International Trade Centre (ITC) is the joint agency of World

Trade Organisation and the United Nations. ITC assists

small and medium–sized enterprises in developing and

transition economies to become more competitive in global

markets, thereby contributing to sustainable economic

development within the framework of the Aid-for-Trade

agenda and the Millennium Development Goals.

NTF III Uganda Coffee project works in close

collaboration with:

National Union of Coffee

Agribusinesses and Farm Enterprises

(NUCAFE)

Uganda Coffee Development Authority

(UCDA)

Uganda Coffee Farmers Alliance

(UCFA)

PARTNERS IN UGANDA

P: +41 22 730 0111 F: +41 22 733 4439 E: itcreg@intracen.org www.intracen.org

Street address International Trade Centre 54-56 Rue de Montbrillant 1202 Geneva, Switzerland

Postal address International Trade Centre Palais des Nations 1211 Geneva 10, Switzerland

UGANDA Coffee Sector

For more information on our project, visit our page on the internet: http://www.intracen.org/itc/projects/ntf-3/UGANDA-COFFEE

The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations.

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ABOUT ITC

ABOUT CBI

The Centre for the Promotion of Imports from developing

countries (CBI) is an Agency of the Ministry of Foreign Affairs

of the Netherlands. CBI contributes to sustainable economic

development in developing countries through the expansion

of exports from these countries. This is done through

sustainably strengthening the competitive capacity of SME

exporters and producers in developing countries, focusing

mostly on European markets.

EXPORT SECTOR COMPETITIVENESS PROGRAMME

Netherlands Trust Fund Phase III

YOUR FOCAL POINTS

DARBARI Ritwija darbari@intracen.org

+41 22 730 01 03

Project Consultant – Uganda Coffee

Netherlands Trust Fund Programme

Phase III (NTF III)

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RANCHON, Adrien ranchon@intracen.org

+41 22 730 0322

Project Manager – Uganda Coffee

Netherlands Trust Fund programme

Phase III (NTF III)

NTF III Coffee in Uganda

Uganda is Africa’s second largest coffee producer, and the

largest coffee exporter. The coffee sector contributes to the

Ugandan economy in a number of ways, and most

significantly through foreign currency earnings and

employment creation. Coffee is Uganda’s principal export

earner, and has accounted for 18% of export earnings

between 2000 and 2010. On a global scale, Uganda

accounts for approximately 2.9% of coffee exports, and is

within the global top 10 exporting countries. 500,000

smallholder farmers produce coffee, while the sector

overall supports 3.5 million families through coffee related

activities.

Both Robusta and Arabica are produced in Uganda, with a

production ratio of approximately 75% Robusta to 25%

Arabica. While Uganda accounts for only a small

percentage of global coffee production, Uganda Robusta

has long been sought after for its particular flavour.

Additionally, the Arabica variety is gradually gaining

recognition in specialty markets.

Building on the results and lessons learnt from the

NTF II programme, the purpose of NTF III is to enhance the

export competitiveness of the coffee sector in Uganda,

leading to increased export revenues for coffee farmer

associations (FAs). NTF III consolidates results already

achieved under NTF II, and further aims to :

Increase the value and/or volume of coffee

exports by the beneficiary FAs by 10%

Increase the number of 4C certified farmers

Enable 20 FAs to draft business plans so as to

gain access to finance for certification and export

business

Certified coffee is moving rapidly from a niche market to

mainstream consumption. Increasing imports of certified

coffee reflects an increased awareness of consumers and

roasters on coffee production procedures and conditions, and

highlights a trend towards purchasing coffee that has been

produced in an environmentally and socially friendly way.

ITC, in association with the Uganda Coffee Farmers Alliance

(UCFA), National Union of Coffee Agribusinesses, and Farm

Enterprises (NUCAFE), will jointly select and train farmer

associations wanting to adhere to the 4C (Common Code for

the Coffee Community) verification. Training workshops for the

selected farmer associations will include customised content

on business/export management and access to finance.

The service portfolio of the main coffee sector TSI, the Uganda

Coffee Development Authority (UCDA), will be enhanced to

include monitoring and evaluation, in addition to the provision

of improved market intelligence. Given that most of the coffee

produced in Uganda is exported, increased knowledge and

understanding of markets, trends, prices, buyers, etc. is

essential for a sector regulator. This output ultimately aims to

enable UCDA to assess the sector export potential and meet

the demand on the international coffee market .

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PROJECT OUTPUTS

In order to expand market linkages between producers and

potential international buyers, participation of the selected

farmer associations in trade fairs will be facilitated.

Participants will be trained in preparing for trade fairs, and

negotiating with potential buyers, through the use of ITC e-

learning modules. This will help to enhance knowledge and

good practices for effective participation in international

coffee trade, including awareness of key actions needed in

approaching buyers.

Time: 2014 - 2016

Budget: USD 300,000 OUTPUT 2: Capacity of Trade Support Institutions

(TSI) increased in providing services to export-

oriented firms in the coffee sector

OUTPUT 1: Export capacity of farmer associations

increased by facilitating 4C verification through

linkages to finance

OUTPUT 3: Business linkages between coffee

exporters and buyers created or expanded

‘Having good bankable business plans would

build confidence among financial institutions

to offer us loans. Once farmers get access to

finance, production and prices of graded

coffee will increase by 30%, and by

approximately 200% for ungraded coffee.’

Joseph Nkandu, Executive Director, National Union of Coffee Agri businesses and Farm Enterprises (NUCAFE)

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