are self pollinating.<br />

However, the many varieties are not commercially viable,<br />

leaving only Arabica and Robusta, which in 2009/10<br />

accounted for 93.4 million bags worth US$15.4, of which<br />

about 70% is Arabica and 30% is Robusta.<br />

Why is <strong>Coffee</strong> Important?<br />

The coffee beverage is a popular drink the world over. The<br />

proliferation of cafes in North America and Europe has<br />

especially helped to popularise the drink. Big brand names<br />

such as Starbucks have influenced a coffee consumption<br />

culture the same way MacDonalds set the trend for fast<br />

foods. The caffeine in coffee beans is reputed to be the key<br />

attraction, but even with decaffeinated coffee the aroma<br />

itself is a great attraction.<br />

The views presented in this article are those of the author and not of the Inter-African <strong>Coffee</strong> Organisation (IACO) nor of its<br />

Member states.<br />

50th Anniversary Edition<br />

13


There are intrinsic qualities in coffee that<br />

make it a unique beverage, and it fulfils<br />

the desires of many from romantic to<br />

stamina for concentrated study, the latter<br />

helping students to keep alert especially<br />

in periods of preparing for examinations.<br />

An interview with a coffee drinker or<br />

enthusiast will definitely give you a<br />

variety of reasons for the love for coffee.<br />

And they are all valid!<br />

African coffee producers have a relatively<br />

high dependence on revenues from<br />

coffee exports, and coffee is a commodity<br />

that is responsible for the employment<br />

and livelihood of about a significant<br />

proportion of the population. Over the<br />

last two decades, several African nations<br />

have implemented far-reaching policies<br />

of reform and liberalisation in their<br />

economies and in the coffee industry<br />

in particular. Sub-Saharan economies<br />

are agrarian in nature and have to make<br />

swift progress towards industrialisation<br />

in order to reduce their dependence<br />

on agriculture for both employment<br />

and foreign exchange earnings. While<br />

a number of African countries have<br />

reported successful oil exploration,<br />

and positive mineral prospects exist in<br />

others, agriculture has to be given special<br />

attention in order to ensure food security.<br />

While some of the producers have been<br />

hard-wearing, unfortunately due to a<br />

variety of reasons some of the other<br />

coffee producing countries in Africa have<br />

had significant decline in production. Civil<br />

strife, inefficient marketing and poorly<br />

supported production systems have all contributed to<br />

the decline, in different proportions. The lack of support<br />

whether in research, extension or access to finance, have<br />

had devastating effects on the coffee industry. In most<br />

cases, coffee is primarily grown by smallholders, and<br />

thus plays a vital role in rural employment and income<br />

assurance. With its decline in some of the cases, the<br />

effects on the population and rural economies have been<br />

far reaching. Unfortunately the decline has been great<br />

in Africa, losing almost 50% of its previous market share,<br />

over the last two decades. Other producing regions have<br />

taken advantage of the global market opportunities, as<br />

seen in the increase in global exports from 80 million bags<br />

in 1990/91 to 103 million bags in 2010/11. During that<br />

period, Africa’s coffee exports declined from 18.6 million<br />

bags to 10.6 million bags. Thus, in a growing market Africa<br />

has lost market share. While the commodity itself has<br />

withstood tough times, and in spite recessions demand<br />

has grown, Africa now faces the challenge of regaining its<br />

position in the global market place.<br />

According to the International <strong>Coffee</strong> Organisation (ICO),<br />

in 2010 the total coffee sector employment was estimated<br />

at about 26 million people in 52 producing countries.<br />

World coffee trade statistics and information given by the<br />

ICO also shows that for many countries, coffee exports are<br />

not only a vital contributor to foreign exchange earnings<br />

but also account for a significant proportion of tax income<br />

and gross domestic product.<br />

Over the last two decades, several<br />

African nations have implemented<br />

far-reaching policies of reform and<br />

liberalisation in their economies and<br />

in the coffee industry in particular.<br />

14 50th Anniversary Edition


For several countries the average share<br />

of coffee exports in total export earnings<br />

exceeded 10 percent in the period 2000–<br />

2010, although the importance of coffee<br />

for many countries is diminishing over<br />

time as their economies diversify. The<br />

African countries that recorded significant<br />

dependence on coffee earnings were<br />

led by Burundi whose average share of<br />

coffee exports in total export earnings was<br />

reported as 59%. Ethiopia was at 33%,<br />

Rwanda at 27% and <strong>Uganda</strong> at 18%.<br />

The Imminent Threat<br />

The media keeps providing new<br />

information and statistics on environmental<br />

degradation, global warming, and so on. All<br />

these have a serious bearing on the coffee<br />

industry because production may be even<br />

more endangered in some regions. Studies<br />

have indicated that coffee consumption is<br />

increasing at a rate of 2-3 percent a year, but<br />

other facts relating to production systems<br />

show that coffee supply in the long-term<br />

may be threatened by environmentallydamaging<br />

farming methods. It is also<br />

feared that farmers could switch to other<br />

crops or abandoning their land completely.<br />

This has already happened in Kenya, where<br />

coffee production has progressively shrunk<br />

as some coffee farms have been turned<br />

into real estate developments, while in<br />

some cases horticultural farming has been<br />

found more lucrative, and coffee trees have<br />

been replaced with other higher-income<br />

crops. Nevertheless, there have been those<br />

who have persisted and some of these<br />

continue to obtain rewarding prices at the<br />

coffee auction. It is not only in Africa where<br />

production has declined, as the same<br />

trend has been seen in Colombia where<br />

almost two thirds of the original volume of<br />

production has been shed!<br />

In different African countries, several studies<br />

have been undertaken over the years, in the<br />

agricultural sector, identifying certain crops<br />

as possessing great potential in terms of<br />

boosting the rural economy, and uplifting<br />

the welfare of the producers. For instance,<br />

in <strong>Uganda</strong> farmers were encouraged to rear<br />

silk-worms, grow vanilla, and some food<br />

crops which would have been able to obtain<br />

better prices than those for coffee, but value<br />

chain constraints made it impossible to<br />

realise the farmers’ dreams. Subsequently,<br />

those who had abandoned coffee came<br />

back to the fold. However, they should not be taken for<br />

granted as they can easily move their investment into<br />

other higher income generating ventures, if they present<br />

themselves, and coffee lets them down. It is therefore<br />

imperative that in each country a system of support for<br />

the coffee sector is established, through private sector<br />

networks and initiatives to adequately address the value<br />

chain bottlenecks that may exist. If this is supported by a<br />

policy framework that enhances efficiency and promotes<br />

business transactions, there are many positive ripple<br />

effects that will be experienced.<br />

Where will the Hope come from?<br />

Whereas production has declined in Africa, Brazil and<br />

Vietnam have significantly increased their production,<br />

while the production in India too has been resilient.<br />

In Africa, Ethiopia has taken the lead to ramp up<br />

its production and others indicate that they will be<br />

revamping their coffee sectors. If this becomes a reality,<br />

it will give hope to the consumers who are worried that<br />

their beloved beverage might become a dream.<br />

Uniform flowering and ripening of coffee is almost non existent in<br />

<strong>Uganda</strong> and most especially Robusta growing areas. .<br />

The media keeps providing new information<br />

and statistics on environmental degradation,<br />

global warming, and so on. All these have a<br />

serious bearing on the coffee industry because<br />

production may be even more endangered in<br />

some regions.<br />

50th Anniversary Edition<br />

15


Ethiopia, the natural home of the Arabica tree, is Africa’s<br />

top Arabica exporter and leads the continent in domestic<br />

consumption.<br />

The strategy of the Ethiopian government to support<br />

the replacement of old trees and replanting new areas is<br />

paying dividends as annual production and export figures<br />

increase. <strong>Coffee</strong> is very significant in the lives of about 12<br />

million Ethiopians who make their living from it, and this<br />

has serious macro-economic ramifications. With Ethiopia<br />

setting such a good pace, there are many lessons for other<br />

African producing countries. Other countries, especially<br />

<strong>Uganda</strong>, have attempted to follow Ethiopia’s example, but<br />

are still a long way off. Ethiopia and Kenya have the greatest<br />

number of coffee researchers, and this also reflects on<br />

the progress that has been made in the introduction of<br />

new planting materials, albeit Kenya has its own special<br />

problems that have inhibited coffee’s expansion. In the<br />

case of Côte d’Ivoire, once Africa’s leading coffee producer,<br />

civil strife decimated their crop but the sector is on its way<br />

to recovery, and has very good promise.<br />

The African <strong>Coffee</strong> Research Network is promising a<br />

coordinated effort in addressing the research constraints<br />

in Africa so as to provide the direction that the industry<br />

can take to emulate Brazil and Vietnam in increasing<br />

productivity, while also ensuring that high quality coffee<br />

is produced. One of the efforts that are needed is to<br />

build the capacity of the coffee research institutions in<br />

Africa, boosting the scientists, and providing the needed<br />

resources, in order to address the concerns of the industry<br />

with cutting edge research and innovations that will bring<br />

Africa back into the league of global coffee leadership,<br />

especially in quality terms. Through various collaborative<br />

efforts, African coffee producing countries will be able to<br />

share technologies, have exchange visits to share in best<br />

practices, promote policy reviews and appropriate actions<br />

to revamp the coffee sector and seek joint technical<br />

cooperation.<br />

African coffee producing countries suffer the fate of being<br />

exporters of raw commodities, and where attempts are<br />

made for value addition there are a number of tariff and<br />

non-tariff barriers that that restrict access of processed<br />

coffee products on the market in Organisation for Economic<br />

Co-operation and Development (OECD) countries. As long<br />

as African producers export unprocessed green coffee, it<br />

is subject to the vagaries of extreme price fluctuations on<br />

the commodity exchanges. If a good proportion of the<br />

exports were in the form of finished products ready for<br />

consumption, earnings would be more stable and would<br />

be substantially more than is the case with raw products.<br />

There are however, opportunities for developing the<br />

market within the African coffee consuming countries,<br />

where benefits of the Regional Economic Communities<br />

could be explored.<br />

While the coffee market continues to be characterised<br />

by strong demand from industrialised countries, African<br />

producers have been largely unable to take advantage of<br />

this market opportunity. For instance, the United States is<br />

the biggest importer of coffee – accounting for more than<br />

26 million 60-kilo bags in the calendar year 2011, according<br />

to the International <strong>Coffee</strong> Organisation (ICO). In terms<br />

of expenditure on coffee, the US spends approximately<br />

US$8.62 billion on coffee (imports) in the same year. The<br />

ICO figures also show that Germany imported 20.9 million<br />

bags in 2011, worth about US$5.9 billion. Europe is the<br />

most important destination of African coffee, accounting<br />

for over 90% of African coffee exports, all in the form<br />

of green coffee.1 The contrast is that while a 250-gram<br />

pack of coffee will cost about US$5 on the shelves in the<br />

consuming countries (about US$20 per kg), the African<br />

exporter may receive a price of US$1.50 per kg, and due<br />

to the tariff and non-tariff barriers is unable to access the<br />

market for the finished product. When all the value added<br />

to the product is in a developed country, the producing<br />

country fails to benefit from all the multiplier effects of<br />

processing at origin. But this could be addressed through<br />

targeting the African market for coffee – including the<br />

North African countries, the Republic of South Africa and<br />

the Middle East market.<br />

1 According to Statistics from FAO, the majority of coffee imports<br />

into the OECD countries from the producers occur in the form of green,<br />

unprocessed coffee -- 98% of American imports and 94% of European<br />

imports are raw, unroasted beans.<br />

16 50th Anniversary Edition


Thus a proportion could be<br />

exported as finished product; some<br />

could still go as green coffee, and<br />

also as premium or certified coffees.<br />

It is noted that in most African<br />

countries there has been an<br />

emphasis on export volume where<br />

the pre-occupation has been<br />

with how to increase production.<br />

However, there has been a lack of<br />

investment in quality improvement,<br />

and coupled with poor planning<br />

and execution of any existing<br />

improvement agenda, and thus<br />

there has been prevalent low<br />

quality and declining productivity<br />

per hectare.<br />

Another unfortunate trend has<br />

been the prevalence of most<br />

African coffee exports ending up<br />

as commercial coffees, in the mass-market for<br />

coffee in Europe. In spite of the declining trend in<br />

some African countries, there have been emerging<br />

innovations as seen in the new investments in<br />

estate production, in some parts by the new middle<br />

class while in others by foreign investors, which has<br />

altogether shown that coffee in Africa is resilient,<br />

and will stand the test of time.<br />

Conclusion<br />

According to Hubert Weber, the global head of coffee<br />

at Mondelez International Inc., the coffee industry<br />

risks running short of beans in coming years, if<br />

sustainable farming methods are not promoted.<br />

Mondelez is a company that was carved out of Kraft<br />

Foods Inc in 2012, and this may have been done so<br />

as to specifically focus on getting the right coffee<br />

for the future, in anticipation of the market needs<br />

and tastes. In fact, in 2013, Mendelez is targeting<br />

to source 65% of their coffee from sustainable<br />

production systems. It is certainly setting a good<br />

pace for other players in the industry, and producers<br />

are looking forward to receiving rewards for the<br />

effort in their investments in sustainable farms.<br />

As investment in estates picks up, and farmer<br />

groups sell their coffee either as a cooperative or<br />

farmers association, there are opportunities in the<br />

market that can be grasped, of single origin coffees.<br />

African coffee producers can take advantage of<br />

this opportunity, whether it is for green or roasted<br />

coffee. What is marketed as single-origin coffee<br />

is coffee that is grown within a single known<br />

geographical origin, which could be a single farm, or a an<br />

agglomeration of coffee grown within a given locality or<br />

even from a single country, with unique characteristics.<br />

When coffee is marketed as single-origin, the name<br />

of the coffee is then usually the place it was grown to<br />

whatever degree available, such as Yirgacheffe, Sidamo,<br />

Nyeri, Bugisu, Kilimanjaro, Mzuzu, etc. Single-origins are<br />

viewed by some as a way to get a specific taste, and some<br />

independent coffee shops have found that this gives them<br />

a way to add value over large chains. Estate coffees are<br />

a specific type of single-origin coffee. They are generally<br />

grown on a single farm, such as Mringa Estate in Tanzania,<br />

Mzima Estate in Kenya, which might range in size from<br />

a few acres to large plantations occupying many square<br />

miles, or a collection of farms which all process their<br />

coffee at the same mill, such as the Kaweri in Mubende,<br />

<strong>Uganda</strong> or Munali farm in Zambia. Sometimes, micro-lot<br />

coffees are another type of specific single-origin coffee<br />

from a single field on a farm, a small range of altitude, and<br />

specific day of harvest, and the Nairobi <strong>Coffee</strong> Exchange<br />

sells many lots of this type.<br />

Indeed, I dare say, coffee has stood the test of time as<br />

a commodity that is so dear to both its producers and<br />

consumers. Some have done a lot more than others in<br />

investing in research, production and even marketing,<br />

while others have done less. Some far too less than<br />

others! The test for the future is to see who will have<br />

taken more seriously their verbal or written commitments<br />

or even political promises, beyond mere rhetoric, and<br />

demonstrated that they care for the producers of this<br />

valued commodity. The consumers will be delighted to<br />

know that something is being done, hopefully more that<br />

they expected, to ensure that they will continue to enjoy<br />

the pleasure that comes from a lovely cup of coffee.<br />

50th Anniversary Edition<br />

17


UGACOF Limited, Bweyogerere, Kiira<br />

P.O. Box 7355, Kampala – <strong>Uganda</strong><br />

Fax: +256 312 250020,<br />

Tel: +256 414 286288 / 126<br />

E-mail: reception@ugacof.com<br />

Web: www.ugacof.com<br />

18 50th Anniversary Edition


MINISTRY OF AGRICULTURE, ANIMAL<br />

INDUSTRIES AND FISHERIES<br />

COFFEE’S CONTRIBUTION TO UGANDA’S ECONOMIC<br />

DEVELOPMENT SINCE INDEPENDENCE<br />

By James Kizito-MayanjaPrincipal Information Officer, UCDA<br />

2 History of <strong>Coffee</strong> Production in<br />

<strong>Uganda</strong><br />

<strong>Uganda</strong> grows two types of coffee: Robusta and Arabica<br />

in the ratio of 4:1. Whereas Robusta was originally grown<br />

around Lake Victoria, Arabica, it is believed, originated<br />

from Malawi, hence its original name, Nyasaland. By 1914<br />

European and Asian farmers had established 135 coffee<br />

plantations, occupying 58,000 acres of land. However,<br />

the crop was abandoned when prices fell in the 1920s.<br />

<strong>Coffee</strong> production was left to African smallholders,<br />

though at first the acreage was insignificant, by 1931, only<br />

17,000 acres were under cultivation. The <strong>Coffee</strong> Board<br />

was set up in 1929, later becoming the <strong>Coffee</strong> Industry<br />

Board (1943) and then <strong>Coffee</strong> Marketing Board (1959).<br />

1 Introduction<br />

<strong>Coffee</strong> continues to play a pivotal role in the<br />

<strong>Uganda</strong>n economy contributing immensely<br />

to the export earnings to the tune of US$ 449<br />

million and US$ 393 million in <strong>Coffee</strong> Years 2010/11<br />

and 2011/12 respectively. It provides a livelihood to<br />

about 1.32 million households out of the 3.95 million<br />

agricultural households. Government has given coffee<br />

priority in the Ministry of Agriculture, Animal Industry<br />

and Fisheries’ Development Strategy and Investment<br />

Plan (DSIP) as well as the National Export Strategy-NES<br />

(2008-2012) and its corresponding Gender Dimension<br />

of the NES. All these interventions are in line with the<br />

overarching National Development Plan-(NDP (2010/11-<br />

2014/15) envisaged transforming the <strong>Uganda</strong>n economy<br />

from a peasant economy to an industrialized modern one<br />

with a vibrant private sector.<br />

The colonial government, eager to see the development<br />

of cash crop economy, divided the country into agroecological<br />

zones, each specializing in a specific crop:<br />

tobacco in Acholi (Kitgum and Gulu), cotton in West Nile<br />

and coffee in the Central region. In the 1950s extension<br />

workers promoted a coffee-planting programme that<br />

saw coffee production reach 2 million 60kg bags by<br />

the early 1960s and more than 3 million by 1969/1970.<br />

Civil wars during the 1970s affected coffee production<br />

that reduced to about 2 million bags. These were also<br />

exacerbated by the war in Luweero Triangle, a major<br />

coffee region from 1981-1986 (see graph 1).<br />

<strong>Coffee</strong> continues to play a pivotal role<br />

in the <strong>Uganda</strong>n economy contributing<br />

immensely to the export earnings to<br />

the tune of US$ 449 million and US$<br />

393 million in <strong>Coffee</strong> Years 2010/11 and<br />

2011/12 respectively.<br />

50th Anniversary Edition<br />

19


3. Achievements in the <strong>Coffee</strong> Sector<br />

since Independence<br />

i. Cooperative Movement: started in 1913. The<br />

Cooperative movement was very powerful with very<br />

strong cooperative societies and unions: Bugisu<br />

Cooperative Union, Sebei Cooperative Union, West<br />

and East Mengo Cooperative Unions, Wamala<br />

Cooperative Union, Masaka Cooperative Union,<br />

Banyankole Kweterana Cooperative Union, Okoro<br />

Cooperative Union, Busoga Co-operative Union with<br />

coffee as a major commodity marketed. Currently,<br />

it is only Bugisu Cooperative Union and Banyankole<br />

Kweterana Cooperative Union which are still<br />

functional although Masaka Cooperative Union is also<br />

ii.<br />

Chart 1: <strong>Uganda</strong>'s <strong>Coffee</strong> Exports and Value Since Independence<br />

Millions<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

1964/65<br />

1969/70<br />

1974/75<br />

Source: UCDA Database<br />

1979/80<br />

1984/85<br />

rebranding currently;<br />

In 1955, a Price Assistance Fund (PAF) was set up to<br />

cushion farmers against volatility in global coffee<br />

prices. This encouraged farmers to plant more coffee;<br />

iii. <strong>Uganda</strong> Cooperative Alliance was established<br />

in1961 to oversee the operations of the unions and<br />

cooperative societies under them with the ultimate<br />

aim of empowering farmers and their cooperatives to<br />

market their produce profitably and sustainably;<br />

iv. <strong>Coffee</strong> farmers’ welfare changed considerably.<br />

Farmers who sold coffee started constructing iron<br />

sheets roofed and tiled houses especially in Buganda<br />

region, bought motorcycles (Mwanyi Zabala)<br />

, acquisition of more land and marrying more wives!!!<br />

v. There was a Cooperative credit scheme in 1961 (FAO)<br />

administered by Co-operative Department of the<br />

Ministry of Co-operatives and Marketing;<br />

vi. <strong>Uganda</strong> ratified the International <strong>Coffee</strong> Agreement in<br />

1962;<br />

vii. Progressive Farmers Loan Scheme that provided<br />

credit to progressive farmers abandoned in 1964<br />

viii. <strong>Uganda</strong> Census of Agriculture was conducted in<br />

1963/65 and reported that 42% of the farmers in<br />

<strong>Uganda</strong> grew Robusta coffee;<br />

ix. <strong>Coffee</strong> Marketing Board was established in 1959 with<br />

a monopoly control over coffee exports, internal<br />

marketing, quality control, collection of coffee tax<br />

1989/90<br />

<strong>Coffee</strong> Years<br />

Quantity (Million 60 Kilo Bags)<br />

1995/96<br />

1999/00<br />

2004/05<br />

Value in US $ Million<br />

2011/12<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

Millions<br />

and promoting coffee consumption domestically and<br />

abroad. It was also responsible for implementing the<br />

ICO quota system;<br />

x. The two main functions of CMB were to export coffee<br />

and also to institute a minimum price for coffee<br />

producers at the beginning of each cropping season,<br />

setting marketing margins for private buyers. A<br />

central processing unit was constructed in 1967 with<br />

a capacity of 120 MT/hour;<br />

xi. Government’s diversification plan developed in<br />

1966/67-1970/71;<br />

xii. <strong>Coffee</strong> Rehabilitation Project (CRP) funded by<br />

European Economic Community (EEC) in 1982<br />

aimed at reversing the declining coffee volumes by<br />

improving extension service delivery-pruning for<br />

both Robusta and Arabica and spraying in Arabica<br />

growing regions, coffee nurseries and acquisition of<br />

farm inputs, enhanced processing capacity of hullers<br />

and rehabilitation of agricultural training institutions;<br />

xiii. Farming Systems Support Programme (FSSP), a sequel<br />

of CRP which started in 1991 in 13 districts out of 25<br />

growing coffee then and focused on the coffee farming<br />

system as a whole. FSSP had 2 components: research<br />

and extension. This intervention was envisaged<br />

increasing yield per unit tree/area, improved quality<br />

and release of some land to other crops. FSSP also<br />

had a deliberate strategy of replacing the old nonproductive<br />

trees with the genetically pure and<br />

improved clones propagated by rooted cuttings;<br />

xiv. In 1990, government liberalized the coffee industry as<br />

part of the IMF Social Adjustment programs (SAPs) that<br />

emphasised privatization, liberalization and abolition<br />

of monopoly of marketing boards, CMB inclusive;<br />

xv. Partial release of 7 <strong>Coffee</strong> Wilt Disease Resistant lines<br />

by NARO;<br />

xvi. Replanting Programme under Strategic Export<br />

Programme-Poverty Action Fund (2001-2004);<br />

xvii. Continuous breeding for resistance to pests,<br />

diseases and drought in Robusta and Arabica areas;<br />

xviii. Establishment of Farm Field Schools to disseminate<br />

technologies to farmers;<br />

xix. Establishment of a private tissue culture laboratory<br />

at AGT Buloba to complement the government<br />

laboratory at Kawanda Agricultural Research Institute<br />

(KARI);<br />

xx. Formation of associations in the coffee value chain-<br />

National Union of <strong>Coffee</strong> Agribusinesses and farm<br />

Enterprises (NUCAFE), <strong>Uganda</strong> <strong>Coffee</strong> Farmers Alliance<br />

(UCFA), <strong>Uganda</strong> <strong>Coffee</strong> <strong>Federation</strong> (UCF) to cater for<br />

specific constituents.<br />

xxi. <strong>Coffee</strong> farmers have continued to obtain<br />

about 70% of the export (FOB) price. Farmers’<br />

earnings from coffee rose from UGX. 105 billion<br />

in 2002 to UGX. 777 billion in 2012.<br />

20 50th Anniversary Edition


4. Vision, Mission and, Mandate of<br />

UCDA<br />

UCDA was established in 1991 to develop, regulate and<br />

promote the coffee industry in a liberalized environment.<br />

UCDA’s vision is ‘Making <strong>Uganda</strong> a distinguished producer<br />

of high value coffee’. Its mission is ‘to promote and develop<br />

the coffee industry through provision of clean planting<br />

materials, support to research, quality assurance and<br />

provision of timely market information to stakeholders<br />

and any other matters therein’. It is governed by an industry<br />

based Board of Directors comprising representatives of<br />

farmers, processors, exporters; and one member from<br />

each of the key line ministries - Agriculture, Animal<br />

Industry and Fisheries; Trade, Industry and Cooperatives;<br />

and Finance, Planning and Economic Development. The<br />

Board provides strategic direction of UCDA and also<br />

evaluates Management’s performance of the planned<br />

interventions.<br />

Good governance including corporate social responsibility<br />

(CSR), neutrality, transparency, professionalism, integrity,<br />

accountability to stakeholders and respect for the<br />

environment are values UCDA cherishes passionately.<br />

UCDA has three technical departments and one<br />

service department. The technical ones are: Quality<br />

and Regulatory Services; Production and Strategy and<br />

Business Development and the other, the Finance and<br />

Administration. UCDA is a focal point for all international<br />

coffee matters.<br />

4.1 Objectives<br />

The statutory objectives of the Authority are to:-<br />

1. Promote, improve and monitor marketing of coffee to<br />

optimize foreign exchange and farmers’ earnings;<br />

2. Guarantee that the quality of coffee exports meets<br />

international standards;<br />

3. Develop and promote the coffee and other<br />

related industries through research and extension<br />

arrangements;<br />

4. Promote the marketing of coffee as a value added<br />

product;<br />

5. Promote domestic consumption of <strong>Uganda</strong> coffee;<br />

6. Harmonize activities of coffee sub-sector associations<br />

in line with industry objectives; and<br />

7. Formulate policies related to the coffee industry.<br />

In order to contribute to the President’s Manifesto 2011-<br />

2016, UCDA has undertaken specific programmes to<br />

address production and productivity; marketing and<br />

value addition as well as ensuring an enabling policy and<br />

institutional environment to increase its efficiency and<br />

effectiveness in service delivery.<br />

Among these are: formulation of a draft national coffee<br />

policy, the draft national coffee strategy and revision of the<br />

coffee regulations 1994 to address the rapidly changing<br />

dynamics of the coffee industry both domestically and<br />

globally.<br />

5. Current Projects, policies and<br />

Programmes being undertaken by<br />

UCDA<br />

Projects<br />

• Northern <strong>Uganda</strong> <strong>Coffee</strong> Project;<br />

• Netherlands Trust Fund <strong>Coffee</strong> Project with assistance<br />

from the International Trade Centre;<br />

• Development of Robusta Protocols with assistance<br />

from the <strong>Coffee</strong> Quality Institute, USA;<br />

• Organic <strong>Coffee</strong> Project in South-Western <strong>Uganda</strong><br />

(Kisoro);<br />

• Quality Improvement project with USAID aBi-Trust.<br />

Policies<br />

• Draft National <strong>Coffee</strong> Policy<br />

• Draft National Agricultural Policy<br />

• National Organic Agriculture Policy<br />

• National Trade Policy<br />

Programmes<br />

1. <strong>Coffee</strong> Production Campaign<br />

Under this campaign, exportable production is<br />

envisaged to reach 4.5 m 60-Kilo bags by 2015. This<br />

is hinged on four thematic areas: Research, Extension,<br />

Inputs and credit and Farmer Organisations. District<br />

<strong>Coffee</strong> Platforms and Steering Committees have been<br />

set up oversee the <strong>Coffee</strong> Action Plans.<br />

a. Research<br />

Under research, multiplication of the 7 lines resistant<br />

to coffee wilt disease (CWD) is being undertaken with<br />

propagation through vegetative means (cuttings<br />

and tissue culture). We are currently at the hardening<br />

stage of the coffee seedlings raised from the tissue<br />

culture laboratory at AGT Buloba. Nursery operators<br />

with adequate facilities will be selected to undertake<br />

this important stage in the multiplication after which<br />

the seedlings will be distributed to the farmers.<br />

Breeding for diseases and pests as well as drought<br />

resistance continues to be conducted at <strong>Coffee</strong><br />

Research Institute (COREC) at Kituuza.<br />

50th Anniversary Edition<br />

21


The demand driven approach using the community based<br />

nurseries ensures that farmers raise their seedlings which<br />

are shared out among themselves and a surplus sold.<br />

UCDA provides seed, polypots and technical advice<br />

One of the Community Based Nurseries<br />

Farmers who have adopted the new technologies have<br />

increased their yield per tree from a low of 0.5 kg to<br />

around 7 kg of clean coffee (Kase). Farmers are receiving<br />

a gross income of Shs. 8.64mln per hectare per year for<br />

Robusta and Sh.9.6 ml per year for Arabica.<br />

Through farmer competitions in which application of<br />

agro-inputs is assessed among other parameters, best<br />

farmers have been rewarded with prizes such as spray<br />

pumps, fertilizers, pruning saws, secateurs, solar panels.<br />

This has led to improved husbandry practices.<br />

b. Extension & Technological Transfer<br />

UCDA has continued to implement a Community<br />

Based Nursery (CBN) approach to meet the growing<br />

demand for clean planting materials under the<br />

replanting programme. In this programme farmer<br />

groups receive certified coffee seed and technical<br />

guidance. A total of 1,244 CBNs have been established<br />

with a capacity of generating 20 million seedlings per<br />

year. Local leaders, NAADS and development partners<br />

have been very supportive in this area.<br />

Demo sites in most sub-counties to serve as Farmer<br />

Field Schools (FFS) have been set up at sub county<br />

level through which productivity enhancement<br />

technologies from research centres are passed on to<br />

farmers. This has led to increased productivity and<br />

production.<br />

UCDA continues to offer extension services along<br />

with NAADS, District Agricultural Offices and local<br />

authorities. The leaders do mobilize the farmers,<br />

with special emphasis on special interest groups<br />

– the youth, disabled and women groups. UCDA<br />

has distributed seedlings to these groups as well as<br />

providing technical assistance.<br />

C. Inputs and Credit<br />

In partnership with <strong>Uganda</strong> National Agro-inputs Dealers’<br />

Association (UNADA), over 900 agro-inputs dealers were<br />

trained in proper agro-inputs use. Joint programmes<br />

by district coffee platform ensure that farmers are also<br />

trained in proper use of agro-inputs. The target is to have<br />

at least one agro-inputs dealer in each sub county in the<br />

coffee growing districts.<br />

On availability of credit, a number of farmer associations<br />

have set up savings and credit schemes for ease access to<br />

agro-inputs by members. For examples: Nsangi <strong>Coffee</strong><br />

Farmers Savings and Credit Association; and Paidha<br />

<strong>Coffee</strong> Farmers Association in Wakiso and Nebbi Districts,<br />

respectively.<br />

22 50th Anniversary Edition


a. Farmer Organizations<br />

Collaborating with the National<br />

Union of <strong>Coffee</strong> Agribusinesses<br />

and Farm Enterprises (NUCAFE),<br />

<strong>Uganda</strong> <strong>Coffee</strong> Farmers Alliance<br />

(UCFA), <strong>Uganda</strong> <strong>Coffee</strong> <strong>Federation</strong><br />

(UCF) and other stakeholders,<br />

coffee farmers continue to be<br />

mobilized into viable economic<br />

units. This has invariably eased<br />

provision of extension and<br />

financial services to industry<br />

players, leading to improved<br />

quality and bulk marketing. To<br />

date, 155 farmer association and<br />

1,170 producer organizations<br />

have been established and legally<br />

registered under NUCAFE and<br />

UCFA respectively benefitting<br />

over 200,000 farmers.<br />

Good post harvest handling practices guarantee<br />

quality and better income<br />

2. Sustainable <strong>Coffee</strong> Initiatives<br />

UCDA, in partnership with the private sector, is<br />

seizing the opportunity of the growing demand for<br />

Sustainable <strong>Coffee</strong>s. In the national coffee strategy,<br />

UCDA targets farmers to produce 25% of coffee as<br />

sustainable coffee by 2015. Over 50,000 farmers<br />

have been registered with UCDA to produce coffee<br />

in the various sustainable and specialty initiatives:<br />

Organic, Common Code for <strong>Coffee</strong> Communities<br />

(4Cs), Fair trade, Utz Certified and Rain Forest<br />

Alliance (RFA). Some exporting companies such<br />

as Kyagalanyi <strong>Coffee</strong> Ltd., Ibero (U) Ltd., Kawacom<br />

(U) Ltd, Good African <strong>Coffee</strong>, Gumutindo, and<br />

Kaweri <strong>Coffee</strong> Plantation are working directly with<br />

these farmer groups. Farmers in the Mt. Gorilla<br />

area (Kisoro), selling direct to Urth Caffe, USA<br />

received cattle; pulpers, water tanks, drying trays<br />

and tarpaulins to improve quality. These coffees<br />

attract a price of around $ 300 per tonne over the<br />

conventional market.<br />

3. <strong>Coffee</strong> Production in Northern<br />

<strong>Uganda</strong><br />

A Special Intervention Programme for commercial<br />

coffee production in the districts of Acholi and<br />

Lango was developed. Close to 400 farmers in<br />

23 sub-counties have planted around 500,000<br />

coffee trees, intercropped with bananas to ensure<br />

household food security. UCDA gives farmers<br />

coffee seedlings, banana suckers and shade tree<br />

seedlings.<br />

Robusta dry cherries<br />

(Kiboko)<br />

FAQ – Kase<br />

Farmers adding value and shifting from selling dry<br />

cherries to selling Fair Average Quality (Kase)<br />

4. Quality Improvement and Value addition<br />

Value addition at farm-gate is being undertaken through<br />

promotion of wet processing in Arabica and Robusta<br />

coffees, a practice that has greatly improved quality and<br />

returns to farmers.<br />

To promote domestic coffee consumption, UCDA has<br />

partnered with the private sector to come up with<br />

<strong>Uganda</strong>n coffee brands that occupy shelf-space in major<br />

supermarkets in the city and towns. The favourable<br />

investment climate prevailing in the country has indeed<br />

attracted investment in Cafes, Restaurants and Hotels<br />

where out-of-home coffees are served.<br />

UCDA, in partnership with the private<br />

sector, is seizing the opportunity of the<br />

growing demand for Sustainable <strong>Coffee</strong>s.<br />

In the national coffee strategy, UCDA<br />

targets farmers to produce 25% of coffee<br />

as sustainable coffee by 2015.<br />

50th Anniversary Edition<br />

23


A variety of choice of <strong>Uganda</strong>n coffee brands<br />

5. Provision of timely market information<br />

This is done on daily, monthly and annual basis<br />

reflecting the performance of the domestic and<br />

global coffee markets through the website (www.<br />

ugandacoffee.org), radio programmes and mobile<br />

phones (SMS-7197).<br />

6. Enforcement of <strong>Coffee</strong> Regulations<br />

This is being done in collaboration with other<br />

stakeholders such as the Police and Local authorities.<br />

To ensure that coffee exported meets international<br />

standards, all coffee lots undergo quality inspection<br />

and certification.<br />

7. Development of Robusta Protocols<br />

To enhance <strong>Uganda</strong>’s Robusta as a unique origin,<br />

protocols have been developed for Robusta to<br />

compete favourably in the Specialty segments of the<br />

market. This will boost <strong>Uganda</strong>’s export revenue and<br />

more importantly, farmers’incomes.<br />

Conclusion<br />

Overall the importance of coffee to the <strong>Uganda</strong>n<br />

economy cannot be over-estimated and its priority in<br />

all Government’s policies and interventions is clear. Its<br />

strategic position as a poverty reduction enterprise<br />

contributes significantly towards not only to the first<br />

UNDP’s millennium development goal but also the third,<br />

seventh and eighth goals which deal with gender equality<br />

and women empowerment; environmental sustainability;<br />

and overseas development assistance respectively. From<br />

the above outlook, UCDA programmes are geared towards<br />

value addition along the coffee value chain to make it<br />

more competitive both nationally and internationally.<br />

It also acknowledges different stakeholders including<br />

development partners whose interventions in different<br />

areas along the coffee value chain with appreciable<br />

investments in the coffee industry in <strong>Uganda</strong>.<br />

Physical Address<br />

<strong>Uganda</strong> <strong>Coffee</strong> Development Authority<br />

<strong>Coffee</strong> House, Plot 35 Jinja Road<br />

P.O. Box 7267, Kampala<br />

General Line Tel: 256-414-256940/233073<br />

256-031-2260470<br />

Fax: 256-414-232912/414256994<br />

Website: www.ugandacoffee.org<br />

24 50th Anniversary Edition


Plot 2219/2377, Bweyogerere, P.O.Box 14625, Kampala,<strong>Uganda</strong><br />

Tel. +256 (0) 312 202425/6, Fax. +256 (0) 414 285684<br />

www.armajarotrading.com<br />

50th Anniversary Edition<br />

25


Word from the MD Ugacof<br />

I<br />

am extremely honored to be part of this edition of<br />

the coffee year book. It’s an honor in a sense that<br />

throughout the industry I find this publication very<br />

insightful and informative. Congratulations to the<br />

editorial !<br />

I bring you warm greetings and Happy New Year<br />

wishes from Ugacof directors, members of staff and<br />

our business partners. it’s the combined efforts of<br />

this strong team at UCF that our company continues to play an important role in the industry.<br />

The just concluded year was exciting and challenging in many respects, but I will restrict my<br />

observations to just two prominent exciting developments as we collectively ponder in an effort<br />

to overcome the challenges. The first and fore most was relative stability of the prices in the local<br />

market which directly benefits the first tier stakeholder (The farmer). It’s a common consensus that<br />

when a farmer has a smile it translates to the industry performance.<br />

The second observation is the energized efforts to embrace the research. It was refreshing at the<br />

previous coffee day at Kituza research centre to hear the impassioned vigor of players about this vital<br />

aspect of ensuring crop sustainability.<br />

We at Ugacof continue to walk our vision and mission which are geared at working with foot soldier<br />

(<strong>Uganda</strong>n coffee farmer) on the small farm and to ensure we keep holding the mantle high up as<br />

East Africa’s model in the coffee trade. We are currently working with over 10,000 farmers in our<br />

Kinoni, Masaka and Iganga areas. We are in the final stages to engage more farmers in the districts of<br />

Kamuli,Buikwe and Kayunga.<br />

Ugacof is a trend setter in improving processing technology. We have invested in new processing<br />

machines and Robusta washing stations in different parts of the country. We are confident that such<br />

efforts will raise the bar and set the trends in attaining high quality <strong>Coffee</strong> in the region. I need to<br />

add our gratitude to the UCDA and other stakeholders in the sector for consolidating efforts towards<br />

quantity and quality improvement.<br />

Ugacof predicts a brighter future for <strong>Uganda</strong>’s coffee sector and we are very much committed in<br />

maintaining both our presence and partnerships for a better coffee sector and <strong>Uganda</strong> . Enjoy the<br />

new season.<br />

Kailash Natani.<br />

26 50th Anniversary Edition


aBi Trust and <strong>Coffee</strong> Value Chain<br />

Development in <strong>Uganda</strong><br />

The aBi Trust strategy supports market driven<br />

enterprises using a value chain approach<br />

for specific commodity groups. Through a<br />

value chain analysis, opportunities, constraints<br />

and actors are identified to improve efficiency,<br />

effectiveness and competitiveness through<br />

technical and financial support.<br />

aBi Trust develops the <strong>Coffee</strong> value chain at three<br />

specific levels namely Global focus, National focus,<br />

and Partners (specific interventions through<br />

partners).<br />

Globally, aBi Trust in collaboration with <strong>Uganda</strong><br />

<strong>Coffee</strong> Development Authority (UCDA) supports<br />

the development, differentiation and validation of<br />

protocols for speciality coffee. Since <strong>Uganda</strong> is the<br />

birthplace of Fine Robusta coffee, our support to<br />

the <strong>Coffee</strong> Quality Institute (CQI) in collaboration<br />

with UCDA has developed and validated grading<br />

and cupping protocols. Robusta coffee can now<br />

be traded as a speciality coffee (Fine Robusta).<br />

The Trust facilitates the enabling environment at<br />

the National level through support to different<br />

institutions and fora; through Café Africa, the<br />

National <strong>Coffee</strong> Steering Committee (NCSC) is<br />

supported to address and devise strategies for the<br />

coffee sector development.<br />

In collaboration with the Ministry of Agriculture,<br />

Animal Industry and Fisheries (MAAIF) and UCDA<br />

taking lead, a National <strong>Coffee</strong> Policy has been<br />

developed. Support has been extended to the<br />

<strong>Uganda</strong> <strong>Coffee</strong> <strong>Federation</strong> (UCF) to develop its<br />

strategy; <strong>Uganda</strong> National Bureau of Standards<br />

(UNBS) through collaboration with UCDA is<br />

developing the code of practice to pursue OTA<br />

challenges. Developing and validating cupping<br />

and grading protocols and profiling of <strong>Uganda</strong>’s<br />

coffee is underway.<br />

The current <strong>Coffee</strong> extension material is under<br />

review to suit the changing trends in collaboration<br />

with UCDA. Funds have been committed on<br />

the National Enquiry Point (NEP) and Centre of<br />

Excellence (CoE) as our areas of focus.<br />

50th Anniversary Edition<br />

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National Organic Movement of <strong>Uganda</strong><br />

(NOGAMU) was supported in collaboration<br />

with HIVOS to develop Production Manuals<br />

for Organic Robusta and Arabica growing<br />

systems in <strong>Uganda</strong>.<br />

aBi Trust through Implementing Partners<br />

(IPs) supports several interventions which<br />

will result in increased incomes and<br />

employment.<br />

The IPs are usually Farmers Organisations<br />

(FOs), Enterprises (including small,<br />

medium and large) and Business<br />

Development Services (BDS) providers.<br />

The Trust facilitates market access mainly<br />

through certifications for sustainability<br />

(4C, UTZ, RFA and Organic among others)<br />

and speciality coffees including Q and R<br />

fine coffees.<br />

Over 10 central washing stations<br />

mainly eco-pulpers and several hulling<br />

facilities have been supported under<br />

value addition. Addressing productivity<br />

enhancement, Good Agricultural Practices<br />

are promoted through support to farmer<br />

field demonstrations, and nurseries for<br />

clean planting materials. In collaboration<br />

with UCDA, 18 nurseries have been<br />

supported to multiply the CWD-r material<br />

and through IPs directly to make planting<br />

material affordable and accessible.<br />

The main focus is establishing mother<br />

gardens and nurseries for both Elite and<br />

Clonal coffee seedlings. Through a costshare<br />

grant with Royal Plant Nurseries,<br />

the Trust is facilitating tissue culture<br />

technology and weaning/hardening. At<br />

the nurseries aBi is promoting shade tree<br />

seedlings production under our Green<br />

Growth initiative because Climate Change<br />

is negatively impacting coffee production.<br />

Post-harvest technologies that include drying sheets,<br />

poly tunnels, GrainPro® products and washing stations<br />

for Arabica and Robusta are being promoted among<br />

farmers.<br />

In <strong>Uganda</strong>, collateral requirements pose a challenge<br />

for the agricultural sector participants who try to<br />

source funding for the different activities along the<br />

value chain. aBi established board guarantees to<br />

help address the issue of lack of collateral and to help<br />

deepen financial services through loan guarantee<br />

schemes and lines of credit.<br />

These services are undertaken by financial institutions<br />

that have at least a 3% loan portfolio with agribusiness<br />

and a rural outreach network, among other<br />

requirements. Enterprises including those along the<br />

coffee value chain can access services from these<br />

banks.<br />

Through financial services, many rural financial<br />

institutions like Opportunity <strong>Uganda</strong>, CRDB,<br />

HOFOKAM, and several SACCOs have received support<br />

from the Trust to reach farmers.<br />

At the producer level, Village Savings and Loan<br />

Associations (VSLAs) are supported to harness<br />

financial discipline and cohesion among groups which<br />

make adoption of other interventions easier.<br />

Gender for Growth (G4G) uses the household<br />

approach through Farming as a Family Business<br />

(FaaFB) to improve the livelihoods of farmers. Many<br />

families have improved their incomes through vision<br />

setting and joint planning.<br />

Over 10 central washing<br />

stations mainly eco-pulpers<br />

and several hulling facilities<br />

have been supported under<br />

value addition. Addressing<br />

productivity enhancement, Good<br />

Agricultural Practices are promoted<br />

through support to farmer field<br />

demonstrations, and nurseries for<br />

clean planting materials.<br />

28 50th Anniversary Edition


Kawacom, the <strong>Uganda</strong>n subsidiary of the ECOM<br />

Group, was founded in 1996 and has been at the<br />

forefront of <strong>Uganda</strong>’s coffee export trade for 17<br />

years. The company has grown significantly since 1996,<br />

from a small company in rented premises, to a market<br />

leader, with processing units and buying stations<br />

throughout the country.<br />

We believe the<br />

reason for the<br />

growth, is our<br />

focus on quality<br />

and innovation,<br />

and a continued<br />

desire to bring the<br />

best of <strong>Uganda</strong>’s<br />

coffee to the world.<br />

Kawacom is recognized as the guarantor of high quality<br />

Robusta and Arabica coffee within <strong>Uganda</strong>. Over the<br />

last 13 years the company has positioned itself as the<br />

market leader in innovation, having spearheaded the<br />

development of the first organic coffee projects in the<br />

country.<br />

In 1998, Kawacom started the development of Certified<br />

<strong>Coffee</strong>s in <strong>Uganda</strong> and has continued to work closely<br />

with farmers which has led to the establishment of 8<br />

projects, in the districts of Kapchorwa (East); Bugisu<br />

Arabica <strong>Coffee</strong>, Bushenyi (West); Robusta <strong>Coffee</strong>, Paidha<br />

(North West); Arabica Okoro <strong>Coffee</strong>, Kasese (Southwest);<br />

Drugar (Dried <strong>Uganda</strong> Arabica), Rukungiri (Southwest);<br />

Natural Robusta, and 3 projects in Central region to<br />

boost the Natural Robusta volumes; Kiboga, Kikyusa and<br />

Kayunga. Kawacom is the only exporter that offers UTZ<br />

certified Drugar in <strong>Uganda</strong>.<br />

Pioneering as the first producer to export Organic<br />

and UTZ certified coffee, Kawacom continues to work<br />

with farmers and their communities to ensure quality<br />

and sustainable agriculture and has recently acquired<br />

Rainforest Alliance certificate for Bugisu and Okoro<br />

coffees.<br />

The Bushenyi project for example constructed 2 nurseries,<br />

each housing 200,000 seedlings, and planted a mother<br />

garden, from which cuttings have been, and will continue<br />

to be distributed to farmers.<br />

A central pulpery<br />

near Sipi trading<br />

centre, in the Eastern<br />

part of <strong>Uganda</strong> was<br />

also established<br />

where centralized<br />

wet processing<br />

of the coffee<br />

cherries guarantees<br />

consistent level of quality and crop control. Additionally,<br />

the wet mill is equipped with a dryer which ensures<br />

optimal drying of the processed parchment as well as a<br />

state of the art Retractable Drying Roof structure.<br />

Kawacom’s<br />

purchasing system<br />

is such that farmers<br />

conveniently deliver<br />

fresh coffee cherries<br />

for collection and<br />

transportation to<br />

the pulpery. The<br />

high quality coffee<br />

attracts both higher<br />

value and increased<br />

demand resulting in an improved income to the farmers,<br />

who have also undergone training on coffee handling in<br />

the newly commissioned Farmers Training center.<br />

At Kawacom, coffee<br />

is more than just<br />

a business. It is a<br />

commitment to a<br />

country, its culture<br />

and its incredible<br />

biodiversity.<br />

In addition to our already well established projects,<br />

we are playing our part in attempting to reverse the<br />

declining trend in coffee production. Kawacom has<br />

established coffee production and quality enhancement<br />

project nurseries in almost all areas of operation.<br />

50th Anniversary Edition<br />

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Milestones of the Century in Trade and Marketing <strong>Coffee</strong><br />

in <strong>Uganda</strong> and Strategies for the next Century<br />

MILESTONES OF THE CENTURY<br />

Where it all began<br />

World over, there has always been<br />

ethnic integration groups and<br />

in <strong>Uganda</strong>, the story about<br />

immigration goes back to the 1920s where<br />

pull economic factors as cultivating cotton<br />

and later coffee that required a lot of labor<br />

led to massive migration from especially<br />

Rwanda and Burundi where immigrants<br />

entered <strong>Uganda</strong> in search of work. More<br />

immigrant workers came from Kenya<br />

and then Tanganyika. Famine moved big<br />

portions of ethnic groups in search of food;<br />

apparently, a famine in Rwanda in 1948<br />

frightened the Protectorate government<br />

into declaring a curb on migration for fear<br />

of <strong>Uganda</strong>’s food stocks being overtaxed,<br />

an act based on earlier experience. Other<br />

factors that led to the influx included wars;<br />

traders have always been found in unlikely<br />

places, and Buganda was a major traders’<br />

paradise. However, it was recorded that, as<br />

early as 1848, an Afghani was at the palace<br />

of Kabaka Ssuuna, looking for business<br />

opportunities. There was massive movement<br />

of people from all around the Interlacustrine<br />

region estimated at over 100,000 annually in<br />

1938 in search of migrant labour, as people sought to sell<br />

their labour in exchange for money. They settled in areas<br />

where they could find jobs according to their skills. Those<br />

with farming experience found jobs in cotton and coffee<br />

growing areas in Buganda and parts of Eastern <strong>Uganda</strong>.<br />

This resulted into the introduction of colonial policies and<br />

the monetary economy in Buganda and <strong>Uganda</strong> at large.<br />

The Monetary Economy<br />

After the defeat of Bunyoro by the combined force of<br />

British and Buganda in 1894, Buganda became a core<br />

of the protectorate, to make the protectorate selfsupporting;<br />

the authorities introduced first cotton then<br />

coffee as export crops in Buganda, before introducing<br />

them in other regions.<br />

By introducing taxes, the colonial Government made the<br />

entire country get involved in the monetary economy.<br />

The hut tax of 1900 became the main encouragement<br />

for Baganda to grow cotton and coffee. It also became<br />

the main impetus forcing other ethnic groups to come to<br />

Buganda, where opportunities to earn money existed so<br />

as to uplift their status, and meet their urgent needs.<br />

Before World War I, commoners were used on the Cotton<br />

Estates but as time passed, they bought small parcels of<br />

land from their erstwhile landlords. This land fragmentation<br />

was aided by the British, who in 1927 forced the chiefs to<br />

limit severely the rents and obligatory labour they could<br />

30 50th Anniversary Edition


demand from their tenants. Thus the oligarchy of landed<br />

chiefs who had emerged with the Buganda Agreement of<br />

1900 declined in importance, and agricultural production<br />

shifted to independent smallholders, who grew cotton,<br />

and later coffee, for the export market.<br />

Later on as Sir Andrew Cohen, prepared <strong>Uganda</strong> for<br />

independence, he removed obstacles to African cotton<br />

ginning, rescinded price discrimination against Africangrown<br />

coffee, encouraged cooperatives, and established<br />

the <strong>Uganda</strong> Development Corporation to promote and<br />

finance new projects.<br />

A typical village in Buganda, where different ethnic groups<br />

had settled, became a centre of economic activity. There<br />

was mutual benefit from the co-existence of these people,<br />

and coffee became the centre of important activities<br />

including weeding, picking, handling and processing.<br />

The role of coffee in ethnic integration in <strong>Uganda</strong> and<br />

making of nation therefore started in Buganda because;<br />

o Buganda was at the centre of economic and social<br />

change, partially because it was the centre of the<br />

Protectorate administration.<br />

o Buganda was the main coffee growing region<br />

(although cotton was also grown extensively at<br />

the time, just as it was in other areas in the north,<br />

east and western <strong>Uganda</strong>).<br />

o Buganda saw the greatest ethnic integrationboth<br />

within the towns and in its villages, taking by<br />

far the largest number of immigrants from all over.<br />

Early Exports<br />

Early reports on <strong>Uganda</strong> coffee stated it to be potentially<br />

an important export crop. In the early years of the<br />

twentieth century, the trade in this native coffee, mainly<br />

from the Sese Islands, developed rapidly; in 1902 the value<br />

of the coffee exported was 892 Pound Sterling. But by that<br />

time Arabica coffee had been introduced and, because of<br />

its earlier cropping, larger bean, and higher market value,<br />

this was considered to be a more valuable species for<br />

cultivation for export. In 1903 the distribution Nyasaland<br />

Arabica coffee seedlings to Africans was commenced.<br />

B: Evolution of <strong>Coffee</strong> Trade in Modern Times<br />

By the early 1960s there was a steady growth of coffee<br />

production and the share of coffee in the country’s foreign<br />

exchange earnings grew from 38% in 1961 to 58% in<br />

1970. After mid-1970 and during most of the 1980s coffee<br />

remained the dominant export crop accounting for over<br />

90% of total export receipts. (Agricultural Report, MAAIF:<br />

45). This was mainly attributed to the problems the country<br />

experienced during the period of the mid-1970s to early<br />

1980s. The insecurity and civil strife, over valued exchange<br />

rate, inefficient marketing systems and general economic<br />

mismanagement led to decline in production of other<br />

export crops such as cotton, tea, tobacco and others that<br />

could not withstand the local problems of production. This<br />

situation left coffee as the major export crop although it<br />

remained confined to the poorly tendered ‘shambas.<br />

Series of the events<br />

o The <strong>Coffee</strong> Act of 1962 gave the <strong>Coffee</strong> Marketing<br />

Board (CMB) access to all dry-processed robusta<br />

coffee for export. These exports accounted for<br />

some 85% of production. There were private<br />

exporters who operated coffee pulperies,<br />

processed and exported pulped and washed<br />

Robustas, while the Bugisu Co-operative Union<br />

exported the wet processed prime arabicas<br />

known as “Bugisu”.<br />

o<br />

With production of pulped and washed<br />

robusta leveling at only 2000 tons per year in 1962,<br />

production continued to increase and by 1969 it had<br />

reached some 40,000 tons. As a result of the leftist policies<br />

of the government of Milton Obote, a new <strong>Coffee</strong> Act<br />

was passed in 1969, which gave the total monopoly of<br />

the coffee export marketing to CMB. The subsequent<br />

years saw <strong>Uganda</strong>’s production of high quality washed<br />

coffees suffer from poor incentives resulting from the<br />

CMB monopoly in marketing which did not adequately<br />

reward the investment in high quality coffees.<br />

Early reports on <strong>Uganda</strong> coffee<br />

stated it to be potentially an<br />

important export crop. In the<br />

early years of the twentieth<br />

century, the trade in this native<br />

coffee, mainly from the Sese<br />

Islands, developed rapidly; in<br />

1902 the value of the coffee<br />

exported was 892 Pound Sterling.<br />

50th Anniversary Edition<br />

31


There was a decline in deliveries, caused by<br />

farmers being reluctant to grow coffee, as a result of low<br />

farm-gate pricing structures with no incentives. Little or<br />

no investment in developing new plants from seedlings<br />

over a sustained period of some 30 years, coupled with<br />

the unstable political and economic situation, drastically<br />

reduced crop production to a point where <strong>Uganda</strong>’s<br />

output dropped by nearly 30%.<br />

o While emerging large estate farming was<br />

abandoned, small-holders continued to grow<br />

coffee. The co-operative structures, which were<br />

prevalent in the country since the early 1960’s,<br />

continued to dominate the primary marketing<br />

and in the 1980’s they accounted for some<br />

90% of the primary processing of coffee in the<br />

country. Unfortunately, these co-operatives<br />

were largely controlled and influenced by the<br />

government, and limited incentives existed for<br />

private entrepreneurs and private processors<br />

who operated under difficult conditions. With the<br />

liberalisation of the country’s internal marketing<br />

system, more and more private processors<br />

appeared on the market. It has to be noted that<br />

liberalisation of internal marketing, where private<br />

processors were allowed more freedom, started<br />

way before the export liberalisation.<br />

o Upon liberalization of export marketing, the<br />

former government controlled <strong>Coffee</strong> Marketing<br />

Board (CMB) was transformed, in 1991, into a<br />

limited liability company, known as CMB Ltd<br />

(CMBL). The original CMB’s coffee regulatory<br />

and quality assurance capabilities and expertise<br />

were homologued into a focal point under the<br />

Ministry of Trade and Industry and formed as the<br />

<strong>Uganda</strong> <strong>Coffee</strong> Development Authority (UCDA).<br />

The passing of the UCDA Statute, in 1991, paved<br />

way for the licensing of private coffee exporters<br />

to compete for the farmers’ coffee, resulting in<br />

better incentives and prices to the farmers. The<br />

objectives of the liberalisation policy were to<br />

make the pricing system for <strong>Uganda</strong>n coffee<br />

more transparent, introduce keener competition,<br />

improve the quality of coffee and assist in helping<br />

to make crop financing available.<br />

o During the early 1960s, the world saw 80%<br />

of its coffee made up of Arabica. Africa and Asia<br />

produced 10% and Latin America 90% of the<br />

world production. However, due to the expansion<br />

of Robusta coffee in Africa, Asia and Brazil, world<br />

production of Arabica in 1990/91 dropped to<br />

below 70% of global coffee production.<br />

o With the increasing competition in the coffee<br />

business after liberalisation, there has been of<br />

lack of discipline. The private sector has not come<br />

up with comprehensive measures to ensure that<br />

operators followed some code of ethics, as a first<br />

step to introducing self-regulating mechanisms<br />

in the coffee trade. In 1997, the <strong>Uganda</strong> <strong>Coffee</strong><br />

Trade <strong>Federation</strong>, now <strong>Uganda</strong> <strong>Coffee</strong> <strong>Federation</strong><br />

drafted a Code of Conduct but its implementation<br />

has been complicated by the fact that not all<br />

players subscribe to the <strong>Federation</strong> and are<br />

therefore not bound by it.<br />

o However, there still remains much room<br />

for provision of technical advice and support,<br />

as well as training at the various levels in the<br />

coffee industry, in order to create awareness<br />

and develop skills, aimed at enhancing the<br />

quality of <strong>Uganda</strong>’s coffee. UCF has developed an<br />

internal marketing contract to guide the internal<br />

marketing transactions, and an arbitration system<br />

to expedite the resolution of trade conflicts. All<br />

these need technical and expert support until the<br />

system is fully established.<br />

C: Important Historical Landmarks in the<br />

<strong>Uganda</strong> <strong>Coffee</strong> Industry.<br />

Liberalisation has led to some of the most significant<br />

landmarks, which are summarised below:<br />

1. <strong>Uganda</strong> joined the International <strong>Coffee</strong> Organization<br />

(ICO) which came into being in 1962, and had to<br />

conform to the export quota allocated by the ICO.<br />

2. The 1969 <strong>Coffee</strong> Act gave total monopoly of the<br />

coffee export marketing to <strong>Coffee</strong> Marketing Board<br />

(CMB), 100% owned by the Government of <strong>Uganda</strong>.<br />

3. In November 1990, four co-operative unions were<br />

allowed to export coffee under the guidance of<br />

Union Export Services (UNEX). This was by Cabinet<br />

decision, as a trial of liberalised marketing, ahead of<br />

the passing of the UCDA Statute.<br />

4. In 1991, a limited liability company called <strong>Coffee</strong><br />

Marketing Board Limited (CMBL) was incorporated,<br />

and was to take over the trading functions of the<br />

CMB.<br />

o Whileemerginglargeestatefarmingwas<br />

abandoned, small-holders continued to grow coffee.<br />

32 50th Anniversary Edition


5. Parliament passed the UCDA Statute in 1991, and<br />

the <strong>Uganda</strong> <strong>Coffee</strong> Development Authority (UCDA)<br />

was formed. UCDA was created as a statutory body<br />

charged with the responsibility of monitoring and<br />

regulating the coffee industry, as well as advising<br />

Government on policy issues.<br />

6. In 1991, to compete with the CMBL, five (5) private<br />

companies were licensed to export coffee. This was<br />

in addition to the co-operative unions which had<br />

started to export in 1990 after the cabinet decision<br />

to break the CMB monopoly.<br />

7. In 1992, the Minister of Finance abolished the export<br />

tax on coffee, allowing exporters to retain 100% of<br />

their proceeds.<br />

8. In 1992, Government permitted pre-financing<br />

arrangements and the formation of Joint Venture<br />

companies. This introduced a new dimension to the<br />

coffee business in <strong>Uganda</strong>, increasing the liquidity<br />

in the coffee export business and greatly reducing<br />

the problems of crop financing. The restriction to<br />

railway transport was also eased.<br />

9. The <strong>Uganda</strong> <strong>Coffee</strong> Exporters Association (UCEA) was<br />

founded in 1992 by the private coffee exporters. It<br />

was later officially registered in 1993, and eventually<br />

acted as a forum which brought together all the<br />

coffee exporters.<br />

10. A study was launched in 1993 by the Government,<br />

and a joint GOU/World Bank Task Force was<br />

commissioned to study the extent of the <strong>Coffee</strong><br />

Subsector Reforms and advise Government on<br />

further actions to be undertaken.<br />

11. In 1994, the CMBL and the co-operative unions<br />

under UNEX became members of UCEA. The<br />

exporters’ association was later transformed into<br />

a more encompassing trade association known<br />

as the <strong>Uganda</strong> <strong>Coffee</strong> Trade <strong>Federation</strong> (UCTF) in<br />

1996, to bring together all those involved with<br />

coffee trade in <strong>Uganda</strong>. This now includes registered<br />

companies of coffee exporters, processors, roasters,<br />

brokers, traders, coffee growers, banks, insurance<br />

companies, transporters, input suppliers, clearing<br />

and forwarding companies.<br />

12. The UCDA Statute was amended in 1994, to ease<br />

trade and allow for more participation of the<br />

industry players in the decision-making process. The<br />

minister’s powers were reduced and the structure of<br />

the board of UCDA was modified to include more<br />

private sector representatives.<br />

13. In June 1994, the coffee export tax was re-introduced,<br />

as a “coffee stabilisation tax”, with much influence<br />

from the IMF. This tax was later abolished in June<br />

1996. Its implementation was, however, tainted<br />

with allegations of gross mismanagement (unevenly<br />

applied). Widespread complaints of tax evasion and<br />

tax avoidance practices engaged in by unscrupulous<br />

traders and businessmen who joined the exporters’<br />

ranks greatly contributed to an uneven ground<br />

leading to unfair competition.<br />

14. In 1994 a Government appointed Task Force<br />

recommended the setting up of the <strong>Coffee</strong> Research<br />

Centre (COREC). In 1996 the <strong>Coffee</strong> Research<br />

Centre was finally established under the National<br />

Agricultural Research Organisation (NARO) at<br />

Kituuza, Mukono District.<br />

15. The <strong>Uganda</strong> <strong>Coffee</strong> Farmers Association (UCFA)<br />

came into being in 1995 to mobilise coffee farmers<br />

to address problems faced by the coffee farmers<br />

and also to address problems of quality control<br />

at the farm level. In 2003, UCFA changed name to<br />

the National Union of <strong>Coffee</strong> Agribusiness Farm<br />

Enterprises (NUCAFE) as a response to members’<br />

needs.<br />

16. In 1995 the mandatory floor (minimum) export<br />

prices structure of UCDA was abolished and was<br />

replaced with indicative prices, as a World Bank<br />

conditionality before the release of one tranche in<br />

the IDA structural adjustment credit to <strong>Uganda</strong>.<br />

17. By September 1996, there were more than 180<br />

coffee export licenses issued. This was made<br />

easier by the liberalisation of the foreign exchange<br />

market and guaranteeing of repatriation of profits.<br />

However, due to management problems, and other<br />

factors, many coffee exporters ended up in serious<br />

trade and financial difficulties that forced them from<br />

exporting. Currently the total number of exporters<br />

range between 35 and 45.<br />

18. On the global scene, it should be noted that the<br />

coffee quota system collapsed in 1989.<br />

1. In 1994, the CMBL and the<br />

co-operative unions under UNEX<br />

became members of UCEA.<br />

The exporters’ association was<br />

later transformed into a more<br />

encompassing trade association<br />

known as the <strong>Uganda</strong> <strong>Coffee</strong><br />

Trade <strong>Federation</strong> (UCTF) in<br />

1996, to bring together all those<br />

involved with coffee trade in<br />

<strong>Uganda</strong>.<br />

50th Anniversary Edition<br />

33


STRATEGIES FOR THE NEXT CENTURY<br />

Post liberalization, the coffee supply chains are now<br />

reasonably competitive and efficient but these have<br />

posed some big challenges that have to be addressed<br />

in the next century and these include among the others;<br />

• Mainstreaming coffee research; the current state<br />

of coffee research in <strong>Uganda</strong> cannot respond<br />

immediately to the industry demands. Although<br />

the establishment of the <strong>Coffee</strong> Research Institute<br />

has almost been assured by the government,<br />

it goes beyond an Institute. <strong>Uganda</strong> has the<br />

potential of being one of the biggest coffee<br />

producers but is still constrained by limited<br />

research, lack of sufficient infrastructure, human<br />

and capital resources. This is compounded by<br />

the prevalent incidences of pest and disease<br />

breakup in various coffee growing areas and<br />

drastic weather changes associated with climate<br />

change and global warming that adversely affect<br />

production and yields.<br />

• Over 90% of the coffee in <strong>Uganda</strong> is produced<br />

by smallholder farmers, who have been growing<br />

coffee by default. These will only receive technical<br />

assistance or extension services if they subscribe<br />

to a given Farmer Organisation. Therefore<br />

government must have deliberate effort to<br />

attract more investments in medium to large<br />

scale coffee farms so that out growers can also<br />

tap into the knowledge and experience of the<br />

big brother; have access to technical support in<br />

crop production and new technologies leading to<br />

higher yields and productivity; with the ultimate<br />

aim of transforming into more highly skilled and<br />

commercially-oriented farmers.<br />

• Domestic coffee consumption is still low in<br />

<strong>Uganda</strong> estimated at around 3% to 5%. However<br />

in the recent past we have seen the number<br />

of coffee shops and roasters increasing to over<br />

30. The <strong>Uganda</strong> <strong>Coffee</strong> Development Authority<br />

(UCDA) has been training especially the young<br />

generation to roast, grind and brew coffee, in<br />

addition to organizing barista championships<br />

as a way of boosting domestic consumption.<br />

Government has been inviting investment into<br />

soluble coffee production and this is expected to<br />

be on the government agenda until it materialises.<br />

• It is estimated that by June 2012, the population<br />

of <strong>Uganda</strong> was 34million with 66% of the<br />

population engaged directly or indirectly in<br />

Agriculture. Due to the growth in population, land<br />

that was previously under coffee has been lost to<br />

other enterprises like real estates, factories while<br />

the other areas have been diverted to crops that<br />

give quicker returns like maize and beans. With<br />

the receding availability of land, the future lies<br />

with productivity and therefore <strong>Coffee</strong> research<br />

should work around the clock to find better<br />

yielding varieties yet the farmers should also<br />

follow the good agricultural practices to increase<br />

their yield per hectare. This should be followed by<br />

differentiated marketing to realise the maximum<br />

benefits.<br />

In conclusion, the <strong>Coffee</strong> industry in <strong>Uganda</strong> has<br />

undergone a lot of transformation but if the future is not<br />

well planned by a combined effort of all the stakeholders,<br />

it may be bleak. The coffee industry has maintained its<br />

status as the main cash crop of <strong>Uganda</strong> and it’s up to all<br />

the players to maintain its glory.<br />

34 50th Anniversary Edition


DID YOU KNOW THAT!!!!!!!!!!!!!!!<br />

A<br />

coffee tree has<br />

a lifespan of<br />

about 50 to 70 years<br />

though it can go up<br />

to over 100 years<br />

while producing<br />

excellent coffee if<br />

well maintained.<br />

<strong>Coffee</strong> increases in<br />

volume during<br />

roasting by 18.60%.<br />

W<br />

hen shopping<br />

for perfume,<br />

you can take some<br />

coffee with you in<br />

your bag and have<br />

a good sniff in<br />

between smelling<br />

each perfume to<br />

refresh your nose!<br />

In 1675 the king of<br />

England banned<br />

coffee houses,<br />

claiming they were<br />

places where people met<br />

to conspire against<br />

him Some of the<br />

worlds most powerful<br />

business, including<br />

Lloyds of London and the New York Stock<br />

Exchange, started life as a coffee houses.<br />

T<br />

he rise of Islam contributed greatly to<br />

popularity of coffee. The religion prohibited<br />

drinking alcohol but coffee was considered an<br />

acceptable drink.<br />

H<br />

awaii<br />

is the only state in the United States<br />

that grows coffee.<br />

50th Anniversary Edition<br />

35


7<br />

0% of the world<br />

consumes<br />

Arabica coffee<br />

which is mild and<br />

aromatic. The<br />

remaining 30%<br />

drinks Robusta<br />

which is more bitter<br />

tasting and has<br />

50% more caffeine<br />

than Arabica.<br />

T<br />

he first Espresso<br />

machine was<br />

introduced in 1822<br />

by the French, but<br />

it was the Italians<br />

who perfected and<br />

distributed it.<br />

T<br />

here is less<br />

caffeine in<br />

dark roast than<br />

in medium roast.<br />

It is because, the<br />

longer the beans are<br />

roasted, the more<br />

caffeine burns off.<br />

A<br />

nts don’t like<br />

coffee, so you<br />

can use coffee to<br />

keep them away<br />

from you plants or<br />

out of your rooms.<br />

Just put the used<br />

coffee grounds<br />

around the plants or<br />

on the ant tracks in<br />

your house.<br />

36 50th Anniversary Edition


CLIMATE CHANGE FROM A FARMING PERSPECTIVE<br />

By: Tony Mugoya<br />

Wh e r e a s<br />

there is no<br />

universal<br />

definition of weather<br />

or climate, some<br />

terms are generally<br />

acceptable in defining<br />

these two phenomena.<br />

Simply put, weather<br />

is the state of the<br />

atmosphere; the<br />

degree that it is hot or cold, wet or dry, calm<br />

or stormy, clear or cloudy. Weather commonly<br />

refers to day-to-day temperature and<br />

precipitation (water that falls from the sky to the<br />

earth’s surface such as rain). On the other hand,<br />

climate is the average atmospheric conditions<br />

over longer periods of time.<br />

The most common weather conditions on earth<br />

may include wind, cloud, rain and dust storms.<br />

Climate includes the statistics of temperature,<br />

humidity, atmospheric pressure, wind,<br />

precipitation, atmospheric particle count and<br />

other meteorological elemental measurements<br />

in a given region over long periods. Climate can<br />

be contrasted to weather, which is the present<br />

condition of these elements and their variations<br />

over shorter periods.<br />

Climate change has been defined as the variation in global<br />

or regional climates over time. It reflects changes in the<br />

variability or average state of the atmosphere over time<br />

scales. These changes can be caused by processes that are<br />

internal to the earth, external forces such as variations in<br />

sunlight intensity or, more recently, human activities.<br />

Climate change may occur over long and short timescales<br />

from a number of factors such as the recent warming of<br />

the earth’s surface that is referred to as “global warming”.<br />

In the context of environmental policy, the term “climate<br />

change” often refers only to changes in modern climate,<br />

including the rise in average surface temperature known<br />

as global warming. In some cases, the term is also used<br />

with a presumption of human causation.<br />

Climate change may refer to a change in average weather<br />

conditions, or in the distribution of weather around the<br />

average conditions; for instance more or fewer extreme<br />

weather events. Climate change is caused by factors<br />

that include human-induced alterations of the natural<br />

world. Human activities are reported to be causing global<br />

warming. Many times climate change is often used to<br />

describe human-specific impacts.<br />

The term climate change mitigation refers to attempts<br />

to reduce human-induced causes of climate change;<br />

particularly global warming. Climate change mitigation<br />

refers to efforts to reduce or prevent emission of<br />

50th Anniversary Edition<br />

37


greenhouse gases which cause global warming.<br />

Mitigation can mean using new technologies and<br />

renewable energies, making older equipment<br />

more energy efficient, or changing management<br />

practices or consumer behavior.<br />

Climate change mitigation is about reducing the<br />

carbon footprint of human activities.<br />

Climate change adaptation refers to efforts targeted<br />

to reduce vulnerabilities and build resilience to the<br />

impacts of climate change.<br />

Another school of thought has argued that there is<br />

no climate change per say but naturally occurring<br />

cycles of extreme weather patterns. Whatever the<br />

argument, it is true that farming activities have<br />

been adversely affected by unpredictable and<br />

extreme weather conditions especially in recent<br />

times. Crop production and livestock rearing have<br />

been particularly affected. Small scale farmers in<br />

developing countries who are at the bottom of the<br />

value chains are most vulnerable and increasingly<br />

exposed to numerous challenges caused by the<br />

changing weather patterns.<br />

Farming activities in the tropics have been<br />

plagued by frequent droughts, uneven rains and<br />

unpredictable weather. It is now difficult for small<br />

scale farmers to predict with certainty the onset of<br />

the rainy season or how long it will last. In recent<br />

times, it has been observed that rains fall in months<br />

that were known in the past to be part of the “dry<br />

season”. Similarly, the old “rainy seasons” are now<br />

characterized by very hot and dry spells. In some<br />

places within the tropics especially in Africa, the<br />

droughts have become prolonged and frequent<br />

while the rains have become more intense and<br />

unevenly distributed. All these changes have<br />

adversely affected agricultural activities.<br />

Climate change has continued to distort four main<br />

socio-economic aspects of life in African farming<br />

communities especially among the most vulnerable<br />

people living in rural areas who are predominantly<br />

smallholders. In short, climate change is a threat to<br />

food security, income security, social stability and<br />

cultural heritage.<br />

Small scale farmers in Africa have been practicing<br />

agriculture under given farming systems for<br />

generations.<br />

These farming systems were selected to ensure food<br />

and income security as the main priorities. In the<br />

past, smallholder farmers knew with certainty the<br />

seasons for planting and harvesting. In many parts<br />

of Africa, even the months of the year were named<br />

after the weather conditions and the corresponding<br />

farming activities. The calendar year was divided<br />

into a farming calendar of activities.<br />

Early planting was a best practice. This involved planting<br />

at the onset of rains and harvesting just before the dry<br />

season. This ensured food security. In <strong>Uganda</strong>, food crops<br />

were often intercropped with perennials like coffee.<br />

With the current unpredictable rains, it is now difficult<br />

for farmers to determine with certainty the onset of the<br />

planting season. Many smallholder farmers who attempt<br />

to plant early have been disappointed when the rains<br />

suddenly stop in the middle of the traditional “rainy<br />

season” which results in crop failure and yield losses. Such<br />

farmers are said to have been “caught by the season” and<br />

they are normally faced with food insecurity until the<br />

next harvest. This results in inadequate food supply and<br />

malnutrition. It is common these days to see many fields<br />

of stunted crops that have been “caught by the season”.<br />

Even perennial crops like coffee have not been spared by<br />

these uneven rains.<br />

Sudden dry spells especially after flowering of coffee<br />

reduces coffee yields of many farmers. The drought not<br />

only affects flowering but also leads to fruit abortion, poor<br />

bean filling which results into light beans or floats and low<br />

coffee bean quality, and in worst cases scorching of the<br />

coffee trees. These sudden adverse weather conditions<br />

have been attributed to the harmful effects of climate<br />

change. The reduced yields result into diminished income<br />

security for coffee farmers.<br />

Smallholder farmers in Africa rely mainly on family labour.<br />

Since unpredictable weather patterns are affecting not<br />

only yields but also the predictability of incomes, farming<br />

is becoming less attractive to the youth as a viable and<br />

secure economic enterprise. This has resulted in the youth<br />

abandoning farming and looking for other enterprises<br />

that are perceived to provide secure incomes. And hence,<br />

climate change is affecting the social stability of farming<br />

communities.<br />

There is currently a considerable shortage of labour<br />

among smallholder farms where it is mainly the elderly<br />

who have remained engaged in farming activities.<br />

In Africa, the average age of farmers is raising. This is<br />

38 50th Anniversary Edition


exacerbated by the fact that most smallholders<br />

lack adequate finances to employ hired labour.<br />

The youth have preferred to migrate to urban<br />

areas in search for blue and white collar jobs.<br />

This rural urban migration has not necessarily<br />

led to improved incomes. On the contrary, rural<br />

urban migration has often led to increased<br />

urban unemployment , poverty and insecurity<br />

especially among people living in slums.<br />

In traditional African societies, harvests were<br />

special occasions. The harvest seasons were<br />

also seasons of celebrations. These celebrations<br />

were marked by elaborate festivities and<br />

social events. It was after the harvests, that<br />

communities organized parties and cultural<br />

activities. It was during this time that multitalented<br />

African artists, musicians, poets,<br />

philosophers and story tellers released their<br />

new compositions. It was during this time that<br />

the rich African oral literature was passed from<br />

one generation to another.<br />

Harvests were often welcomed by music<br />

extravaganzas. Communities living near the<br />

Great River Nile often used a variety of drums,<br />

xylophones and other musical instruments.<br />

In the evenings of the harvest periods, it was<br />

common to listen to the rhythmic beats of<br />

the big drum punctuated by the high pitched<br />

staccato of the alligator skinned long drum;<br />

against a background of the thunderous roar<br />

of the mighty waters of the Nile cascading<br />

through its numerous waterfalls. Music from<br />

various percussion, string and wind instruments<br />

completed the African symphony.<br />

Irregular weather patterns have disrupted these<br />

traditional African social events since harvest<br />

times are now varied and depend on the<br />

time of planting of each farmer. It is common<br />

for some farmers to enjoy a bumper harvest<br />

while others count their losses. The drumbeats<br />

of celebrations have long gone silent. Many<br />

youth and young farmers have not experienced<br />

these traditional ceremonies associated with<br />

harvests. The rich African culture is faced by a<br />

direct threat of extinction.<br />

The onset of rains after a prolonged dry season<br />

is often a bittersweet experience. It is “sweet” in<br />

the sense that the rains are a welcome relief after<br />

a long dry spell. It is “bitter” in that many times<br />

these first torrential rains are characterized<br />

by strong winds and sometimes come with<br />

hailstones and floods. This climatic paradox is now a<br />

common experience. In Eastern <strong>Uganda</strong>, rains have often<br />

caused fatal landslides in coffee growing communities<br />

along the slopes of Mount Elgon.<br />

Warm and humid conditions associated with climate<br />

change are known to favour increases in pest populations<br />

beyond their economic injury levels. In addition, disease<br />

incidence has been correlated with warmer temperatures.<br />

Disease vectors are also known to be sensitive to<br />

temperature and humidity which also affects their<br />

distribution; particularly at their altitudinal and latitudinal<br />

limits. This means that certain vector-borne diseases<br />

may be introduced to regions that have not previously<br />

encountered them.<br />

There is need for entire societies to adapt to climate change.<br />

Farming communities, being the most vulnerable, need<br />

to be the focus for climate change adaptation initiatives.<br />

Farmers should be assisted to assess their options for<br />

adapting to their specific climate change challenges.<br />

These options could be in the areas of technological<br />

inputs, new approaches and diversifying farm enterprises.<br />

There is need to empower local farming communities with<br />

information, technologies and expertise to implement<br />

appropriate climate change adaptation strategies. These<br />

options may include provision of accurate weather data<br />

to enable farmers to make decisions and generate local<br />

solutions.<br />

Farmers especially coffee growers need to receive<br />

information and to access an early warning system for<br />

droughts and pest infestations. There is need to promote<br />

appropriate plant densities and shade management,<br />

use of fertilizers and soil conservation, water harvesting<br />

and micro-irrigation. Research should focus on disease<br />

resistance as well as drought tolerant varieties. The task of<br />

managing the adverse effects of climate change requires<br />

a concerted effort and collective responsibility. There is<br />

need for the entire agricultural sector in general and the<br />

coffee industry in particular to work together to promote<br />

adaptive strategies on a large scale. The time for action is<br />

now.<br />

The writer is the Executive Director, <strong>Uganda</strong> <strong>Coffee</strong><br />

Farmers Alliance<br />

e-mail: tony.mugoya@ucfa.<br />

or.ug telephone: +256 772 309 599<br />

Harvests were often welcomed by<br />

music extravaganzas. Communities<br />

living near the Great River Nile often<br />

used a variety of drums, xylophones<br />

and other musical instruments.<br />

50th Anniversary Edition<br />

39


40 50th Anniversary Edition


THIRD UGANDA COFFEE DAY:<br />

reflection of the past 50 years<br />

As the entire nation braced for Golden Jubilee of 9th October 2012, the coffee fraternity<br />

celebrated it on 4th October 2012 to coincide with the <strong>Uganda</strong> <strong>Coffee</strong> Day that is<br />

celebrated on the first Thursday of October. Because of much importance the industry<br />

attaches to research, it was just necessary to take event to the <strong>Coffee</strong> Research Centre (COREC),<br />

Kituuza, Mukono District under the theme “<strong>Uganda</strong> @50 Years: Milestones of the Century and<br />

Strategies for the Future.”<br />

The Chief Guest was Dr. Emily Twinamasiko, the Director General of NARO under whose docket<br />

the Centre falls. Other speakers for day included Mr. Robert Waggwa Nsibirwa, President of Africa<br />

<strong>Coffee</strong> Academy, Mr. Hannington Karuhanga, Managing Director Savannah Commodities and Mr.<br />

John Schulter, Director Café Africa and Mr. Francis Chesang, the Production Manager of UCDA.<br />

Dr. Twinamasiko informed the <strong>Coffee</strong> fraternity that reinstating COREC as an Institute was in<br />

its final stages and assured the stakeholders that once this had been achieved; it will have the<br />

mandate to headhunt, train, and retain the right personnel. It will also be in position to source<br />

for financial support to ensure proper execution of their duties in accordance to the industry<br />

requirement and elevate its level to international standards.<br />

While <strong>Uganda</strong> is the second biggest coffee producer in Africa, and the biggest Robusta coffee<br />

producer on the continent, it has only six coffee scientists in comparison to 31 from Kenya and<br />

27 in Tanzania. This has negatively impacted on the coffee production in <strong>Uganda</strong> especially<br />

in responding to the growing challenges like higher yielding, pest and disease resistant and<br />

drought resistant varieties. She expressed gratitude to the coffee stakeholders for the support<br />

they have offered to the Centre.<br />

Although the theme this year seemed to have deviated from the usual tissue culture and<br />

the <strong>Coffee</strong> Wilt Disease resistant (CWDr) varieties, it was impossible to avoid it as it is always<br />

synonymous with production. It is generally believed that the matters of stagnated coffee<br />

production will only be solved by the rapid multiplication and distribution of these varieties to<br />

the farmers. This was echoed by Mr. Robert Waggwa Nsibirwa, in his address, he informed the<br />

stakeholders that this was on course and the farmers were eagerly waiting for the new materials.<br />

He added that the number of farmer groups was increasing; and government through UCDA had<br />

intensified its support in replanting and promoting productivity. The other notable achievement<br />

was the emergence of the <strong>Coffee</strong> traders Association commonly known as the middlemen and<br />

this was highly welcomed by the stakeholders as a move towards better coffee quality.<br />

In terms of trade, Mr. Nsibirwa said that the there had been a remarkable reduction of Robusta<br />

coffee volumes in the first half of the coffee year and seismic changes in global washed Arabica<br />

coffees that had led to a switch to Robustas and natural Arabicas causing the relative prices<br />

of washed Arabicas to tumble. He concluded by reassuring the stakeholders that despite the<br />

challenges, the <strong>Uganda</strong> <strong>Coffee</strong> industry was still vibrant with a good reputation in the global<br />

market.<br />

Mr. John Schluter gave a history on the evolution of coffee processing both at primary and<br />

secondary level in <strong>Uganda</strong> like the introduction of pulped and washed Robusta in 1955, that<br />

later collapsed and is now being revived; the rise, fall and stabilisation of the number of coffee<br />

exporters due to post liberalization market dynamics; and consequently the search for value<br />

addition quality, certification and domestic consumption promotion.<br />

50th Anniversary Edition<br />

41


As a way forward,<br />

Mr. Schulter urged<br />

the stakeholders to<br />

brace for competition<br />

from other origins by<br />

investing in research<br />

and technology along<br />

the coffee value chain;<br />

advised that the<br />

continued growth in<br />

washed Robustas and<br />

Arabicas producers<br />

had to invest water<br />

supply and its<br />

purification as well as good management of<br />

waste products that should<br />

be converted to organic fertilisers.<br />

Abesigwa Growers Cooperative Union - 1956<br />

He noted that the rising real estates and population growth<br />

will lead to relocation of processing facilities upstream<br />

towards producers; and it will be the farmers decision on<br />

whether to ensure food security through planting food<br />

crops or cash crops like coffee. The other major determinant<br />

of production will be availability of agricutural labour that<br />

is currently scarce and expensive. Thus the future lies in<br />

scientic way of production and adaption of new technology.<br />

Mr. Francis Chesang who represented the managing<br />

director of UCDA informed the <strong>Coffee</strong> industry players<br />

about the different strategies UCDA had in place to increase<br />

coffee production and productivity and these included;<br />

Promote and support the adoption of good agronomic<br />

practices (proper spacing, pruning, mulching, etc) at farm<br />

level, coffee growing in new areas and expansion of acreage<br />

in traditional coffee growing districts, promote use of high<br />

yielding, diseases and pest resistant varieties, support the<br />

use of agro inputs in the coffee subsector, mainstream<br />

participation of women and youth in the entire coffee<br />

value chain, management of coffee pests and diseases<br />

and Promote and support medium and large scale coffee<br />

farming as the future of the coffee industry.<br />

In regard to climate change mitigation strategies, Mr.<br />

Chesang informed the stakeholders that UCDA will support<br />

the environmental and biodiversity conservation practices<br />

in the coffee production systems, irrigation development<br />

structures and work with the <strong>Coffee</strong> researchers to develop<br />

and distribute drought resistant coffee varieties.<br />

This <strong>Coffee</strong> Day registered over 450 participants from across<br />

the coffee value chain and this time the speeches were<br />

punctuated with entertainment, and field visits. The next<br />

<strong>Coffee</strong> Day will be celebrated on Thursday, October 3rd<br />

2013.<br />

42 50th Anniversary Edition


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44 50th Anniversary Edition


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46 50th Anniversary Edition<br />

Buule Ronald proud<br />

of his <strong>Coffee</strong> Garden


DIRECTION OF THE UGANDA COFFEE<br />

INDUSTRY FROM THE FARMER’S PERSPECTIVE<br />

Nsangi <strong>Coffee</strong> Farmers<br />

Association [NCFA] located<br />

in Nsangi Sub County;<br />

Wakiso District is a community<br />

Based Association whose mission<br />

is to establish a sustainable system<br />

for poverty alleviation among<br />

farmers through market- based<br />

agricultural practices. It was<br />

started in 2004 and registered<br />

in 2005 with a few members but<br />

currently has 853 members some<br />

of whom have expanded their<br />

boundaries beyond Nsangi but<br />

still retain their commitment to<br />

operate under to their Association.<br />

With the assistance from Progresso,<br />

a Netherlands based Organisation;<br />

NCFA started exporting its coffee<br />

in 2010 but still maintains its<br />

business relationships with some<br />

coffee exporters. Some of its<br />

buyers include Cafériver based<br />

in the Italy, JP Group Markets<br />

international in collaboration<br />

with Shangai Hai based in China,<br />

Sucafina and Supremo.<br />

It was started in 2004 and<br />

registered in 2005 with a few<br />

members but currently has 853<br />

members some of whom have<br />

expanded their boundaries<br />

beyond Nsangi but still retain<br />

their commitment to operate<br />

under to their Association.<br />

<strong>Uganda</strong> <strong>Coffee</strong> <strong>Federation</strong> caught up with<br />

Mr. Ronald Buule, the Chairman to get his<br />

inspiration about the <strong>Coffee</strong> industry in<br />

<strong>Uganda</strong>.<br />

Q<br />

What motivated you to form Nsangi<br />

CFA?<br />

As a coffee farmer I realized that middlemen<br />

were earning much more money compared<br />

to the coffee farmers and this was due to the<br />

fact that most farmers were ignorant about<br />

the prevailing prices. Some of them were<br />

selling red cherries, kiboko and flowers. So I<br />

came up with an idea of sensitizing farmers to<br />

collectively bulk their coffee, process and sell it<br />

as a group to the local exporters and we started<br />

with Savannah Commodities that I knew very<br />

well.<br />

Q<br />

Since its formation how has the<br />

association impacted the coffee<br />

community in Nsangi?<br />

For starters as an association;<br />

• Through sensitization and training many<br />

farmers have been able to appreciate<br />

coffee as a crop of their choice to the<br />

extent that even those who had wanted to<br />

sell off their land for other opportunities<br />

have had to think twice and quashed such<br />

ideas;<br />

• More coffee has been grown since the<br />

association avails farmers with planting<br />

materials. It is worth noting that if one<br />

came to Maya the centre of NCFA, he<br />

would be surprised to find that almost<br />

all homesteads have got a considerable<br />

number of coffee trees;<br />

• Improved coffee quality through training<br />

in harvesting and post harvest training<br />

that the association gives to farmers;<br />

• Better prices come with quality and<br />

information flow, in fact farmers get up to<br />

date prices;<br />

50th Anniversary Edition<br />

47


• Sharing of opportunities, new ideas, knowledge and<br />

technology among members;<br />

• The youth have been captured through the<br />

formation of the coffee youth club that concentrates<br />

on games and sports. The Association has got a high<br />

number of youths engaged in coffee production<br />

and from here, other youths have been advised to<br />

join agriculture; notably coffee having seen their<br />

role models;<br />

• Some village roads have been constructed with the<br />

help of the Association sensitizing the farmers and<br />

the youth towards the community support.<br />

Q Gender is an important aspect in the coffee<br />

industry, How have you promoted the gender<br />

aspect to Nsangi coffee community?<br />

a) Daily income.<br />

b) Monthly income.<br />

c) Long term income or seasonal income.<br />

- Nsangi has created a system of “DO IT YOURSELF”<br />

where a farmer can make his or her own fertilizers<br />

through MM Technology. The farmer can then use<br />

these fertilizers in his garden and sell the rest.<br />

- Farmers should look at diversification as the best<br />

approach to eradicating poverty. Many would-be<br />

farmers have abandoned agriculture due to the<br />

associates risks and uncertainty. If farmers embraced<br />

mixed agriculture taking coffee as a major income<br />

earner, they would smile all the way to the bank<br />

without feeling the pinch of the financial crisis.<br />

We encourage both men and women to diversify their<br />

resources to maximize their earnings. Even if coffee is<br />

the main crop, we encourage ladies to plant bananas in<br />

the coffee garden to enhance food security. They also do<br />

livestock farming concentrating on mainly poultry and<br />

piggery. Women are also encouraged to do handicraft in<br />

their leisure time.<br />

However, as we attract the male youths through sports<br />

and games notably football, Nsangi has also done the<br />

same arrangement with female youths through netball<br />

though the former is more popular.<br />

Q You pride yourself into producing and exporting<br />

quality coffee, please share with us the best<br />

practices other farmers should emulate.<br />

When the producer exports quality coffee, he/she is<br />

expected to get good money compared to what he has<br />

been getting before.<br />

- A smart coffee farmer is expected to look at three<br />

stages of income;<br />

48 50th Anniversary Edition


ABOUT THE INDUSTRY:<br />

Q In your opinion do you think we are<br />

capable of producing more than 4 million bags?<br />

Yes, I believe we are capable of producing more than<br />

four million bags as a country but this can only be<br />

achieved if farmers are availed with high yielding,<br />

disease resistant planting materials, intensified extension<br />

services especially as far as good agricultural practices<br />

are concerned, encouraged to add value to their coffee<br />

(selling FAQ or Graded coffee in order to fetch good<br />

market), and to appreciate the importance of coffee.<br />

Q Why are you so much passionate about the<br />

youth involvement in coffee production?<br />

First of all my passion for coffee dates back on 2000 when<br />

I got some land with coffee in it from my grandparents<br />

and decided to maintain that land. Currently I have about<br />

90acreas of land under coffee. By the time I entered<br />

coffee production, I was still a young man and even now<br />

I still qualify as a youth. There is a lot I have got from<br />

coffee and I wouldn’t want to be selfish that is why I have<br />

persuaded many youths to go into coffee production.<br />

In order to have sustainable and booming coffee<br />

industry, the youth must take the lead because they are<br />

still energetic, able to adopt new technologies and can<br />

take on the coffee business to the next generations.<br />

Q Why do you think the youth have abandoned<br />

coffee production?<br />

- They generally have a negative attitude towards<br />

farming/agriculture.<br />

- Lack of knowledge about profitability of coffee<br />

business.<br />

- Many of them may have the knowledge and are<br />

willing to join the coffee industry but do not have<br />

land.<br />

Q What measures do you suggest the coffee<br />

industry as a whole should take to attract the<br />

youth back to coffee growing?<br />

- We should sensitize the youths and train them<br />

about the benefits and profitability of coffee farming<br />

business. Nsangi CFA has started this and the results are<br />

encouraging. For example with the youths in Nsangi CFA,<br />

we compared the incomes of a person riding a motor<br />

cycle and a coffee farmer and realized that a farmer<br />

was earning more so we are now getting more youths<br />

coming for advice on coffee.<br />

- Formation of clubs where youths can get<br />

together and share information about coffee farming as<br />

a business.<br />

Q What are some of the challenges the youths in<br />

coffee production face today, and how can they<br />

overcome such challenges?<br />

- Inadequate land for expansion, most youths<br />

are farming on small pieces of land passed onto them<br />

by their parents and this caters for both food and cash<br />

crops;<br />

- Inadequate usage of agricultural inputs for<br />

example fertilizers are very vital to increase productivity<br />

especially where land is scarce.<br />

- These problems can be addressed by availing<br />

youths with some agricultural loans and if possible the<br />

government can lease land to the youths though the<br />

major problem here is leaving the land after the lease<br />

period has expired.<br />

Q What advice would you give to the other youths<br />

aspiring to embrace coffee production as an<br />

occupation?<br />

These youths should always take coffee farming as a<br />

business and should aim at maximizing their earnings.<br />

Q Do you support the idea of revamping our<br />

cooperatives as a way of improving aspects of<br />

the <strong>Uganda</strong> industry?<br />

Yes, I do support the revamping of the cooperatives<br />

because is advantages cannot be underestimated but<br />

they have to come in knowing that the <strong>Uganda</strong> coffee<br />

industry is fully liberalized. There is a very big difference<br />

between the pre and post liberalization period and the<br />

cooperatives should come in ready to embrace these<br />

changes.<br />

Your last word<br />

We request for government intervention to help the<br />

farmers, associations or cooperatives that would wish to<br />

enter the export market. This is a vulnerable group and<br />

could fall prey to the exploitation of the buyer who may<br />

fail to fulfill part of his obligation. Nsangi CFA has had<br />

that problem but it may not be the last victim.<br />

50th Anniversary Edition<br />

49


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50 50th Anniversary Edition


Technical overview of environmental impact of land<br />

application of pulping effluent from wet coffee<br />

processing.<br />

1. About wet coffee processing<br />

Wet processing of Arabica coffee (Coffea Arabica)<br />

produces higher quality and receives higher<br />

prices on the world market compared to coffee<br />

prepared by dry method.<br />

In wet process, the skin covering the coffee/beans (Figure<br />

1) is removed before they are dried. <strong>Coffee</strong> processed by<br />

the wet method is called wet processed or washed coffee.<br />

The wet method requires use of specific equipment and<br />

substantial quantities of water. The coffee cherries are<br />

sorted by immersion in water and bad or unripe fruit will<br />

float while the good ripe fruit will sink. The cherry skins<br />

and some of the pulp is removed by pressing the fruit by<br />

machine in water through a screen. The bean will still have<br />

a significant amount of pulp on it that needs to be removed<br />

and this is done either by ferment-and-wash method or a<br />

newer procedure called machine-assisted wet processing,<br />

aquapulping or mechanical demucilaging. These methods<br />

are briefly explained below.<br />

a) Ferment-and-wash method: In this method of<br />

wet processing the remainder of the pulp is removed by<br />

breaking down the cellulose by fermenting the beans with<br />

microbes and then washing them with large amounts of<br />

water.<br />

Fermentation can be done with extra water or, in “Dry<br />

Fermentation”, in the fruit’s own juices only.<br />

The fermentation process has to be carefully<br />

monitored to ensure that the coffee doesn’t<br />

acquire undesirable, sour flavors. For most<br />

coffees, mucilage removal through fermentation<br />

takes between 24 and 36 hours, depending on the<br />

temperature, thickness of the mucilage layer and<br />

concentration of enzymes. End of fermentation is<br />

assessed by feel, as the parchment surrounding<br />

the beans loses its slimy texture and acquires<br />

a rougher “pebbly” feel. When fermentation<br />

is complete, the coffee is thoroughly washed<br />

with clean water in tanks or in special washing<br />

machines.<br />

b) Machine-assisted wet processing method: In<br />

machine-assisted wet processing, fermentation is not<br />

used to separate the bean from the remainder of the pulp;<br />

rather, this is done through mechanical scrubbing. This<br />

process can considerably reduce water use and associated<br />

pollution impacts. In addition, removing mucilage by<br />

machine is easier and more predictable than removing it<br />

by fermenting and washing.<br />

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However, by eliminating the fermentation<br />

step and prematurely separating fruit and<br />

bean, mechanical demucilaging can remove<br />

an important tool that mill operators have of<br />

influencing coffee flavor. Furthermore, the<br />

ecological criticism of the ferment-and-wash<br />

method increasingly has become disputable,<br />

since a combination of low-water equipment<br />

plus settling tanks allows conscientious mill<br />

operators to carry out fermentation with limited<br />

pollution.<br />

conditioner. In tropical Africa, specifically <strong>Uganda</strong> land<br />

disposal of this effluent or irrigation of coffee plantations<br />

is a logical option. This option is especially necessary in<br />

coffee plantations located in prevalently dry areas with<br />

high evaporation rates (4-6 mm/day) and a marked lack<br />

of surface water resources (lakes or rivers) that would<br />

provide irrigation water or where the watertable is low<br />

hence reducing risk to aquifer pollution.<br />

2. Wastewater constituents of<br />

environmental concern<br />

Mucus in the pulp effluent will contribute biochemical<br />

oxygen demand (BOD) to the effluent. BOD will however<br />

only serve the beneficial function of a soil conditioner<br />

(manure) for the coffee trees.<br />

Figure 1: Structure of coffee berry and beans:<br />

1: center cut<br />

2: bean (endosperm)<br />

3: silver skin (testa, epidermis),<br />

4: parchment (hull, endocarp)<br />

5: pectin layer<br />

6: pulp (mesocarp)<br />

7: outer skin (pericarp, exocarp)<br />

Wet processing of coffee produces wastewater<br />

whose disposal can be challenging. Depending<br />

on the processing technology applied,<br />

quantities of coffee waste water is varying ,<br />

but most often is used in a 1 : 1 ratio. Modern<br />

mechanical mucilage removal machines<br />

producing semi-washed coffee use only<br />

about 1 m3 per tonne fresh cherry (without<br />

finish fermentation and washing) whereas the<br />

traditional fully washed technique without<br />

recycling uses up to 20 m3 per tonne of cherries.<br />

Characteristics of waste water from coffee<br />

processing include a high Biological Oxygen<br />

Demand (BOD) of up to 20000 mg/l and a<br />

Chemical Oxygen Demand (COD) of up to<br />

50000 mg/l as well as an acidity of below pH<br />

4. Ecologically sensitive coffee farms reprocess<br />

the wastewater along with constituent shell<br />

and mucilage as compost to be used as a soil<br />

If the coffee plantation uses pesticides and herbicides,<br />

residual concentrations in wastewater when higher than<br />

national standards, could affect soil quality, groundwater,<br />

birds and animal species. Typical herbicides and pesticides<br />

used on <strong>Uganda</strong> coffee plantations are Glyphosphate,<br />

Dimethoate, Diazinon and Furadan.<br />

3. Environmental fate assessment<br />

In one study, laboratory analysis was undertaken for a<br />

grab sample of effluent from a small pulping unit. In the<br />

sample, all herbicides and pesticides had lower concentrations<br />

than the maximum levels stipulated by National<br />

Environment Management Authority (NEMA) except Dimethoate.<br />

This technical assessment therefore focuses on<br />

dimethoate.<br />

Properties of dimethoate are outlined below.<br />

a) Use profile<br />

<br />

<br />

Active ingredient (ai): O,O-dimethyl-S-(N-methylcarbamoylmethyl)<br />

phosphorodithioate.<br />

Type of use: Insecticide<br />

Typical use: In USA, USEPA allows application of<br />

dimethoate on terrestrial food and feed crops, terrestrial<br />

non-food crops, indoor food uses, indoor non-food uses,<br />

terrestrial non-food, outdoor residential, forestry use and<br />

aquatic non-food industrial use in which it is applied<br />

to sewage systems. <strong>Uganda</strong>’s ministry responsible for<br />

agriculture (MAAIF) allows use of this chemical as a<br />

pesticide.<br />

52 50th Anniversary Edition


Target Pests: A wide range of insects, including<br />

but not limited to midges, scale, aphids, mites, leaf miners,<br />

flea hoppers and plant bug.<br />

Formulation Type: Dimethoate is marketed as<br />

either a wettable powder, emulsifiable concentrate or as a<br />

ready-to- use liquid. Wettable powders typically have 25%<br />

active ingredient (ai) while in emulsifiable concentrates, ai<br />

can be up to 57.0%<br />

b) Historic use profile<br />

Use of dimethoate is not unique to <strong>Uganda</strong> alone. The<br />

pesticide is widely accepted and used all over the world.<br />

Information below are excerpts from a compilation of<br />

The Biological and Economic Analysis Division (BEAD) of<br />

Office of Pesticide Programs, USEPA on use of dimethoate<br />

in 1993 on 41 crops throughout the USA (Ali 1995):<br />

<br />

In 1993 a total of 1.3 to 2.2 million pounds of active<br />

ingredient were applied to 4,701,000 to 6,062,000<br />

acres.<br />

on a thin layer of relatively dry soil. Under these conditions,<br />

the soil degradates (dimethylphosphoric acid and<br />

dimethylthiophosphoric acid) accumulated and persisted<br />

for a longer time than in an aerobic soil. Therefore, at the<br />

coffee plantations, these degradates may persist at the<br />

soil surface especially in dry seasons.<br />

Dimethoate hydrolyzes very slowly at pH of 5 to 7, but in<br />

alkaline soils, it degrades rapidly to desmethyl dimethoate<br />

and dimethylthiophosphoric acid with a half-life of only<br />

4.4 days at pH 9.<br />

Under aerobic soil conditions, dimethoate degrades faster<br />

than in poorly aerated (or anaerobic) soils. The anaerobic<br />

half-life is approximately 22 days, with the major nonvolatile<br />

degradate being desmethyl dimethoate.<br />

Dimethoate is highly mobile in loam, silt loam, sandy loam<br />

and sandy soils.<br />

Dimethoate will not easily evaporate from the soil surface.<br />

The USEPA study showed that the chemical had low<br />

volatility since after 30 days, only 2.7% of the applied<br />

chemical had volatilized.<br />

<br />

<br />

Field crops alone account for 42-47% of the total<br />

dimethoate applied in 1993, totaling approximately<br />

880,000 to 1,034,000 pounds of active ingredient.<br />

Ten to fifteen percent of the total dimethoate applied<br />

during 1993 was to citrus crops, totaling 220,000 to<br />

330,000 pounds of active ingredient.<br />

c) Fate of dimethoate in soil<br />

Detailed studies conducted on dimethoate by USEPA<br />

in 1999 established that the insecticide is a mobile, yet<br />

non-persistent organophosphate chemical. This means<br />

that once in soil, it readily biodegrades. The primary<br />

route of dissipation is microbially-mediated hydrolytic1<br />

and oxidative degradation in aerobic soil, particularly<br />

under moist conditions, with a half-life2 of 2.4 days. The<br />

major degradate is carbondioxide- CO2, accounting for<br />

approximately 62% of the applied chemical after 14 days.<br />

Two non-volatile degradates, desmethyl dimethoate and<br />

dimethylthiophosphoric acid, were identified at levels less<br />

than 2%. These resultant products consist of carbon and<br />

phosphorus, which are natural constituents of soil.<br />

The USEPA study established that dimethoate does not<br />

photodegrade, i.e. get destroyed by action of light (since<br />

the degradation rates and products were essentially the<br />

same for under light and dark experimental conditions).<br />

Although dimethoate does not photodegrade on soil, the<br />

study provided information on degradation of dimethoate<br />

1 Hydrolysis is a chemical reaction in which a substance reacts<br />

with water and gets changed into other substances, as starch into glucose<br />

or natural fats into glycerol and fatty acids.<br />

2 Half-life is time taken by a substance to decay to half of its<br />

original weight.<br />

50th Anniversary Edition<br />

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d) Potential for ground water contamination<br />

Although dimethoate is similar to many other<br />

organophosphate insecticides with respect to its mobility,<br />

it is not likely to persist in the environment and therefore<br />

should not leach to groundwater under most conditions.<br />

In aerobic soil, dimethoate will degrade with a half-life of<br />

less than 3 days. Dimethoate may persist longer under<br />

anaerobic conditions, with half-life of 22 days. However<br />

it is believed that most of dimethoate will degrade<br />

before encountering depths at which soil conditions are<br />

anaerobic. Residual chemical concentration detected<br />

in the wastewater sample was small (0.0255 mg/l) and<br />

would only require 2 half-lives (or 6 days) to degrade to<br />

0.003 mg/l, which is below the national standard of 0.004<br />

mg/l.<br />

e) Potential to contaminate surface runoff<br />

The USEPA study found dimethoate to have low affinity<br />

to attach to soil particles. The low soil-water partitioning<br />

of dimethoate (Kd values of 0.06, 0.30, 0.57, and 0.74)<br />

indicates that the chemical does not readily attach<br />

(adsorb) onto soil particles. Hence contamination of<br />

runoff will be primarily by dissolution in stormwater as<br />

opposed to adsorption to eroding soil particles/sediment.<br />

Besides its low soil-water partitioning, the relatively short<br />

persistence of dimethoate on soil surface means that its<br />

potential for stormwater contamination will be low. In<br />

addition, the low soil-water partitioning of dimethoate<br />

will allow leaching to remove a substantial amount of<br />

the chemical from the top 1-inch layer of soil that is<br />

ordinarily available for runoff during rainstorms. All these<br />

aspects combined, abate the risk of the pesticide residues<br />

contaminating surface water once pulping wastewater is<br />

applied on land at the plantation.<br />

f) Avian toxicity<br />

As part of the 1999 USEPA study, a 30-day daily oral<br />

administration test on six male and female wild ducks<br />

indicated that the lowest daily oral dosage that produced<br />

one or two deaths by the end of the 30-day period (30- day<br />

empirical minimum lethal dosage) was 6.0 mg/kg/day. If<br />

an average wild duck in that USEPA study weighed 2 kg,<br />

the lethal quantity of dimethoate the bird would take in a<br />

day before dying is 12 mg. In wastewater from the study<br />

plantation, concentration of dimethoate detected was<br />

0.0255 mg/litre (or 612 mg in the 24,000 litres that was<br />

discharged). To make up this lethal dosage, a single 2-kg<br />

bird would have to ingest 2% of all dimethoate in effluent<br />

discharged by the plantation- an absolute impossibility!<br />

Hence there is very low risk to wild birds when wastewater<br />

from pulping is used for land application at the plantation.<br />

The risk would be much less for larger wild animals.<br />

Conclusion<br />

The marginal low residual concentration of dimethoate<br />

found in pulping effluent at study coffee plantation<br />

limited posed no environmental risk to wild fauna, soil,<br />

groundwater and stormwater or runoff because of the<br />

following reasons:<br />

<br />

<br />

<br />

__________<br />

A USEPA study on dimethoate established<br />

that the pesticide would readily degrade in<br />

normal aerobic soil with half-life of only 2.4 to<br />

3 days.<br />

The relatively short persistence of dimethoate<br />

on soil surface means that its potential for<br />

stormwater contamination is low.<br />

Dimethoate concentration in the wastewater<br />

is so low that land application will not pose<br />

risk to wild fauna.<br />

References and bibliographies<br />

Ali, Ghulam. 1995. Typical annual usage (1993) and<br />

percentage of various US crops treated with<br />

dimethoate. Biological and Economic Analysis<br />

Division, Office of Pesticide Programs, USEPA.<br />

Becker, Stephen. 1991. Dissipation of Dimethoate from<br />

Soil Following Application to Bean, Grape and<br />

Bare ground Plots Located in Fresno County, CA.<br />

Unpublished study performed by EPL Bio-Analytical<br />

Services, Inc., and California Agricultural Research,<br />

Inc. and submitted by Dimethoate Task Force,<br />

Germany. MRID: 42884403.<br />

California Environmental Protection Agency, Department<br />

of Pesticide Regulation. 1993. Sampling for pesticide<br />

residues in California well water: 1993 Well inventory.<br />

Data Base. CEPA-DPR. Sacramento, CA<br />

Dell’Omo, G. And R.F. Shore. 1996b. Behavioral effects<br />

of acute sublethal exposure to 63 deimethoate on<br />

wood mice, Apodemus sylvaticus: I. Field studies<br />

on radio-tagged mice in a cereal ecosystem. Arch.<br />

Environ. Contam. Toxicol. 31:91-97.<br />

Dell’Omo, G., R. Bryenton, and R.F. Shore. 1997. Effects<br />

of exposure to an organophosphate pesticide on<br />

behavior and acetylcholinesterase activity in the<br />

common shrew Sorexz araneus.<br />

Jacobson, B. and B. Williams. 1994. Dissipation of<br />

Dimethoate in Soil Under Field Conditions When<br />

Applied to Bare Ground in New York. Unpublished<br />

study performed by ABC Laboratories, Inc. and<br />

submitted by Cheminova Agro A/S, Denmark. MRID:<br />

43388002.<br />

Jacobson, B. and B. Williams. 1994. Dissipation of<br />

Dimethoate in Soil Under Field Conditions With Grain<br />

54 50th Anniversary Edition


Sorghum in Texas. Unpublished study performed by<br />

ABC Laboratories, Inc. and submitted by Cheminova<br />

Agro A/S, Denmark. MRID: 43388001.<br />

Kenaga, E.E. 1973. Factors to be considered in the<br />

evaluation of the toxicity of pesticides to birds in<br />

their environment. In: Environmental quality, global<br />

aspects of chemistry toxicology and technology as<br />

applied to the environment. Vol. II (eds. Coulston, F.<br />

and F. Korte), Academic Press, NY.<br />

England. 593pp. In. Smith, G.J. Pesticide use and toxicology<br />

in relation to wildlife. U.S. Fish and U.S. Fish and<br />

Wildlife Service, Resource Publication 170.<br />

By: Eng. Lammeck KAJUBI:<br />

BScEng (1.1 Hons), MEngSc(Env) Queensland, REng (Uga.)<br />

CEO, Air Water Earth (AWE), civil & environmental engineering<br />

consultants.<br />

www.awe-engineers.com<br />

l.kajubi@awe-engineers.com<br />

Tel: 078-2580480<br />

“The wet method requires use of<br />

specific equipment and substantial<br />

quantities of water. The coffee<br />

cherries are sorted by immersion in<br />

water and bad or unripe fruit will<br />

float while the good ripe fruit will<br />

sink. The cherry skins and some of<br />

the pulp is removed by pressing<br />

the fruit by machine in water<br />

through a screen. The bean will still<br />

have a significant amount of pulp<br />

on it that needs to be removed<br />

and this is done either by fermentand-wash<br />

method or a newer<br />

procedure called machine-assisted<br />

wet processing, aquapulping or<br />

mechanical demucilaging.”<br />

50th Anniversary Edition<br />

55


PRODUCTION AND PROCESSING PROBLEMS OF<br />

ARABICA COFFEE FARMERS IN EASTERN UGANDA<br />

By Dr. Ahmad Jazayeri Bridge Commodities Ltd ahmad.jazayeri@gmail.com<br />

I. General Background<br />

<strong>Coffee</strong> accounts for 22% of <strong>Uganda</strong>’s<br />

export with Arabica representing on<br />

average 25% of the annual procurement<br />

of green coffee equivalent to 38,000 MT<br />

. Arabica coffee alone contributes to almost<br />

5% of <strong>Uganda</strong>n export earnings. In addition,<br />

Arabica coffee production is significant to<br />

farmer’s cash income. Of the approximately<br />

1.7 million coffee farming households in<br />

<strong>Uganda</strong>, 28% are involved in Arabica coffee<br />

production. The Eastern region (around<br />

Mount Elgon) is one of the principal Arabica<br />

coffee producing regions in <strong>Uganda</strong>. The<br />

Bugisu coffee from this region is comparable<br />

to the best of Ethiopia and Kenya coffees.<br />

In 2011, the Eastern region represented 2/3<br />

of the total area in <strong>Uganda</strong> under Arabica<br />

coffee cultivation with approximately<br />

36,000 ha, 52.5 million trees and 312,493<br />

households (UCDA Annual report, 2011, p.51)<br />

. UCDA does not provide production data by<br />

district in its annual report and therefore it is<br />

difficult to know the actual volumes for the<br />

Eastern region. One can however estimate<br />

that with an average yield of about 0.7 MT/ha<br />

of green coffee, the output is approximately<br />

24000 MT.<br />

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56


The table below summarizes the key statistics for Arabica coffee in the Eastern region:<br />

II.<br />

Problem Statement<br />

Inspite of the significance of coffee production for<br />

the economy as a whole and for smallholder cash<br />

income, there are significant barriers facing the<br />

producers that must be overcome for <strong>Uganda</strong> to<br />

get the full benefits of its Arabica coffee potential<br />

in the Mount Elgon region1.<br />

Land Shortage - Farmers own very small plots<br />

used for both coffee and food production which<br />

compete for soil nutrition, shade, and mulching.<br />

Furthermore, the small size of land (average ¼ acre)<br />

does not provide sufficient income for capitalization<br />

of the farm leading to the vicious circle of low input<br />

and low output which perpetuates poverty. Land<br />

shortage also prevents the planting of additional<br />

shade trees.<br />

Soil Fertilization and Composting - Yields are<br />

getting lower each year as the soil nutrients are<br />

mined by food and tree crops with inadequate<br />

replacement. The major deficiency is nitrogen<br />

caused by continuous cropping and soil leakage<br />

due to rains. Composting techniques are not<br />

common and farmers often do not know or<br />

appreciate that organic matter including manure<br />

must be transformed before it can be absorbed by<br />

the tree. <strong>Coffee</strong> pulp is directly spread on the soil<br />

without being decomposed. On average, coffee<br />

pulp takes 6 to 9 months to be decomposed to a<br />

level that can be useful as fertilizer. The farmers<br />

waste much of the organic material such as crop<br />

residue from the bean and maize harvests. The<br />

organic manure and pulp, when available, are<br />

dumped near the homestead which overtime<br />

benefits the nearby trees while those in the<br />

outlying area have inadequate soil nutrition.<br />

1 - The following observations are based on the author’s<br />

walking tour and interviews with farmers and dealers of the Sironko<br />

and Bulambuli coffee growing areas from 29 November to 11 December<br />

2012.<br />

Shade Management - The canopy cover that provides<br />

shade is inadequate and there is generally poor canopy<br />

management which is either too thin or in some highland<br />

areas too thick. The shade trees are an integral part of<br />

the long-term ecological sustainability of coffee growing<br />

system which protects bio-diversity is key to sustainability.<br />

Shade trees are particularly important for protection of the<br />

soil and stabilizing the slopes in areas of high population<br />

density with high soil depletion and erosion rates such<br />

as Mount Elgon coffee growing areas. Undisturbed by<br />

human intervention, Arabica coffee evolved under the<br />

forest canopy in Ethiopia. The bio-diverse eco-system<br />

maintained a balance between coffee trees, shade trees,<br />

birds, insects, predators, weeds, soil moisture, microorganisms<br />

and soil stability. Such high diversity systems<br />

are ecologically more stable than high-input species-poor<br />

coffee fields. The high input systems with no shade tend<br />

to reduce bio-diversity due to tree clearance and frequent<br />

use of chemicals that disturb the balanced eco-system<br />

through eliminating the birds, and killing the predators<br />

such as ants, spiders, and micro-organisms that prevent<br />

harmful fungus. <strong>Coffee</strong> leaf miners, antracnosis, and<br />

Brown Eye Spot are attributable to the loss of biological<br />

diversity. Shade can considerably inhibit the activity of<br />

the <strong>Coffee</strong> Stem Borer because it prevents the insect from<br />

laying eggs. Similarly, outbreaks of nematodes and root<br />

diseases are often caused by a reduction of microbial<br />

activity and diversity in the soil due to fertilizers, pesticides<br />

and herbicides.<br />

<strong>Coffee</strong> trees need shade to slow down their fruit<br />

maturation; large coffee beans are usually found under<br />

shade with heavier weight of cherries, improved cup<br />

quality (especially body and acidity), with a reduced<br />

percentage of fallen fruit of over 20%. It also lowers the<br />

percentage of reject fruits that are diseased, mummified,<br />

sunburnt or dried, maintain a cool air temperature for the<br />

tree, and protect the tree from direct sunburn all resulting<br />

in superior cup quality. For example, photosynthesis is<br />

sharply lowered at temperatures above 26 degrees that<br />

can be caused by direct sunshine on the tree. Moderate<br />

50th Anniversary Edition<br />

57


shade can prevent leaf rust and give higher<br />

fertility. Direct sunshine lowers the levels of<br />

potassium, calcium and zinc in the soil while<br />

shade promotes these nutrients. The main<br />

mechanism for biological soil improvement<br />

is the permanent root system which improves<br />

nutrient recycling from the subsoil to the<br />

top soil through the leaf system, reduces<br />

leaching losses, and fixes nitrogen. With<br />

similar soil nutrition, shaded trees have better<br />

leaf retention and are taller than trees with<br />

little or no shade. Shade prevents the growth<br />

of weed by blocking the sun and the fallen<br />

leaves act as mulch and prevents germination<br />

and spread of weeds. A permanent shade<br />

of 50% eliminates weeds completely and<br />

therefore saving considerably on labour cost<br />

for weeding. Most farmers are not aware of<br />

the correct spacing for the required canopy<br />

cover of at least 50%.<br />

Banana trees which are only a temporary<br />

canopy for young trees are in many instances<br />

used as the only canopy even for the mature<br />

trees. The SL 14 Arabica tree for example<br />

grows as high as or even taller than a banana<br />

tree and therefore the banana tree cannot be<br />

an effective canopy for this variety which is the<br />

most common and the most recommended<br />

coffee tree. The tree species that have proven<br />

effective in the region for providing the canopy<br />

cover are alibizia, acacia, cordia and Gliricidia<br />

sepium which is an exotic leguminous tree<br />

with fast germinating leaves that are used for<br />

mulching. There are fruit trees such as mango,<br />

avocado and citrus trees that can grow high<br />

and tall and act against soil erosion in addition<br />

to providing good shade. There is controversy<br />

over the use of fast growing trees for poles<br />

and timber such as acacia. This issue needs<br />

further research under <strong>Uganda</strong>n conditions.<br />

Although the seedlings for the shade trees are<br />

commonly available, the farmers are not adopting them<br />

as required because of the apparent shortage of land<br />

and the competition for space between shade trees and<br />

food crops. Shade trees are stronger than coffee trees and<br />

can be a good protection against landslides which have<br />

devastated many lives in the region.<br />

Pest and Disease Control - Various pests and diseases<br />

are present in the area. Amongst the pests; the most<br />

prevalent are the mealy bug, antestia, coffee berry borer,<br />

coffee stem borer, and leaf miner. Such pests impact the<br />

terminal buds, the flowering areas, the berries, and the<br />

stem of the coffee tree. The main cause of an increase<br />

in the incidence of pests and diseases is the imbalance<br />

in the eco system brought about by deforestation,<br />

intensification of coffee production, and use of chemicals<br />

that kill the predators and eliminate the natural balance<br />

in the eco system. The recommended insecticide against<br />

most pests is dimethoate which kills on contact by acting<br />

on the insect’s nervous system. A major problem with<br />

domethoate is that it is highly toxic and can have negative<br />

lateral damage on water streams, micro-organisms, birds<br />

and insect predators such as spiders. In this regard, it is<br />

instructive to note that the State of Hawaii, home to the<br />

famous Kona coffee, dimethoate is banned due to its high<br />

toxicity but is widely used in <strong>Uganda</strong>.<br />

Banana trees which are only a<br />

temporary canopy for young<br />

trees are in many instances used<br />

as the only canopy even for the<br />

mature trees. The SL 14 Arabica<br />

tree for example grows as high<br />

as or even taller than a banana<br />

tree and therefore the banana<br />

tree cannot be an effective<br />

canopy for this variety which is<br />

the most common and the most<br />

recommended coffee tree.<br />

58 50th Anniversary Edition


Organic alternatives currently<br />

registered for coffee in Hawaii are<br />

Volck® Supreme Oil (especially for<br />

mealy bug), Safer’s® Insecticidal<br />

Soap Concentrate (for most insects),<br />

and Clean Crop® Superior 70 Oil.<br />

These are much safer organic pest<br />

control solutions. Other organic<br />

and non-chemical solution is to<br />

introduce natural predators which<br />

require research and adaptation<br />

although this has not yet been done<br />

sufficiently in <strong>Uganda</strong>. Integrated<br />

Pest Management in Indonesia<br />

shows that organic alternatives are<br />

available and can be developed by<br />

the farmers themselves for pest control such<br />

as using natural predators to eliminate the<br />

insects that cause damage to crops instead of<br />

using expensive and dangerous chemicals. A<br />

50% shade cover, as explained above, are an<br />

important part of the solution.<br />

Amongst the diseases, the most prevalent are<br />

the fungi causing leaf rust and coffee berry<br />

disease. Again although these fungi can be<br />

controlled by routine spraying with copper<br />

oxide, organic alternatives are available and<br />

should be promoted to avoid creating “toxic<br />

trails” in the mountain. Chicken, turkey,<br />

peacocks, guinea fowl, pheasants, lizards, and<br />

the birds pick bugs and while their droppings<br />

add nitrogen to the soil. Animal roaming<br />

under the trees should be encouraged.<br />

Regular pruning of the diseased branches<br />

and their elimination from the farm is also<br />

effective. Adequate shade reduces fungus<br />

growth and prevents leaf rust. Interestingly,<br />

poverty has prevented many farmers in<br />

greater of use chemical pesticides and this<br />

may be a blessing in disguise.<br />

Amongst the diseases, the<br />

most prevalent are the fungi<br />

causing leaf rust and coffee<br />

berry disease.<br />

Mulching - Mulching, which involves spreading fresh<br />

or decomposed plant material on the surface of the<br />

soil between coffee trees is insufficiently practiced.<br />

Mulching is needed to decrease weed growth, keep<br />

the soil moist with a moderate pH, and increase the<br />

organic matter. Part of the problem is that much of the<br />

grass in the area is used for animal feed and little is left<br />

for mulching. A major issue is awareness of the benefits<br />

of mulching. There are also trade-offs that need to be<br />

achieved between intercropping beans and coffee and<br />

mulching at the completion of bean harvest. Some<br />

farmers tend to burn the crop residues which could be<br />

used as mulch. Maize leftovers, locally growing grasses<br />

especially along the river banks could be slashed and<br />

used as mulch.<br />

Pest and Disease Control - Various pests and diseases<br />

are present in the area. Amongst the pests the most<br />

prevalent are the mealy bug, antestia, coffee berry borer,<br />

coffee stem borer, and leaf miner. Such pests impact the<br />

terminal buds, the flowering areas, the berries, and the<br />

stem of the coffee tree. Although, the recommended<br />

insecticide against most pests is dimethoate which<br />

kills on contact by acting on the insect’s nervous<br />

system, a major problem with domethoate is that it is<br />

highly toxic and can have negative lateral damage on<br />

water streams, humans, and birds. In this regard, it is<br />

instructive to note that the State of Hawaii, home to<br />

the famous Kona coffee, dimethoate is banned due<br />

to its high toxicity yet the chemical is widely used in<br />

<strong>Uganda</strong>. Organic alternatives currently registered for<br />

coffee in Hawaii are Volck® Supreme Oil (especially for<br />

mealy bug), Safer’s® Insecticidal Soap Concentrate (for<br />

most insects), and Clean Crop® Superior 70 Oil. These<br />

are much safer organic pest control solutions. Other<br />

organic and non-chemical solution is to introduce<br />

50th Anniversary Edition<br />

59


natural predators which require research<br />

and adaptation but that has not yet been<br />

done sufficiently in <strong>Uganda</strong>. Integrated<br />

Pest Management in Indonesia shows that<br />

organic alternatives are available and can<br />

be developed by the farmers themselves<br />

for pest control such as using natural<br />

predators to eliminate the insects that<br />

cause damage to crops instead of using<br />

expensive and dangerous chemicals.<br />

Amongst the diseases, the most prevalent<br />

are the fungi causing leaf rust and coffee<br />

berry disease. Again although these fungi<br />

can be controlled by routine spraying<br />

with copper oxide, organic alternatives<br />

are available and should be promoted<br />

to avoid creating “toxic trails” in the<br />

mountain. Chicken, turkey, peacocks,<br />

guinea fowl, pheasants, lizards, and the<br />

birds pick bugs and with their droppings<br />

add nitrogen to the soil. Animal roaming<br />

under the trees should be encouraged.<br />

Regular pruning of the diseased branches<br />

and their elimination from the farm is<br />

also effective. Poverty has prevented<br />

many farmers in greater of use chemical<br />

pesticides and this may be a blessing in<br />

disguise. However it should be noted that<br />

in cases of severe attack, there may be no<br />

short term alternative but to spray.<br />

De-stumping and pruning - Many<br />

highland trees have between 20 to 40<br />

years and require de-stumping which<br />

involves integral stumping of the entire<br />

tree followed by maintenance of three<br />

stems together with recommended<br />

management. A casual observation of<br />

the trees in the area shows one stem with<br />

seven to 8 vertical branches all with poor<br />

yields. Correct pruning after two to three<br />

yields of good performance of a branch<br />

is not practiced with the consequence of<br />

falling productivity of the tree. Another<br />

observation is that many farmers<br />

especially in highland areas do not have<br />

adequate pruning scissors and saws which<br />

are often locally replaced by using knives<br />

or axing that disturb the trees.<br />

Intercropping - Careful planning is needed to ensure<br />

an optimal planting of coffee trees with food crops. For<br />

example, beans should be the bunch variety and not the<br />

climbing variety that are heavy feeders and can compete<br />

with the coffee tree. Banana has long routes that can take<br />

nutrition away from the coffee tree. Planting maize with<br />

coffee trees is not a good idea as the maize will practically<br />

suffocate the coffee. Fertilization should consider the need<br />

for all the crops and not for coffee alone. Bananas need<br />

sunshine and should be planted in the more exposed<br />

areas while coffee trees require at least 50% shade. In<br />

the lowlands area banana is more important while in the<br />

highlands coffee is more important. <strong>Coffee</strong> farmers need<br />

to be sensitized that that a well-managed garden can<br />

provide a moderate shade for coffee without affecting the<br />

growth of the bananas which should be planted where<br />

there is most light.<br />

Price and Processing at Farm level - According to local<br />

estimates, almost 50% of the coffee is sold as red cherries<br />

to washing stations and dealers who pulp and dry the<br />

product 2 .<br />

2 - Currently red cherries are sold at UGX 900/kg while the price<br />

of dry parchment coffee ranges between USH 4000 to USH 5000. Considering<br />

that on average 55% of the red cherry is pulp and mucilage, the red<br />

cherry price is equivalent to selling the parchment at half price.<br />

60 50th Anniversary Edition


The highland farmers are generally poorer than lowland<br />

farmer with less income generation alternatives and resort<br />

more frequently to selling red cherries. Labour shortage,<br />

need for cash, and the poor accessibility to working<br />

pulpers further compel the farmers to sell the red cherries<br />

before transforming them into parchment. The pulpers<br />

used in the region are predominantly manufactured by<br />

Bental fabricated some 50 years ago. According to one<br />

estimate, the ratio of hand pulpers to farmers is about<br />

1:50. Many farmers do not have access to such devices<br />

and must pay UGX 10,000 per day to borrow a pulper from<br />

a neighbour.<br />

<strong>Coffee</strong> inter-planted with banana.<br />

Good drum or disk hand pulpers are currently very<br />

expensive (over UGX 2 million for a Brazilian type from<br />

Pinhalense). The cheaper chain driven Chinese or Indian<br />

types are available in Mbale at UGX 700,000 but they are<br />

fragile and do not last for a long time. The spares are rarely<br />

available.<br />

It should be added that hand pulping of red cherries<br />

at farm level has a number of disadvantages as it is not<br />

possible to have full control on the processing conditions<br />

by each individual farmer in terms of the pulping<br />

efficiency, quality of the water used, fermentation and<br />

drying all of which affect the quality of coffee. The old and<br />

worn-out hand-pulpers (some dating from 50 years ago)<br />

nip the beans, are inefficient and have a poor parchment<br />

turnout. A hand count revealed that almost 10% of the<br />

cherries are not pulped and there is a lot of parchment<br />

mixed up with the pulp.<br />

The use of unclean water and uncontrolled fermentation<br />

methods increase the risk of contamination. <strong>Coffee</strong> is<br />

washed after a-two-day fermentation by using baskets<br />

that are taken to nearby streams for washing. The<br />

environmental pollution during the pulping season is<br />

very significant with many streams brownish and dirty.<br />

A young woman has borrowed a pulper for her father.<br />

Drying - The weather conditions for drying is also a<br />

big challenge, more so in the highland, because of the<br />

frequency of the rains especially during the first two<br />

months of the season when rains are very frequent. The<br />

most common method is drying on tarpaulin sheets<br />

recovered from World Food Programme (WFP) tents. Local<br />

dealers buy the wet parchment with 30-40% moisture<br />

from the farmers and dry them in the trading centres<br />

thereby adding value and earning between UGX 200 to<br />

500 extra per kg.<br />

The traditional use of raised tables using rollable papyrus<br />

mats are unfortunately more and more infrequent.<br />

The bulking of parchment by the dealers who buy wet<br />

parchment from the farmers and dry it in trading centres<br />

leads to a non-homogeneous product which subsequently<br />

attracts a lower price at the international market.<br />

An old (1930) Bental hand pulper used by a farmer in<br />

the mountain near Namuserere.<br />

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The unpredictable weather, drying on the ground, and<br />

dust all affect the quality.<br />

Rural Roads<br />

Walking in the mountain towards the end of the rainy<br />

season showed the poor state of the roads. Some of the<br />

best coffee growing areas are not reachable by trucks<br />

and the produce must be carried by motorcycles or<br />

on head. Many of the existing roads are not drivable<br />

during the rainy season. Some communities are totally<br />

disconnected to the road network.<br />

Tarpaulin sheet on the ground used for drying<br />

parchment coffee (Budadiri).<br />

Financial Services for Farmers - Financial services<br />

offered by the commercial banks are unavailable at<br />

the local level. Farmers who need a bank account have<br />

to go to Mbale and operate a personal account at a<br />

commercial bank purely for receipts and payments<br />

which are also provided by the mobile money service<br />

providers. However, the critical requirement is adapted<br />

agricultural loans, adapted savings services, and<br />

micro-insurance which are not provided by banks or<br />

mobile money providers. Seasonal loans are needed<br />

to buy inputs, simple tools for pruning, de-stumping<br />

and labour. Labour is required for picking, pulping,<br />

washing, spraying etc. which is highly required at the<br />

end of March and beginning of April when application<br />

of fertilizers and weeding is done. Because of lack of<br />

adequate security and regular income, most banks<br />

shy away from lending to farmers and the existing<br />

agricultural credit schemes are difficult to access for<br />

most smallholders.<br />

Traditional Papyrus mat and table for drying coffee<br />

used by a lead farmer (rarely seen nowadays).<br />

The use of unclean water and<br />

uncontrolled fermentation methods<br />

increase the risk of contamination. <strong>Coffee</strong><br />

is washed after a-two-day fermentation<br />

by using baskets that are taken to nearby<br />

streams for washing. The environmental<br />

pollution during the pulping season<br />

is very significant with many streams<br />

brownish and dirty.<br />

Stuck on the Budadiri Namuserere road.<br />

62 50th Anniversary Edition


III<br />

Towards Solutions<br />

Without a doubt the above-mentioned<br />

issues have and continue to hamper<br />

coffee production, processing and above<br />

all coffee quality. What is required is to<br />

ensure that the smallholders, who are<br />

the foundation of the coffee sector, are<br />

empowered and supported so that the<br />

rest of the edifice does not collapse. The<br />

farmer-first strategy proposed below<br />

is therefore inspired from the author’s<br />

experience and conviction that without<br />

major investments in building the<br />

smallholders capacity and income, the<br />

coffee sector and coffee production are<br />

likely to decline and deteriorate in the<br />

near future.<br />

Improved and Sustainable <strong>Coffee</strong><br />

Production<br />

To increase and improve sustainable coffee<br />

production, the two principal ingredients<br />

are farmer education and access to tools<br />

and inputs. In providing farmer education,<br />

there is need for a radical break with the<br />

old centralized top down training and<br />

visit (T&V) system where technology<br />

was supposed to be transferred from<br />

research stations via the extension agent<br />

to the farmer in a one-way flow and<br />

where the extension agent is the supplier<br />

of knowledge. A modification of this<br />

approach into a “demand driven” system<br />

is also not satisfactory because “demand<br />

“ requires awareness of what should be<br />

demanded which may not be there and,<br />

even worse, the demand is expected<br />

to be supplied by the government<br />

extension agents. This centralized and<br />

non-participatory lecturing approach has<br />

proven costly and ineffective. In <strong>Uganda</strong>,<br />

for example, coffee extension is the<br />

responsibility of UCDA which has 1 agent<br />

for over 50,000 farmers and in most coffee<br />

farmers have never seen any extension<br />

agent.<br />

A more cost-effective and sustainable<br />

approach is the Farmer Field School (FFS)<br />

which involves empowering the farmer<br />

to remove the dependency on external<br />

expertise and develop the capability<br />

of generating, adopting and extending sustainable<br />

agriculture within the localities where they make their<br />

livelihoods. In FFS, farmers take the roles of experts,<br />

trainers, and researchers. The FFS is a group of farmers<br />

organized under a lead or advanced farmer and supervised<br />

by a especially trained external facilitator to motivate<br />

and guide the discussion towards factors affecting<br />

coffee production, methods for addressing soil fertility,<br />

crop yield, environmental protection, disease and pest<br />

control, and other issues of common interest including<br />

networking, marketing and business management<br />

based on experiments, observations and analysis. It is an<br />

application of the principal that information is highest<br />

at the lowest level and where “truth” emerges through<br />

conversation and consensus and not through imposition<br />

of the theoretical views of researchers or extension<br />

workers. The FFS generates recommendations through a<br />

group consensus for developing the best locally adapted<br />

and site-specific agricultural practices through farmer’s<br />

own discovery.<br />

Such an approach has already been applied in 87 countries<br />

including <strong>Uganda</strong>. The approach was introduced<br />

originally in 1986 by Food and Agricultural Organisation<br />

(FAO) for Integrated Pest Management in Indonesia with<br />

successful and encouraging results. Tanzania and Kenya<br />

have integrated the FFS methods in their extension<br />

systems. The FFS method was used effectively in <strong>Uganda</strong><br />

in 1999 to 2002 period in a number of districts for fighting<br />

against the Banana Wilt Disease. Although HE President<br />

Museveni in a 2008 speech directed all government<br />

agencies involved in agriculture to actively implement the<br />

FFS methodology, not much has happened since. FAO has<br />

been active using this approach in disaster areas but not<br />

in coffee growing or more agriculturally active areas.<br />

A more cost-effective and sustainable<br />

approach is the Farmer Field School<br />

(FFS) which involves empowering the<br />

farmer to remove the dependency on<br />

external expertise and develop the<br />

capability of generating, adopting<br />

and extending sustainable agriculture<br />

within the localities where they make<br />

their livelihoods.<br />

50th Anniversary Edition<br />

63


Through the FFS as the driving vehicle, the<br />

lead farmers (here understood as farmers<br />

with established coffee nurseries) should<br />

be supported to expand their nurseries to<br />

a minimum of 40,000 seedlings for coffee<br />

and 10,000 for shade trees. Extension<br />

packages should be made available for<br />

experimentation and adaptation after<br />

practical field trials by the farmers through<br />

the FFS on shading, mulching, composting,<br />

stumping, pruning, pest and disease<br />

control, and best intercropping practices<br />

for improved overall farm and business<br />

management. Through an MOU with the<br />

lead farmer, he/she could offer land and<br />

labour and volunteer to host the school<br />

in exchange for donor or government<br />

investment for a training hall, plant<br />

materials, lab facilities, power, curriculum,<br />

printed material, and other training<br />

requirements for a field school. The FFS<br />

could also be designed as a company for a<br />

one-stop-shop with a store for supplying<br />

inputs and tools such as sprayers, pruning<br />

scissors, seeds, and chemicals linked to<br />

a financial institution, cooperative or a<br />

microfinance organization.<br />

The normal duration of the FFS is a full<br />

year after which farmer students graduate<br />

and new farmers can be admitted. There<br />

should be small school fee to cover the<br />

operating costs of the school operated by<br />

the lead farmer. In many cases, graduates<br />

are found to become influential members<br />

of their community due to their superior<br />

knowledge. An unintended but positive<br />

consequence of FFS implementation has<br />

been the emergence of FFS Network of the<br />

graduates in various countries including<br />

<strong>Uganda</strong>. These networks provide a number<br />

of benefits such as advocacy for farmer<br />

empowerment and women, information<br />

sharing on marketing opportunities, and<br />

bulking for the purchase of inputs.<br />

At least nine FFS networks in Eastern Africa support about<br />

2,000 FFSs with close to 50,000 direct beneficiaries 3 . The<br />

FFS and the networks are particularly encouraging in<br />

terms of strengthening the role of women and could be<br />

used for promoting the Women in <strong>Coffee</strong> agenda.<br />

Improved Ecological Processing Capacity<br />

Farm level coffee processing can be substantially<br />

improved through the establishment of mechanized<br />

Eco-Pulper Units (EPUs) located in key trading centres<br />

in coffee growing districts. The eco-pulpers can increase<br />

value addition for farmers, substantially accelerate<br />

coffee processing and quality resulting in mostly P-grade<br />

coffees, minimize environmental pollution of water<br />

bodies and streams currently used for washing coffee,<br />

provide a controlled and quick drying facility, reduce and<br />

eliminate the risks of coffee contamination, and allow the<br />

mucilage, currently dissolved in water and wasted, to be<br />

collected mechanically without fermentation for sale to<br />

the pharmaceutical industry as pectin. The eco-pulper<br />

units can further establish vermicomposting areas for the<br />

transformation of the pulp into organic fertilizer that will<br />

be made available to coffee farmers to replace chemical<br />

fertilizer usage.<br />

Donor and government funds would be mobilized<br />

for the establishment of enterprises through public/<br />

private partnership. Commercial operators (SMEs) and<br />

local communities should be supported by donor and<br />

government funds to this end. The donors have an<br />

interest in supporting such investments due to the high<br />

economic returns and the externalities in terms of poverty<br />

alleviation and reduction in environmental pollution.<br />

The local commercial entrepreneurs can enter into a<br />

partnership with a local community for the allocation<br />

of land while the investor together with the donor can<br />

build the required building and purchase the machinery.<br />

With preliminary estimates, such an enterprise can be<br />

established at the cost of about $ 50,000 for a 1MT/hour<br />

pulping capacity or an actual low cost of only $ 5000/year<br />

in terms of depreciation value.<br />

3 - Federating Farmer Field Schools in Networks for Improved Access<br />

to Services, siteresources.worldbank.org/INTARD/.../Module3-IAP2.<br />

pdf, A. Braun, G. Khisa, D. Duveskog, K. Davis.<br />

TheFFSandthenetworksareparticularlyencouragingintermsof<br />

strengthening the role of women and could be used for promoting the<br />

Women in <strong>Coffee</strong> agenda.<br />

64 50th Anniversary Edition


The operating costs for such a unit can range<br />

between $1500 and $ 3,000 depending on location<br />

and staff qualifications. The income is substantial<br />

as most farmers selling red cherries would most<br />

likely use the service at a fee.<br />

The unit must have a drying yard with green house<br />

for accelerated drying and a warehouse for storing<br />

parchment coffee. The service should be offered<br />

on a fee basis and not by buying the red cherries<br />

from the farmers as is practiced at present. The<br />

stored parchment can then be used as collateral<br />

for a line of credit to farmers who have brought<br />

their cherries to the station.<br />

Financial Services for <strong>Coffee</strong> Growers<br />

Financial services targeted to coffee farmers can<br />

be made available through collateral management<br />

of the parchment produced at the Eco-Pulping<br />

Units (EPUs). The farmers can store their dry<br />

parchment coffee at the warehouses adjacent<br />

to the EPUs and benefit from financial services<br />

securitized by the parchment coffee through<br />

standby arrangements with commercial banks.<br />

Moreover, the FFS Networks can be capitalized for<br />

offering microfinance services for consumption<br />

and business loans to farmers. Such microfinance<br />

arrangements may provide proximity services<br />

such as: (a) seasonal loans in-kind, (b) interest<br />

bearing and commitment based savings accounts,<br />

(c) life, health, and crop micro-insurance products,<br />

and (d) improved financial literacy for the farmers.<br />

Expanding the Domestic Consumption Market<br />

through Roasting and Tasting<br />

Individual farmers, dealers and local exporters<br />

have difficulty in roasting and cup tasting their<br />

own coffees before sale. This limits their ability to<br />

negotiate and know their coffee. Additionally, most<br />

<strong>Uganda</strong>ns, including many from coffee growing<br />

areas, have never roasted coffee and don’t know<br />

how to do it. In most hotels, even in Kampala, the<br />

common coffee is the instant coffee especially<br />

Nescafe. It is also amusing to find that on many<br />

official occasions, including those supported by<br />

UCDA; the guests are served imported Nescafe or<br />

other instant coffees.<br />

supply and expand the domestic coffee market. Hotel and<br />

restaurant owners need to be educated about <strong>Uganda</strong>n<br />

coffee and why they should be keen to serve fresh<br />

<strong>Uganda</strong>n and not instant coffee. The author experimented<br />

with a blend of Robusta and Arabica medium roasted<br />

and ground to the point of becoming like flour (so-called<br />

Turkish grind). The coffee dissolves in water to a high<br />

extent leaving only a small amount of fine residue in the<br />

cup and it can easily substitute instant coffee.<br />

Roasting units should be installed to provide coffee<br />

roasting and packaging services for the public at an<br />

affordable cost. This facility will enable the capable local<br />

farmers to sell roasted coffee, green cleaned coffee as well<br />

as parchment if they wish. Local businesses may buy green<br />

coffee and roast it at such facilities for sale in their shops<br />

or nearby markets. This will support the local enterprises<br />

in many districts. Information exchange and coffee tours<br />

to the coffee growing areas for tourists can further make<br />

<strong>Uganda</strong>n coffee more visible to foreign visitors who will<br />

become the goodwill ambassadors of <strong>Uganda</strong>n coffee in<br />

their own countries.<br />

Conclusion<br />

T<br />

his article has tried to summarize the key constraints<br />

of coffee production in Mt Elgon and hopefully will<br />

trigger a useful debate on the topic. The key conclusion<br />

that needs to be emphasized is the gap between the great<br />

potential of coffee in Mt. Elgon and the actual production<br />

levels constrained by technical, financial, institutional and<br />

environmental factors. These constraints can be addressed<br />

only with far sighted vision and leadership based on<br />

a consistent and long term investment strategy in the<br />

smallholder economy, in new processing technologies,<br />

and market development. <strong>Uganda</strong>n farmers produce<br />

one of the best coffees in the world, let us not disappoint<br />

them! “<br />

To expand the domestic consumption market for<br />

<strong>Uganda</strong>n coffee, the first step is to make roasting<br />

easy and affordable in coffee growing areas and<br />

elsewhere. This can generate a vibrant roasted and<br />

ground coffee business based on locally grown<br />

coffees. A roasting plant that can roast for a fee for<br />

minimum quantities of about 25 kg on order can<br />

50th Anniversary Edition<br />

65


Appendixes<br />

Appendix 1<br />

<strong>Uganda</strong>’s <strong>Coffee</strong> Exports from 1964/65 - 2011/12.<br />

COFFEE QUANTITY VALUE<br />

AVG<br />

PRICE<br />

AVG PRICE<br />

No. No SEASON (60 Kg Bags) US $ US $/Kg US $/Kg<br />

1 1 64/65 2,158,736 76,820,312 0.59 0.27<br />

2 2 65/66 2,855,621 106,126,982 0.62 0.28<br />

3 3 66/67 2,637,862 146,548,850 0.93 0.42<br />

4 4 67/68 2,967,825 139,078,017 0.78 0.35<br />

5 5 68/69 2,670,201 162,473,613 1.01 0.46<br />

6 6 69/70 3,193,638 185,874,447 0.97 0.44<br />

7 7 70/71 3,032,609 130,818,018 0.72 0.33<br />

8 8 71/72 3,139,559 145,469,659 0.77 0.35<br />

9 9 72/73 3,677,100 175,549,153 0.80 0.36<br />

10 10 73/74 3,283,183 228,518,975 1.16 0.53<br />

11 11 74/75 2,861,399 175,337,140 1.02 0.46<br />

12 12 75/76 2,431,524 245,222,753 1.68 0.76<br />

13 13 76/77 2,449,737 558,512,578 3.80 1.72<br />

14 14 77/78 1,742,575 312,097,360 2.99 1.35<br />

15 15 78/79 2,353,031 389,108,354 2.76 1.25<br />

16 16 79/80 2,219,802 433,471,715 3.25 1.48<br />

17 17 80/81 1,973,458 230,463,637 1.95 0.88<br />

18 18 81/82 2,785,647 322,030,310 1.93 0.87<br />

19 19 82/83 2,194,888 295,259,322 2.24 1.02<br />

20 20 83/84 2,519,024 392,677,096 2.60 1.18<br />

21 21 84/85 2,500,031 367,591,092 2.45 1.11<br />

22 22 85/86 2,392,198 390,362,568 2.72 1.23<br />

23 23 86/87 2,280,206 308,594,658 2.26 1.02<br />

24 24 87/88 2,318,341 263,239,573 1.89 0.86<br />

25 25 88/89 3,114,396 294,867,882 1.58 0.72<br />

26 26 89/90 2,364,751 139,566,731 0.98 0.45<br />

27 27 90/91 2,085,004 121,343,113 0.97 0.44<br />

28 28 91/92 2,030,829 101,442,768 0.83 0.38<br />

29 29 92/93 2,088,642 108,873,991 0.87 0.39<br />

30 30 93/94 3,005,205 273,658,850 1.52 0.69<br />

31 31 94/95 2,792,753 432,651,034 2.58 1.17<br />

32 32 95/96 4,148,803 388,916,157 1.56 0.71<br />

33 33 96/97 4,237,114 355,126,641 1.40 0.63<br />

34 34 97/98 3,032,338 276,476,134 1.52 0.69<br />

35 35 98/99 3,647,989 282,995,511 1.29 0.59<br />

36 36 99/00 2,917,257 164,763,789 0.94 0.43<br />

37 37 00/01 3,074,773 104,776,424 0.57 0.26<br />

38 38 01/02 3,146,381 83,936,951 0.44 0.20<br />

39 39 02/03 2,663,888 104,787,094 0.66 0.30<br />

40 40 03/04 2,523,042 115,705,844 0.76 0.35<br />

41 41 04/05 2,504,890 162,146,235 1.08 0.49<br />

42 42 05/06 2,002,324 170,362,075 1.42 0.64<br />

43 43 06/07 2,704,236 256,580,844 1.58 0.72<br />

43 44 07/08 3,211,256 388,412,769 2.02 0.91<br />

44 45 08/09 3,054,848 291,832,877 1.59 0.72<br />

45 46 09/10 2,668,971 266,673,061 1.67 0.76<br />

47 10/11 3,149,423 448,890,669 2.38 1.08<br />

48 11/12 2,726,249 392,698,138 2.40 1.09<br />

Source: <strong>Uganda</strong> <strong>Coffee</strong> Development Authority<br />

66 50th Anniversary Edition


Appendix 2<br />

COFFEE EXPORTS BY DESTINATION FOR COFFEE YEAR 2011-12<br />

Quantity in 60 kilo Bags<br />

DESTINATION QUANTITY %age Mkt share<br />

2011-2012 2011-2012<br />

1 EU 1,828,300 67.06<br />

2 Sudan 427,573 15.68<br />

3 USA 106,489 3.91<br />

4 India 72,868 2.67<br />

5 Ecuador 65,291 2.39<br />

6 Switzerland 42,130 1.55<br />

7 Russia 34,101 1.25<br />

8 Morocco 20,347 0.75<br />

9 South Africa 18,931 0.69<br />

10 Vietnam 17,974 0.66<br />

11 Kenya 17,584 0.64<br />

12 Middle East 15,559 0.57<br />

13 Tunisia 14,607 0.54<br />

14 Egypt 8,973 0.33<br />

15 Algeria 7,988 0.29<br />

16 China 7,815 0.29<br />

17 Japan 7,059 0.26<br />

18 Australia 7,040 0.26<br />

19 Taiwan 2,800 0.10<br />

20 Singapore 1,540 0.06<br />

21 Mexico 960 0.04<br />

22 Hongkong 320 0.01<br />

Total 2,726,249 100.00<br />

Source: <strong>Uganda</strong> <strong>Coffee</strong> Development Authority<br />

50th Anniversary Edition<br />

67


Appendix 3<br />

COFFEE EXPORTERS’ PERFORMANCE FOR 2011/12 - QUANTITY 60KG BAGS AND VALUE USD<br />

Robusta Arabica Total<br />

Quantity Value Quantity Value Quantity Value<br />

Ugacof(U) Ltd 368,964 41,871,687 60,905 11,369,163 429,869 53,240,850<br />

Kyagalamyi coffee Ltd 198,236 22,473,896 190,722 35,216,529 388,958 57,690,425<br />

Olam (U) Ltd 281,658 34,119,738 49,558 10,407,374 331,216 44,527,112<br />

Kawacom (U) Ltd 78,953 9,806,408 175,209 37,434,105 254,162 47,240,513<br />

Ibero (U) Ltd 150,759 18,583,399 18,301 4,307,855 169,060 22,891,254<br />

Job <strong>Coffee</strong> 79,228 9,768,329 74,762 14,764,409 153,990 24,532,738<br />

Kampala Domestic Stores 143,266 14,548,243 350 43,982 143,616 14,592,225<br />

Savannah Commodities 82,300 9,327,688 45,805 8,726,717 128,105 18,054,406<br />

Greatlakes Co. Ltd 14,420 1,734,115 96,348 23,907,789 110,768 25,641,904<br />

Panafric Impex(U) Ltd 94,980 12,143,550 94,980 12,143,550<br />

Lakeland Holdings 39,563 4,470,242 21,100 3,756,189 60,663 8,226,431<br />

Nakana <strong>Coffee</strong> Factory 58,910 7,569,988 58,910 7,569,988<br />

Penform Trading Ltd 53,972 6,609,617 1,900 218,520 55,872 6,828,137<br />

LD Commodities (U) Ltd 44,101 5,502,461 10,499 2,053,584 54,600 7,556,045<br />

Armajaro <strong>Uganda</strong> Limited 46,519 6,302,523 46,519 6,302,523<br />

Kamba Petroleum 26,374 2,863,109 16,928 3,467,523 43,302 6,330,631<br />

Kitasha <strong>Coffee</strong> Buyers 37,097 4,260,193 37,097 4,260,193<br />

Mbale Importers & Exporters 6,412 779,390 15,260 3,293,131 21,672 4,072,522<br />

Ankole <strong>Coffee</strong>Producers 20,866 2,151,482 286 61,879 21,152 2,213,361<br />

Kisuule A & Sons 17,168 2,070,082 17,168 2,070,082<br />

Wabulungu MultPurpose 12,760 1,605,213 3,674 952,599 16,434 2,557,812<br />

Risala (U) Ltd 12,968 1,331,904 1,332 126,858 14,300 1,458,762<br />

BakwanyeTrading Ltd 654 87,429 12,080 2,467,635 12,734 2,555,064<br />

Gumutindo <strong>Coffee</strong>Coop 11,580 2,855,065 11,580 2,855,065<br />

<strong>Coffee</strong> Services 7,973 625,275 3,151 715,292 11,124 1,340,567<br />

Ankole <strong>Coffee</strong> Processors 8,168 1,040,625 2,720 507,358 10,888 1,547,983<br />

Zigoti<strong>Coffee</strong>Works Ltd 5,938 773,360 5,938 773,360<br />

Kaweri <strong>Coffee</strong> Plantation 4,320 594,925 4,320 594,925<br />

Nile Highlands 3,500 809,301 3,500 809,301<br />

Bukonzo Joint Co-op 166 16,439 1,754 466,176 1,920 482,615<br />

AndersonInvestments 1,600 183,599 320 91,006 1,920 274,605<br />

Export Trading Co. Ltd 1,920 264,129 1,920 264,129<br />

<strong>Coffee</strong> World Ltd 980 123,414 640 96,509 1,620 219,922<br />

Commodity Solutions 1,368 179,271 1,368 179,271<br />

Green Holdings 1,280 198,943 1,280 198,943<br />

Budadiri Arabica <strong>Coffee</strong> 960 175,028 960 175,028<br />

Qualicoff (U) Ltd 700 74,139 700 74,139<br />

KabumTrading Ltd 640 151,332 640 151,332<br />

Gatto Estates 250 31,416 288 24,577 538 55,992<br />

TransgazCompany Ltd 345 44,723 345 44,723<br />

Katuka Development Trust Ltd 320 44,021 320 44,021<br />

Masai Tours & Travel Ltd 221 55,689 221 55,689<br />

Total 1,904,176 223,976,023 822,073 168,722,115 2,726,249 392,698,138<br />

Source: <strong>Uganda</strong> <strong>Coffee</strong> Development Authority<br />

68 50th Anniversary Edition


Appendix 4<br />

UGANDA COFFEE EXPORTS BY GRADE - 2011-12<br />

QUANTITY IN 60-KILO BAGS; VALUE IN USD$ and UNIT VALUE IN US $/KILO<br />

GRADE QUANTITY VALUE UNIT VALUE<br />

TOTAL 2,726,249 392,698,138 2.40<br />

ROBUSTA 1,904,176 223,976,023 1.96<br />

1 ORG ROBUSTA 6,770 841,500 2.07<br />

2 WASHED ROB 10,239 1,377,595 2.24<br />

3 UTZ ROBUSTA 990 137,545 2.32<br />

4 SCREEN 18 236,315 30,471,309 2.15<br />

5 SCREEN 17 85,100 10,783,739 2.11<br />

6 SCREEN 15 941,857 116,726,527 2.07<br />

7 SCREEN 14 5,700 671,036 1.96<br />

8 SCREEN 13 334 39,762 1.98<br />

9 SCREEN 12 325,877 37,967,855 1.94<br />

10 OTHER ROB 290,994 24,959,155 1.43<br />

ARABICA 822,073 168,722,115 3.42<br />

11 SPECIALITY 640 227,049 5.91<br />

12 SIPI FALLS 1,060 306,695 4.82<br />

13 BUGISU B 766 221,532 4.82<br />

14 BUG RFA 320 88,889 4.63<br />

15 OKORO AA 1,000 274,764 4.58<br />

16 ORG WUGAR 2,448 660,396 4.50<br />

17 BUGISU C 2,480 645,719 4.34<br />

18 ELGON A 3,040 768,263 4.21<br />

19 ORG BUGISU 7,700 1,937,399 4.19<br />

20 ARA-C/PB 2,480 617,901 4.15<br />

21 WHITE NILE 5,650 1,401,702 4.13<br />

22 BUGISU SUSTAINABLE 1,600 383,495 3.99<br />

23 BUGISU AA 72,306 17,292,782 3.99<br />

24 BUGISU A 14,560 3,415,596 3.91<br />

25 RWENZORI 474 109,348 3.84<br />

26 SUPREMO 2,520 576,194 3.81<br />

27 BUGISU PB 8,988 2,047,155 3.80<br />

28 MT.ELGON 16,084 3,643,367 3.78<br />

29 ORG -DRUGAR 6,478 1,445,068 3.72<br />

30 WUGAR 44,264 9,813,030 3.69<br />

31 BUGISU AB 38,554 8,364,285 3.62<br />

32 ORG-OKORO 3,414 733,219 3.58<br />

33 DRUGAR 475,747 100,026,017 3.50<br />

34 BUGISU A+ 12,725 2,643,578 3.46<br />

35 BUGISU SU 1,380 262,899 3.18<br />

36 OKORO 1,740 301,907 2.89<br />

37 OKORO A 4,620 733,338 2.65<br />

38 MIXED ARA 3,040 461,908 2.53<br />

39 OTHER ARA 85,995 9,318,621 1.81<br />

Source: <strong>Uganda</strong> <strong>Coffee</strong> Development Authority<br />

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Appendix 5<br />

SELECTED UGANDA FORMAL EXPORTS BY QUANTITY AND VALUE (USD $ ‘000) 2007 - 2011<br />

Unit 2007 2008 2009 2010 2011 5-Yr Totals<br />

Traditional Exports Units<br />

Value<br />

US$<br />

Units Value US$ Units Value US$ Units Value US$ Units<br />

Value<br />

US$<br />

Units Value US$<br />

<strong>Coffee</strong> Tonne 164,540 265,853 200,640 403,179 181,324 280,209 159,433 283,891 188,623 466,659 894,560 1,699,791<br />

Tobacco Tonne 26,384 66,301 29,042 66,448 32,000 57,170 32,373 68,662 28,402 53,981 148,201 312,562<br />

Tea Tonne 44,015 47,629 46,022 47,222 44,446 59,761 54,555 68,263 55,650 72,126 244,688 295,001<br />

Cotton Tonne 16,230 19,571 7,960 13,214 17,888 23,186 11,891 19,919 25,587 86,011 79,556 161,901<br />

Non - Traditional<br />

Exports<br />

Fish and Fish Products Tonne 31,681 124,711 24,965 124,436 21,501 103,372 23,376 127,651 21,552 136,218 123,075 616,388<br />

Petroleum Products 000Litres 87,148 38,553 97,365 48,183 106,562 99,314 80,369 72,388 112,637 104,369 484,081 362,807<br />

Cement Tonne 99,483 19,104 325,155 77,504 390,344 82,796 361,716 71,358 502,378 94,025 1,679,076 344,787<br />

Telephone for Cellular Tonne 522 40,720 781 69,209 548 58,846 863 78,687 1,675 126,117 4,389 373,579<br />

Iron & Steel Tonne 43,674 40,469 54,525 64,394 55,246 55,787 50,629 52,656 65,524 75,507 269,598 288,813<br />

Animal/Veg Fats & Oils Tonne 47,474 62,850 37,694 46,121 44,950 49,519 51,633 55,181 70,791 101,111 252,542 314,782<br />

Sugar & Confectionary Tonne 72,772 33,451 88,959 39,611 91,967 45,224 99,139 60,169 110,469 81,872 463,306 260,327<br />

Beer 000 Litres 45,922 23,049 58,950 40,032 38,541 30,203 23,601 20,914 23,932 23,306 190,946 137,504<br />

Maize Tonne 101,233 23,816 66,671 18,250 94,440 29,066 166,251 38,206 89,246 26,752 517,841 136,090<br />

Cocoa beans Tonne 9,404 15,936 8,982 22,834 11,882 27,829 16,478 35,121 17,936 44,546 64,682 146,266<br />

Roses & Cut flowers Tonne 5,267 22,782 5,349 28,790 3,910 26,275 3,727 22,474 3,436 21,457 21,689 121,778<br />

Gold & Gold<br />

Components<br />

Kg 3,602 65,783 2,055 50,746 931 23,097 918 30,077 163 6,795 7,669 176,498<br />

70 50th Anniversary Edition


Rice Tonne 24,739 6,950 25,426 10,435 38,289 16,736 33,323 16,456 38,254 18,442 160,031 69,019<br />

Beans & other Legumes Tonne 22,532 10,099 37,211 17,630 38,140 14,720 24,417 10,200 35,920 20,428 158,220 73,077<br />

Sesame seeds Tonne 5,945 5,447 14,154 15,884 12,107 13,369 12,065 12,882 14,841 17,318 59,112 64,900<br />

Electric current 000Kwh 65,927 8,696 65,368 10,870 82,041 13,172 75,401 12,505 87,738 16,317 376,475 61,560<br />

Cobalt Tonne 684 17,325 1,949 20,033 1,616 11,748 723 18,120 669 17,647 5,641 84,873<br />

Soap Tonne 28,109 14,324 23,081 17,003 17,172 10,878 32,314 18,835 29,518 26,162 130,194 87,202<br />

Plastic Products Tonne 9,153 9,724 6,052 13,099 6,558 10,188 7,612 10,096 9,122 18,469 38,497 61,576<br />

Water 000 Litres 2,142 6,124 5,021 8,916 3,136 7,500 12,178 7,404 21,218 5,475 43,695 35,419<br />

Cattle hides Tonne 20,942 18,114 13,042 12,518 5,160 5,996 10,869 17,061 22,635 33,067 72,648 86,756<br />

Vegetables Tonne 2,269 3,187 3,329 4,375 3,706 5,146 3,271 4,290 3,720 3,484 16,295 20,482<br />

Vanilla Tonne 422 6,262 192 3,039 254 4,908 235 4,352 135 2,957 1,238 21,518<br />

Live animals ,000 23 1,551 95 1,822 198 3,908 7 3,985 148 1,654 471 12,920<br />

Soya beans Tonne 5,798 1,331 3,250 1,536 2,630 1,076 918 294 1,579 875 14,175 5,112<br />

Fruits Tonne 7,361 1,976 3,114 5,332 3,290 932 2,904 722 3,682 1,443 20,351 10,405<br />

Hoes & Hand tools ,000 55 1,117 239 649 333 780 142 545 53 298 822 3,389<br />

Pepper Tonne 194 256 304 580 320 617 111 496 314 1,218 1,243 3,167<br />

Other Precious Metals kgs 4 43 10 481 7 166 283 429 139 426 443 1,545<br />

Bananas Tonne 1,151 430 396 211 695 118 471 128 761 255 3,474 1,142<br />

Ground nuts Tonne 101 148 30 28 66 69 88 88 299 163 584 496<br />

Other Products 312,987 419,686 393,931 374,099 452,126 0 1,952,829<br />

Total Exprts (USD) 1,336,669 1,724,300 1,567,612 1,618,604 2,159,076 8,406,261<br />

Source: Statistical Abstracts - <strong>Uganda</strong> Bureau of Statistics (UBOS)<br />

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WHAT IS<br />

our vision<br />

To have sustainable<br />

coffee production and<br />

trade in <strong>Uganda</strong><br />

UCF our mission<br />

Engage and work with all<br />

stakeholders [esp. UCDA, NUCAFE,<br />

COREC] in the coffee industry<br />

to promote sustainable coffee<br />

production and trade<br />

our goal<br />

Sustain and increase volumes and quality of<br />

traded coffee<br />

The UCF caters for the interests of all those<br />

involved in every branch of the coffee industry<br />

in <strong>Uganda</strong>, providing a forum for discussion<br />

of all issues that affect the coffee trade in<br />

<strong>Uganda</strong>. The cardinal aims of the federation are<br />

to provide representation of all key players in<br />

the coffee trade in <strong>Uganda</strong> in all matters that<br />

pertain to their operations and to provide a<br />

common forum for private sector interests in<br />

the coffee industry in <strong>Uganda</strong>.<br />

strategic objectives that will underpin<br />

the association plans:<br />

1. Efficient, effective and profitable operations of members’<br />

businesses.<br />

2. Increased volume and quality of coffee produced,<br />

processed and exported.<br />

3. Professional competition, good camaraderie and industry<br />

cohesion.<br />

4. Relevant, accessible and unique intelligence <strong>Uganda</strong><br />

coffee value chain information.<br />

72 50th Anniversary Edition


UCTF MEMBER BENEFITS<br />

The federation has set up a system aimed at<br />

rendering a range of services to its members,<br />

which include.<br />

• Facilitating policy dialogue on coffee related issues on behalf of the<br />

coffee trade and industry in <strong>Uganda</strong>. We monitor policy trends and<br />

ensure that the interests of the sector are taken care of through a<br />

constructive consultation process.<br />

• Coordination of trade related issues on behalf of the coffee industry for<br />

the benefit of members<br />

• Provision of vital trade information that is critical to the trade activitiesss<br />

of the members. We also publish the <strong>Coffee</strong> Year Book, <strong>Uganda</strong> <strong>Coffee</strong><br />

News and a monthly newsletter.<br />

• Provide Networking opportunities for members through such activities<br />

as the CEO Forum, dinners and other special events.<br />

• Coordination of training –aimed at enhancing the skills of its members<br />

in coping with the challenges of the liberalized coffee trade locally and<br />

internationally (areas including marketing quality and documentation.<br />

Beneficiaries have included managers, marketing executives, quality<br />

controllers, local coffee roasters, as well as hotel and restaurant<br />

operators.<br />

• Technical advice on coffee related matters.<br />

• Programmes aimed at enhancing the quality of <strong>Uganda</strong>n <strong>Coffee</strong><br />

including monitoring of members adherence to the UCTF code of<br />

conduct.<br />

• Arbitration services aimed at resolving disputes regarding contracts<br />

entered into locally by UCTF members or other parties (in the coffee<br />

business) who may choose to use such services.<br />

• Promotion of <strong>Uganda</strong> coffee:- Did you know that the <strong>Uganda</strong> <strong>Coffee</strong><br />

home-page developed in 1995, was one of the first web pages on<br />

<strong>Uganda</strong>? Did you know that UCTF hosted the first ever internet <strong>Coffee</strong><br />

Tasting session in the world, between Kampala and Washington D.C?<br />

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UCF MEMBERSHIP PROFILE<br />

1. ORDINARY MEMBERS / COFFEE EXPORTERS<br />

Name ARMAJARO UGANDA LIMITED<br />

Address P.O. BOX 14625<br />

Location Plot 2219/2377, Bweyogerere Kampala<br />

Telephone +256 414 285842<br />

Fax +256 414 285684<br />

Email<br />

Guy.Speakman@armajaro.com<br />

Contact Mr. Guy Speakman-Country Manager.<br />

Name EXPORT TRADING COMPANY (U) LTD<br />

Address P.O. Box 21679 Kampala<br />

Location Plot 26/27 Namanve Industrial Park<br />

Telephone +256 414 254642<br />

Fax +256 414 254645<br />

Email<br />

mukesh.halai@etgworld.com<br />

Contact Mr. Mukeshi Halai<br />

Trade Exporter<br />

Name JOB COFFEE LTD<br />

Address P.O Box 4152, Kampala<br />

Location Plot 555/7, Kawempe Industrial Area<br />

Telephone +256 414 255914/ 312 262993<br />

Fax +256 414 251783<br />

Email<br />

jobcoffee@infocom.co.ug / jobcoffee@<br />

yahoo.com<br />

Contact Mr. Ayub Kalule - Managing Director<br />

Name KAMPALA DOMESTIC STORES<br />

Address P.O Box 25604 Kampala<br />

Location 6/8 Nyondo Close, Bugoloobi Industrial<br />

Area<br />

Telephone +256 414 235597<br />

Fax +256 414 235304<br />

Email<br />

kds@infocom.co.ug<br />

Contact Mr. Ishak K. Lukenge - Managing Director<br />

Name GREAT LAKES COFFEE COMPANY<br />

LIMITED<br />

Address P.O. Box 27198 Kampala<br />

Location Plot M289 Ntinda Industrial Area<br />

Telephone +256 414 286961<br />

Fax +256 364 286960<br />

Email<br />

glc@imul.com<br />

Contact Mr. Telis Nicolaides - Managing Director<br />

Name KAWACOM UGANDA LTD<br />

Address P.O Box 22623 Kampala<br />

Location Plot M284, Ntinda Industrial Area<br />

Kampala<br />

Telephone +256 414 22611/9<br />

Fax +256 414 505632/ 222612<br />

Email<br />

sales@kawacom.com<br />

Contact Mr. Roy Lugone - Managing Director<br />

Name IBERO (UGANDA) LTD<br />

Address P.O Box 23139, Kampala<br />

Location 7th Street Industrial Area<br />

Telephone +256 414 34 2621/9, 343629<br />

Fax +256 414 34 2646<br />

Email<br />

procurement@ibero.co.ug<br />

Contact Mr. Eugene Nsereko - Commercial and<br />

Operation Manager<br />

Name KAWERI COFFEE PLANTATIONS LTD<br />

Address P.O. Box 264 Mubende<br />

Location Plot 1 Kitemba, Mubende<br />

Telephone +256 362 600600<br />

Fax + +256 362 600610<br />

Email<br />

mail@kaweri.com<br />

Contact Mr. Jeremy P. Hulme – Managing Director<br />

74 50th Anniversary Edition


Name KYAGALANYI COFFEE LTD<br />

Address P.O Box 3181 Kampala<br />

Location Plot 1-3 Spring Road 5th Street Industrial<br />

Area<br />

Telephone +256 414 344021/ 251447<br />

Fax +256 414 230145<br />

Email<br />

kcl@kyagalanyi.com<br />

Contact Mr. David Barry - Managing Director<br />

Name LAKELAND HOLDINGS LTD<br />

Address P.O. Box 29129 Kampala, <strong>Uganda</strong><br />

Location Plot 9 3rd Street Industrial Area<br />

Telephone +256 414 345120<br />

Fax +256 414345113<br />

Email<br />

lakelandholdingsltd@yahoo.com<br />

Contact Mr. George Namude Bwire-Managing<br />

Director<br />

Name SAVANNAH COMMODITIES LTD<br />

Address P.O Box 6217 Kampala<br />

Location 4/5 Nyondo Close, Bugoloobi Industrial<br />

Area<br />

Telephone +256 414 252541<br />

Fax +256 414 258254<br />

Email<br />

savannah@infocom.co.ug<br />

Contact Mr. Hannington Karuhanga – Managing<br />

Director<br />

Name UGACOF LTD<br />

Address P.O Box 7355 Kampala<br />

Location Plot 246 Kireku, Bweyogerere<br />

Telephone +256 414 250024/25<br />

Fax +256 312 250020<br />

Email<br />

reception@ugacof.com<br />

Contact Mr. Micheal Nuwagaba<br />

Name LD COMMODITES LTD<br />

Address P.O. Box 35021 Kampala<br />

Location Plot 278/79 Ntinda Industrial Area,<br />

Kampala<br />

Telephone +256 414 285614<br />

Fax +256 414 286322<br />

Email<br />

matthiau.simian@ldcommodities.com<br />

Contact Mr. Matthiau Simian.<br />

Name OLAM (U) LTD<br />

Address P.O Box 23436 Kampala<br />

Location Plot 7/9 Mapeera Road, Nalukolongo<br />

Industrial Area- Kampala<br />

Telephone +256 414 566731/ 566886<br />

Fax +256 414 251013<br />

Email<br />

iyer.suresh@olamnet.com<br />

Contact Mr. Iyer Suresh- Managing Director<br />

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75


2. ALLIED MEMBERS<br />

Name Africa <strong>Coffee</strong> Academy<br />

Address P. O. Box 23648, Kampala, <strong>Uganda</strong><br />

Location Plot 31B Bandali Rise, Bugoloobi,<br />

Kampala<br />

Telephone +256 752 442480<br />

Fax +256 414 342082<br />

Email<br />

office@africacoffeeacademy.com<br />

Contact Mr. Robert W. Nsibirwa – President / CEO<br />

Trade <strong>Coffee</strong> Academy<br />

Name AUDIT CONTROL AND EXPERTISE (U)<br />

LTD<br />

Address P. O. Box 22749, Kampala, <strong>Uganda</strong><br />

Location Plot 31 Clement Hill Road, Kampala<br />

Telephone +256 414 233973/ 348425<br />

Fax +256 414 235471<br />

Email<br />

ace.uga@ace-group.net<br />

Contact Mr. Amos Tumwesigye, Country Manager<br />

Trade Collateral Managers / Credit Support<br />

Organisation<br />

Name EAGLE EYE AFRICA LTD<br />

Address P.O. BOX 25300<br />

Location Plot No. 83, 6th Street industrial Area.<br />

Telephone +256 414346625/6<br />

Fax +256 414346624<br />

Email<br />

ed@eagleyeafrica.com<br />

Contact Mr. Shahzad B. Tejani.<br />

Trade Organic growers.<br />

Name ICONA CAFE<br />

Address Principe De Vergara 136 2800 Z Madrid<br />

Country Madrid, Spain<br />

Telephone +3491 3837700<br />

Fax +3490 2337700<br />

Email<br />

iconacafe@iconacafe.com<br />

Contact Mr. Vicente Olazabal.<br />

Trade <strong>Coffee</strong> Buyer<br />

Name KENFREIGHT (U) LTD<br />

Address P.O. Box 7492 KAMPALA<br />

Location Plot 1906, Jinja Rd, Bweyogerere<br />

Telephone +256 041 287801/286955<br />

Fax +256 041 286950<br />

Email<br />

hpule@kenfreight.co.ug<br />

Contact Mr. Pule Humphrey.<br />

Trade Transport & Logistics<br />

Name SPEDAG INTERFREIGHT (U) LTD<br />

Address P.O. Box 4555 Kampala<br />

Location Plot 284 Nakawa Industrial Area, Kampala<br />

Telephone +256 414 505805/6<br />

Fax +256 414 505803<br />

Email<br />

Martin.Richner@spedaginterfreight.com<br />

Contact Mr. Martin J. Richner – Regional Exports<br />

Manager<br />

76 50th Anniversary Edition


Trade Transport & Logistics<br />

Name NK LOGISTICS (U) LTD<br />

Address P.O. Box 27188, Kampala<br />

Location Plot 1900 Block 216 Old Kira Road,<br />

Room 29<br />

Telephone +256 414 288372<br />

Fax +256 414 288373<br />

Email<br />

nk.logisticsuganda@yahoo.com<br />

Contact Mr. Steven Kintu- Managing Director<br />

Trade Transport & Logistics<br />

Name ORIENT BANK LTD<br />

Address P.O. Box 3072 Kampala<br />

Location Plot 6/6A, Kampala Road<br />

Telephone +256 414 236012-5<br />

Fax +256 414 348039<br />

Email<br />

mail@orient-bank.com<br />

Contact Mark Harwood – Executive Director<br />

Trade Commercial Bank<br />

Name<br />

Address<br />

Location<br />

STANBIC BANK<br />

P.O. Box 7131 Kampala<br />

Plot 17, Hannington Road - Crested<br />

Towers - Kampala<br />

Telephone +256 414 234710/11/13-24/+256 312 224<br />

111/600<br />

Fax +256 414 231116<br />

Email<br />

Trade<br />

ugandainfo@stanbic.com<br />

Commerical Bank<br />

Name TRANSAMI (U) LTD<br />

Address P.O. Box 5501 Kampala<br />

Location Plot M611 Ntinda Road<br />

Telephone +256 414 336000<br />

Fax +256 414 286458<br />

Email<br />

sdv.uganda@ug.dti.bollore.com<br />

Contact Koen Rombouts - Transport &<br />

Logistics Manager<br />

Trade Transport & Logistics<br />

50th Anniversary Edition<br />

77


Advertisers’ Index<br />

kawacom<br />

Inside Front Cover<br />

Spedag Interfreight Page 3<br />

Audit Control Services Page 5<br />

Stanbic Bank Page 8<br />

Ugacof Page 18<br />

Armajaro Page 25<br />

Job <strong>Coffee</strong> Page 36<br />

Cimbria Page 50<br />

Ibero Page 55<br />

Kyagalanyi<br />

UCDA<br />

Inside Back Cover<br />

Back Cover<br />

On Behalf of the Board, Members, and Management of <strong>Uganda</strong> <strong>Coffee</strong><br />

<strong>Federation</strong> (UCF), I Wish to Convey our Sincere Appreciation for your<br />

Support Towards the Publication of the <strong>Coffee</strong> Year Book 2011/2012 –<br />

Betty Namwagala - Editor.<br />

78 50th Anniversary Edition


50th Anniversary Edition<br />

79


<strong>Uganda</strong> <strong>Coffee</strong><br />

Development Authority<br />

VISION<br />

Making <strong>Uganda</strong><br />

a distinguished<br />

producer of<br />

high value coffee<br />

OBJECTIVES<br />

Promote, monitor and improve<br />

marketing of coffee to optimise foreign<br />

exchange and farmers’ earnings<br />

Ensure that the quality of coffee<br />

exports meet Internation standards<br />

Promote coffe as a value added product<br />

Promote domestic consuption of<br />

<strong>Uganda</strong> coffee<br />

Harmonise activities of coffee sub-sector<br />

associations in line with industry goals<br />

Policy analysis and developement<br />

MISSION<br />

To promote and oversee<br />

the development of the<br />

coffee sub-sector through<br />

production of clean planting<br />

materials, support to research,<br />

value addition, quality assurance<br />

and timely dissemination<br />

of market information to<br />

stakeholders<br />

SERVICES RENDERED<br />

Support coffee development through<br />

production extension services<br />

Identity priority areas for investment<br />

in the coffe industry<br />

Support production of clean planting<br />

materials through coffee research<br />

and nurseries development<br />

Provide price and production forecasts<br />

Register and license coffee sector players<br />

Maintain a register of sales contracts<br />

Provide regulatory and quality assurance<br />

services during buying, processing<br />

& marketing<br />

Promote coffee value addition<br />

If you have enjoyed <strong>Uganda</strong> <strong>Coffee</strong> tell others ...<br />

If not satisfied tell us:<br />

<strong>Coffee</strong> house,<br />

Plot 35, Jinja Road P.O. Box 7267, Kampala, <strong>Uganda</strong><br />

Tel: +256-41-4-256940, +256-31-2-260470 Fax: 256-41-4-232912<br />

80 E-mail:ucda@ugandacoffee.org website:http//www.ugandacoffee<br />

50th Anniversary Edition

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