year book 2011/12 - uganda coffee federation · by 2015 coffee exports will have increased to 4.5...

150th Anniversary Edition

Uganda at 50 Years: Milestones of the Century and Strategies for the Future.

As the Nile finds its way to the north, it creates some marvelous waterfalls and later streams that water the coffee grown in Uganda

A Uganda Coffee Federation publication


year book 2011/12year book 2011/12

2 50th Anniversary Edition


Edito

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Editor: Betty Namwagala 0414 343 692/8 E: [email protected]

Associate Editor: Robert Waggwa Nsibirwa

Assistant editors: Samson Emong Helen Mirembe

Design &Layout: Ideas Advertising +256 312 109 544 E: [email protected]

Publishers: Uganda Coffee Federation 2nd Floor, Coffee House Plot 35 Jinja Road Tel: +256 414 343 692/77 E: [email protected] www.ugandacoffeetrade.com

Uganda at 50 Years: Milestones of the Century and Strategies for the Future.

A Uganda Coffee Federation publication


year book 2011/12year book 2011/12

As the Nile finds its way to the north, it creates some marvelous waterfalls and later streams that help nourish and water the coffee grown in Uganda


Inside

7. President’s Statement

10. UCDA MD’s Statement

11. Executive Director’s Statement

12. Coffee: A Commodity that has stood the times

19. Coffee’s Contribution To Uganda’s Economic Development Since Independence

26. aBi Trust and Coffee Value Chain Development in Uganda

30. Milestones of the Century in Trade and Marketing Coffee in Uganda and Strategies for the next Century

36 Climate Change From A Farming Perspective

41. Third Uganda Coffee Day

47. Direction Of The Uganda Coffee Industry From The Farmer’s Perspective

51. Technical overview of environmental impact of land application of pulping effluent from wet coffee

processing.

56. Production And Processing Problems Of Arabica Coffee Farmers In Eastern Uganda

66. Apendexes

72. What is UCTF

73. Ucf Member Benefits

74. Ucf Member Profile

78. Advertiser’s Index


President’s Statement

Uganda exported just over 2.7m bags of coffee during the coffee year 2011-12 split 70% robusta and 30% arabica by volume. This was down about 400k bags from the

previous year. Direct export earnings came to a total of $393m of which Arabica coffees contributed 43%. Volumes produced and exported were disappointing as most of us had envisaged total exports a little over the 3.0m bags mark but it seems various weather factors were adequately negative to severely impact the size of the Robusta component of the crops.

There were many positive efforts made in the industry by Uganda Coffee Development Authority and the private sector assisted by the Government of Uganda, Non-Governmental Organisations and Donors. These multiple efforts combined with relatively decent prices seem to have rekindled small holder and medium sized farmer’s enthusiasm for coffee growing. The UCDA report indicated that about 17million shade and coffee tree seedlings were planted during the year which is highly significant.

About half of the 44 registered exporters in the country each exported more than 1% of total country exports with the top 10 exporters responsible for around 80% of exports. Uganda coffee was directly exported to 37 countries outside of the enlarged EU which accounted for 67.5% of the total. Sudan remains a key destination for Uganda coffees taking over 400,000 bags during the year whilst the USA absorbed about 100,000 bags.

Uganda is following the international trend to certify more of its coffee. Coffee exporters and farmer organisations expanded their sustainable projects. Mr. Robert Waggwa Nsibirwa of the African Coffee Academy who was elected the chairman of the 4C association has brought to the table the issue of low coffee productivity, a topic largely overlooked by the certification standards but understood by everyone actually working with smallholder farmers.

One of the key features of the international market last year was the pronounced blend, changing from Arabicas to Robustas which took place in many markets. Price has been one of the key drivers of this development as it is increasingly clear that economically hard-pressed consumers have not stopped drinking coffee but have rather switched to cheaper blends. The resulting fall in Arabica prices and differentials has been tough on Ugandan Arabica farmers and dealers but the adjustments have been made and the business model remains intact and profitable.

Most of the people we speak to seem optimistic about the prospects for coffee production in Uganda and it seems increasingly evident that the focus on coffee over the last few years is starting to pay dividends. We are optimistic about volumes in the coming coffee year; and with decent enough prices and satisfactory weather we can look forward to both improving volumes and excellent qualities across the range of coffees produced.

David Barry UCF President

One of the key features of the international market last year was the pronounced blend, changing from Arabicas to Robustas which took place in many markets.

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COFFEE FUTURES MARKETS PRICES (Oct 11 - Sep 12)

ROBUSTA - LIFFE ARABICA - ICE ARBITRAGE


Warehouse Receipt Financing To facilitate procurement and bulking of commodities for export or sold locally.

Pre and Post Season Agricultural Commodity Financing Facility Facility to finance the purchase, processing, packaging and exportation of commodities for international export.

Collateral Managed Agricultural Commodity Warehousing Facility Collateral managed facility to finance the import of cereals and grains, that will be released against payment by the client for the purpose of milling and subsequent distribution to local markets.

Trade Finance Coffee Procurement Facility For procurement of processed coffee produced by local farmers, for on-sale to international buyers.

Trade Finance Export Facility To finance the purchase of coffee produced in the current season by pre-financing firm fixed price, fixed quantity off take contracts entered into with international buyers. Stanbic Bank advances financing to buy coffee from buying companies for export.

The above can either be self liquidating collateral managed or financed against fixed assetsOur Structured commodity trade finance solutions ensure faster payments from international buyers in addition to providing customized financial solutions to meet your cash flows needs.

Structured commodity trade

We offer structured trade and commodity finance:

Contacts us at:Stanbic Bank - Agriculture Financing9th Floor, Short Tower, 17 Hannington Road, Crested Towers Building.P O Box 7131 Kampala. Tel +256 417 154 000/446/210

Richard Wangwe

Head, Agriculture Uganda

Are you a trader or exporter of products

produced or processed in Uganda? Stanbic Bank provides tailor made trade finance solutions to meet your specific needs.

Stanbic Bank Uganda Limited A financial institution regulated by Bank of Uganda License Number A1. 013


UCDA MD’s Statement

I wish to congratulate all the coffee stakeholders upon completion of the 2011/12 coffee year. The year was characterized by reduced coffee volumes compared to 2010/2011 due to weather related

factors, pests and diseases and price fluctuations. As a result, coffee exports for the year were down by 13.4% and 12.5 % in volume and value respectively.

Coffee continues to play a vital role in Uganda’s economy contributing to about 20-30% of the foreign exchange earnings and employing over 3.5 million households. Due to its importance the Government of Uganda has always taken coffee as a priority export crop and it has featured in its many programs such as: Prosperity for All Programme (PFA); National Export Strategy (NES); Plan for Modernization of Agriculture (PMA) and National Agricultural Advisory Services (NAADS), among others.

In order to increase production, the Government through UCDA, has increased the momentum in coffee replanting and rehabilitation programme, through mass production of Coffee Wilt Disease Resistant planting materials using tissue culture and this is aimed at increasing coffee production and productivity. Support has also been given to the coffee scientists to do more research given that many challenges are foreseen as a result of climate change. With this, it is envisaged that by 2015 coffee exports will have increased to 4.5 million bags from the current annual average of 3 million bags.

The International Coffee Organization (ICO) predicts that, coffee production for the coming year will increase at an estimated volume of 144.1 million bags an increase of 7.2% compared to 134.4 million bags in 2011/12. Global coffee consumption is increasing steadily at 2.4% per annum. There is a growing demand for sustainable coffees in consuming countries and therefore this is an opportunity that we need to exploit.

Value addition at all levels of the coffee value chain is being promoted through wet processing in both Arabica and Robusta coffees, a practice that has improved on the quality and incomes of the farmers. UCDA will continue to ensure that quality standards are adhered through enforcement of Coffee Regulations. His Excellence the President has come out strongly to emphasize the importance of maintaining high quality Ugandan Coffee while the Police and Local Authorities have allied with UCDA to enforce it. On behalf of UCDA Board, Management and Staff I wish to thank all coffee stakeholders who are doing a tremendous work in adding value to coffee. Special thanks go to all those exporters and development partners who have taken the initiative of helping farmers in terms of inputs, trainings and financial assistance. This has tremendously improved on production and quality of coffee. UCDA will always partner with you as we strive to make Uganda a distinguished producer of high value coffee. To all the participants in the 10th African Fine Coffees Conference and Exhibition, I wish you good deliberations and a pleasant stay.

Henry NgabiranoMANAGING DIRECTOR, UCDA

In order to increase production, the Government through UCDA, has increased the momentum in coffee replanting and rehabilitation programme, through mass production of Coffee Wilt Disease Resistant planting materials using tissue culture and this is aimed at increasing coffee production and productivity


ED’s Statement

At the time of liberalisation of the Uganda coffee industry and the enacting of the UCDA Statute in 1991, it was only the Coffee Marketing Board and the Cooperative Societies

that were eligible to export coffee. When liberalisation took effect, the private coffee exporters faced tremendous challenges but had no forum for addressing them and therefore decided to form an Association that would provide a voice for them and thus the Uganda Coffee Exporters Association (UCEA) was born.

However, in 1996 the Coffee Exporters realised that they could not operate in isolation, and therefore the Association resolved to bring other players on board and these included the farmers, processors, traders, exporters, logistic companies, insurance companies and banks. Although the regulatory mandate was maintained by the Government, the expansion of Membership gave the Association an edge to take charge of their affairs including efficiency, profitability and investments. As a result, the expansion rendered the Association non representative; and therefore the emergence of Uganda Coffee Trade Federation that was emerged and was incorporated in 1996. The Federation developed various systems and instruments aimed at assisting the coffee traders to work in a professional manner in their transactions and efficiently respond to the market forces both locally and globally. UCTF made a landmark in the policy arena through advocacy that removed many constraints in the coffee business, contributed to capacity building and helped to build a critical mass in the industry.

Leaving the Comfort Zone-Time for Change

While there has been some landmarks registered, there has also been growing pressure from some circles within the coffee value chain demanding for change. Hence at the 2nd Uganda Coffee Day of 6th October 2011 where the Coffee Fraternity was well represented and under the Nakanyonyi Declaration of 2011, the Coffee industry decided to that it was time for the Uganda Coffee ‘Trade’ Federation to shed off the “Trade” and become Uganda Coffee Federation.

Overall the change was a noble call to better reflect the broad membership of stakeholders in the coffee industry yet by and large the Federation has continued to serve not only its members but the entire sub-sector through organising platforms for knowledge sharing, networking and building business relationships; training, and promotion among others.

Some of the factors that led to this include but not limited to: • Both backward and forward integration of members along

the value chain; • Feeling of exclusion by some members that are not directly

involved in coffee trade;• Need to appeal to new audience and grow membership.

The future of the Federation involves consolidating the past achievements while scanning the environment for potential challenges and opportunities at all levels of the coffee value chain to ensure a thriving and sustainable coffee industry in Uganda. The Federation will also continue to offer value for money services so that members remain competitive in the global coffee industry.

Betty NamwagalaExecutive Director - UCF

The Federation developed various systems and instruments aimed at assisting the coffee traders to work in a professional manner in their trans-actions and efficiently respond to the market forces both locally and globally.


Introduction

Coffee has its origins in Africa.

Ethiopia is the birthplace of Arabica coffee, while Uganda is the birthplace of Robusta coffee. It is remarkable that from the humble beginnings in Eastern Africa, the cultivation of

coffee has spread around the globe, between the Tropic of Cancer and the Tropic of Capricorn. Nonetheless, Ethiopia and Uganda have an enormous genetic resource pool, with so many different coffee varieties some of which still grow wild, and which provide a sizeable bank of genetic material for the coffee researchers in their breeding programmes, whether for productivity enhancement, disease resistance or weather tolerant purposes. While disease outbreaks have threatened coffee at different times, and a host of pests have attacked it, and there had been fears that the crop could easily be wiped out, it has remained resilient.

Indeed coffee has weathered many challenges over the years, but its production has continued to grow, as has its consumption. Coffee is a tropical crop, and does well in growing regions that have moderate sunshine and rain, steady temperatures, for Arabica around 20ºC and Robusta around 25 ºC. Coffee will not appreciate extremes of weather such as cold winters or extremely hot

temperatures. In addition, to do well, coffee also requires rich, porous soil, and in return the tree will yield very good beans. Coffee is the economic mainstay for dozens of countries and employs over 25 million people, most of who live in rural communities. Coffee stands out among natural commodities, with a reputation of being the second most traded commodity after oil. Coffee has maintained its important position through the decades.

Arabica coffee is ideally grown at higher altitudes that Robusta, and tends to be mild in its taste compared to Robusta which mainly grows in lowland areas and under harsher conditions. There are exceptions however, where Arabica coffee is grown at altitudes below 1000 metres above sea level such as in Costa Rica, and where Robusta is grown at altitudes above 1000 meters above sea level in Uganda. In fact, the latter explains why Uganda’s Robusta is unique in taste and flavour compared to many other Robustas. Generally, Arabica coffee trees produce much bigger beans, which also have higher intrinsic quality and have lower caffeine. Robusta beans are generally smaller, and the taste is a bit harsh, and with slightly more caffeine than Arabica. There are so many coffee varieties some of which are used for research purposes, and by crossing the new species with other known coffees, researchers have been exploring the introduction of two new features to commercially cultivated coffee plants – coffee beans without caffeine and coffee trees that are self pollinating. However, the many varieties are not commercially viable, leaving only Arabica and Robusta, which in 2009/10 accounted for 93.4 million bags worth US$15.4, of which about 70% is Arabica and 30% is Robusta.

Why is Coffee Important?The coffee beverage is a popular drink the world over. The proliferation of cafes in North America and Europe has especially helped to popularise the drink. Big brand names such as Starbucks have influenced a coffee consumption culture the same way MacDonalds set the trend for fast foods. The caffeine in coffee beans is reputed to be the key attraction, but even with decaffeinated coffee the aroma itself is a great attraction.

The views presented in this article are those of the author and not of the Inter-African Coffee Organisation (IACO) nor of its Member states.

“Coffee: A Commodity that has stood the times.”By Frederick S.M. Kawuma, Secretary General, Inter-African Coffee Organisation (IACO).


There are intrinsic qualities in coffee that make it a unique beverage, and it fulfils the desires of many from romantic to stamina for concentrated study, the latter helping students to keep alert especially in periods of preparing for examinations. An interview with a coffee drinker or enthusiast will definitely give you a variety of reasons for the love for coffee. And they are all valid!

African coffee producers have a relatively high dependence on revenues from coffee exports, and coffee is a commodity that is responsible for the employment and livelihood of about a significant proportion of the population. Over the last two decades, several African nations have implemented far-reaching policies of reform and liberalisation in their economies and in the coffee industry in particular. Sub-Saharan economies are agrarian in nature and have to make swift progress towards industrialisation in order to reduce their dependence on agriculture for both employment and foreign exchange earnings. While a number of African countries have reported successful oil exploration, and positive mineral prospects exist in others, agriculture has to be given special attention in order to ensure food security.

While some of the producers have been hard-wearing, unfortunately due to a variety of reasons some of the other coffee producing countries in Africa have had significant decline in production. Civil strife, inefficient marketing and poorly

supported production systems have all contributed to the decline, in different proportions. The lack of support whether in research, extension or access to finance, have had devastating effects on the coffee industry. In most cases, coffee is primarily grown by smallholders, and thus plays a vital role in rural employment and income assurance. With its decline in some of the cases, the effects on the population and rural economies have been far reaching. Unfortunately the decline has been great in Africa, losing almost 50% of its previous market share, over the last two decades. Other producing regions have taken advantage of the global market opportunities, as seen in the increase in global exports from 80 million bags in 1990/91 to 103 million bags in 2010/11. During that period, Africa’s coffee exports declined from 18.6 million bags to 10.6 million bags. Thus, in a growing market Africa has lost market share. While the commodity itself has withstood tough times, and in spite recessions demand has grown, Africa now faces the challenge of regaining its position in the global market place.

According to the International Coffee Organisation (ICO), in 2010 the total coffee sector employment was estimated at about 26 million people in 52 producing countries. World coffee trade statistics and information given by the ICO also shows that for many countries, coffee exports are not only a vital contributor to foreign exchange earnings but also account for a significant proportion of tax income and gross domestic product.

Over the last two decades, several African nations have implemented far-reaching policies of reform and

liberalisation in their economies and in the coffee industry in particular.


For several countries the average share of coffee exports in total export earnings exceeded 10 percent in the period 2000–2010, although the importance of coffee for many countries is diminishing over time as their economies diversify. The African countries that recorded significant dependence on coffee earnings were led by Burundi whose average share of coffee exports in total export earnings was reported as 59%. Ethiopia was at 33%, Rwanda at 27% and Uganda at 18%.

The Imminent ThreatThe media keeps providing new information and statistics on environmental degradation, global warming, and so on. All these have a serious bearing on the coffee industry because production may be even more endangered in some regions. Studies have indicated that coffee consumption is increasing at a rate of 2-3 percent a year, but other facts relating to production systems show that coffee supply in the long-term may be threatened by environmentally-damaging farming methods. It is also feared that farmers could switch to other crops or abandoning their land completely. This has already happened in Kenya, where coffee production has progressively shrunk as some coffee farms have been turned into real estate developments, while in some cases horticultural farming has been found more lucrative, and coffee trees have been replaced with other higher-income crops. Nevertheless, there have been those who have persisted and some of these continue to obtain rewarding prices at the coffee auction. It is not only in Africa where production has declined, as the same trend has been seen in Colombia where almost two thirds of the original volume of production has been shed!

In different African countries, several studies have been undertaken over the years, in the agricultural sector, identifying certain crops as possessing great potential in terms of boosting the rural economy, and uplifting the welfare of the producers. For instance, in Uganda farmers were encouraged to rear silk-worms, grow vanilla, and some food crops which would have been able to obtain better prices than those for coffee, but value chain constraints made it impossible to realise the farmers’ dreams. Subsequently, those who had abandoned coffee came

back to the fold. However, they should not be taken for granted as they can easily move their investment into other higher income generating ventures, if they present themselves, and coffee lets them down. It is therefore imperative that in each country a system of support for the coffee sector is established, through private sector networks and initiatives to adequately address the value chain bottlenecks that may exist. If this is supported by a policy framework that enhances efficiency and promotes business transactions, there are many positive ripple effects that will be experienced.

Where will the Hope come from?Whereas production has declined in Africa, Brazil and Vietnam have significantly increased their production, while the production in India too has been resilient. In Africa, Ethiopia has taken the lead to ramp up its production and others indicate that they will be revamping their coffee sectors. If this becomes a reality, it will give hope to the consumers who are worried that their beloved beverage might become a dream.

Uniform flowering and ripening of coffee is almost non existent in Uganda and most especially Robusta growing areas. .

The media keeps providing new information and statistics on environmental degradation,

global warming, and so on. All these have a serious bearing on the coffee industry because

production may be even more endangered in some regions.


Ethiopia, the natural home of the Arabica tree, is Africa’s top Arabica exporter and leads the continent in domestic consumption. The strategy of the Ethiopian government to support the replacement of old trees and replanting new areas is paying dividends as annual production and export figures increase. Coffee is very significant in the lives of about 12 million Ethiopians who make their living from it, and this has serious macro-economic ramifications. With Ethiopia setting such a good pace, there are many lessons for other African producing countries. Other countries, especially Uganda, have attempted to follow Ethiopia’s example, but are still a long way off. Ethiopia and Kenya have the greatest number of coffee researchers, and this also reflects on the progress that has been made in the introduction of new planting materials, albeit Kenya has its own special problems that have inhibited coffee’s expansion. In the case of Côte d’Ivoire, once Africa’s leading coffee producer, civil strife decimated their crop but the sector is on its way to recovery, and has very good promise.

The African Coffee Research Network is promising a coordinated effort in addressing the research constraints in Africa so as to provide the direction that the industry can take to emulate Brazil and Vietnam in increasing productivity, while also ensuring that high quality coffee is produced. One of the efforts that are needed is to build the capacity of the coffee research institutions in Africa, boosting the scientists, and providing the needed resources, in order to address the concerns of the industry with cutting edge research and innovations that will bring Africa back into the league of global coffee leadership, especially in quality terms. Through various collaborative efforts, African coffee producing countries will be able to share technologies, have exchange visits to share in best practices, promote policy reviews and appropriate actions to revamp the coffee sector and seek joint technical cooperation.

African coffee producing countries suffer the fate of being exporters of raw commodities, and where attempts are made for value addition there are a number of tariff and

non-tariff barriers that that restrict access of processed coffee products on the market in Organisation for Economic Co-operation and Development (OECD) countries. As long as African producers export unprocessed green coffee, it is subject to the vagaries of extreme price fluctuations on the commodity exchanges. If a good proportion of the exports were in the form of finished products ready for consumption, earnings would be more stable and would be substantially more than is the case with raw products. There are however, opportunities for developing the market within the African coffee consuming countries, where benefits of the Regional Economic Communities could be explored.

While the coffee market continues to be characterised by strong demand from industrialised countries, African producers have been largely unable to take advantage of this market opportunity. For instance, the United States is the biggest importer of coffee – accounting for more than 26 million 60-kilo bags in the calendar year 2011, according to the International Coffee Organisation (ICO). In terms of expenditure on coffee, the US spends approximately US$8.62 billion on coffee (imports) in the same year. The ICO figures also show that Germany imported 20.9 million bags in 2011, worth about US$5.9 billion. Europe is the most important destination of African coffee, accounting for over 90% of African coffee exports, all in the form of green coffee.1 The contrast is that while a 250-gram pack of coffee will cost about US$5 on the shelves in the consuming countries (about US$20 per kg), the African exporter may receive a price of US$1.50 per kg, and due to the tariff and non-tariff barriers is unable to access the market for the finished product. When all the value added to the product is in a developed country, the producing country fails to benefit from all the multiplier effects of processing at origin. But this could be addressed through targeting the African market for coffee – including the North African countries, the Republic of South Africa and the Middle East market.

1 According to Statistics from FAO, the majority of coffee imports into the OECD countries from the producers occur in the form of green, unprocessed coffee -- 98% of American imports and 94% of European imports are raw, unroasted beans.


Thus a proportion could be exported as finished product; some could still go as green coffee, and also as premium or certified coffees.

It is noted that in most African countries there has been an emphasis on export volume where the pre-occupation has been with how to increase production. However, there has been a lack of investment in quality improvement, and coupled with poor planning and execution of any existing improvement agenda, and thus there has been prevalent low quality and declining productivity per hectare.

Another unfortunate trend has been the prevalence of most African coffee exports ending up as commercial coffees, in the mass-market for coffee in Europe. In spite of the declining trend in some African countries, there have been emerging innovations as seen in the new investments in estate production, in some parts by the new middle class while in others by foreign investors, which has altogether shown that coffee in Africa is resilient, and will stand the test of time.

ConclusionAccording to Hubert Weber, the global head of coffee at Mondelez International Inc., the coffee industry risks running short of beans in coming years, if sustainable farming methods are not promoted. Mondelez is a company that was carved out of Kraft Foods Inc in 2012, and this may have been done so as to specifically focus on getting the right coffee for the future, in anticipation of the market needs and tastes. In fact, in 2013, Mendelez is targeting to source 65% of their coffee from sustainable production systems. It is certainly setting a good pace for other players in the industry, and producers are looking forward to receiving rewards for the effort in their investments in sustainable farms.

As investment in estates picks up, and farmer groups sell their coffee either as a cooperative or farmers association, there are opportunities in the market that can be grasped, of single origin coffees. African coffee producers can take advantage of this opportunity, whether it is for green or roasted coffee. What is marketed as single-origin coffee is coffee that is grown within a single known

geographical origin, which could be a single farm, or a an agglomeration of coffee grown within a given locality or even from a single country, with unique characteristics.

When coffee is marketed as single-origin, the name of the coffee is then usually the place it was grown to whatever degree available, such as Yirgacheffe, Sidamo, Nyeri, Bugisu, Kilimanjaro, Mzuzu, etc. Single-origins are viewed by some as a way to get a specific taste, and some independent coffee shops have found that this gives them a way to add value over large chains. Estate coffees are a specific type of single-origin coffee. They are generally grown on a single farm, such as Mringa Estate in Tanzania, Mzima Estate in Kenya, which might range in size from a few acres to large plantations occupying many square miles, or a collection of farms which all process their coffee at the same mill, such as the Kaweri in Mubende, Uganda or Munali farm in Zambia. Sometimes, micro-lot coffees are another type of specific single-origin coffee from a single field on a farm, a small range of altitude, and specific day of harvest, and the Nairobi Coffee Exchange sells many lots of this type.

Indeed, I dare say, coffee has stood the test of time as a commodity that is so dear to both its producers and consumers. Some have done a lot more than others in investing in research, production and even marketing, while others have done less. Some far too less than others! The test for the future is to see who will have taken more seriously their verbal or written commitments or even political promises, beyond mere rhetoric, and demonstrated that they care for the producers of this valued commodity. The consumers will be delighted to know that something is being done, hopefully more that they expected, to ensure that they will continue to enjoy the pleasure that comes from a lovely cup of coffee.


UGACOF Limited, Bweyogerere, KiiraP.O. Box 7355, Kampala – UgandaFax: +256 312 250020, Tel: +256 414 286288 / 126E-mail: [email protected]: www.ugacof.com


UGACOF Limited, Bweyogerere, KiiraP.O. Box 7355, Kampala – UgandaFax: +256 312 250020, Tel: +256 414 286288 / 126E-mail: [email protected]: www.ugacof.com

1 Introduction

Coffee continues to play a pivotal role in the Ugandan economy contributing immensely to the export earnings to the tune of US$ 449

million and US$ 393 million in Coffee Years 2010/11 and 2011/12 respectively. It provides a livelihood to about 1.32 million households out of the 3.95 million agricultural households. Government has given coffee priority in the Ministry of Agriculture, Animal Industry and Fisheries’ Development Strategy and Investment Plan (DSIP) as well as the National Export Strategy-NES (2008-2012) and its corresponding Gender Dimension of the NES. All these interventions are in line with the overarching National Development Plan-(NDP (2010/11-2014/15) envisaged transforming the Ugandan economy from a peasant economy to an industrialized modern one with a vibrant private sector.

2 History of Coffee Production in Uganda Uganda grows two types of coffee: Robusta and Arabica in the ratio of 4:1. Whereas Robusta was originally grown around Lake Victoria, Arabica, it is believed, originated from Malawi, hence its original name, Nyasaland. By 1914 European and Asian farmers had established 135 coffee plantations, occupying 58,000 acres of land. However, the crop was abandoned when prices fell in the 1920s. Coffee production was left to African smallholders, though at first the acreage was insignificant, by 1931, only 17,000 acres were under cultivation. The Coffee Board was set up in 1929, later becoming the Coffee Industry Board (1943) and then Coffee Marketing Board (1959).

The colonial government, eager to see the development of cash crop economy, divided the country into agro-ecological zones, each specializing in a specific crop: tobacco in Acholi (Kitgum and Gulu), cotton in West Nile and coffee in the Central region. In the 1950s extension workers promoted a coffee-planting programme that saw coffee production reach 2 million 60kg bags by the early 1960s and more than 3 million by 1969/1970. Civil wars during the 1970s affected coffee production that reduced to about 2 million bags. These were also exacerbated by the war in Luweero Triangle, a major coffee region from 1981-1986 (see graph 1).

MINISTRY OF AGRICULTURE, ANIMAL INDUSTRIES AND FISHERIES

COFFEE’S CONTRIBUTION TO UGANDA’S ECONOMIC DEVELOPMENT SINCE INDEPENDENCE

By James Kizito-MayanjaPrincipal Information Officer, UCDA

Coffee continues to play a pivotal role in the Ugandan economy contributing

immensely to the export earnings to the tune of US$ 449 million and US$

393 million in Coffee Years 2010/11 and 2011/12 respectively.


3. Achievements in the Coffee Sector since Independence

i. Cooperative Movement: started in 1913. The Cooperative movement was very powerful with very strong cooperative societies and unions: Bugisu Cooperative Union, Sebei Cooperative Union, West and East Mengo Cooperative Unions, Wamala Cooperative Union, Masaka Cooperative Union, Banyankole Kweterana Cooperative Union, Okoro Cooperative Union, Busoga Co-operative Union with coffee as a major commodity marketed. Currently, it is only Bugisu Cooperative Union and Banyankole Kweterana Cooperative Union which are still functional although Masaka Cooperative Union is also rebranding currently;

ii. In 1955, a Price Assistance Fund (PAF) was set up to cushion farmers against volatility in global coffee prices. This encouraged farmers to plant more coffee;

iii. Uganda Cooperative Alliance was established in1961 to oversee the operations of the unions and cooperative societies under them with the ultimate aim of empowering farmers and their cooperatives to market their produce profitably and sustainably;

iv. Coffee farmers’ welfare changed considerably. Farmers who sold coffee started constructing iron sheets roofed and tiled houses especially in Buganda region, bought motorcycles (Mwanyi Zabala) , acquisition of more land and marrying more wives!!!

v. There was a Cooperative credit scheme in 1961 (FAO) administered by Co-operative Department of the Ministry of Co-operatives and Marketing;

vi. Uganda ratified the International Coffee Agreement in 1962;

vii. Progressive Farmers Loan Scheme that provided credit to progressive farmers abandoned in 1964

viii. Uganda Census of Agriculture was conducted in 1963/65 and reported that 42% of the farmers in Uganda grew Robusta coffee;

ix. Coffee Marketing Board was established in 1959 with a monopoly control over coffee exports, internal marketing, quality control, collection of coffee tax

and promoting coffee consumption domestically and abroad. It was also responsible for implementing the ICO quota system;

x. The two main functions of CMB were to export coffee and also to institute a minimum price for coffee producers at the beginning of each cropping season, setting marketing margins for private buyers. A central processing unit was constructed in 1967 with a capacity of 120 MT/hour;

xi. Government’s diversification plan developed in 1966/67-1970/71;

xii. Coffee Rehabilitation Project (CRP) funded by European Economic Community (EEC) in 1982 aimed at reversing the declining coffee volumes by improving extension service delivery-pruning for both Robusta and Arabica and spraying in Arabica growing regions, coffee nurseries and acquisition of farm inputs, enhanced processing capacity of hullers and rehabilitation of agricultural training institutions;

xiii. Farming Systems Support Programme (FSSP), a sequel of CRP which started in 1991 in 13 districts out of 25 growing coffee then and focused on the coffee farming system as a whole. FSSP had 2 components: research and extension. This intervention was envisaged increasing yield per unit tree/area, improved quality and release of some land to other crops. FSSP also had a deliberate strategy of replacing the old non-productive trees with the genetically pure and improved clones propagated by rooted cuttings;

xiv. In 1990, government liberalized the coffee industry as part of the IMF Social Adjustment programs (SAPs) that emphasised privatization, liberalization and abolition of monopoly of marketing boards, CMB inclusive;

xv. Partial release of 7 Coffee Wilt Disease Resistant lines by NARO;

xvi. Replanting Programme under Strategic Export Programme-Poverty Action Fund (2001-2004);

xvii. Continuous breeding for resistance to pests, diseases and drought in Robusta and Arabica areas;

xviii. Establishment of Farm Field Schools to disseminate technologies to farmers;

xix. Establishment of a private tissue culture laboratory at AGT Buloba to complement the government laboratory at Kawanda Agricultural Research Institute (KARI);

xx. Formation of associations in the coffee value chain-National Union of Coffee Agribusinesses and farm Enterprises (NUCAFE), Uganda Coffee Farmers Alliance (UCFA), Uganda Coffee Federation (UCF) to cater for specific constituents.

xxi. Coffee farmers have continued to obtain about 70% of the export (FOB) price. Farmers’ earnings from coffee rose from UGX. 105 billion in 2002 to UGX. 777 billion in 2012.

1964

/65

1969

/70

1974

/75

1979

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1984

/85

1989

/90

1995

/96

1999

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2004

/05

201

1/12

Coffee Years

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100

200

300

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500

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Quantity (Million 60 Kilo Bags) Value in US $ Million

Chart 1: Uganda's Coffee Exports and Value Since Independence

Source: UCDA Database


4. Vision, Mission and, Mandate of UCDA

UCDA was established in 1991 to develop, regulate and promote the coffee industry in a liberalized environment. UCDA’s vision is ‘Making Uganda a distinguished producer of high value coffee’. Its mission is ‘to promote and develop the coffee industry through provision of clean planting materials, support to research, quality assurance and provision of timely market information to stakeholders and any other matters therein’. It is governed by an industry based Board of Directors comprising representatives of farmers, processors, exporters; and one member from each of the key line ministries - Agriculture, Animal Industry and Fisheries; Trade, Industry and Cooperatives; and Finance, Planning and Economic Development. The Board provides strategic direction of UCDA and also evaluates Management’s performance of the planned interventions.

Good governance including corporate social responsibility (CSR), neutrality, transparency, professionalism, integrity, accountability to stakeholders and respect for the environment are values UCDA cherishes passionately.

UCDA has three technical departments and one service department. The technical ones are: Quality and Regulatory Services; Production and Strategy and Business Development and the other, the Finance and Administration. UCDA is a focal point for all international coffee matters.

4.1 Objectives The statutory objectives of the Authority are to:-

1. Promote, improve and monitor marketing of coffee to optimize foreign exchange and farmers’ earnings;

2. Guarantee that the quality of coffee exports meets international standards;

3. Develop and promote the coffee and other related industries through research and extension arrangements;

4. Promote the marketing of coffee as a value added product;

5. Promote domestic consumption of Uganda coffee;

6. Harmonize activities of coffee sub-sector associations in line with industry objectives; and

7. Formulate policies related to the coffee industry.

In order to contribute to the President’s Manifesto 2011-2016, UCDA has undertaken specific programmes to address production and productivity; marketing and value addition as well as ensuring an enabling policy and institutional environment to increase its efficiency and effectiveness in service delivery.

Among these are: formulation of a draft national coffee policy, the draft national coffee strategy and revision of the coffee regulations 1994 to address the rapidly changing dynamics of the coffee industry both domestically and globally.

5. Current Projects, policies and Programmes being undertaken by UCDA

Projects• Northern Uganda Coffee Project;• Netherlands Trust Fund Coffee Project with assistance

from the International Trade Centre;• Development of Robusta Protocols with assistance

from the Coffee Quality Institute, USA; • Organic Coffee Project in South-Western Uganda

(Kisoro);• Quality Improvement project with USAID aBi-Trust.

Policies• Draft National Coffee Policy• Draft National Agricultural Policy• National Organic Agriculture Policy• National Trade Policy

Programmes1. Coffee Production Campaign

Under this campaign, exportable production is envisaged to reach 4.5 m 60-Kilo bags by 2015. This is hinged on four thematic areas: Research, Extension, Inputs and credit and Farmer Organisations. District Coffee Platforms and Steering Committees have been set up oversee the Coffee Action Plans.

a. Research

Under research, multiplication of the 7 lines resistant to coffee wilt disease (CWD) is being undertaken with propagation through vegetative means (cuttings and tissue culture). We are currently at the hardening stage of the coffee seedlings raised from the tissue culture laboratory at AGT Buloba. Nursery operators with adequate facilities will be selected to undertake this important stage in the multiplication after which the seedlings will be distributed to the farmers.

Breeding for diseases and pests as well as drought resistance continues to be conducted at Coffee Research Institute (COREC) at Kituuza.


b. Extension & Technological Transfer

UCDA has continued to implement a Community Based Nursery (CBN) approach to meet the growing demand for clean planting materials under the replanting programme. In this programme farmer groups receive certified coffee seed and technical guidance. A total of 1,244 CBNs have been established with a capacity of generating 20 million seedlings per year. Local leaders, NAADS and development partners have been very supportive in this area.

Demo sites in most sub-counties to serve as Farmer Field Schools (FFS) have been set up at sub county level through which productivity enhancement technologies from research centres are passed on to farmers. This has led to increased productivity and production.

UCDA continues to offer extension services along with NAADS, District Agricultural Offices and local

authorities. The leaders do mobilize the farmers, with special emphasis on special interest groups – the youth, disabled and women groups. UCDA has distributed seedlings to these groups as well as providing technical assistance.

C. Inputs and Credit

In partnership with Uganda National Agro-inputs Dealers’ Association (UNADA), over 900 agro-inputs dealers were trained in proper agro-inputs use. Joint programmes by district coffee platform ensure that farmers are also trained in proper use of agro-inputs. The target is to have at least one agro-inputs dealer in each sub county in the coffee growing districts.

On availability of credit, a number of farmer associations have set up savings and credit schemes for ease access to agro-inputs by members. For examples: Nsangi Coffee Farmers Savings and Credit Association; and Paidha Coffee Farmers Association in Wakiso and Nebbi Districts, respectively.

One of the Community Based Nurseries

The demand driven approach using the community based nurseries ensures that farmers raise their seedlings which are shared out among themselves and a surplus sold.

UCDA provides seed, polypots and technical advice

Farmers who have adopted the new technologies have increased their yield per tree from a low of 0.5 kg to around 7 kg of clean coffee (Kase). Farmers are receiving a gross income of Shs. 8.64mln per hectare per year for Robusta and Sh.9.6 ml per year for Arabica.

Through farmer competitions in which application of agro-inputs is assessed among other parameters, best farmers have been rewarded with prizes such as spray pumps, fertilizers, pruning saws, secateurs, solar panels. This has led to improved husbandry practices.


a. Farmer Organizations

Collaborating with the National Union of Coffee Agribusinesses and Farm Enterprises (NUCAFE), Uganda Coffee Farmers Alliance (UCFA), Uganda Coffee Federation (UCF) and other stakeholders, coffee farmers continue to be mobilized into viable economic units. This has invariably eased provision of extension and financial services to industry players, leading to improved quality and bulk marketing. To date, 155 farmer association and 1,170 producer organizations have been established and legally registered under NUCAFE and UCFA respectively benefitting

over 200,000 farmers.

2. Sustainable Coffee InitiativesUCDA, in partnership with the private sector, is seizing the opportunity of the growing demand for Sustainable Coffees. In the national coffee strategy, UCDA targets farmers to produce 25% of coffee as sustainable coffee by 2015. Over 50,000 farmers have been registered with UCDA to produce coffee in the various sustainable and specialty initiatives: Organic, Common Code for Coffee Communities (4Cs), Fair trade, Utz Certified and Rain Forest Alliance (RFA). Some exporting companies such as Kyagalanyi Coffee Ltd., Ibero (U) Ltd., Kawacom (U) Ltd, Good African Coffee, Gumutindo, and Kaweri Coffee Plantation are working directly with these farmer groups. Farmers in the Mt. Gorilla area (Kisoro), selling direct to Urth Caffe, USA received cattle; pulpers, water tanks, drying trays and tarpaulins to improve quality. These coffees attract a price of around $ 300 per tonne over the conventional market.

3. Coffee Production in Northern Uganda

A Special Intervention Programme for commercial coffee production in the districts of Acholi and Lango was developed. Close to 400 farmers in 23 sub-counties have planted around 500,000 coffee trees, intercropped with bananas to ensure household food security. UCDA gives farmers coffee seedlings, banana suckers and shade tree seedlings.

4. Quality Improvement and Value additionValue addition at farm-gate is being undertaken through promotion of wet processing in Arabica and Robusta coffees, a practice that has greatly improved quality and returns to farmers.

To promote domestic coffee consumption, UCDA has partnered with the private sector to come up with Ugandan coffee brands that occupy shelf-space in major supermarkets in the city and towns. The favourable investment climate prevailing in the country has indeed attracted investment in Cafes, Restaurants and Hotels where out-of-home coffees are served.

Robusta dry cherries (Kiboko)

FAQ – Kase

Farmers adding value and shifting from selling dry cherries to selling Fair Average Quality (Kase)

UCDA, in partnership with the private sector, is seizing the opportunity of the

growing demand for Sustainable Coffees. In the national coffee strategy, UCDA

targets farmers to produce 25% of coffee as sustainable coffee by 2015.

Good post harvest handling practices guarantee quality and better income


5. Provision of timely market information

This is done on daily, monthly and annual basis reflecting the performance of the domestic and global coffee markets through the website (www.ugandacoffee.org), radio programmes and mobile phones (SMS-7197).

6. Enforcement of Coffee Regulations

This is being done in collaboration with other stakeholders such as the Police and Local authorities. To ensure that coffee exported meets international standards, all coffee lots undergo quality inspection and certification.

7. Development of Robusta Protocols

To enhance Uganda’s Robusta as a unique origin, protocols have been developed for Robusta to compete favourably in the Specialty segments of the market. This will boost Uganda’s export revenue and more importantly, farmers’incomes.

ConclusionOverall the importance of coffee to the Ugandan economy cannot be over-estimated and its priority in all Government’s policies and interventions is clear. Its strategic position as a poverty reduction enterprise contributes significantly towards not only to the first UNDP’s millennium development goal but also the third, seventh and eighth goals which deal with gender equality and women empowerment; environmental sustainability; and overseas development assistance respectively. From the above outlook, UCDA programmes are geared towards value addition along the coffee value chain to make it more competitive both nationally and internationally. It also acknowledges different stakeholders including development partners whose interventions in different areas along the coffee value chain with appreciable investments in the coffee industry in Uganda.

Physical AddressUganda Coffee Development AuthorityCoffee House, Plot 35 Jinja RoadP.O. Box 7267, KampalaGeneral Line Tel: 256-414-256940/233073 256-031-2260470Fax: 256-414-232912/414256994Website: www.ugandacoffee.org

A variety of choice of Ugandan coffee brands

http://www.ugandacoffee.org




Plot 2219/2377, Bweyogerere, P.O.Box 14625, Kampala,UgandaTel. +256 (0) 312 202425/6, Fax. +256 (0) 414 285684

www.armajarotrading.com


I am extremely honored to be part of this edition of the coffee year book. It’s an honor in a sense that throughout the industry I find this publication very

insightful and informative. Congratulations to the editorial !

I bring you warm greetings and Happy New Year wishes from Ugacof directors, members of staff and our business partners. it’s the combined efforts of this strong team at UCF that our company continues to play an important role in the industry.

The just concluded year was exciting and challenging in many respects, but I will restrict my observations to just two prominent exciting developments as we collectively ponder in an effort to overcome the challenges. The first and fore most was relative stability of the prices in the local market which directly benefits the first tier stakeholder (The farmer). It’s a common consensus that when a farmer has a smile it translates to the industry performance.

The second observation is the energized efforts to embrace the research. It was refreshing at the previous coffee day at Kituza research centre to hear the impassioned vigor of players about this vital aspect of ensuring crop sustainability.

We at Ugacof continue to walk our vision and mission which are geared at working with foot soldier (Ugandan coffee farmer) on the small farm and to ensure we keep holding the mantle high up as East Africa’s model in the coffee trade. We are currently working with over 10,000 farmers in our Kinoni, Masaka and Iganga areas. We are in the final stages to engage more farmers in the districts of Kamuli,Buikwe and Kayunga.

Ugacof is a trend setter in improving processing technology. We have invested in new processing machines and Robusta washing stations in different parts of the country. We are confident that such efforts will raise the bar and set the trends in attaining high quality Coffee in the region. I need to add our gratitude to the UCDA and other stakeholders in the sector for consolidating efforts towards quantity and quality improvement.

Ugacof predicts a brighter future for Uganda’s coffee sector and we are very much committed in maintaining both our presence and partnerships for a better coffee sector and Uganda . Enjoy the new season.

Kailash Natani.

Word from the MD Ugacof


The aBi Trust strategy supports market driven enterprises using a value chain approach for specific commodity groups. Through a

value chain analysis, opportunities, constraints and actors are identified to improve efficiency, effectiveness and competitiveness through technical and financial support.aBi Trust develops the Coffee value chain at three specific levels namely Global focus, National focus, and Partners (specific interventions through partners).

Globally, aBi Trust in collaboration with Uganda Coffee Development Authority (UCDA) supports the development, differentiation and validation of protocols for speciality coffee. Since Uganda is the birthplace of Fine Robusta coffee, our support to the Coffee Quality Institute (CQI) in collaboration with UCDA has developed and validated grading and cupping protocols. Robusta coffee can now be traded as a speciality coffee (Fine Robusta).The Trust facilitates the enabling environment at the National level through support to different institutions and fora; through Café Africa, the National Coffee Steering Committee (NCSC) is supported to address and devise strategies for the coffee sector development.

In collaboration with the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) and UCDA taking lead, a National Coffee Policy has been developed. Support has been extended to the Uganda Coffee Federation (UCF) to develop its strategy; Uganda National Bureau of Standards (UNBS) through collaboration with UCDA is developing the code of practice to pursue OTA challenges. Developing and validating cupping and grading protocols and profiling of Uganda’s coffee is underway.

The current Coffee extension material is under review to suit the changing trends in collaboration with UCDA. Funds have been committed on the National Enquiry Point (NEP) and Centre of Excellence (CoE) as our areas of focus.

aBi Trust and Coffee Value Chain Development in Uganda



National Organic Movement of Uganda (NOGAMU) was supported in collaboration with HIVOS to develop Production Manuals for Organic Robusta and Arabica growing systems in Uganda.

aBi Trust through Implementing Partners (IPs) supports several interventions which will result in increased incomes and employment.

The IPs are usually Farmers Organisations (FOs), Enterprises (including small, medium and large) and Business Development Services (BDS) providers. The Trust facilitates market access mainly through certifications for sustainability (4C, UTZ, RFA and Organic among others) and speciality coffees including Q and R fine coffees.

Over 10 central washing stations mainly eco-pulpers and several hulling facilities have been supported under value addition. Addressing productivity enhancement, Good Agricultural Practices are promoted through support to farmer field demonstrations, and nurseries for clean planting materials. In collaboration with UCDA, 18 nurseries have been supported to multiply the CWD-r material and through IPs directly to make planting material affordable and accessible.

The main focus is establishing mother gardens and nurseries for both Elite and Clonal coffee seedlings. Through a cost-share grant with Royal Plant Nurseries, the Trust is facilitating tissue culture technology and weaning/hardening. At the nurseries aBi is promoting shade tree seedlings production under our Green Growth initiative because Climate Change is negatively impacting coffee production.

Post-harvest technologies that include drying sheets, poly tunnels, GrainPro® products and washing stations for Arabica and Robusta are being promoted among farmers.In Uganda, collateral requirements pose a challenge for the agricultural sector participants who try to source funding for the different activities along the value chain. aBi established board guarantees to help address the issue of lack of collateral and to help deepen financial services through loan guarantee schemes and lines of credit.

These services are undertaken by financial institutions that have at least a 3% loan portfolio with agribusiness and a rural outreach network, among other requirements. Enterprises including those along the coffee value chain can access services from these banks.

Through financial services, many rural financial institutions like Opportunity Uganda, CRDB, HOFOKAM, and several SACCOs have received support from the Trust to reach farmers.

At the producer level, Village Savings and Loan Associations (VSLAs) are supported to harness financial discipline and cohesion among groups which make adoption of other interventions easier.Gender for Growth (G4G) uses the household approach through Farming as a Family Business (FaaFB) to improve the livelihoods of farmers. Many families have improved their incomes through vision setting and joint planning.

Over 10 central washing stations mainly eco-pulpers and several hulling facilities have been supported under

value addition. Addressing productivity enhancement, Good

Agricultural Practices are promoted through support to farmer field

demonstrations, and nurseries for clean planting materials.


Kawacom, the Ugandan subsidiary of the ECOM Group, was founded in 1996 and has been at the forefront of Uganda’s coffee export trade for 17

years. The company has grown significantly since 1996, from a small company in rented premises, to a market leader, with processing units and buying stations throughout the country.

We believe the reason for the growth, is our focus on quality and innovation, and a continued desire to bring the best of Uganda’s coffee to the world.

Kawacom is recognized as the guarantor of high quality Robusta and Arabica coffee within Uganda. Over the last 13 years the company has positioned itself as the market leader in innovation, having spearheaded the development of the first organic coffee projects in the country.

In 1998, Kawacom started the development of Certified Coffees in Uganda and has continued to work closely with farmers which has led to the establishment of 8 projects, in the districts of Kapchorwa (East); Bugisu Arabica Coffee, Bushenyi (West); Robusta Coffee, Paidha (North West); Arabica Okoro Coffee, Kasese (Southwest); Drugar (Dried Uganda Arabica), Rukungiri (Southwest); Natural Robusta, and 3 projects in Central region to boost the Natural Robusta volumes; Kiboga, Kikyusa and Kayunga. Kawacom is the only exporter that offers UTZ certified Drugar in Uganda.

Pioneering as the first producer to export Organic and UTZ certified coffee, Kawacom continues to work with farmers and their communities to ensure quality and sustainable agriculture and has recently acquired Rainforest Alliance certificate for Bugisu and Okoro coffees.

In addition to our already well established projects, we are playing our part in attempting to reverse the declining trend in coffee production. Kawacom has established coffee production and quality enhancement project nurseries in almost all areas of operation.

The Bushenyi project for example constructed 2 nurseries, each housing 200,000 seedlings, and planted a mother garden, from which cuttings have been, and will continue to be distributed to farmers.

A central pulpery near Sipi trading centre, in the Eastern part of Uganda was also established where centralized wet processing of the coffee cherries guarantees consistent level of quality and crop control. Additionally, the wet mill is equipped with a dryer which ensures optimal drying of the processed parchment as well as a state of the art Retractable Drying Roof structure.

Kawacom’s purchasing system is such that farmers conveniently deliver fresh coffee cherries for collection and transportation to the pulpery. The high quality coffee attracts both higher value and increased demand resulting in an improved income to the farmers, who have also undergone training on coffee handling in the newly commissioned Farmers Training center.

At Kawacom, coffee is more than just a business. It is a commitment to a country, its culture and its incredible biodiversity.



1938 in search of migrant labour, as people sought to sell their labour in exchange for money. They settled in areas where they could find jobs according to their skills. Those with farming experience found jobs in cotton and coffee growing areas in Buganda and parts of Eastern Uganda. This resulted into the introduction of colonial policies and the monetary economy in Buganda and Uganda at large.

The Monetary Economy

After the defeat of Bunyoro by the combined force of British and Buganda in 1894, Buganda became a core of the protectorate, to make the protectorate self-supporting; the authorities introduced first cotton then coffee as export crops in Buganda, before introducing them in other regions.

By introducing taxes, the colonial Government made the entire country get involved in the monetary economy. The hut tax of 1900 became the main encouragement for Baganda to grow cotton and coffee. It also became the main impetus forcing other ethnic groups to come to Buganda, where opportunities to earn money existed so as to uplift their status, and meet their urgent needs.

Before World War I, commoners were used on the Cotton Estates but as time passed, they bought small parcels of land from their erstwhile landlords. This land fragmentation was aided by the British, who in 1927 forced the chiefs to limit severely the rents and obligatory labour they could

Milestones of the Century in Trade and Marketing Coffee in Uganda and Strategies for the next Century

MILESTONES OF THE CENTURYWhere it all began

World over, there has always been ethnic integration groups and in Uganda, the story about

immigration goes back to the 1920s where pull economic factors as cultivating cotton and later coffee that required a lot of labor led to massive migration from especially Rwanda and Burundi where immigrants entered Uganda in search of work. More immigrant workers came from Kenya and then Tanganyika. Famine moved big portions of ethnic groups in search of food; apparently, a famine in Rwanda in 1948 frightened the Protectorate government into declaring a curb on migration for fear of Uganda’s food stocks being overtaxed, an act based on earlier experience. Other factors that led to the influx included wars; traders have always been found in unlikely places, and Buganda was a major traders’ paradise. However, it was recorded that, as early as 1848, an Afghani was at the palace of Kabaka Ssuuna, looking for business opportunities. There was massive movement of people from all around the Interlacustrine region estimated at over 100,000 annually in


demand from their tenants. Thus the oligarchy of landed chiefs who had emerged with the Buganda Agreement of 1900 declined in importance, and agricultural production shifted to independent smallholders, who grew cotton, and later coffee, for the export market.

Later on as Sir Andrew Cohen, prepared Uganda for independence, he removed obstacles to African cotton ginning, rescinded price discrimination against African-grown coffee, encouraged cooperatives, and established the Uganda Development Corporation to promote and finance new projects. A typical village in Buganda, where different ethnic groups had settled, became a centre of economic activity. There was mutual benefit from the co-existence of these people, and coffee became the centre of important activities including weeding, picking, handling and processing.

The role of coffee in ethnic integration in Uganda and making of nation therefore started in Buganda because;

o Buganda was at the centre of economic and social change, partially because it was the centre of the Protectorate administration.

o Buganda was the main coffee growing region (although cotton was also grown extensively at the time, just as it was in other areas in the north, east and western Uganda).

o Buganda saw the greatest ethnic integration- both within the towns and in its villages, taking by far the largest number of immigrants from all over.

Early Exports

Early reports on Uganda coffee stated it to be potentially an important export crop. In the early years of the twentieth century, the trade in this native coffee, mainly from the Sese Islands, developed rapidly; in 1902 the value of the coffee exported was 892 Pound Sterling. But by that time Arabica coffee had been introduced and, because of its earlier cropping, larger bean, and higher market value, this was considered to be a more valuable species for cultivation for export. In 1903 the distribution Nyasaland Arabica coffee seedlings to Africans was commenced.

B: Evolution of Coffee Trade in Modern Times

By the early 1960s there was a steady growth of coffee production and the share of coffee in the country’s foreign exchange earnings grew from 38% in 1961 to 58% in 1970. After mid-1970 and during most of the 1980s coffee remained the dominant export crop accounting for over 90% of total export receipts. (Agricultural Report, MAAIF: 45). This was mainly attributed to the problems the country experienced during the period of the mid-1970s to early 1980s. The insecurity and civil strife, over valued exchange rate, inefficient marketing systems and general economic mismanagement led to decline in production of other export crops such as cotton, tea, tobacco and others that could not withstand the local problems of production. This situation left coffee as the major export crop although it remained confined to the poorly tendered ‘shambas.

Series of the events

o The Coffee Act of 1962 gave the Coffee Marketing Board (CMB) access to all dry-processed robusta coffee for export. These exports accounted for some 85% of production. There were private exporters who operated coffee pulperies, processed and exported pulped and washed Robustas, while the Bugisu Co-operative Union exported the wet processed prime arabicas known as “Bugisu”.

o With production of pulped and washed robusta leveling at only 2000 tons per year in 1962, production continued to increase and by 1969 it had reached some 40,000 tons. As a result of the leftist policies of the government of Milton Obote, a new Coffee Act was passed in 1969, which gave the total monopoly of the coffee export marketing to CMB. The subsequent years saw Uganda’s production of high quality washed coffees suffer from poor incentives resulting from the CMB monopoly in marketing which did not adequately reward the investment in high quality coffees.

Early reports on Uganda coffee stated it to be potentially an

important export crop. In the early years of the twentieth

century, the trade in this native coffee, mainly from the Sese

Islands, developed rapidly; in 1902 the value of the coffee

exported was 892 Pound Sterling.


of Robusta coffee in Africa, Asia and Brazil, world production of Arabica in 1990/91 dropped to below 70% of global coffee production.

o With the increasing competition in the coffee business after liberalisation, there has been of lack of discipline. The private sector has not come up with comprehensive measures to ensure that operators followed some code of ethics, as a first step to introducing self-regulating mechanisms in the coffee trade. In 1997, the Uganda Coffee Trade Federation, now Uganda Coffee Federation drafted a Code of Conduct but its implementation has been complicated by the fact that not all players subscribe to the Federation and are therefore not bound by it.

o However, there still remains much room for provision of technical advice and support, as well as training at the various levels in the coffee industry, in order to create awareness and develop skills, aimed at enhancing the quality of Uganda’s coffee. UCF has developed an internal marketing contract to guide the internal marketing transactions, and an arbitration system to expedite the resolution of trade conflicts. All these need technical and expert support until the system is fully established.

C: Important Historical Landmarks in the Uganda Coffee Industry.

Liberalisation has led to some of the most significant landmarks, which are summarised below:

1. Uganda joined the International Coffee Organization (ICO) which came into being in 1962, and had to conform to the export quota allocated by the ICO.

2. The 1969 Coffee Act gave total monopoly of the coffee export marketing to Coffee Marketing Board (CMB), 100% owned by the Government of Uganda.

3. In November 1990, four co-operative unions were allowed to export coffee under the guidance of Union Export Services (UNEX). This was by Cabinet decision, as a trial of liberalised marketing, ahead of the passing of the UCDA Statute.

4. In 1991, a limited liability company called Coffee Marketing Board Limited (CMBL) was incorporated, and was to take over the trading functions of the CMB.

There was a decline in deliveries, caused by farmers being reluctant to grow coffee, as a result of low farm-gate pricing structures with no incentives. Little or no investment in developing new plants from seedlings over a sustained period of some 30 years, coupled with the unstable political and economic situation, drastically reduced crop production to a point where Uganda’s output dropped by nearly 30%.

o While emerging large estate farming was abandoned, small-holders continued to grow coffee. The co-operative structures, which were prevalent in the country since the early 1960’s, continued to dominate the primary marketing and in the 1980’s they accounted for some 90% of the primary processing of coffee in the country. Unfortunately, these co-operatives were largely controlled and influenced by the government, and limited incentives existed for private entrepreneurs and private processors who operated under difficult conditions. With the liberalisation of the country’s internal marketing system, more and more private processors appeared on the market. It has to be noted that liberalisation of internal marketing, where private processors were allowed more freedom, started way before the export liberalisation.

o Upon liberalization of export marketing, the former government controlled Coffee Marketing Board (CMB) was transformed, in 1991, into a limited liability company, known as CMB Ltd (CMBL). The original CMB’s coffee regulatory and quality assurance capabilities and expertise were homologued into a focal point under the Ministry of Trade and Industry and formed as the Uganda Coffee Development Authority (UCDA). The passing of the UCDA Statute, in 1991, paved way for the licensing of private coffee exporters to compete for the farmers’ coffee, resulting in better incentives and prices to the farmers. The objectives of the liberalisation policy were to make the pricing system for Ugandan coffee more transparent, introduce keener competition, improve the quality of coffee and assist in helping to make crop financing available.

o During the early 1960s, the world saw 80% of its coffee made up of Arabica. Africa and Asia produced 10% and Latin America 90% of the world production. However, due to the expansion

o While emerging large estate farming was abandoned, small-holders continued to grow coffee.


tax avoidance practices engaged in by unscrupulous traders and businessmen who joined the exporters’ ranks greatly contributed to an uneven ground leading to unfair competition.

14. In 1994 a Government appointed Task Force recommended the setting up of the Coffee Research Centre (COREC). In 1996 the Coffee Research Centre was finally established under the National Agricultural Research Organisation (NARO) at Kituuza, Mukono District.

15. The Uganda Coffee Farmers Association (UCFA) came into being in 1995 to mobilise coffee farmers to address problems faced by the coffee farmers and also to address problems of quality control at the farm level. In 2003, UCFA changed name to the National Union of Coffee Agribusiness Farm Enterprises (NUCAFE) as a response to members’ needs.

16. In 1995 the mandatory floor (minimum) export prices structure of UCDA was abolished and was replaced with indicative prices, as a World Bank conditionality before the release of one tranche in the IDA structural adjustment credit to Uganda.

17. By September 1996, there were more than 180 coffee export licenses issued. This was made easier by the liberalisation of the foreign exchange market and guaranteeing of repatriation of profits. However, due to management problems, and other factors, many coffee exporters ended up in serious trade and financial difficulties that forced them from exporting. Currently the total number of exporters range between 35 and 45.

18. On the global scene, it should be noted that the coffee quota system collapsed in 1989.

5. Parliament passed the UCDA Statute in 1991, and the Uganda Coffee Development Authority (UCDA) was formed. UCDA was created as a statutory body charged with the responsibility of monitoring and regulating the coffee industry, as well as advising Government on policy issues.

6. In 1991, to compete with the CMBL, five (5) private companies were licensed to export coffee. This was in addition to the co-operative unions which had started to export in 1990 after the cabinet decision to break the CMB monopoly.

7. In 1992, the Minister of Finance abolished the export tax on coffee, allowing exporters to retain 100% of their proceeds.

8. In 1992, Government permitted pre-financing arrangements and the formation of Joint Venture companies. This introduced a new dimension to the coffee business in Uganda, increasing the liquidity in the coffee export business and greatly reducing the problems of crop financing. The restriction to railway transport was also eased.

9. The Uganda Coffee Exporters Association (UCEA) was founded in 1992 by the private coffee exporters. It was later officially registered in 1993, and eventually acted as a forum which brought together all the coffee exporters.

10. A study was launched in 1993 by the Government, and a joint GOU/World Bank Task Force was commissioned to study the extent of the Coffee Subsector Reforms and advise Government on further actions to be undertaken.

11. In 1994, the CMBL and the co-operative unions under UNEX became members of UCEA. The exporters’ association was later transformed into a more encompassing trade association known as the Uganda Coffee Trade Federation (UCTF) in 1996, to bring together all those involved with coffee trade in Uganda. This now includes registered companies of coffee exporters, processors, roasters, brokers, traders, coffee growers, banks, insurance companies, transporters, input suppliers, clearing and forwarding companies.

12. The UCDA Statute was amended in 1994, to ease trade and allow for more participation of the industry players in the decision-making process. The minister’s powers were reduced and the structure of the board of UCDA was modified to include more private sector representatives.

13. In June 1994, the coffee export tax was re-introduced, as a “coffee stabilisation tax”, with much influence from the IMF. This tax was later abolished in June 1996. Its implementation was, however, tainted with allegations of gross mismanagement (unevenly applied). Widespread complaints of tax evasion and

1. In 1994, the CMBL and the co-operative unions under UNEX

became members of UCEA. The exporters’ association was later transformed into a more

encompassing trade association known as the Uganda Coffee

Trade Federation (UCTF) in 1996, to bring together all those

involved with coffee trade in Uganda.


Post liberalization, the coffee supply chains are now reasonably competitive and efficient but these have posed some big challenges that have to be addressed

in the next century and these include among the others;

• Mainstreaming coffee research; the current state of coffee research in Uganda cannot respond immediately to the industry demands. Although the establishment of the Coffee Research Institute has almost been assured by the government, it goes beyond an Institute. Uganda has the potential of being one of the biggest coffee producers but is still constrained by limited research, lack of sufficient infrastructure, human and capital resources. This is compounded by the prevalent incidences of pest and disease breakup in various coffee growing areas and drastic weather changes associated with climate change and global warming that adversely affect production and yields.

• Over 90% of the coffee in Uganda is produced by smallholder farmers, who have been growing coffee by default. These will only receive technical assistance or extension services if they subscribe to a given Farmer Organisation. Therefore government must have deliberate effort to attract more investments in medium to large scale coffee farms so that out growers can also tap into the knowledge and experience of the big brother; have access to technical support in crop production and new technologies leading to higher yields and productivity; with the ultimate aim of transforming into more highly skilled and commercially-oriented farmers.

• Domestic coffee consumption is still low in Uganda estimated at around 3% to 5%. However in the recent past we have seen the number of coffee shops and roasters increasing to over 30. The Uganda Coffee Development Authority

(UCDA) has been training especially the young generation to roast, grind and brew coffee, in addition to organizing barista championships as a way of boosting domestic consumption. Government has been inviting investment into soluble coffee production and this is expected to be on the government agenda until it materialises.

• It is estimated that by June 2012, the population of Uganda was 34million with 66% of the population engaged directly or indirectly in Agriculture. Due to the growth in population, land that was previously under coffee has been lost to other enterprises like real estates, factories while the other areas have been diverted to crops that give quicker returns like maize and beans. With the receding availability of land, the future lies with productivity and therefore Coffee research should work around the clock to find better yielding varieties yet the farmers should also follow the good agricultural practices to increase their yield per hectare. This should be followed by differentiated marketing to realise the maximum benefits.

In conclusion, the Coffee industry in Uganda has undergone a lot of transformation but if the future is not well planned by a combined effort of all the stakeholders, it may be bleak. The coffee industry has maintained its status as the main cash crop of Uganda and it’s up to all the players to maintain its glory.

STRATEGIES FOR THE NEXT CENTURY


A coffee tree has a lifespan of

about 50 to 70 years though it can go up to over 100 years while producing excellent coffee if well maintained.

C offee increases in volume during

roasting by 18.60%.

W hen shopping for perfume,

you can take some coffee with you in your bag and have a good sniff in between smelling each perfume to refresh your nose!

In 1675 the king of England banned

coffee houses, claiming they were places where people met to conspire against him Some of the worlds most powerful business, including Lloyds of London and the New York Stock Exchange, started life as a coffee houses.

DID YOU KNOW THAT!!!!!!!!!!!!!!!

T he rise of Islam contributed greatly to popularity of coffee. The religion prohibited

drinking alcohol but coffee was considered an acceptable drink.

H awaii is the only state in the United States that grows coffee.


7 0% of the world consumes

Arabica coffee which is mild and aromatic. The remaining 30% drinks Robusta which is more bitter tasting and has 50% more caffeine than Arabica.

T he first Espresso machine was

introduced in 1822 by the French, but it was the Italians who perfected and distributed it.

T here is less caffeine in

dark roast than in medium roast. It is because, the longer the beans are roasted, the more caffeine burns off.

A nts don’t like coffee, so you

can use coffee to keep them away from you plants or out of your rooms. Just put the used coffee grounds around the plants or on the ant tracks in your house.


Wh e r e a s there is no u n i v e r s a l

definition of weather or climate, some terms are generally acceptable in defining these two phenomena. Simply put, weather is the state of the atmosphere; the

degree that it is hot or cold, wet or dry, calm or stormy, clear or cloudy. Weather commonly refers to day-to-day temperature and precipitation (water that falls from the sky to the earth’s surface such as rain). On the other hand, climate is the average atmospheric conditions over longer periods of time.

The most common weather conditions on earth may include wind, cloud, rain and dust storms. Climate includes the statistics of temperature, humidity, atmospheric pressure, wind, precipitation, atmospheric particle count and other meteorological elemental measurements in a given region over long periods. Climate can be contrasted to weather, which is the present condition of these elements and their variations over shorter periods.

Climate change has been defined as the variation in global or regional climates over time. It reflects changes in the variability or average state of the atmosphere over time scales. These changes can be caused by processes that are internal to the earth, external forces such as variations in sunlight intensity or, more recently, human activities.

Climate change may occur over long and short timescales from a number of factors such as the recent warming of the earth’s surface that is referred to as “global warming”.

In the context of environmental policy, the term “climate change” often refers only to changes in modern climate, including the rise in average surface temperature known as global warming. In some cases, the term is also used with a presumption of human causation.

Climate change may refer to a change in average weather conditions, or in the distribution of weather around the average conditions; for instance more or fewer extreme weather events. Climate change is caused by factors that include human-induced alterations of the natural world. Human activities are reported to be causing global warming. Many times climate change is often used to describe human-specific impacts.

The term climate change mitigation refers to attempts to reduce human-induced causes of climate change; particularly global warming. Climate change mitigation refers to efforts to reduce or prevent emission of

CLIMATE CHANGE FROM A FARMING PERSPECTIVE By: Tony Mugoya

http://en.wikipedia.org/wiki/Atmosphere

http://en.wikipedia.org/wiki/Precipitation_%28meteorology%29

http://en.wikipedia.org/wiki/Climate

http://en.wikipedia.org/wiki/Dust_storm

http://en.wikipedia.org/wiki/Temperature

http://en.wikipedia.org/wiki/Humidity

http://en.wikipedia.org/wiki/Atmospheric_pressure

http://en.wikipedia.org/wiki/Wind

http://en.wikipedia.org/wiki/Precipitation_%28meteorology%29

http://en.wikipedia.org/wiki/Meteorology

http://en.wikipedia.org/wiki/Weather

http://en.wikipedia.org/wiki/Climate_change

http://en.wikipedia.org/wiki/Global_warming

http://en.wikipedia.org/wiki/Environmental_policy

http://en.wikipedia.org/wiki/Temperature





greenhouse gases which cause global warming. Mitigation can mean using new technologies and renewable energies, making older equipment more energy efficient, or changing management practices or consumer behavior. Climate change mitigation is about reducing the carbon footprint of human activities.Climate change adaptation refers to efforts targeted to reduce vulnerabilities and build resilience to the impacts of climate change.

Another school of thought has argued that there is no climate change per say but naturally occurring cycles of extreme weather patterns. Whatever the argument, it is true that farming activities have been adversely affected by unpredictable and extreme weather conditions especially in recent times. Crop production and livestock rearing have been particularly affected. Small scale farmers in developing countries who are at the bottom of the value chains are most vulnerable and increasingly exposed to numerous challenges caused by the changing weather patterns.

Farming activities in the tropics have been plagued by frequent droughts, uneven rains and unpredictable weather. It is now difficult for small scale farmers to predict with certainty the onset of the rainy season or how long it will last. In recent times, it has been observed that rains fall in months that were known in the past to be part of the “dry season”. Similarly, the old “rainy seasons” are now characterized by very hot and dry spells. In some places within the tropics especially in Africa, the droughts have become prolonged and frequent while the rains have become more intense and unevenly distributed. All these changes have adversely affected agricultural activities.

Climate change has continued to distort four main socio-economic aspects of life in African farming communities especially among the most vulnerable people living in rural areas who are predominantly smallholders. In short, climate change is a threat to food security, income security, social stability and cultural heritage.Small scale farmers in Africa have been practicing agriculture under given farming systems for generations. These farming systems were selected to ensure food and income security as the main priorities. In the past, smallholder farmers knew with certainty the seasons for planting and harvesting. In many parts of Africa, even the months of the year were named after the weather conditions and the corresponding farming activities. The calendar year was divided into a farming calendar of activities.

Early planting was a best practice. This involved planting at the onset of rains and harvesting just before the dry season. This ensured food security. In Uganda, food crops were often intercropped with perennials like coffee. With the current unpredictable rains, it is now difficult for farmers to determine with certainty the onset of the planting season. Many smallholder farmers who attempt to plant early have been disappointed when the rains suddenly stop in the middle of the traditional “rainy season” which results in crop failure and yield losses. Such farmers are said to have been “caught by the season” and they are normally faced with food insecurity until the next harvest. This results in inadequate food supply and malnutrition. It is common these days to see many fields of stunted crops that have been “caught by the season”. Even perennial crops like coffee have not been spared by these uneven rains.

Sudden dry spells especially after flowering of coffee reduces coffee yields of many farmers. The drought not only affects flowering but also leads to fruit abortion, poor bean filling which results into light beans or floats and low coffee bean quality, and in worst cases scorching of the coffee trees. These sudden adverse weather conditions have been attributed to the harmful effects of climate change. The reduced yields result into diminished income security for coffee farmers.

Smallholder farmers in Africa rely mainly on family labour. Since unpredictable weather patterns are affecting not only yields but also the predictability of incomes, farming is becoming less attractive to the youth as a viable and secure economic enterprise. This has resulted in the youth abandoning farming and looking for other enterprises that are perceived to provide secure incomes. And hence, climate change is affecting the social stability of farming communities.

There is currently a considerable shortage of labour among smallholder farms where it is mainly the elderly who have remained engaged in farming activities. In Africa, the average age of farmers is raising. This is


exacerbated by the fact that most smallholders lack adequate finances to employ hired labour. The youth have preferred to migrate to urban areas in search for blue and white collar jobs. This rural urban migration has not necessarily led to improved incomes. On the contrary, rural urban migration has often led to increased urban unemployment , poverty and insecurity especially among people living in slums.

In traditional African societies, harvests were special occasions. The harvest seasons were also seasons of celebrations. These celebrations were marked by elaborate festivities and social events. It was after the harvests, that communities organized parties and cultural activities. It was during this time that multi-talented African artists, musicians, poets, philosophers and story tellers released their new compositions. It was during this time that the rich African oral literature was passed from one generation to another.

Harvests were often welcomed by music extravaganzas. Communities living near the Great River Nile often used a variety of drums, xylophones and other musical instruments. In the evenings of the harvest periods, it was common to listen to the rhythmic beats of the big drum punctuated by the high pitched staccato of the alligator skinned long drum; against a background of the thunderous roar of the mighty waters of the Nile cascading through its numerous waterfalls. Music from various percussion, string and wind instruments completed the African symphony.

Irregular weather patterns have disrupted these traditional African social events since harvest times are now varied and depend on the time of planting of each farmer. It is common for some farmers to enjoy a bumper harvest while others count their losses. The drumbeats of celebrations have long gone silent. Many youth and young farmers have not experienced these traditional ceremonies associated with harvests. The rich African culture is faced by a direct threat of extinction.

The onset of rains after a prolonged dry season is often a bittersweet experience. It is “sweet” in the sense that the rains are a welcome relief after a long dry spell. It is “bitter” in that many times these first torrential rains are characterized by strong winds and sometimes come with

hailstones and floods. This climatic paradox is now a common experience. In Eastern Uganda, rains have often caused fatal landslides in coffee growing communities along the slopes of Mount Elgon. Warm and humid conditions associated with climate change are known to favour increases in pest populations beyond their economic injury levels. In addition, disease incidence has been correlated with warmer temperatures. Disease vectors are also known to be sensitive to temperature and humidity which also affects their distribution; particularly at their altitudinal and latitudinal limits. This means that certain vector-borne diseases may be introduced to regions that have not previously encountered them.There is need for entire societies to adapt to climate change. Farming communities, being the most vulnerable, need to be the focus for climate change adaptation initiatives. Farmers should be assisted to assess their options for adapting to their specific climate change challenges.

These options could be in the areas of technological inputs, new approaches and diversifying farm enterprises. There is need to empower local farming communities with information, technologies and expertise to implement appropriate climate change adaptation strategies. These options may include provision of accurate weather data to enable farmers to make decisions and generate local solutions.

Farmers especially coffee growers need to receive information and to access an early warning system for droughts and pest infestations. There is need to promote appropriate plant densities and shade management, use of fertilizers and soil conservation, water harvesting and micro-irrigation. Research should focus on disease resistance as well as drought tolerant varieties. The task of managing the adverse effects of climate change requires a concerted effort and collective responsibility. There is need for the entire agricultural sector in general and the coffee industry in particular to work together to promote adaptive strategies on a large scale. The time for action is now.

The writer is the Executive Director, Uganda Coffee Farmers Alliancee-mail: [email protected] telephone: +256 772 309 599

Harvests were often welcomed by music extravaganzas. Communities

living near the Great River Nile often used a variety of drums, xylophones

and other musical instruments.

mailto:[email protected]


tel:%2B256 772 309 599


As the entire nation braced for Golden Jubilee of 9th October 2012, the coffee fraternity celebrated it on 4th October 2012 to coincide with the Uganda Coffee Day that is celebrated on the first Thursday of October. Because of much importance the industry

attaches to research, it was just necessary to take event to the Coffee Research Centre (COREC), Kituuza, Mukono District under the theme “Uganda @50 Years: Milestones of the Century and Strategies for the Future.” The Chief Guest was Dr. Emily Twinamasiko, the Director General of NARO under whose docket the Centre falls. Other speakers for day included Mr. Robert Waggwa Nsibirwa, President of Africa Coffee Academy, Mr. Hannington Karuhanga, Managing Director Savannah Commodities and Mr. John Schulter, Director Café Africa and Mr. Francis Chesang, the Production Manager of UCDA.Dr. Twinamasiko informed the Coffee fraternity that reinstating COREC as an Institute was in its final stages and assured the stakeholders that once this had been achieved; it will have the mandate to headhunt, train, and retain the right personnel. It will also be in position to source for financial support to ensure proper execution of their duties in accordance to the industry requirement and elevate its level to international standards.

While Uganda is the second biggest coffee producer in Africa, and the biggest Robusta coffee producer on the continent, it has only six coffee scientists in comparison to 31 from Kenya and 27 in Tanzania. This has negatively impacted on the coffee production in Uganda especially in responding to the growing challenges like higher yielding, pest and disease resistant and drought resistant varieties. She expressed gratitude to the coffee stakeholders for the support they have offered to the Centre.

Although the theme this year seemed to have deviated from the usual tissue culture and the Coffee Wilt Disease resistant (CWDr) varieties, it was impossible to avoid it as it is always synonymous with production. It is generally believed that the matters of stagnated coffee production will only be solved by the rapid multiplication and distribution of these varieties to the farmers. This was echoed by Mr. Robert Waggwa Nsibirwa, in his address, he informed the stakeholders that this was on course and the farmers were eagerly waiting for the new materials. He added that the number of farmer groups was increasing; and government through UCDA had intensified its support in replanting and promoting productivity. The other notable achievement was the emergence of the Coffee traders Association commonly known as the middlemen and this was highly welcomed by the stakeholders as a move towards better coffee quality. In terms of trade, Mr. Nsibirwa said that the there had been a remarkable reduction of Robusta coffee volumes in the first half of the coffee year and seismic changes in global washed Arabica coffees that had led to a switch to Robustas and natural Arabicas causing the relative prices of washed Arabicas to tumble. He concluded by reassuring the stakeholders that despite the challenges, the Uganda Coffee industry was still vibrant with a good reputation in the global market.Mr. John Schluter gave a history on the evolution of coffee processing both at primary and secondary level in Uganda like the introduction of pulped and washed Robusta in 1955, that later collapsed and is now being revived; the rise, fall and stabilisation of the number of coffee exporters due to post liberalization market dynamics; and consequently the search for value addition quality, certification and domestic consumption promotion.

THIRD UGANDA COFFEE DAY: reflection of the past 50 years


As a way forward, Mr. Schulter urged the stakeholders to brace for competition from other origins by investing in research and technology along the coffee value chain; advised that the continued growth in washed Robustas and Arabicas producers had to invest water supply and its purification as well as good management of waste products that should be converted to organic fertilisers. He noted that the rising real estates and population growth will lead to relocation of processing facilities upstream towards producers; and it will be the farmers decision on whether to ensure food security through planting food crops or cash crops like coffee. The other major determinant of production will be availability of agricutural labour that is currently scarce and expensive. Thus the future lies in scientic way of production and adaption of new technology. Mr. Francis Chesang who represented the managing director of UCDA informed the Coffee industry players about the different strategies UCDA had in place to increase coffee production and productivity and these included; Promote and support the adoption of good agronomic practices (proper spacing, pruning, mulching, etc) at farm level, coffee growing in new areas and expansion of acreage in traditional coffee growing districts, promote use of high yielding, diseases and pest resistant varieties, support the use of agro inputs in the coffee subsector, mainstream participation of women and youth in the entire coffee value chain, management of coffee pests and diseases and Promote and support medium and large scale coffee farming as the future of the coffee industry.

In regard to climate change mitigation strategies, Mr. Chesang informed the stakeholders that UCDA will support the environmental and biodiversity conservation practices in the coffee production systems, irrigation development structures and work with the Coffee researchers to develop and distribute drought resistant coffee varieties. This Coffee Day registered over 450 participants from across the coffee value chain and this time the speeches were punctuated with entertainment, and field visits. The next Coffee Day will be celebrated on Thursday, October 3rd 2013.

Abesigwa Growers Cooperative Union - 1956


Buule Ronald proud of his Coffee Garden


Nsangi Coffee Farmers Association [NCFA] located in Nsangi Sub County;

Wakiso District is a community Based Association whose mission is to establish a sustainable system for poverty alleviation among farmers through market- based agricultural practices. It was started in 2004 and registered in 2005 with a few members but currently has 853 members some of whom have expanded their boundaries beyond Nsangi but still retain their commitment to operate under to their Association. With the assistance from Progresso, a Netherlands based Organisation; NCFA started exporting its coffee in 2010 but still maintains its business relationships with some coffee exporters. Some of its buyers include Cafériver based in the Italy, JP Group Markets international in collaboration with Shangai Hai based in China, Sucafina and Supremo.

DIRECTION OF THE UGANDA COFFEE INDUSTRY FROM THE FARMER’S PERSPECTIVE

Uganda Coffee Federation caught up with Mr. Ronald Buule, the Chairman to get his inspiration about the Coffee industry in Uganda.

Q What motivated you to form Nsangi CFA?

As a coffee farmer I realized that middlemen were earning much more money compared to the coffee farmers and this was due to the fact that most farmers were ignorant about the prevailing prices. Some of them were selling red cherries, kiboko and flowers. So I came up with an idea of sensitizing farmers to collectively bulk their coffee, process and sell it as a group to the local exporters and we started with Savannah Commodities that I knew very well.

Q Since its formation how has the association impacted the coffee community in Nsangi?

For starters as an association;

• Through sensitization and training many farmers have been able to appreciate coffee as a crop of their choice to the extent that even those who had wanted to sell off their land for other opportunities have had to think twice and quashed such ideas;

• More coffee has been grown since the association avails farmers with planting materials. It is worth noting that if one came to Maya the centre of NCFA, he would be surprised to find that almost all homesteads have got a considerable number of coffee trees;

• Improved coffee quality through training in harvesting and post harvest training that the association gives to farmers;

• Better prices come with quality and information flow, in fact farmers get up to date prices;

It was started in 2004 and registered in 2005 with a few

members but currently has 853 members some of whom have expanded their boundaries beyond Nsangi but still retain their commitment to operate under to their Association.


• Sharing of opportunities, new ideas, knowledge and technology among members;

• The youth have been captured through the formation of the coffee youth club that concentrates on games and sports. The Association has got a high number of youths engaged in coffee production and from here, other youths have been advised to join agriculture; notably coffee having seen their role models;

• Some village roads have been constructed with the help of the Association sensitizing the farmers and the youth towards the community support.

Q Gender is an important aspect in the coffee industry, How have you promoted the gender aspect to Nsangi coffee community?

We encourage both men and women to diversify their resources to maximize their earnings. Even if coffee is the main crop, we encourage ladies to plant bananas in the coffee garden to enhance food security. They also do livestock farming concentrating on mainly poultry and piggery. Women are also encouraged to do handicraft in their leisure time.

However, as we attract the male youths through sports and games notably football, Nsangi has also done the same arrangement with female youths through netball though the former is more popular.

Q You pride yourself into producing and exporting quality coffee, please share with us the best practices other farmers should emulate.

When the producer exports quality coffee, he/she is expected to get good money compared to what he has been getting before.

- A smart coffee farmer is expected to look at three stages of income;

a) Daily income.

b) Monthly income.

c) Long term income or seasonal income.

- Nsangi has created a system of “DO IT YOURSELF” where a farmer can make his or her own fertilizers through MM Technology. The farmer can then use these fertilizers in his garden and sell the rest.

- Farmers should look at diversification as the best approach to eradicating poverty. Many would-be farmers have abandoned agriculture due to the associates risks and uncertainty. If farmers embraced mixed agriculture taking coffee as a major income earner, they would smile all the way to the bank without feeling the pinch of the financial crisis.


Q What are some of the challenges the youths in coffee production face today, and how can they overcome such challenges?

- Inadequate land for expansion, most youths are farming on small pieces of land passed onto them by their parents and this caters for both food and cash crops;

- Inadequate usage of agricultural inputs for example fertilizers are very vital to increase productivity especially where land is scarce.

- These problems can be addressed by availing youths with some agricultural loans and if possible the government can lease land to the youths though the major problem here is leaving the land after the lease period has expired.

Q What advice would you give to the other youths aspiring to embrace coffee production as an occupation?

These youths should always take coffee farming as a business and should aim at maximizing their earnings.

Q Do you support the idea of revamping our cooperatives as a way of improving aspects of the Uganda industry?

Yes, I do support the revamping of the cooperatives because is advantages cannot be underestimated but they have to come in knowing that the Uganda coffee industry is fully liberalized. There is a very big difference between the pre and post liberalization period and the cooperatives should come in ready to embrace these changes.

Your last wordWe request for government intervention to help the farmers, associations or cooperatives that would wish to enter the export market. This is a vulnerable group and could fall prey to the exploitation of the buyer who may fail to fulfill part of his obligation. Nsangi CFA has had that problem but it may not be the last victim.

ABOUT THE INDUSTRY:Q In your opinion do you think we are

capable of producing more than 4 million bags?

Yes, I believe we are capable of producing more than four million bags as a country but this can only be achieved if farmers are availed with high yielding, disease resistant planting materials, intensified extension services especially as far as good agricultural practices are concerned, encouraged to add value to their coffee (selling FAQ or Graded coffee in order to fetch good market), and to appreciate the importance of coffee.

Q Why are you so much passionate about the youth involvement in coffee production?

First of all my passion for coffee dates back on 2000 when I got some land with coffee in it from my grandparents and decided to maintain that land. Currently I have about 90acreas of land under coffee. By the time I entered coffee production, I was still a young man and even now I still qualify as a youth. There is a lot I have got from coffee and I wouldn’t want to be selfish that is why I have persuaded many youths to go into coffee production.

In order to have sustainable and booming coffee industry, the youth must take the lead because they are still energetic, able to adopt new technologies and can take on the coffee business to the next generations.

Q Why do you think the youth have abandoned coffee production?

- They generally have a negative attitude towards farming/agriculture.

- Lack of knowledge about profitability of coffee business.

- Many of them may have the knowledge and are willing to join the coffee industry but do not have land.

Q What measures do you suggest the coffee industry as a whole should take to attract the youth back to coffee growing?

- We should sensitize the youths and train them about the benefits and profitability of coffee farming business. Nsangi CFA has started this and the results are encouraging. For example with the youths in Nsangi CFA, we compared the incomes of a person riding a motor cycle and a coffee farmer and realized that a farmer was earning more so we are now getting more youths coming for advice on coffee.

- Formation of clubs where youths can get together and share information about coffee farming as a business.


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1. About wet coffee processing

Wet processing of Arabica coffee (Coffea Arabica) produces higher quality and receives higher prices on the world market compared to coffee

prepared by dry method.

In wet process, the skin covering the coffee/beans (Figure 1) is removed before they are dried. Coffee processed by the wet method is called wet processed or washed coffee. The wet method requires use of specific equipment and substantial quantities of water. The coffee cherries are sorted by immersion in water and bad or unripe fruit will float while the good ripe fruit will sink. The cherry skins and some of the pulp is removed by pressing the fruit by machine in water through a screen. The bean will still have a significant amount of pulp on it that needs to be removed and this is done either by ferment-and-wash method or a newer procedure called machine-assisted wet processing, aquapulping or mechanical demucilaging. These methods are briefly explained below.

a) Ferment-and-wash method: In this method of wet processing the remainder of the pulp is removed by breaking down the cellulose by fermenting the beans with microbes and then washing them with large amounts of water.

Fermentation can be done with extra water or, in “Dry Fermentation”, in the fruit’s own juices only.

The fermentation process has to be carefully monitored to ensure that the coffee doesn’t acquire undesirable, sour flavors. For most coffees, mucilage removal through fermentation takes between 24 and 36 hours, depending on the temperature, thickness of the mucilage layer and concentration of enzymes. End of fermentation is assessed by feel, as the parchment surrounding the beans loses its slimy texture and acquires a rougher “pebbly” feel. When fermentation is complete, the coffee is thoroughly washed with clean water in tanks or in special washing machines.

b) Machine-assisted wet processing method: In machine-assisted wet processing, fermentation is not used to separate the bean from the remainder of the pulp; rather, this is done through mechanical scrubbing. This process can considerably reduce water use and associated pollution impacts. In addition, removing mucilage by machine is easier and more predictable than removing it by fermenting and washing.

Technical overview of environmental impact of land application of pulping effluent from wet coffee processing.


However, by eliminating the fermentation step and prematurely separating fruit and bean, mechanical demucilaging can remove an important tool that mill operators have of influencing coffee flavor. Furthermore, the ecological criticism of the ferment-and-wash method increasingly has become disputable, since a combination of low-water equipment plus settling tanks allows conscientious mill operators to carry out fermentation with limited pollution.

Wet processing of coffee produces wastewater whose disposal can be challenging. Depending on the processing technology applied, quantities of coffee waste water is varying , but most often is used in a 1 : 1 ratio. Modern mechanical mucilage removal machines producing semi-washed coffee use only about 1 m3 per tonne fresh cherry (without finish fermentation and washing) whereas the traditional fully washed technique without recycling uses up to 20 m3 per tonne of cherries.

Characteristics of waste water from coffee processing include a high Biological Oxygen Demand (BOD) of up to 20000 mg/l and a Chemical Oxygen Demand (COD) of up to 50000 mg/l as well as an acidity of below pH 4. Ecologically sensitive coffee farms reprocess the wastewater along with constituent shell and mucilage as compost to be used as a soil

conditioner. In tropical Africa, specifically Uganda land disposal of this effluent or irrigation of coffee plantations is a logical option. This option is especially necessary in coffee plantations located in prevalently dry areas with high evaporation rates (4-6 mm/day) and a marked lack of surface water resources (lakes or rivers) that would provide irrigation water or where the watertable is low hence reducing risk to aquifer pollution.

2. Wastewater constituents of environmental concern

Mucus in the pulp effluent will contribute biochemical oxygen demand (BOD) to the effluent. BOD will however only serve the beneficial function of a soil conditioner (manure) for the coffee trees.

If the coffee plantation uses pesticides and herbicides, residual concentrations in wastewater when higher than national standards, could affect soil quality, groundwater, birds and animal species. Typical herbicides and pesticides used on Uganda coffee plantations are Glyphosphate, Dimethoate, Diazinon and Furadan.

3. Environmental fate assessment

In one study, laboratory analysis was undertaken for a grab sample of effluent from a small pulping unit. In the sample, all herbicides and pesticides had lower concen-trations than the maximum levels stipulated by National Environment Management Authority (NEMA) except Di-methoate. This technical assessment therefore focuses on dimethoate.

Properties of dimethoate are outlined below.

a) Use profile

Active ingredient (ai): O,O-dimethyl-S-(N-methyl-carbamoylmethyl) phosphorodithioate.

Type of use: Insecticide

Typical use: In USA, USEPA allows application of dimethoate on terrestrial food and feed crops, terrestrial non-food crops, indoor food uses, indoor non-food uses, terrestrial non-food, outdoor residential, forestry use and aquatic non-food industrial use in which it is applied to sewage systems. Uganda’s ministry responsible for agriculture (MAAIF) allows use of this chemical as a pesticide.

Figure 1: Structure of coffee berry and beans: 1: center cut 2: bean (endosperm) 3: silver skin (testa, epidermis), 4: parchment (hull, endocarp) 5: pectin layer 6: pulp (mesocarp) 7: outer skin (pericarp, exocarp)


Target Pests: A wide range of insects, including but not limited to midges, scale, aphids, mites, leaf miners, flea hoppers and plant bug.

Formulation Type: Dimethoate is marketed as either a wettable powder, emulsifiable concentrate or as a ready-to- use liquid. Wettable powders typically have 25% active ingredient (ai) while in emulsifiable concentrates, ai can be up to 57.0%

b) Historic use profile

Use of dimethoate is not unique to Uganda alone. The pesticide is widely accepted and used all over the world. Information below are excerpts from a compilation of The Biological and Economic Analysis Division (BEAD) of Office of Pesticide Programs, USEPA on use of dimethoate in 1993 on 41 crops throughout the USA (Ali 1995):

In 1993 a total of 1.3 to 2.2 million pounds of active ingredient were applied to 4,701,000 to 6,062,000 acres.

Field crops alone account for 42-47% of the total dimethoate applied in 1993, totaling approximately 880,000 to 1,034,000 pounds of active ingredient.

Ten to fifteen percent of the total dimethoate applied during 1993 was to citrus crops, totaling 220,000 to 330,000 pounds of active ingredient.

c) Fate of dimethoate in soil

Detailed studies conducted on dimethoate by USEPA in 1999 established that the insecticide is a mobile, yet non-persistent organophosphate chemical. This means that once in soil, it readily biodegrades. The primary route of dissipation is microbially-mediated hydrolytic1 and oxidative degradation in aerobic soil, particularly under moist conditions, with a half-life2 of 2.4 days. The major degradate is carbondioxide- CO2, accounting for approximately 62% of the applied chemical after 14 days. Two non-volatile degradates, desmethyl dimethoate and dimethylthiophosphoric acid, were identified at levels less than 2%. These resultant products consist of carbon and phosphorus, which are natural constituents of soil.

The USEPA study established that dimethoate does not photodegrade, i.e. get destroyed by action of light (since the degradation rates and products were essentially the same for under light and dark experimental conditions). Although dimethoate does not photodegrade on soil, the study provided information on degradation of dimethoate 1 Hydrolysis is a chemical reaction in which a substance reacts with water and gets changed into other substances, as starch into glu-cose or natural fats into glycerol and fatty acids.2 Half-life is time taken by a substance to decay to half of its original weight.

on a thin layer of relatively dry soil. Under these conditions, the soil degradates (dimethylphosphoric acid and dimethylthiophosphoric acid) accumulated and persisted for a longer time than in an aerobic soil. Therefore, at the coffee plantations, these degradates may persist at the soil surface especially in dry seasons.

Dimethoate hydrolyzes very slowly at pH of 5 to 7, but in alkaline soils, it degrades rapidly to desmethyl dimethoate and dimethylthiophosphoric acid with a half-life of only 4.4 days at pH 9. Under aerobic soil conditions, dimethoate degrades faster than in poorly aerated (or anaerobic) soils. The anaerobic half-life is approximately 22 days, with the major non-volatile degradate being desmethyl dimethoate. Dimethoate is highly mobile in loam, silt loam, sandy loam and sandy soils.

Dimethoate will not easily evaporate from the soil surface. The USEPA study showed that the chemical had low volatility since after 30 days, only 2.7% of the applied chemical had volatilized.


d) Potential for ground water contamination

Although dimethoate is similar to many other organophosphate insecticides with respect to its mobility, it is not likely to persist in the environment and therefore should not leach to groundwater under most conditions. In aerobic soil, dimethoate will degrade with a half-life of less than 3 days. Dimethoate may persist longer under anaerobic conditions, with half-life of 22 days. However it is believed that most of dimethoate will degrade before encountering depths at which soil conditions are anaerobic. Residual chemical concentration detected in the wastewater sample was small (0.0255 mg/l) and would only require 2 half-lives (or 6 days) to degrade to 0.003 mg/l, which is below the national standard of 0.004 mg/l.

e) Potential to contaminate surface runoff

The USEPA study found dimethoate to have low affinity to attach to soil particles. The low soil-water partitioning of dimethoate (Kd values of 0.06, 0.30, 0.57, and 0.74) indicates that the chemical does not readily attach (adsorb) onto soil particles. Hence contamination of runoff will be primarily by dissolution in stormwater as opposed to adsorption to eroding soil particles/sediment. Besides its low soil-water partitioning, the relatively short persistence of dimethoate on soil surface means that its potential for stormwater contamination will be low. In addition, the low soil-water partitioning of dimethoate will allow leaching to remove a substantial amount of the chemical from the top 1-inch layer of soil that is ordinarily available for runoff during rainstorms. All these aspects combined, abate the risk of the pesticide residues contaminating surface water once pulping wastewater is applied on land at the plantation.

f) Avian toxicity

As part of the 1999 USEPA study, a 30-day daily oral administration test on six male and female wild ducks indicated that the lowest daily oral dosage that produced one or two deaths by the end of the 30-day period (30- day empirical minimum lethal dosage) was 6.0 mg/kg/day. If an average wild duck in that USEPA study weighed 2 kg, the lethal quantity of dimethoate the bird would take in a day before dying is 12 mg. In wastewater from the study plantation, concentration of dimethoate detected was 0.0255 mg/litre (or 612 mg in the 24,000 litres that was discharged). To make up this lethal dosage, a single 2-kg bird would have to ingest 2% of all dimethoate in effluent discharged by the plantation- an absolute impossibility! Hence there is very low risk to wild birds when wastewater from pulping is used for land application at the plantation. The risk would be much less for larger wild animals.

Conclusion The marginal low residual concentration of dimethoate found in pulping effluent at study coffee plantation limited posed no environmental risk to wild fauna, soil, groundwater and stormwater or runoff because of the following reasons:

A USEPA study on dimethoate established that the pesticide would readily degrade in normal aerobic soil with half-life of only 2.4 to 3 days.

The relatively short persistence of dimethoate on soil surface means that its potential for stormwater contamination is low.

Dimethoate concentration in the wastewater is so low that land application will not pose risk to wild fauna.

__________

References and bibliographies

Ali, Ghulam. 1995. Typical annual usage (1993) and percentage of various US crops treated with dimethoate. Biological and Economic Analysis Division, Office of Pesticide Programs, USEPA.

Becker, Stephen. 1991. Dissipation of Dimethoate from Soil Following Application to Bean, Grape and Bare ground Plots Located in Fresno County, CA. Unpublished study performed by EPL Bio-Analytical Services, Inc., and California Agricultural Research, Inc. and submitted by Dimethoate Task Force, Germany. MRID: 42884403.

California Environmental Protection Agency, Department of Pesticide Regulation. 1993. Sampling for pesticide residues in California well water: 1993 Well inventory. Data Base. CEPA-DPR. Sacramento, CA

Dell’Omo, G. And R.F. Shore. 1996b. Behavioral effects of acute sublethal exposure to 63 deimethoate on wood mice, Apodemus sylvaticus: I. Field studies on radio-tagged mice in a cereal ecosystem. Arch. Environ. Contam. Toxicol. 31:91-97.

Dell’Omo, G., R. Bryenton, and R.F. Shore. 1997. Effects of exposure to an organophosphate pesticide on behavior and acetylcholinesterase activity in the common shrew Sorexz araneus.

Jacobson, B. and B. Williams. 1994. Dissipation of Dimethoate in Soil Under Field Conditions When Applied to Bare Ground in New York. Unpublished study performed by ABC Laboratories, Inc. and submitted by Cheminova Agro A/S, Denmark. MRID: 43388002.

Jacobson, B. and B. Williams. 1994. Dissipation of Dimethoate in Soil Under Field Conditions With Grain


Sorghum in Texas. Unpublished study performed by ABC Laboratories, Inc. and submitted by Cheminova Agro A/S, Denmark. MRID: 43388001.

Kenaga, E.E. 1973. Factors to be considered in the evaluation of the toxicity of pesticides to birds in their environment. In: Environmental quality, global aspects of chemistry toxicology and technology as applied to the environment. Vol. II (eds. Coulston, F. and F. Korte), Academic Press, NY.

England. 593pp. In. Smith, G.J. Pesticide use and toxicology in relation to wildlife. U.S. Fish and U.S. Fish and Wildlife Service, Resource Publication 170.

By: Eng. Lammeck KAJUBI: BScEng (1.1 Hons), MEngSc(Env) Queensland, REng (Uga.)CEO, Air Water Earth (AWE), civil & environmental engineering [email protected]: 078-2580480

“The wet method requires use of specific equipment and substantial

quantities of water. The coffee cherries are sorted by immersion in

water and bad or unripe fruit will float while the good ripe fruit will

sink. The cherry skins and some of the pulp is removed by pressing

the fruit by machine in water through a screen. The bean will still

have a significant amount of pulp on it that needs to be removed

and this is done either by ferment-and-wash method or a newer

procedure called machine-assisted wet processing, aquapulping or

mechanical demucilaging.”

http://www.awe-engineers.com


PRODUCTION AND PROCESSING PROBLEMS OF ARABICA COFFEE FARMERS IN EASTERN UGANDA By Dr. Ahmad Jazayeri Bridge Commodities Ltd [email protected]

56

I. General Background

Coffee accounts for 22% of Uganda’s export with Arabica representing on average 25% of the annual procurement

of green coffee equivalent to 38,000 MT . Arabica coffee alone contributes to almost 5% of Ugandan export earnings. In addition, Arabica coffee production is significant to farmer’s cash income. Of the approximately 1.7 million coffee farming households in Uganda, 28% are involved in Arabica coffee production. The Eastern region (around Mount Elgon) is one of the principal Arabica coffee producing regions in Uganda. The Bugisu coffee from this region is comparable to the best of Ethiopia and Kenya coffees. In 2011, the Eastern region represented 2/3 of the total area in Uganda under Arabica coffee cultivation with approximately 36,000 ha, 52.5 million trees and 312,493 households (UCDA Annual report, 2011, p.51) . UCDA does not provide production data by district in its annual report and therefore it is difficult to know the actual volumes for the Eastern region. One can however estimate that with an average yield of about 0.7 MT/ha of green coffee, the output is approximately 24000 MT.



Shade Management - The canopy cover that provides shade is inadequate and there is generally poor canopy management which is either too thin or in some highland areas too thick. The shade trees are an integral part of the long-term ecological sustainability of coffee growing system which protects bio-diversity is key to sustainability. Shade trees are particularly important for protection of the soil and stabilizing the slopes in areas of high population density with high soil depletion and erosion rates such as Mount Elgon coffee growing areas. Undisturbed by human intervention, Arabica coffee evolved under the forest canopy in Ethiopia. The bio-diverse eco-system maintained a balance between coffee trees, shade trees, birds, insects, predators, weeds, soil moisture, micro-organisms and soil stability. Such high diversity systems are ecologically more stable than high-input species-poor coffee fields. The high input systems with no shade tend to reduce bio-diversity due to tree clearance and frequent use of chemicals that disturb the balanced eco-system through eliminating the birds, and killing the predators such as ants, spiders, and micro-organisms that prevent harmful fungus. Coffee leaf miners, antracnosis, and Brown Eye Spot are attributable to the loss of biological diversity. Shade can considerably inhibit the activity of the Coffee Stem Borer because it prevents the insect from laying eggs. Similarly, outbreaks of nematodes and root diseases are often caused by a reduction of microbial activity and diversity in the soil due to fertilizers, pesticides and herbicides.

Coffee trees need shade to slow down their fruit maturation; large coffee beans are usually found under shade with heavier weight of cherries, improved cup quality (especially body and acidity), with a reduced percentage of fallen fruit of over 20%. It also lowers the percentage of reject fruits that are diseased, mummified, sunburnt or dried, maintain a cool air temperature for the tree, and protect the tree from direct sunburn all resulting in superior cup quality. For example, photosynthesis is sharply lowered at temperatures above 26 degrees that can be caused by direct sunshine on the tree. Moderate

The table below summarizes the key statistics for Arabica coffee in the Eastern region:

II. Problem Statement

Inspite of the significance of coffee production for the economy as a whole and for smallholder cash

income, there are significant barriers facing the producers that must be overcome for Uganda to get the full benefits of its Arabica coffee potential in the Mount Elgon region1.

Land Shortage - Farmers own very small plots used for both coffee and food production which compete for soil nutrition, shade, and mulching. Furthermore, the small size of land (average ¼ acre) does not provide sufficient income for capitalization of the farm leading to the vicious circle of low input and low output which perpetuates poverty. Land shortage also prevents the planting of additional shade trees.

Soil Fertilization and Composting - Yields are getting lower each year as the soil nutrients are mined by food and tree crops with inadequate replacement. The major deficiency is nitrogen caused by continuous cropping and soil leakage due to rains. Composting techniques are not common and farmers often do not know or appreciate that organic matter including manure must be transformed before it can be absorbed by the tree. Coffee pulp is directly spread on the soil without being decomposed. On average, coffee pulp takes 6 to 9 months to be decomposed to a level that can be useful as fertilizer. The farmers waste much of the organic material such as crop residue from the bean and maize harvests. The organic manure and pulp, when available, are dumped near the homestead which overtime benefits the nearby trees while those in the outlying area have inadequate soil nutrition.

1 - The following observations are based on the author’s walking tour and interviews with farmers and dealers of the Sironko and Bulambuli coffee growing areas from 29 November to 11 December 2012. 50th Anniversary Edition


commonly available, the farmers are not adopting them as required because of the apparent shortage of land and the competition for space between shade trees and food crops. Shade trees are stronger than coffee trees and can be a good protection against landslides which have devastated many lives in the region.

Pest and Disease Control - Various pests and diseases are present in the area. Amongst the pests; the most prevalent are the mealy bug, antestia, coffee berry borer, coffee stem borer, and leaf miner. Such pests impact the terminal buds, the flowering areas, the berries, and the stem of the coffee tree. The main cause of an increase in the incidence of pests and diseases is the imbalance in the eco system brought about by deforestation, intensification of coffee production, and use of chemicals that kill the predators and eliminate the natural balance in the eco system. The recommended insecticide against most pests is dimethoate which kills on contact by acting on the insect’s nervous system. A major problem with domethoate is that it is highly toxic and can have negative lateral damage on water streams, micro-organisms, birds and insect predators such as spiders. In this regard, it is instructive to note that the State of Hawaii, home to the famous Kona coffee, dimethoate is banned due to its high toxicity but is widely used in Uganda.

shade can prevent leaf rust and give higher fertility. Direct sunshine lowers the levels of potassium, calcium and zinc in the soil while shade promotes these nutrients. The main mechanism for biological soil improvement is the permanent root system which improves nutrient recycling from the subsoil to the top soil through the leaf system, reduces leaching losses, and fixes nitrogen. With similar soil nutrition, shaded trees have better leaf retention and are taller than trees with little or no shade. Shade prevents the growth of weed by blocking the sun and the fallen leaves act as mulch and prevents germination and spread of weeds. A permanent shade of 50% eliminates weeds completely and therefore saving considerably on labour cost for weeding. Most farmers are not aware of the correct spacing for the required canopy cover of at least 50%.

Banana trees which are only a temporary canopy for young trees are in many instances used as the only canopy even for the mature trees. The SL 14 Arabica tree for example grows as high as or even taller than a banana tree and therefore the banana tree cannot be an effective canopy for this variety which is the most common and the most recommended coffee tree. The tree species that have proven effective in the region for providing the canopy cover are alibizia, acacia, cordia and Gliricidia sepium which is an exotic leguminous tree with fast germinating leaves that are used for mulching. There are fruit trees such as mango, avocado and citrus trees that can grow high and tall and act against soil erosion in addition to providing good shade. There is controversy over the use of fast growing trees for poles and timber such as acacia. This issue needs further research under Ugandan conditions. Although the seedlings for the shade trees are

Banana trees which are only a temporary canopy for young

trees are in many instances used as the only canopy even for the mature trees. The SL 14 Arabica tree for example grows as high as or even taller than a banana tree and therefore the banana

tree cannot be an effective canopy for this variety which is

the most common and the most recommended coffee tree.


Mulching - Mulching, which involves spreading fresh or decomposed plant material on the surface of the soil between coffee trees is insufficiently practiced. Mulching is needed to decrease weed growth, keep the soil moist with a moderate pH, and increase the organic matter. Part of the problem is that much of the grass in the area is used for animal feed and little is left for mulching. A major issue is awareness of the benefits of mulching. There are also trade-offs that need to be achieved between intercropping beans and coffee and mulching at the completion of bean harvest. Some farmers tend to burn the crop residues which could be used as mulch. Maize leftovers, locally growing grasses especially along the river banks could be slashed and used as mulch.

Pest and Disease Control - Various pests and diseases are present in the area. Amongst the pests the most prevalent are the mealy bug, antestia, coffee berry borer, coffee stem borer, and leaf miner. Such pests impact the terminal buds, the flowering areas, the berries, and the stem of the coffee tree. Although, the recommended insecticide against most pests is dimethoate which kills on contact by acting on the insect’s nervous system, a major problem with domethoate is that it is highly toxic and can have negative lateral damage on water streams, humans, and birds. In this regard, it is instructive to note that the State of Hawaii, home to the famous Kona coffee, dimethoate is banned due to its high toxicity yet the chemical is widely used in Uganda. Organic alternatives currently registered for coffee in Hawaii are Volck® Supreme Oil (especially for mealy bug), Safer’s® Insecticidal Soap Concentrate (for most insects), and Clean Crop® Superior 70 Oil. These are much safer organic pest control solutions. Other organic and non-chemical solution is to introduce

Organic alternatives currently registered for coffee in Hawaii are Volck® Supreme Oil (especially for mealy bug), Safer’s® Insecticidal Soap Concentrate (for most insects), and Clean Crop® Superior 70 Oil. These are much safer organic pest control solutions. Other organic and non-chemical solution is to introduce natural predators which require research and adaptation although this has not yet been done sufficiently in Uganda. Integrated Pest Management in Indonesia shows that organic alternatives are available and can be developed by the farmers themselves for pest control such as using natural predators to eliminate the insects that cause damage to crops instead of using expensive and dangerous chemicals. A 50% shade cover, as explained above, are an important part of the solution.

Amongst the diseases, the most prevalent are the fungi causing leaf rust and coffee berry disease. Again although these fungi can be controlled by routine spraying with copper oxide, organic alternatives are available and should be promoted to avoid creating “toxic trails” in the mountain. Chicken, turkey, peacocks, guinea fowl, pheasants, lizards, and the birds pick bugs and while their droppings add nitrogen to the soil. Animal roaming under the trees should be encouraged. Regular pruning of the diseased branches and their elimination from the farm is also effective. Adequate shade reduces fungus growth and prevents leaf rust. Interestingly, poverty has prevented many farmers in greater of use chemical pesticides and this may be a blessing in disguise.

Amongst the diseases, the most prevalent are the fungi causing leaf rust and coffee berry disease.


Intercropping - Careful planning is needed to ensure an optimal planting of coffee trees with food crops. For example, beans should be the bunch variety and not the climbing variety that are heavy feeders and can compete with the coffee tree. Banana has long routes that can take nutrition away from the coffee tree. Planting maize with coffee trees is not a good idea as the maize will practically suffocate the coffee. Fertilization should consider the need for all the crops and not for coffee alone. Bananas need sunshine and should be planted in the more exposed areas while coffee trees require at least 50% shade. In the lowlands area banana is more important while in the highlands coffee is more important. Coffee farmers need to be sensitized that that a well-managed garden can provide a moderate shade for coffee without affecting the growth of the bananas which should be planted where there is most light.

Price and Processing at Farm level - According to local estimates, almost 50% of the coffee is sold as red cherries to washing stations and dealers who pulp and dry the product2. 2 - Currently red cherries are sold at UGX 900/kg while the price of dry parchment coffee ranges between USH 4000 to USH 5000. Consid-ering that on average 55% of the red cherry is pulp and mucilage, the red cherry price is equivalent to selling the parchment at half price.

natural predators which require research and adaptation but that has not yet been done sufficiently in Uganda. Integrated Pest Management in Indonesia shows that organic alternatives are available and can be developed by the farmers themselves for pest control such as using natural predators to eliminate the insects that cause damage to crops instead of using expensive and dangerous chemicals.

Amongst the diseases, the most prevalent are the fungi causing leaf rust and coffee berry disease. Again although these fungi can be controlled by routine spraying with copper oxide, organic alternatives are available and should be promoted to avoid creating “toxic trails” in the mountain. Chicken, turkey, peacocks, guinea fowl, pheasants, lizards, and the birds pick bugs and with their droppings add nitrogen to the soil. Animal roaming under the trees should be encouraged. Regular pruning of the diseased branches and their elimination from the farm is also effective. Poverty has prevented many farmers in greater of use chemical pesticides and this may be a blessing in disguise. However it should be noted that in cases of severe attack, there may be no short term alternative but to spray.

De-stumping and pruning - Many highland trees have between 20 to 40 years and require de-stumping which involves integral stumping of the entire tree followed by maintenance of three stems together with recommended management. A casual observation of the trees in the area shows one stem with seven to 8 vertical branches all with poor yields. Correct pruning after two to three yields of good performance of a branch is not practiced with the consequence of falling productivity of the tree. Another observation is that many farmers especially in highland areas do not have adequate pruning scissors and saws which are often locally replaced by using knives or axing that disturb the trees.


The highland farmers are generally poorer than lowland farmer with less income generation alternatives and resort more frequently to selling red cherries. Labour shortage, need for cash, and the poor accessibility to working pulpers further compel the farmers to sell the red cherries before transforming them into parchment. The pulpers used in the region are predominantly manufactured by Bental fabricated some 50 years ago. According to one estimate, the ratio of hand pulpers to farmers is about 1:50. Many farmers do not have access to such devices and must pay UGX 10,000 per day to borrow a pulper from a neighbour.

Good drum or disk hand pulpers are currently very expensive (over UGX 2 million for a Brazilian type from Pinhalense). The cheaper chain driven Chinese or Indian types are available in Mbale at UGX 700,000 but they are fragile and do not last for a long time. The spares are rarely available.

It should be added that hand pulping of red cherries at farm level has a number of disadvantages as it is not possible to have full control on the processing conditions by each individual farmer in terms of the pulping efficiency, quality of the water used, fermentation and drying all of which affect the quality of coffee. The old and worn-out hand-pulpers (some dating from 50 years ago) nip the beans, are inefficient and have a poor parchment turnout. A hand count revealed that almost 10% of the cherries are not pulped and there is a lot of parchment mixed up with the pulp.

The use of unclean water and uncontrolled fermentation methods increase the risk of contamination. Coffee is washed after a-two-day fermentation by using baskets that are taken to nearby streams for washing. The environmental pollution during the pulping season is very significant with many streams brownish and dirty.

Drying - The weather conditions for drying is also a big challenge, more so in the highland, because of the frequency of the rains especially during the first two months of the season when rains are very frequent. The most common method is drying on tarpaulin sheets recovered from World Food Programme (WFP) tents. Local dealers buy the wet parchment with 30-40% moisture from the farmers and dry them in the trading centres thereby adding value and earning between UGX 200 to 500 extra per kg.

The traditional use of raised tables using rollable papyrus mats are unfortunately more and more infrequent.

The bulking of parchment by the dealers who buy wet parchment from the farmers and dry it in trading centres leads to a non-homogeneous product which subsequently attracts a lower price at the international market.

Coffee inter-planted with banana.

A young woman has borrowed a pulper for her father.

An old (1930) Bental hand pulper used by a farmer in the mountain near Namuserere.


The unpredictable weather, drying on the ground, and dust all affect the quality.

Rural RoadsWalking in the mountain towards the end of the rainy season showed the poor state of the roads. Some of the best coffee growing areas are not reachable by trucks and the produce must be carried by motorcycles or on head. Many of the existing roads are not drivable during the rainy season. Some communities are totally disconnected to the road network.

Financial Services for Farmers - Financial services offered by the commercial banks are unavailable at the local level. Farmers who need a bank account have to go to Mbale and operate a personal account at a commercial bank purely for receipts and payments which are also provided by the mobile money service providers. However, the critical requirement is adapted agricultural loans, adapted savings services, and micro-insurance which are not provided by banks or mobile money providers. Seasonal loans are needed to buy inputs, simple tools for pruning, de-stumping and labour. Labour is required for picking, pulping, washing, spraying etc. which is highly required at the end of March and beginning of April when application of fertilizers and weeding is done. Because of lack of adequate security and regular income, most banks shy away from lending to farmers and the existing agricultural credit schemes are difficult to access for most smallholders.

Tarpaulin sheet on the ground used for drying parchment coffee (Budadiri).

Traditional Papyrus mat and table for drying coffee used by a lead farmer (rarely seen nowadays).

Stuck on the Budadiri Namuserere road.

The use of unclean water and uncontrolled fermentation methods

increase the risk of contamination. Coffee is washed after a-two-day fermentation

by using baskets that are taken to nearby streams for washing. The environmental

pollution during the pulping season is very significant with many streams

brownish and dirty.


of generating, adopting and extending sustainable agriculture within the localities where they make their livelihoods. In FFS, farmers take the roles of experts, trainers, and researchers. The FFS is a group of farmers organized under a lead or advanced farmer and supervised by a especially trained external facilitator to motivate and guide the discussion towards factors affecting coffee production, methods for addressing soil fertility, crop yield, environmental protection, disease and pest control, and other issues of common interest including networking, marketing and business management based on experiments, observations and analysis. It is an application of the principal that information is highest at the lowest level and where “truth” emerges through conversation and consensus and not through imposition of the theoretical views of researchers or extension workers. The FFS generates recommendations through a group consensus for developing the best locally adapted and site-specific agricultural practices through farmer’s own discovery.

Such an approach has already been applied in 87 countries including Uganda. The approach was introduced originally in 1986 by Food and Agricultural Organisation (FAO) for Integrated Pest Management in Indonesia with successful and encouraging results. Tanzania and Kenya have integrated the FFS methods in their extension systems. The FFS method was used effectively in Uganda in 1999 to 2002 period in a number of districts for fighting against the Banana Wilt Disease. Although HE President Museveni in a 2008 speech directed all government agencies involved in agriculture to actively implement the FFS methodology, not much has happened since. FAO has been active using this approach in disaster areas but not in coffee growing or more agriculturally active areas.

III Towards Solutions

Without a doubt the above-mentioned issues have and continue to hamper

coffee production, processing and above all coffee quality. What is required is to ensure that the smallholders, who are the foundation of the coffee sector, are empowered and supported so that the rest of the edifice does not collapse. The farmer-first strategy proposed below is therefore inspired from the author’s experience and conviction that without major investments in building the smallholders capacity and income, the coffee sector and coffee production are likely to decline and deteriorate in the near future.

Improved and Sustainable Coffee ProductionTo increase and improve sustainable coffee production, the two principal ingredients are farmer education and access to tools and inputs. In providing farmer education, there is need for a radical break with the old centralized top down training and visit (T&V) system where technology was supposed to be transferred from research stations via the extension agent to the farmer in a one-way flow and where the extension agent is the supplier of knowledge. A modification of this approach into a “demand driven” system is also not satisfactory because “demand “ requires awareness of what should be demanded which may not be there and, even worse, the demand is expected to be supplied by the government extension agents. This centralized and non-participatory lecturing approach has proven costly and ineffective. In Uganda, for example, coffee extension is the responsibility of UCDA which has 1 agent for over 50,000 farmers and in most coffee farmers have never seen any extension agent.

A more cost-effective and sustainable approach is the Farmer Field School (FFS) which involves empowering the farmer to remove the dependency on external expertise and develop the capability

A more cost-effective and sustainable approach is the Farmer Field School

(FFS) which involves empowering the farmer to remove the dependency on

external expertise and develop the capability of generating, adopting

and extending sustainable agriculture within the localities where they make

their livelihoods.


At least nine FFS networks in Eastern Africa support about 2,000 FFSs with close to 50,000 direct beneficiaries3. The FFS and the networks are particularly encouraging in terms of strengthening the role of women and could be used for promoting the Women in Coffee agenda.

Improved Ecological Processing Capacity Farm level coffee processing can be substantially improved through the establishment of mechanized Eco-Pulper Units (EPUs) located in key trading centres in coffee growing districts. The eco-pulpers can increase value addition for farmers, substantially accelerate coffee processing and quality resulting in mostly P-grade coffees, minimize environmental pollution of water bodies and streams currently used for washing coffee, provide a controlled and quick drying facility, reduce and eliminate the risks of coffee contamination, and allow the mucilage, currently dissolved in water and wasted, to be collected mechanically without fermentation for sale to the pharmaceutical industry as pectin. The eco-pulper units can further establish vermicomposting areas for the transformation of the pulp into organic fertilizer that will be made available to coffee farmers to replace chemical fertilizer usage.

Donor and government funds would be mobilized for the establishment of enterprises through public/private partnership. Commercial operators (SMEs) and local communities should be supported by donor and government funds to this end. The donors have an interest in supporting such investments due to the high economic returns and the externalities in terms of poverty alleviation and reduction in environmental pollution. The local commercial entrepreneurs can enter into a partnership with a local community for the allocation of land while the investor together with the donor can build the required building and purchase the machinery. With preliminary estimates, such an enterprise can be established at the cost of about $ 50,000 for a 1MT/hour pulping capacity or an actual low cost of only $ 5000/year in terms of depreciation value.

3 - Federating Farmer Field Schools in Networks for Improved Ac-cess to Services, siteresources.worldbank.org/INTARD/.../Module3-IAP2.pdf, A. Braun, G. Khisa, D. Duveskog, K. Davis.

Through the FFS as the driving vehicle, the lead farmers (here understood as farmers with established coffee nurseries) should be supported to expand their nurseries to a minimum of 40,000 seedlings for coffee and 10,000 for shade trees. Extension packages should be made available for experimentation and adaptation after practical field trials by the farmers through the FFS on shading, mulching, composting, stumping, pruning, pest and disease control, and best intercropping practices for improved overall farm and business management. Through an MOU with the lead farmer, he/she could offer land and labour and volunteer to host the school in exchange for donor or government investment for a training hall, plant materials, lab facilities, power, curriculum, printed material, and other training requirements for a field school. The FFS could also be designed as a company for a one-stop-shop with a store for supplying inputs and tools such as sprayers, pruning scissors, seeds, and chemicals linked to a financial institution, cooperative or a microfinance organization.

The normal duration of the FFS is a full year after which farmer students graduate and new farmers can be admitted. There should be small school fee to cover the operating costs of the school operated by the lead farmer. In many cases, graduates are found to become influential members of their community due to their superior knowledge. An unintended but positive consequence of FFS implementation has been the emergence of FFS Network of the graduates in various countries including Uganda. These networks provide a number of benefits such as advocacy for farmer empowerment and women, information sharing on marketing opportunities, and bulking for the purchase of inputs.

The FFS and the networks are particularly encouraging in terms of strengthening the role of women and could be used for promoting the Women in Coffee agenda.


The operating costs for such a unit can range between $1500 and $ 3,000 depending on location and staff qualifications. The income is substantial as most farmers selling red cherries would most likely use the service at a fee. The unit must have a drying yard with green house for accelerated drying and a warehouse for storing parchment coffee. The service should be offered on a fee basis and not by buying the red cherries from the farmers as is practiced at present. The stored parchment can then be used as collateral for a line of credit to farmers who have brought their cherries to the station.

Financial Services for Coffee GrowersFinancial services targeted to coffee farmers can be made available through collateral management of the parchment produced at the Eco-Pulping Units (EPUs). The farmers can store their dry parchment coffee at the warehouses adjacent to the EPUs and benefit from financial services securitized by the parchment coffee through standby arrangements with commercial banks. Moreover, the FFS Networks can be capitalized for offering microfinance services for consumption and business loans to farmers. Such microfinance arrangements may provide proximity services such as: (a) seasonal loans in-kind, (b) interest bearing and commitment based savings accounts, (c) life, health, and crop micro-insurance products, and (d) improved financial literacy for the farmers.

Expanding the Domestic Consumption Market through Roasting and TastingIndividual farmers, dealers and local exporters have difficulty in roasting and cup tasting their own coffees before sale. This limits their ability to negotiate and know their coffee. Additionally, most Ugandans, including many from coffee growing areas, have never roasted coffee and don’t know how to do it. In most hotels, even in Kampala, the common coffee is the instant coffee especially Nescafe. It is also amusing to find that on many official occasions, including those supported by UCDA; the guests are served imported Nescafe or other instant coffees.

To expand the domestic consumption market for Ugandan coffee, the first step is to make roasting easy and affordable in coffee growing areas and elsewhere. This can generate a vibrant roasted and ground coffee business based on locally grown coffees. A roasting plant that can roast for a fee for minimum quantities of about 25 kg on order can

supply and expand the domestic coffee market. Hotel and restaurant owners need to be educated about Ugandan coffee and why they should be keen to serve fresh Ugandan and not instant coffee. The author experimented with a blend of Robusta and Arabica medium roasted and ground to the point of becoming like flour (so-called Turkish grind). The coffee dissolves in water to a high extent leaving only a small amount of fine residue in the cup and it can easily substitute instant coffee.

Roasting units should be installed to provide coffee roasting and packaging services for the public at an affordable cost. This facility will enable the capable local farmers to sell roasted coffee, green cleaned coffee as well as parchment if they wish. Local businesses may buy green coffee and roast it at such facilities for sale in their shops or nearby markets. This will support the local enterprises in many districts. Information exchange and coffee tours to the coffee growing areas for tourists can further make Ugandan coffee more visible to foreign visitors who will become the goodwill ambassadors of Ugandan coffee in their own countries.

Conclusion

This article has tried to summarize the key constraints of coffee production in Mt Elgon and hopefully will

trigger a useful debate on the topic. The key conclusion that needs to be emphasized is the gap between the great potential of coffee in Mt. Elgon and the actual production levels constrained by technical, financial, institutional and environmental factors. These constraints can be addressed only with far sighted vision and leadership based on a consistent and long term investment strategy in the smallholder economy, in new processing technologies, and market development. Ugandan farmers produce one of the best coffees in the world, let us not disappoint them! “


AppendixesAppendix 1

Uganda’s Coffee Exports from 1964/65 - 2011/12.

COFFEE QUANTITY VALUE AVG PRICE AVG PRICE

No. No SEASON (60 Kg Bags) US $ US $/Kg US $/Kg

1 1 64/65 2,158,736 76,820,312 0.59 0.27

2 2 65/66 2,855,621 106,126,982 0.62 0.28

3 3 66/67 2,637,862 146,548,850 0.93 0.42

4 4 67/68 2,967,825 139,078,017 0.78 0.35

5 5 68/69 2,670,201 162,473,613 1.01 0.46

6 6 69/70 3,193,638 185,874,447 0.97 0.44

7 7 70/71 3,032,609 130,818,018 0.72 0.33

8 8 71/72 3,139,559 145,469,659 0.77 0.35

9 9 72/73 3,677,100 175,549,153 0.80 0.36

10 10 73/74 3,283,183 228,518,975 1.16 0.53

11 11 74/75 2,861,399 175,337,140 1.02 0.46

12 12 75/76 2,431,524 245,222,753 1.68 0.76

13 13 76/77 2,449,737 558,512,578 3.80 1.72

14 14 77/78 1,742,575 312,097,360 2.99 1.35

15 15 78/79 2,353,031 389,108,354 2.76 1.25

16 16 79/80 2,219,802 433,471,715 3.25 1.48

17 17 80/81 1,973,458 230,463,637 1.95 0.88

18 18 81/82 2,785,647 322,030,310 1.93 0.87

19 19 82/83 2,194,888 295,259,322 2.24 1.02

20 20 83/84 2,519,024 392,677,096 2.60 1.18

21 21 84/85 2,500,031 367,591,092 2.45 1.11

22 22 85/86 2,392,198 390,362,568 2.72 1.23

23 23 86/87 2,280,206 308,594,658 2.26 1.02

24 24 87/88 2,318,341 263,239,573 1.89 0.86

25 25 88/89 3,114,396 294,867,882 1.58 0.72

26 26 89/90 2,364,751 139,566,731 0.98 0.45

27 27 90/91 2,085,004 121,343,113 0.97 0.44

28 28 91/92 2,030,829 101,442,768 0.83 0.38

29 29 92/93 2,088,642 108,873,991 0.87 0.39

30 30 93/94 3,005,205 273,658,850 1.52 0.69

31 31 94/95 2,792,753 432,651,034 2.58 1.17

32 32 95/96 4,148,803 388,916,157 1.56 0.71

33 33 96/97 4,237,114 355,126,641 1.40 0.63

34 34 97/98 3,032,338 276,476,134 1.52 0.69

35 35 98/99 3,647,989 282,995,511 1.29 0.59

36 36 99/00 2,917,257 164,763,789 0.94 0.43

37 37 00/01 3,074,773 104,776,424 0.57 0.26

38 38 01/02 3,146,381 83,936,951 0.44 0.20

39 39 02/03 2,663,888 104,787,094 0.66 0.30

40 40 03/04 2,523,042 115,705,844 0.76 0.35

41 41 04/05 2,504,890 162,146,235 1.08 0.49

42 42 05/06 2,002,324 170,362,075 1.42 0.64

43 43 06/07 2,704,236 256,580,844 1.58 0.72

43 44 07/08 3,211,256 388,412,769 2.02 0.91

44 45 08/09 3,054,848 291,832,877 1.59 0.72

45 46 09/10 2,668,971 266,673,061 1.67 0.76

47 10/11 3,149,423 448,890,669 2.38 1.08

48 11/12 2,726,249 392,698,138 2.40 1.09

Source: Uganda Coffee Development Authority


Appendix 2

COFFEE EXPORTS BY DESTINATION FOR COFFEE YEAR 2011-12

Quantity in 60 kilo Bags

DESTINATION QUANTITY %age Mkt share

2011-2012 2011-2012

1 EU 1,828,300 67.06

2 Sudan 427,573 15.68

3 USA 106,489 3.91

4 India 72,868 2.67

5 Ecuador 65,291 2.39

6 Switzerland 42,130 1.55

7 Russia 34,101 1.25

8 Morocco 20,347 0.75

9 South Africa 18,931 0.69

10 Vietnam 17,974 0.66

11 Kenya 17,584 0.64

12 Middle East 15,559 0.57

13 Tunisia 14,607 0.54

14 Egypt 8,973 0.33

15 Algeria 7,988 0.29

16 China 7,815 0.29

17 Japan 7,059 0.26

18 Australia 7,040 0.26

19 Taiwan 2,800 0.10

20 Singapore 1,540 0.06

21 Mexico 960 0.04

22 Hongkong 320 0.01

Total 2,726,249 100.00



COFFEE EXPORTERS’ PERFORMANCE FOR 2011/12 - QUANTITY 60KG BAGS AND VALUE USD

Robusta Arabica Total

Quantity Value Quantity Value Quantity Value

Ugacof(U) Ltd 368,964 41,871,687 60,905 11,369,163 429,869 53,240,850

Kyagalamyi coffee Ltd 198,236 22,473,896 190,722 35,216,529 388,958 57,690,425

Olam (U) Ltd 281,658 34,119,738 49,558 10,407,374 331,216 44,527,112

Kawacom (U) Ltd 78,953 9,806,408 175,209 37,434,105 254,162 47,240,513

Ibero (U) Ltd 150,759 18,583,399 18,301 4,307,855 169,060 22,891,254

Job Coffee 79,228 9,768,329 74,762 14,764,409 153,990 24,532,738

Kampala Domestic Stores 143,266 14,548,243 350 43,982 143,616 14,592,225

Savannah Commodities 82,300 9,327,688 45,805 8,726,717 128,105 18,054,406

Greatlakes Co. Ltd 14,420 1,734,115 96,348 23,907,789 110,768 25,641,904

Panafric Impex(U) Ltd 94,980 12,143,550 94,980 12,143,550

Lakeland Holdings 39,563 4,470,242 21,100 3,756,189 60,663 8,226,431

Nakana Coffee Factory 58,910 7,569,988 58,910 7,569,988

Penform Trading Ltd 53,972 6,609,617 1,900 218,520 55,872 6,828,137

LD Commodities (U) Ltd 44,101 5,502,461 10,499 2,053,584 54,600 7,556,045

Armajaro Uganda Limited 46,519 6,302,523 46,519 6,302,523

Kamba Petroleum 26,374 2,863,109 16,928 3,467,523 43,302 6,330,631

Kitasha Coffee Buyers 37,097 4,260,193 37,097 4,260,193

Mbale Importers & Exporters 6,412 779,390 15,260 3,293,131 21,672 4,072,522

Ankole CoffeeProducers 20,866 2,151,482 286 61,879 21,152 2,213,361

Kisuule A & Sons 17,168 2,070,082 17,168 2,070,082

Wabulungu MultPurpose 12,760 1,605,213 3,674 952,599 16,434 2,557,812

Risala (U) Ltd 12,968 1,331,904 1,332 126,858 14,300 1,458,762

BakwanyeTrading Ltd 654 87,429 12,080 2,467,635 12,734 2,555,064

Gumutindo CoffeeCoop 11,580 2,855,065 11,580 2,855,065

Coffee Services 7,973 625,275 3,151 715,292 11,124 1,340,567

Ankole Coffee Processors 8,168 1,040,625 2,720 507,358 10,888 1,547,983

ZigotiCoffeeWorks Ltd 5,938 773,360 5,938 773,360

Kaweri Coffee Plantation 4,320 594,925 4,320 594,925

Nile Highlands 3,500 809,301 3,500 809,301

Bukonzo Joint Co-op 166 16,439 1,754 466,176 1,920 482,615

AndersonInvestments 1,600 183,599 320 91,006 1,920 274,605

Export Trading Co. Ltd 1,920 264,129 1,920 264,129

Coffee World Ltd 980 123,414 640 96,509 1,620 219,922

Commodity Solutions 1,368 179,271 1,368 179,271

Green Holdings 1,280 198,943 1,280 198,943

Budadiri Arabica Coffee 960 175,028 960 175,028

Qualicoff (U) Ltd 700 74,139 700 74,139

KabumTrading Ltd 640 151,332 640 151,332

Gatto Estates 250 31,416 288 24,577 538 55,992

TransgazCompany Ltd 345 44,723 345 44,723

Katuka Development Trust Ltd 320 44,021 320 44,021

Masai Tours & Travel Ltd 221 55,689 221 55,689

Total 1,904,176 223,976,023 822,073 168,722,115 2,726,249 392,698,138


Appendix 3


Appendix 4UGANDA COFFEE EXPORTS BY GRADE - 2011-12

QUANTITY IN 60-KILO BAGS; VALUE IN USD$ and UNIT VALUE IN US $/KILO

GRADE QUANTITY VALUE UNIT VALUE

TOTAL 2,726,249 392,698,138 2.40

ROBUSTA 1,904,176 223,976,023 1.96

1 ORG ROBUSTA 6,770 841,500 2.07

2 WASHED ROB 10,239 1,377,595 2.24

3 UTZ ROBUSTA 990 137,545 2.32

4 SCREEN 18 236,315 30,471,309 2.15

5 SCREEN 17 85,100 10,783,739 2.11

6 SCREEN 15 941,857 116,726,527 2.07

7 SCREEN 14 5,700 671,036 1.96

8 SCREEN 13 334 39,762 1.98

9 SCREEN 12 325,877 37,967,855 1.94

10 OTHER ROB 290,994 24,959,155 1.43

ARABICA 822,073 168,722,115 3.42

11 SPECIALITY 640 227,049 5.91

12 SIPI FALLS 1,060 306,695 4.82

13 BUGISU B 766 221,532 4.82

14 BUG RFA 320 88,889 4.63

15 OKORO AA 1,000 274,764 4.58

16 ORG WUGAR 2,448 660,396 4.50

17 BUGISU C 2,480 645,719 4.34

18 ELGON A 3,040 768,263 4.21

19 ORG BUGISU 7,700 1,937,399 4.19

20 ARA-C/PB 2,480 617,901 4.15

21 WHITE NILE 5,650 1,401,702 4.13

22 BUGISU SUSTAINABLE 1,600 383,495 3.99

23 BUGISU AA 72,306 17,292,782 3.99

24 BUGISU A 14,560 3,415,596 3.91

25 RWENZORI 474 109,348 3.84

26 SUPREMO 2,520 576,194 3.81

27 BUGISU PB 8,988 2,047,155 3.80

28 MT.ELGON 16,084 3,643,367 3.78

29 ORG -DRUGAR 6,478 1,445,068 3.72

30 WUGAR 44,264 9,813,030 3.69

31 BUGISU AB 38,554 8,364,285 3.62

32 ORG-OKORO 3,414 733,219 3.58

33 DRUGAR 475,747 100,026,017 3.50

34 BUGISU A+ 12,725 2,643,578 3.46

35 BUGISU SU 1,380 262,899 3.18

36 OKORO 1,740 301,907 2.89

37 OKORO A 4,620 733,338 2.65

38 MIXED ARA 3,040 461,908 2.53

39 OTHER ARA 85,995 9,318,621 1.81



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our vision To have sustainable

coffee production and trade in Uganda

WHAT IS

UCF our mission

Engage and work with all stakeholders [esp. UCDA, NUCAFE,

COREC] in the coffee industry to promote sustainable coffee

production and trade

our goalSustain and increase volumes and quality of

traded coffee

The UCF caters for the interests of all those involved in every branch of the coffee industry

in Uganda, providing a forum for discussion of all issues that affect the coffee trade in

Uganda. The cardinal aims of the federation are to provide representation of all key players in the coffee trade in Uganda in all matters that

pertain to their operations and to provide a common forum for private sector interests in

the coffee industry in Uganda.

strategic objectives that will underpin the association plans:

1. Efficient, effective and profitable operations of members’ businesses.

2. Increased volume and quality of coffee produced,

processed and exported.

3. Professional competition, good camaraderie and industry cohesion.

4. Relevant, accessible and unique intelligence Uganda

coffee value chain information.


The federation has set up a system aimed at rendering a range of services to its members, which include.

• Facilitatingpolicydialogueoncoffeerelated issuesonbehalfof thecoffee trade and industry in Uganda. We monitor policy trends and ensure that the interests of the sector are taken care of through a constructive consultation process.

• Coordinationoftraderelatedissuesonbehalfofthecoffeeindustryforthe benefit of members

• Provisionofvitaltradeinformationthatiscriticaltothetradeactivitiesssof the members. We also publish the Coffee Year Book, Uganda Coffee News and a monthly newsletter.

• ProvideNetworkingopportunitiesformembersthroughsuchactivitiesas the CEO Forum, dinners and other special events.

• Coordinationoftraining–aimedatenhancingtheskillsofitsmembersin coping with the challenges of the liberalized coffee trade locally and internationally (areas including marketing quality and documentation. Beneficiaries have included managers, marketing executives, quality controllers, local coffee roasters, as well as hotel and restaurant operators.

• Technicaladviceoncoffeerelatedmatters.

• Programmes aimed at enhancing the quality of Ugandan Coffeeincluding monitoring of members adherence to the UCTF code of conduct.

• Arbitration services aimedat resolvingdisputes regarding contractsentered into locally by UCTF members or other parties (in the coffee business) who may choose to use such services.

• PromotionofUgandacoffee:-DidyouknowthattheUgandaCoffeehome-page developed in 1995, was one of the first web pages on Uganda? Did you know that UCTF hosted the first ever internet Coffee Tasting session in the world, between Kampala and Washington D.C?

UCTF MEMBER BENEFITS


UCF MEMBERSHIP PROFILE

1. ORDINARY MEMBERS / COFFEE EXPORTERS

Name ARMAJARO UGANDA LIMITEDAddress P.O. BOX 14625Location Plot 2219/2377, Bweyogerere KampalaTelephone +256 414 285842Fax +256 414 285684Email [email protected] Contact Mr. Guy Speakman-Country Manager.

Name EXPORT TRADING COMPANY (U) LTD Address P.O. Box 21679 KampalaLocation Plot 26/27 Namanve Industrial ParkTelephone +256 414 254642Fax +256 414 254645Email [email protected] Contact Mr. Mukeshi HalaiTrade Exporter

Name GREAT LAKES COFFEE COMPANY LIMITEDAddress P.O. Box 27198 KampalaLocation Plot M289 Ntinda Industrial AreaTelephone +256 414 286961Fax +256 364 286960Email [email protected] Mr. Telis Nicolaides - Managing Director

Name IBERO (UGANDA) LTDAddress P.O Box 23139, KampalaLocation 7th Street Industrial AreaTelephone +256 414 34 2621/9, 343629Fax +256 414 34 2646 Email [email protected] Mr. Eugene Nsereko - Commercial and Operation Manager

Name JOB COFFEE LTDAddress P.O Box 4152, KampalaLocation Plot 555/7, Kawempe Industrial AreaTelephone +256 414 255914/ 312 262993Fax +256 414 251783Email [email protected] / jobcoffee@ yahoo.comContact Mr. Ayub Kalule - Managing Director

Name KAMPALA DOMESTIC STORESAddress P.O Box 25604 KampalaLocation 6/8 Nyondo Close, Bugoloobi Industrial AreaTelephone +256 414 235597Fax +256 414 235304Email [email protected] Mr. Ishak K. Lukenge - Managing Director

Name KAWACOM UGANDA LTDAddress P.O Box 22623 KampalaLocation Plot M284, Ntinda Industrial Area KampalaTelephone +256 414 22611/9Fax +256 414 505632/ 222612Email [email protected] Mr. Roy Lugone - Managing Director

Name KAWERI COFFEE PLANTATIONS LTDAddress P.O. Box 264 MubendeLocation Plot 1 Kitemba, MubendeTelephone +256 362 600600Fax + +256 362 600610 Email [email protected] Mr. Jeremy P. Hulme – Managing Director






Name SAVANNAH COMMODITIES LTDAddress P.O Box 6217 KampalaLocation 4/5 Nyondo Close, Bugoloobi Industrial AreaTelephone +256 414 252541Fax +256 414 258254Email [email protected] Mr. Hannington Karuhanga – Managing Director

Name UGACOF LTDAddress P.O Box 7355 KampalaLocation Plot 246 Kireku, BweyogerereTelephone +256 414 250024/25Fax +256 312 250020Email [email protected] Mr. Micheal Nuwagaba

Name KYAGALANYI COFFEE LTDAddress P.O Box 3181 KampalaLocation Plot 1-3 Spring Road 5th Street Industrial AreaTelephone +256 414 344021/ 251447Fax +256 414 230145Email [email protected] Mr. David Barry - Managing Director

Name LAKELAND HOLDINGS LTDAddress P.O. Box 29129 Kampala, UgandaLocation Plot 9 3rd Street Industrial AreaTelephone +256 414 345120Fax +256 414345113Email [email protected] Contact Mr. George Namude Bwire-Managing Director

Name LD COMMODITES LTDAddress P.O. Box 35021 KampalaLocation Plot 278/79 Ntinda Industrial Area, KampalaTelephone +256 414 285614Fax +256 414 286322Email [email protected] Contact Mr. Matthiau Simian.

Name OLAM (U) LTDAddress P.O Box 23436 KampalaLocation Plot 7/9 Mapeera Road, Nalukolongo Industrial Area- KampalaTelephone +256 414 566731/ 566886Fax +256 414 251013Email [email protected] Mr. Iyer Suresh- Managing Director





2. ALLIED MEMBERS

Name Africa Coffee AcademyAddress P. O. Box 23648, Kampala, UgandaLocation Plot 31B Bandali Rise, Bugoloobi, KampalaTelephone +256 752 442480Fax +256 414 342082Email [email protected] Mr. Robert W. Nsibirwa – President / CEOTrade Coffee Academy

Name AUDIT CONTROL AND EXPERTISE (U) LTDAddress P. O. Box 22749, Kampala, UgandaLocation Plot 31 Clement Hill Road, KampalaTelephone +256 414 233973/ 348425Fax +256 414 235471Email [email protected] Mr. Amos Tumwesigye, Country ManagerTrade Collateral Managers / Credit Support Organisation

Name EAGLE EYE AFRICA LTDAddress P.O. BOX 25300Location Plot No. 83, 6th Street industrial Area.Telephone +256 414346625/6Fax +256 414346624 Email [email protected] Contact Mr. Shahzad B. Tejani.Trade Organic growers.

Name ICONA CAFEAddress Principe De Vergara 136 2800 Z MadridCountry Madrid, SpainTelephone +3491 3837700 Fax +3490 2337700 Email [email protected] Mr. Vicente Olazabal.Trade Coffee Buyer

Name KENFREIGHT (U) LTDAddress P.O. Box 7492 KAMPALALocation Plot 1906, Jinja Rd, BweyogerereTelephone +256 041 287801/286955Fax +256 041 286950Email [email protected] Mr. Pule Humphrey.Trade Transport & Logistics

Name SPEDAG INTERFREIGHT (U) LTDAddress P.O. Box 4555 KampalaLocation Plot 284 Nakawa Industrial Area, KampalaTelephone +256 414 505805/6Fax +256 414 505803Email [email protected] Contact Mr. Martin J. Richner – Regional Exports Manager







Trade Transport & Logistics Name NK LOGISTICS (U) LTDAddress P.O. Box 27188, KampalaLocation Plot 1900 Block 216 Old Kira Road, Room 29Telephone +256 414 288372Fax +256 414 288373Email [email protected] Mr. Steven Kintu- Managing DirectorTrade Transport & Logistics

Name ORIENT BANK LTDAddress P.O. Box 3072 KampalaLocation Plot 6/6A, Kampala RoadTelephone +256 414 236012-5Fax +256 414 348039Email [email protected] Mark Harwood – Executive DirectorTrade Commercial Bank

Name STANBIC BANKAddress P.O. Box 7131 KampalaLocation Plot 17, Hannington Road - Crested Towers - KampalaTelephone +256 414 234710/11/13-24/+256 312 224 111/600Fax +256 414 231116Email [email protected] Commerical Bank

Name TRANSAMI (U) LTDAddress P.O. Box 5501 KampalaLocation Plot M611 Ntinda RoadTelephone +256 414 336000Fax +256 414 286458Email [email protected] Koen Rombouts - Transport & Logistics ManagerTrade Transport & Logistics



kawacom Inside Front Cover

Spedag Interfreight Page 3

Audit Control Services Page 5

Stanbic Bank Page 8

Ugacof Page 18

Armajaro Page 25

Job Coffee Page 36

Cimbria Page 50

Ibero Page 55

Kyagalanyi Inside Back Cover

UCDA Back Cover

On Behalf of the Board, Members, and Management of Uganda Coffee Federation (UCF), I Wish to Convey our Sincere Appreciation for your Support Towards the Publication of the Coffee Year Book 2011/2012 – Betty Namwagala - Editor.

Advertisers’ Index


Making Ugandaa distinguished

producer of high value coffee

If you have enjoyed Uganda Coffee tell others ...If not satisfied tell us:

Coffee house,Plot 35, Jinja Road P.O. Box 7267, Kampala, UgandaTel: +256-41-4-256940, +256-31-2-260470 Fax: 256-41-4-232912E-mail:[email protected] website:http//www.ugandacoffee

OBJECTIVES SERVICES RENDERED

Support coffee development throughproduction extension services

Identity priority areas for investmentin the coffe industry

Support production of clean plantingmaterials through coffee researchand nurseries development

Provide price and production forecasts

Register and license coffee sector players

Maintain a register of sales contracts

Provide regulatory and quality assurance services during buying, processing & marketing

Promote coffee value addition

VISION MISSION

Uganda CoffeeDevelopment Authority

Promote, monitor and improvemarketing of coffee to optimise foreignexchange and farmers’ earnings

Ensure that the quality of coffeeexports meet Internation standards

Promote coffe as a value added product

Promote domestic consuption of Uganda coffee

Harmonise activities of coffee sub-sectorassociations in line with industry goals

Policy analysis and developement

Promote, monitor and improvemarketing of coffee to optimise foreignexchange and farmers’ earnings

Ensure that the quality of coffeeexports meet Internation standards

Promote coffe as a value added product

Promote domestic consuption of Uganda coffee

Harmonise activities of coffee sub-sectorassociations in line with industry goals

Policy analysis and developement

To promote and overseethe development of the

coffee sub-sector throughproduction of clean planting

materials, support to research,value addition, quality assurance

and timely disseminationof market information to

stakeholders

VISION MISSION

year book 2011/12 - uganda coffee federation · by 2015 coffee exports will have increased to 4.5...

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