cyb2010_11 - Uganda Coffee Federation

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SPEDAG INTERFREIGHT UGANDA LTD
Plot M284, Nakawa Industrial Area
P.O. Box 4555, Kampala, Uganda
+256 414 562 000
kampala@spedaginterfreight.com
www.spedaginterfreight.com
Editor Betty Namwagala
+256 414 343 677 / 8
email: uctf@ugandacoffeetrade.com
uctf@ugandacoffee.org
Associate Editor:
Robert Waggwa Nsibirwa
Assistant Editor:
Samson Emong
Design & Layout:
Ideas Advertising
Tel:+256 312 109 544, Fax +256 414 340 704
Email: info@ideasug.net
Publishers:
Uganda Coffee Trade Federation
2nd Floor, Coffee House, Plot 35 Jinja Road.
Tel +256 414 343 692
email: uctf@ugandacoffeetrade.com
www.ugandacoffeetrade.com
The Coffee Yearbook 2010/11
“Scaling up private sector involvement in coffee production”
Inside this issue
Title
Page
Word From The Uctf President
5
Word Fron The Ucda Managing Director
7
Word From The Executive Director Uctf
9
Global Coffee Outlook For 2012
10
Increasing Coffee Production And Yields In Uganda
13
The 25 Funny Quotes About Coffee
18
Mainstreaming Quality In The Uganda Coffee Industry
21
The Inner Secret Of Your Cup Of Coffee
26
Second Uganda Coffee Day
30
Agricultural Financing: The Case For Small Scale Farmers
36
Uganda Coffee Federation Members “Walking
The Talk” In Cwdr Materials Multiplication
42
Coffee Highlight
45
As Arabica Coffee Production In Uganda Perks Up, The Robusta Coffee Volume Is Going
Down; What Is The Arabica Area Doing Right?
52
Statistics
54
What Is Uctf?
63
Uctf Member Benefits
64
Uctf Membership Profile
65
Uctf Advertising Rates
68
Advertisers Index70
6
Word From the UCTF President
A
s we welcome the new coffee year but looking
quickly back over the past 12 months we can say
that the past year can best be described as volatile.
Market prices have been extremely good but highly
volatile. Currency exchange rates – not just the Uganda
Shilling but all currencies have also been highly volatile.
Relative values or the differentials of physical coffee
against key indicators have also been volatile.
Overall returns for coffee producers have actually been
excellent with robusta FAQ values peaking towards 5,000
UGX / Kilo up from 2,000 to 3,000 UGX/kg a year ago and
washed arabica parchments almost doubling that figure.
The price or value factor has prompted a good export
performance with the total for the coffee year reaching
just over three million bags compared to last year’s
2.7m bags. Good of course is all relative – it’s a good
performance because the total is above last year’s and
also because the general view was that the crop would
be lower.
Trucks of FAQ waiting to be offloaded at the Coffee
processing plant
The main reasons for this improved performance were
the prices and the cumulative effects of replanting and
the gradual introduction of better farming practices. The
weather has on balance also helped things along.
Higher prices are a bit of a two edged sword – and
Uganda is no different from many other producing
countries where we have seen farmers rush to strip the
cherries off their trees to capitalize on the higher prices
levels and in some cases to try and protect against
theft. Early stripping has negative consequences for the
ultimate yield of the cherries and adversely effects on
coffee quality.
Hopefully more confidence in prices and the effect of
better values will lead to farmers continuing to improve
their practices in order to gain financially on their coffee
crop through improved yields and better quality. On this
point it should be clearly understood that most exporters
have elevated buying practices which reward farmers for
coffee which is professionally prepared. These rewards
can be substantial and significantly improve farmers’
incomes.
Women picking out green beans before feeding the coffee
into the hopper at the central wet processing mill.
7
The washed Arabica segment continues to improve with
more washing stations being opened and once again
significantly better practices adding real value to the
farmer’s crop.
Pulp and mucilage have been removed to obtain clean
parchment
Higher prices have also added to the problem of coffee
mixing or even adulteration in some growing regions.
Hopefully the outright rejection or much lower prices
paid for adulterated coffees are gradually dissuading
farmers, middlemen and unscrupulous traders from
this practice which in the final analysis does not benefit
anyone.
More and more people are entering the coffee business
at all levels through growing, processing and exporting
activities. More and more people are drinking coffee with
a larger range of finished products available on the local
market to cater for all tastes and for all pocket sizes.
High end coffee shops are opening up in many places
and it is easier and easier to buy a decent cup of coffee in
Uganda than ever before.
As far as the global outlook on prices is concerned we
said last year that “there seem to be rays of sunshine
emerging in terms of green coffee values”. The view this
time, albeit from a much higher base, is mixed as the
global economy remains upset, volatile, turbulent and
beset by debt laden economies in USA and Europe and
many of these counties are key coffee consumers and all
of which are struggling to grow.
Overall the coffee industry is in great shape with many
initiatives being implemented to make it better.
The major challenge, however, is productivity – we need
more coffee to grow the sector and for participants to
enjoy the economic benefits which coffee can bring at
many levels of society. Whilst 3 million bags of exportable
production is a decent number, Uganda is capable of
producing more than this and in a more efficient manner
and there is little doubt that additional production will
find ready buyers. Vietnam which is the largest producer
of robusta coffee in the world is exporting in excess of
20 million bags or nearly seven times more than Uganda
and we have been in this business far longer than
Vietnam. In fact, our exportable production is not much
higher than it was in 1964.
Notwithstanding these uncertainties and huge stocks
of robusta coffee in Europe and what may prove to be
a colossal robusta crop in Vietnam we don’t necessarily
see a collapse in values although some easiness in values
cannot be discounted.
As we enter the 2011/2012 Coffee year, we need to
rethink strategies that can increase coffee production in
Uganda. The onus is not only for the government through
UCDA to promote coffee production, but all stakeholders
are equally responsible.
8
David Barry
UCTF President
October 2011.
Word From the UCDA Managing Director
U
CDA Board of Directors, Management and Staff
do sincerely congratulate members of the coffee
fraternity: farmers, processors, exporters, consumers,
to mention but a few, for the good performance put up
in coffee year 2010/11. Through your concerted effort, a
total of 3.15 million 60-kilo bags of coffee valued at US
$ 448.90 million were exported to various destinations
during the year, a remarkable improvement compared to
the previous coffee year when 2.67 million bags ($267.13
million) was recorded.
The improvement in quantity and value demonstrates
your response to the productivity enhancement strategies
set up by UCDA Board in the past few years, namely the
coffee production campaign, which puts emphasis on
good agronomic practices, rehabilitation of old coffee
shambas, and disease and pest control measures in a
nutshell.
UCDA continues to give support to sustainable coffee
production initiatives in line with market demands.
Farmer groups have been set up at sub-county level and a
number of them have been verified and/or certified under
the various sustainable market demands.
On the fight against coffee wilt disease, the Board adopted
a protracted seedlings multiplication approach of the
seven resistant lines through use of the tissue culture
technology and the traditional nursery operators. The
response is good and within 3 to 4 year farmers will have
access to these lines. Meanwhile, liaison with various
stakeholders is going on to systematically phase out the
old Robusta trees.
However, a new pest in Robusta, the Black Twig Borer,
has surfaced especially in the Central region. Research is
underway in develop a new Integrated Pest Management
System (IPMS) that includes it. In the interim, farmers are
urged to use traditional method of cutting the affected
tree and burning it.
While Arabica coffee production is on the increase,
new lines resistant to leaf rust and berry disease have
been developed and are being piloted (farm field
trials) in Kapchorwa, Manafwa, Nebbi and Ibanda with
encouraging reports. Furthermore, in response to the
current prolonged drought, farmers have continued to
receive training in soil-water management.
Otherwise, market prospects for good quality coffee are
high and given that coffee is key in household poverty
reduction, I advise all industry players to adhere to good
agronomic practices and post-harvest handlings for better
returns.
Henry Ngabirano
MANAGING DIRECTOR, UCDA
9
Coffee Processors & Exporters
Kyagalanyi Coffee Ltd has its Head Quarters and main processing plant in Bugolobi Industrial Area in the city
of Kampala and was established almost two decades ago when the coffee sector in Uganda was liberalized.
We work very closely with farmer groups and operate coffee buying units in all the main coffee producing
regions in the country.
Quality across the board – from the coffee tree to delivery of the final product – as well as sustainability are
some of our guiding principles. To this effect we are actively involved in UTZ and Rainforest Alliance
Certification, 4C verification, promotion of sustainability coffee practices and replanting campaigns through
our nurseries and mother gardens in our projects in Nakanyonyi (Central Uganda), Mount Elgon (Eastern
Uganda) and Sheema (South Western Uganda).
The relationship between yield, quality and price is self evident with suppliers receiving prices based on a
qualitative outcome.
Visit us on our new homepage: www.kyagalanyi.co.ug
Address: 5th Street Bugolobi Industrial Area - P.O. Box 3181 Kampala,
Phone: +256 (0) 312 265 251, Fax: +256 (0) 414 230 145, E-Mail: kcl@kyagalanyi.com
10
Word From the Executive Director UCTF
A
nother coffee year has gone by, yet the coffee
processing plants continue to hull and process
coffee; container loads of coffee continue to move
to their final destinations be it Europe, America, Sudan
e.t.c; all these thanks to the smallholder farmer who
has sustained the trade. Most of the coffee in Uganda is
grown by these smallholder farmers and its only befitting
to thank them for all their efforts.
At the 2nd Uganda Coffee Day, farmers were well
represented especially those in Mukono district where
the function was held. The few I talked to, were very
proud of having been invited for the event and enabling
them to share the same tent with the coffee exporters,
UCDA and other government officials. They intimated
that they are usually forgotten yet without them such a
vibrant coffee sector would not exist.
One of the issues that arose from the 2nd Coffee Day
(Nakanyonyi Declaration) was the rebranding of Uganda
Coffee Trade Federation (UCTF) that is sometimes
referred to as “Trader Association” and contextually
meaning the Exporters Association. While a larger part
of its membership is coffee exporters, UCTF membership
includes other stakeholders like clearing and forwarding
companies, farmers, roasters, processors, banks and
international coffee trading houses in Europe among
others. In order to address this confusion it was only
wise to drop the “Trade” and become Uganda Coffee
Federation. The legal process for the change of name is
ongoing on and expected to be completed by the end of
February 2012.
Rebranding is not enough but there is need to identify
the major attractions that will promote the Federation to
the benefit of the entire sector. In connection with this,
and from a survey made, UCTF developed a three year
Strategic plan that focuses on areas where there is high
constituent demand, and where it has a track record of
delivery. UCTF service delivery from 2011-2014 will focus
on areas of Members’ Businesses operations; Production/
Productivity/Quality; Platforms for regular meetings,
Market Information and development of a sustainable
domestic coffee consumption.
Over the years, UCTF has strived to bring together
all the stakeholders in the coffee sub-sector. This is
demonstrated by their approach wherever they hold
special events that allow members to network, build
business relationships and eliminate unprofessional
competition.
In regard to coffee production, UCTF has come up with a
concept that will fast track the multiplication of the seven
Coffee Wilt Disease Resistant Lines. This will complement
the other means that are in the pipeline. In this
endeavour, we have already identified partners to work
with including UCDA, COREC, development partners and
UCTF Members. Farmers are already waiting for these
lines and it’s only befitting that one takes the lead to
speed up the process.
As the saying goes, “the best time to plant a [Coffee] tree
was twenty years ago. The second best time is now. With
coffee you will never go wrong. I wish you a pleasant and
fruitful 2012.
Betty Namwagala
Executive Director - UCTF
11
GLOBAL COFFEE OUTLOOK FOR 2012:
By Mr. Lionel H. E. de Roland-Phillips
prospects are for the Central American and Mexico
producer bloc to maintain a steady production level of
near to 18 million bags of fine washed Arabica coffees,
while Peru with a similar quality of coffee supply, is
expected to post and 200,000 bags increase in supply of
in excess of 4 million bags, India can be expected to see
production increase by 350,000 bags to near to 6 million
bags and Vietnam is being forecasted to add near to 1
million bags to its coffee supply for the coming year, with
a crop of approximately 22.5 million bags. This with the
overall African production forecasted to increase by 0.5
million bags to near to 15 million bags, shall contribute to
an overall increase in coffee supply for 2012, which shall
exceed 16 million bags.
T
he coffee markets and most particularly the volatile
New York market, continue to be dominated by the
funds and speculative investment, rather than the
fundamentals of supply and demand. Albeit that there
are some commodity investment houses who are having
an influence, in their taking physical coffee positions and
thus in terms of their hoarding, causing in some instances
a degree of tightening supply. This influence might
however be lessened in terms of general market supply,
once the new crop coffees start to fully impact in the
second quarter of 2012.
In terms of coffee supply that has this year been relatively
tight with a biennially bearing smaller Brazil crop of
approximately 50 million bags, a 30% lower Indonesian
crop of approximately 7 million bags and a 27% lower
than traditional weather affected Colombian crop of
approximately 8 million bags, the prospects are for
significantly rising coffee supply for the coming year.
The La Nina weather issues in Colombia and Indonesia
are now on the wane and one might suggest forecasting
that 2012 shall see Colombia bring forth a crop through
the year of over 10 million bags and likewise, Indonesia
to bring in a crop that shall exceed 10 million bags. To
this one would add a biennially bearing larger new Brazil
crop, which should exceed 58 million bags.
Aside from the potential for a combined increased
contribution of 14 million bags of coffee from Brazil,
Colombia and Indonesia for the coming year, the
12
These figures thus indicate a total production and coffee
supply for 2012 of approximately 145 million bags, as
against an estimated world producer domestic market
and consumer market demand of approximately 133
million bags.
These figures so far and without unforeseen negative
weather issues that might still come forth to negatively
affect the potential supply for 2012; presently indicate an
approximately 12 million bags in surplus coffee supply
to start to impact from the second quarter of 2012.
Meanwhile ahead of this potential surge of supply and
the majority of the quoted new crops, the world coffee
stocks have been marginally depleted by the tighter
supply that has prevailed during 2011.
One would estimate that with the certified stocks of
the New York and London markets still exceeding 6
million bags by the end of 2011 and consumer roaster
inventories and trade stocks estimated at 14 million bags,
that 2012 shall start with consumer stocks at a level of at
Well Stacked coffee ready for export
least 20 million bags. These stocks having been buoyed
over the past year by the insecurity of declining trade
stocks along with the affordability that comes with low
interest rates within the majority of the main consumer
markets, having inspired many leading consumer market
roasters to increase the levels of their coffee inventories.
Farmers have embarked on massive planting of coffee
This present scenario of good medium term coffee
supply, would under normal economic conditions be
nevertheless seen to be threatened by the prospects for
rising consumer market producer coffee consumption
levels, with overall consumption rising by approximately
2.5 to 3 million bags of coffee per annum. This is
however an unlikely scenario for 2012, as with the dismal
economic situation that prevails in Europe at present
and one that is unlikely to see a recovery for a year or
two in the future, the prospects are in fact for marginally
declining levels of coffee consumption from this leading
market, which might well see coffee demand from
Europe fall by 2 to 4 million bags. In this respect and with
even the new markets potentially slower to develop in
reaction to the overall lethargic world economy, one
might suggest that coffee consumption shall for 2012 be
at best steady, at around 133 million bags.
One would estimate that with the
certified stocks of the New York and
London markets still exceeding 6
million bags by the end of 2011 and
consumer roaster inventories and
trade stocks estimated at 14 million
bags, that 2012 shall start with
consumer stocks at a level of at least
20 million bags.
Meanwhile the past two years have seen coffee producers
in receipt of significantly improved prices and this has
been an inspiration within many producer countries, to
the coffee farmers to improve their farming techniques,
farm inputs and to plant out new varieties of higher
yielding and disease resistant coffee trees. These
developments that include both Arabica and coffee
producing districts and countries, has the potential to see
world coffee production significantly increase over the
next five to ten years.
In more specific terms and from South and Central
America the coffee authorities in Colombia already
forecasts an increase in production of at least 5 million
bags over their more traditional crops of 11 million bags
per annum, while the authorities in Honduras forecast an
increase of over 1 million bags.
Likewise the authorities in East Africa individually forecast
increases in production, which would jointly indicate an
increase in production of approximately 2 million bags
per annum, while the coffee authorities in Indonesia talk
in terms of a five year increase in production of in excess
of 4 million bags. Some of these forecasts might well
be seen to be overly ambitious and questionable, but
there is no doubt that even with these quoted countries
and producer blocs, that coffee production shall rise.
While aside from these countries the inspiration to
increase production is universal, in terms of the present
profitability for coffee farmers and in many instances, the
rising demand from the individual domestic markets.
In terms of the medium to longer term prices that are
related to the fortunes of the reference prices of the New
York washed Arabica coffee and the London robusta
coffee markets, it is likely that the rising coffee supply
shall finally by the second quarter of 2012 start to impact
upon speculative and fund support for these markets.
Thus one might expect that with the impact of increased
washed Arabica coffee supply from Colombia and Peru
starting to buoy the levels of the certified coffee stocks in
New York and likewise the increased Asian robusta coffee
supply the certified coffee stocks held against the London
market, that the value of both markets shall start to ease.
The decline is unlikely however to be as severe within
the London robusta coffee markets, as this market is
already in terms of relative qualities over discounted
and is in terms of the competitive and cash strapped
consumer markets attracting increased use of robusta
coffees within many consumer market blends. Therefore
while one might expect something in the order of a 20%
to longer term 25% decline in the value of the New York
market, the London market might only be vulnerable to a
decline of 10% to 15% in value.
The writer is a Director, I & M Smith (PTY) Limited
13
14
Increasing Coffee Production and Yields in Uganda:
Lessons from Brazil and Vietnam
Maria Brando and Carlos Brando – P&A Marketing International
I
n round figures, Brazil and Vietnam produce almost
50% of the world’s coffee but the area planted with
coffee in these two countries accounts for only 25% of
the world’s total. With the help of statistics – production
and planted area – and basic math, one concludes that
whereas the average yield in Brazil is around 23 bags/ha
(1.38 tons/ha) and in Vietnam is around 30 bags/ha (1.80
tons/ha), the average for the rest of the coffee producing
world is under 9 bags/ha (0.54 tons/ha). In Uganda, coffee
yields reach the average of 9 bags/ha, with slightly higher
figures for Arabica-producing areas (12 bags/ha) than
Robusta regions (8 bags/ha).
A closer view reveals that the impressive growth in coffee
yields observed in countries such as Brazil and Vietnam
took place in recent years, throughout the 1990s in
Vietnam and over the last decade in Brazil, to be more
specific.
Vietnam – from Zero to Second-Largest Coffee
Producing Country
In 1985, Vietnam had merely 14,000 hectares of coffee
harvested area with a total production of 12,000 tons
(200,000 bags). From 1990 to 1993, the area planted with
coffee had a six-fold increase, reaching approximately
83,000 hectares, while production jumped to 98,000
tons (1.6 million bags), according to VINACAFE (Vietnam
National Coffee Export and Import Corporation) records.
Yields that ranged between 15 and 17 bags/ha at the
beginning of the 90s, had remarkable growth in 1994 and
reached 27 bags/ha, a figure that kept on growing.
Today Vietnam has approximately 500,000 hectares
of land planted with coffee, almost entirely of the
Robusta type. According to the International Coffee
Organization (ICO), the country’s annual production has
been increasing at an average rate of 14.9% since 1990
(although this rate have slackened in recent years), with
18.5 million bags produced in 2010.
Apart from natural conditions that favor coffee
production, such as fertile basaltic and mica soils and
the tropical monsoon weather, with rainy and humid
climate, low labor costs and an abundant work force
highly contributed to the expansion of production
in the country over the last two decades. Since 1996,
government incentives to farmers have played an
important role in developing yields, with the adoption of
cost-efficient fertilization methods by growers and more
intense use of inputs in coffee plantations. Technology
transfer has also been vital, with research and extension
services being provided by the government’s National
Coffee Research Board of Vietnam, in the Daklak Province,
where the majority of the Robusta-growing areas are
concentrated.
Vietnamese coffee production is today highly dependent
on intensive irrigation and massive use of inputs and
fertilizers. The country has become the world’s secondlargest coffee producer and the worldwide top supplier
of Robusta, with 20 million bags expected in 2011/12,
and amazing yield above 35 bags/hectare in some
areas. However coffees from Vietnam still face huge
quality-related issues that will have to be addressed
in the coming future in order for Vietnam to remain a
competitive coffee origin and exporter.
Brazil – the Case of Espírito Santo
Coffee production in Brazil underwent significant growth
over the last 10 years – from around 30 to 42 million
bags − while the planted area remained practically stable
(around 2.2 million hectares). Data compiled by our
company, P&A Marketing, reveal that between 2001 and
2010, yields in Brazil increased from 14 bags/ha to 20
bags/ha, a 43% growth. Even though these are averages
of 4-previous-year-figures and include both Arabica and
Robusta producing regions – higher-yield areas such as
South Minas and lower-yield areas like Rondonia − they
show a clear tendency of increasing coffee yields.
Brazilian Robusta growers are mostly concentrated in the
state of Espírito Santo, where the variety was introduced
in 1912, but only started to be commercially planted in
1960 as an option for warmer, dryer, lower-altitude areas
and also because of its natural resistance to rust leaf
disease.
Although this part of Brazil grows both Arabica and
Robusta (Conilon), it was Robusta that led the substantial
leap in production and yields in the state after the 1990s,
particularly after 2000. In 1974, the state’s production
of Conilon added to merely 400,000 bags, whereas
in 1992 it already topped 2 million bags. In 2008,
production reached 7.5 million bags and is today around
10 million bags. With a stable Robusta-planted area of
approximately 300,000 hectares – with no significant
changes over the last two decades − scientific research,
15
technology and innovation were the leading forces
behind the yield revolution in Espírito Santo.
INCAPER, the state’s Institute of Research, Technical
Assistance and Rural Extension, together with the
Brazilian Consortium for Coffee Research & Development
(Embrapa Café) have invested R$ 120 million (about
US$ 50 million using the average exchange rates in the
period) in science and technology projects for Conilon
coffee, since 1985.
Some of their achievements are described below.
1) Breeding and development of superior Conilon
varieties – 6 new varieties were created between
1985 and 2009. These new varieties have trees
with more uniform flowering and ripeness and
produce larger coffee cherries; they are more productive, more resistant to droughts and diseases
and deliver higher quality coffee. The “Conilon
Vitória” variety, for instance, presented average
yields of 70 bags/hectare, recorded over 8 crops
under non-irrigated conditions.
A well tended coffee farm will give a good harvest
5) Technology transfer – 500 technical meetings/
year, 100 events/year, 50 courses and awareness
campaigns directed at growers, 60 field days per
year.
The renovation of Conilon plantations according to this
new technological base was adopted by 20,000 growers,
reached 40% of the total planted area (120,000 hectares)
and 60% of production by the year 2009. Recently
registered yields in some of these areas are in the range
of 40 to 150 bags/ha.
2) Clonal gardens – 200 gardens in the state are used
for the multiplication of clones of genetically superior varieties. They can generate as much as 80
million superior seedlings per year, to be used in
the renovation of coffee plantations.
3) Innovative planting and pruning techniques – adequate spacing between trees, “planting in lines”
and programmed pruning cycles.
4) Good agricultural practices – adequate fertilization, soil conservation, erosion control, and irrigation techniques where necessary.
16
Espírito Santo has become a case study for Robusta/
Conilon growing regions not only in Brazil but around
the world. Over a 15-year-period, from 1993 to 2008,
the area planted with Robusta in the state grew 11%,
while production went from 2.4 to 7.5 million bags
(213% growth) and yield jumped from 9 to 26 bags/
hectare (188% increase), on average. Recent data by
IBGE (Brazil’s Geography and Statistics Institute) revealed
that important Conilon micro regions in Espírito Santo,
like Nova Venécia and Colatina, have increased their
production by 52% and 31%, respectively, from 2006 to
2009, while their planted area fell.
In addition to the development and transfer of
technology, the increase in Robusta yields in the state of
Espírito Santo was possible due to important government
plans and policies towards the coffee sector and also to
relevant public-private partnerships and the integration
among the players of the coffee production chain.
Coffee in Uganda is grown by small holders and farms
range between 0.5 and 2.5 hectares, on average. The
production system relies heavily on family labor, with
minimal use of agrochemicals and coffee is often
cultivated with food crops (intercropping) and/or among
shade trees, which have a direct impact on yields.
Despite recent efforts by the government to replant
trees in coffee wilt disease affected areas and also to
renovate old plantations, still much needs to be done
for a complete shift towards increases in production and
yields.
Inside a tissue culture laboratory.
Uganda – Challenges and Opportunities
According to the ICO, Uganda’s total coffee production
totaled 2.8 million bags in 2010, of both Robusta and
Arabica coffees. Ugandan coffee authorities estimate that
it may reach 3.2 million bags in the current 2011/12 crop,
a 14.3% increase compared to last year.
Some of the major challenges for the country’s coffee
sector on the way to production and yield growths
include the old age of plantations throughout the
growing regions − most with more than 50 years of age
(far past their peak producing stage) – coupled with
low fertility soils, poor fertilization and lack of input
management. Coffee wilt disease is another important
factor to bear in mind, because it has infected, heavily
affected and, in some cases, destroyed important
Robusta areas since 1993.
Even these young trees if not well managed will not give the
desired harvest
As presented above, the successful examples of Vietnam
and Brazil, are based on the widespread adoption of good
agricultural practices (fertilization, irrigation, husbandry
and pruning techniques, among others) by growers and
also on genetic improvement and development and,
most importantly, efficient transfer of technology − that
lead to more productive coffee varieties, more resistant to
climate changes and diseases. Innovative ideas regarding
planting, harvesting and processing that may be unique
to each country, may be investigate for potential use in
Uganda.
These are some of the benchmarking examples that can
be further analyzed by government officials, researchers
and relevant actors in the Ugandan coffee chain, to be
adapted and later implemented in their own country.
Nonetheless there are surely several cases in Uganda
of individual growers or cooperatives/associations that
managed to increase their coffee production and yield
levels and may serve as a local, maybe more adequate
and readily available benchmarking opportunity.
According to the ICO, Uganda’s
total coffee production totaled
2.8 million bags in 2010, of both
Robusta and Arabica coffees.
Ugandan coffee authorities
estimate that it may reach 3.2
million bags in the current
2011/12 crop, a 14.3% increase
compared to last year.
17
18
UCTF in
pictures
19
Haveacoffeemoment
The 25 Funny Quotes about Coffee
1. Coffee Stimulates Wit and Foils Sleep:
“Over second and third cups flow matters of
high finance, high state, common gossip and low
comedy,” stated a 1949 New York Times article
about coffee, adding that it is “a social binder,
a warmer of tongues, a soberer of minds,
a stimulant of wit, a foiler of sleep if you
want it so. From roadside mugs to the classic
demitasse, it is the perfect democrat.”
2. On the eighth day God created coffee so that people
could experience those other days.
that’s too
me coffee
o
s
t
o
g
e
’v
do? You
ou
hat do you
like when y
t
W
s
.
g
ju
n
’s
o
It
tr
s
u pour
o
3.
k. But if yo
eans it’s to
a
e
m
w
h
it
ic
h
e
k
w
a
,
had
m
black
w you ever
cream, you
o
h
n
it
k
w
n
e
it
v
e
te
integra
d to be
you won’t
cool. It use
ream in it,
s
c
e
h
c
m
u
o
c
m
e
o
b
now it
to
to be hot, it
ke you up,
d
a
e
w
s
u
to
It
d
.
e
e
s
e
coff
ak. It u
ecomes we
strong, it b
lcolm X
sleep. - Ma
to
u
o
y
ts
u
p
4. “Do you know how helpless you feel if you
have a full cup of coffee in your hand and you
start to sneeze?” - Jean Kerr (Mary, Mary)
5. Psalm 23 in Coff
ee: Caffeine is my sh
epherd;
I shall not doze. It
market me to wake
in green
pastures: It leadeth
me beyond the sleep
ing
masses. It restoret
h my buzz: It leade
th
me in
the paths of conscio
usness for its name’s
sake.
Yea, though I walk
through the valley of
the
shadow of addiction,
I will fear no Equal:
For thou art with me
; thy
cream and thy sugar
they comfort me. Th
ou
preparest a carafe
before me in the pr
es
en
ce of
The Starbucks:
Thou anointest my da
y with pep; my mug
runneth
over.
Surely richness and
taste shall follow me
all the
days of my life:
And I will dwell in th
e House of Mochas
forever.
~Author Unknown
20
6.
The Arabic Coffee Progression: “The first cup is for
the guest,” according to an old Arabic coffee saying, “the
second for enjoyment, the third for the sword.”
7.
Coffee is a magic liquid that turns terrible days
into bearable days.
8. According to Janet McKenzie Hill in the
1902 Practical Cooking and Serving, “In most
households a cup of coffee is considered the
one thing needful at the breakfast hour. But
how often this exhilarating beverage that
“comforteth the brain and heateth and helpeth
digestion” is made
muddy
and ill-flavoured!
… You may roast
the berries “to the
queen’s taste,” and
grind them fresh
every morning, and
yet, if the golden liquid be
not prepared in the most
immaculate of coffeepots, with each
return of morning, a
new disappointment
awaits you.”
9. “Only Irish coffee
provides in a single glass
all four essential food groups:
alcohol, caffeine, sugar, and fat.” - Alex Levine
an’s
for a m
le
b
a
ir
s
t it is
de
, or tha er
lf
re it is
u
e
s
s
it
e
w
h
it
to dinn
10.“Are o be at war w
y to go
d
t
a
e
t
r
o
n
d
p for a
an
spirit
serene
g to sto
n
e
li
b
il
w
o
n
t
u
and
oyan
better
excited
liam Sar
e
il
b
W
o
t
n
”
tha
ven?
offee e
cup of c
11. “Tobacco, coffee, alcohol, hashish, prussic acid,
strychnine, are weak dilutions; the surest poison is time.” Ralph Waldo Emerson
12.“Good coffee should be black like the devil,
hot like hell, pure as an angel and sweet like
a kiss.”-Hungarian saying No one man has
done more to bring peace to mankind than the
inventor of coffee.
13.If Heaven had a flavor… it would be
coffee!
14. Frederick the Great – The King Doesn’t Want
Coffee Drinking Soldiers: “It is disgusting to note
the increase in the quantity of coffee used by
my subjects and the amount of money that goes
out of the country in consequence. Everybody is
using coffee,” said Frederick the Great during a
lament in which he added “If possible this must be
prevented. My people must drink beer. His Majesty
was brought up on beer, and so were his officers.
Many battles have been fought and won by soldiers
nourished on beer; and the King does not believe
that coffee-drinking soldiers can be depended
upon to endure hardships or to beat his enemies in
case of … another war.”
18. Once you wake up and smell the coffee it’s hard to
go back to sleep. Fran Drescher,
19. Coffee: Induces wit. Good only if it comes
through Havre. After a big dinner party it is taken
standing up. Take it without sugar — very swank:
gives the impression you have lived in the East.”
Gustave Flaubert.
20.“Tis pity wine should be so deleterious, for
tea and coffee leave us much more serious.” Lord Byron
21. Good coffee may co
me from
Arabia or India, from th
e Blue
Mountains of Jamaica, or
via France
with an admixture of ch
icory; but
its flavor and excellence
will be
derived from daily caref
ul roasting
and grinding, a truism un
iversally
admitted and habitually
disregarded.- Lady Jeky
ll
15. Actually, this seems to be the basic
need of the human heart in nearly
every great crisis -- a
good hot cup of coffee.
- Alexander King
22. Making coffee has
become the great
compromise of the decade.
It's the only thing “real
men” do that doesn't
16. For fifteen
seem to threaten their
days I struggled
masculinity. To women,
to prove that no
it’s on the same domestic
functions analogous
entry level as putting
to those I have since
the spring back into the
called Fuchsian functions toilet-tissue holder or
could exist; I was then
taking a chicken out of
very ignorant. Every day
the freezer to thaw.
I sat down at my work table
Erma Bombeck
where I spent an hour or two;
I tried a great number of combinations and
arrived at no result. One evening, contrary to
23.Mothers are those wonderful people
my custom, I took black coffee; I could not go
who can get up in the morning before the
to sleep; ideas swarmed up in clouds; I sensed
smell of coffee.
them clashing until, to put it so, a pair would
hook together to form a stable combination. By
24.“Coffee is what makes the politician wise,
morning I had established the existence of a
and see through all things with his half-shut
class of Fuchsian functions, those derived from
eyes.” - Alexander Pope
the hypergeometric series. I had only to write
up the results which took me a few hours. Henri Poincare, “Science et Methode”
17. I believe humans get a lot done, not because we’re
smart, but because we have thumbs so we can make
coffee. - Flash Rosenberg
25.If you want to improve your
understanding, drink coffee; it is
the intelligent beverage. - Sydney
Smith.
21
22
MAINSTREAMING QUALITY IN THE UGANDA COFFEE
INDUSTRY
By Miss Betty Namwagala
U
ganda Coffee is
ranked as one of
the best quality
coffees in the world due
to its special attributes
coupled with good crop
husbandry. The coffee is
grown under shade trees
and intercropped with food
crops making it organic
by default. However, the
volume of Uganda coffee
has not increased in proportion with the demand. While
the world demand for Uganda coffee is estimated to be
in the region of 6 million bags, coffee export volumes
in the last five years only averaged 3 million bags, only
half the projected demand. It is only in 1996/97 coffee
year that coffee exports reached 4.2million bags but
has since declined to 2Million bags in 2005/6 and then
to 3.15 million bags recorded in 2010/11 coffee year.
The scramble for the small quantity available by the
coffee traders has led to unprecedented levels of quality
challenges within the coffee chain.
Traders compete for space at the coffee hulling factory.
Coffee at different levels of drying.
While Arabica coffee grown in Mt Elgon region area has
recorded remarkable improvement in coffee quality,
the other coffee growing areas have either stagnated
or slackened in ensuring that good coffee is produced.
Against this background, the coffee stakeholders
resolved to seek solutions to this problem. A Coffee
Quality Task Force (CQTF) was formed in May 2011,
comprising representatives of coffee farmers and farmer
groups, traders and the regulatory body – UCDA.
The key findings of this task force were:
• Middlemen taking on roles of farmers
Traditionally, in the robusta growing areas, it was the role
of the farmer to harvest and dry his coffee and then sell
it as dry cherries (Kiboko) and this role was excellently
executed. However, with the growing levels of poverty
and need for quick bucks, farmers are selling anything
from the “coffee flowers” to FAQ. As farmers try to take
on roles which were traditionally not theirs, they have
neglected their coffee farms as they can not weed and
prune their gardens since they have sold coffee therein
to traders. After harvesting the crop, these traders will
compete for the little space at the hulling factories where
they can dry their coffee.
Good post harvest handling of coffee
• Pre financing farmers and loans
Due to the ever increasing competition for coffee, coffee
traders have started pre-financing farmers with money
borrowed from the banks or money “sharks” at very high
interest rates. This has placed too much pressure to the
farmers who are consequently forced to harvest the
coffee before maturity leading to a low out turn with too
many lower grades. In most cases, farmers are offered
low prices for such coffee which further de-motivates
them and sometimes force them to abandon their coffee
shambas.
23
Selective picking of dry cherries will ensure better
harvests in the coming seasons
• Coffee Thefts
There is a very big challenge of coffee theft at the farm
level. Thieves strip coffee in the gardens, sometimes it is
stolen when put out to dry, stored coffee is not spared
and even after selling, thieves can come for the money.
In most rural areas due to the unemployment among the
youth some of them prefer to get involved in such acts
other than engage in productive activities like coffee
farming. Most of these thieves are usually children of
the elders who don’t want to work, are on drugs and
are involved in gambling. These thieves usually strip the
coffee plants regardless of whether coffee is blossoming,
or immature cherries. Such a practice does not only
compromise the quality of coffee harvested (stolen) but
also affects the subsequent harvests. Out of fear, some
coffee farmers have started stripping their gardens and
are forced to either sell their coffee before drying it or
beef up security in their homes.
• Traders’ Ignorance
With the high levels of unemployment, many people
have turned to trading in all commodities coffee
inclusive. However, while it’s much easier to trade
other commodities, coffee trade is guided by specific
regulations (Coffee Regulations 1994). Many traders
are not aware of this. This is exacerbated by the fact
that many people at the grassroot don’t know or feign
ignorance of the uses of coffee and hence do not treat it
as a food. This is demonstrated in the way coffee is dried,
stored, and sometimes the facilities that process the
coffee.
• Playing the blame game
While UCDA ultimately ensures that all the coffee that
goes outside Uganda meets the required standards,
it is paramount to ensure quality at all levels of the
Parchment coffee that is due for drying
value chain right from the farm to the cup. Quality
improvement and control is a shared responsibility. Thus,
there is need for a strong regulation and enforcement
to adhere to quality standards. The middlemen say they
would not be trading in coffee that is not properly dried
if the coffee exporters rejected it and blamed it on the
availability of driers.
While this was happening in the robusta growing areas,
the Arabica areas had a better story. The farmers were
cautious of the quality of coffee harvested and was well
processed either through the central pulpery or using the
hand pulpers and then properly dried. Coffee exporters,
farmers and other NGOs have also invested heavily
in quality and processing improvements especially
for washed Arabica coffees. By enhancing the value
attributes farmers have been motivated through the
premiums earned on the coffees produced.
Parchment coffee that is due for drying
Nevertheless, not all is lost for the Robusta growing
areas. There are some farmers that still abide by Good
Agricultural Practices (GAPs). Currently, the Uganda
coffee industry has embarked on promoting washed
Robusta coffee that can comptete favourably at the
international market.
Recommendations and Way forward
Selective picking of dry cherries will ensure better harvests in
the coming seasons
24
• In the interim, UCDA has decided to partner with
the local leaders and the police to ensure that only
ripe cherries are picked and properly dried coffee
under hygienic conditions is put in the market. The
task force recommended that Local Governments
• In regard to farmers and traders’ignorance of the
Regulations, UCDA should intensify sensitisation
workshops in the coffee producing areas. In addition
to this, it should continue distributing charts
outlining the Guidelines for Good Practices for all
coffee dealers in different dialect at different - farm
level, traders, stores and the factories. These should
be displayed at the stores and factories for the
benefit of all.
Parchment being dried on trays
• In order to control coffee with high moisture content
levels reaching Kampala, it was recommended that
the Police at Jinja Bridge and Lukaya be equipped
with a moisture meters, sampling guns, and training
so that they check coffee passing through to Kampala
– and any coffee with moisture content above 14%
would be sent back or destroyed. Nonetheless,
similar interventions were made in the early 2000’s
but were quashed due to lack of transparency in the
implementation.
be fully empowered to enact bye laws and together
with the Police, ensure their full enforcement in
order to control these malpractices. The Uganda
Police has already instructed all the Regional, District
and Divisional Commanders to get involved in
implementing the Coffee Regulations 1994 in order
revive the former glory of the quality of Uganda
Coffee.
• This year, the Task Force has visited over 100 coffee
factories and buying stores, giving technical
guidance to a number of farmers, buyers, processors
and Local Leaders and emphasising the need to
preserve the quality of Coffee. However this would be
another wasted effort if it ended there. This campaign
should be a continous process in order to evaluate
progress made to enhance quality at all levels.
Conclusion
In conclusion, while some stakeholders are of the opinion
that the process has been over blown through the
involvement of police and other local leaders, others feel
that the time is right for such stringent measures. Since
the liberalisation of the coffee industry in 1991, quality
has been on the agenda of all stakeholders’ meetings yet
no tangible solution had been devised and the industry is
now optimstic that this effort will bring order and ensure
quality throughout the entire coffee chain.
The writer is the Executive Director – UCTF and
member of the task force.
Members of the taskforce appreciating the good coffee
25
26
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Let us astutely finance your various needs, be it;
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27
The Inner Secret of your Cup of Coffee
by Dick Wadada
T
he Inner Secret of your
Cup of Coffee by Dick
Wadada
There is one simple truth
about coffee and it speaks
for itself: The taste in the
cup. Sadly finding a good
cup of coffee has become
more and more challenging.
It’s like finding a needle in a
haystack. Life, as you know, is becoming very expensive
and you will only buy a good coffee if it can be afforded.
How do you taste for that invisible gold in your coffee?
The way to taste coffee hasn’t changed for decades; you
should be looking for a roundish and pleasant flavour,
which doesn’t leave your mouth dry.
For example, when you taste an espresso, it should
have a good smell, a suitable texture, a reddish-brown
colour and foam with very thin lines and small and
dense bubbles. The flavour itself must include a pleasing
bitterness, combined with a sort of sweetness.
Cupping is one of the coffee tasting techniques used by
cuppers to evaluate coffee aroma and the flavour profile
of a coffee. It is used to understand the minor differences
among coffee growing regions.
Cupping coffees from around the world side-by-side
is very important. Cupping is also used to evaluate a
defective coffee and to create coffee blends.
You may be intimidated by
people that try to impress you
with some abstract description
of a coffee. This is more of a
romantic tribute to a coffee
rather than a reality. Cupping
coffee should be fun and
interesting, but not a contest of
who is more articulate. On the
other hand, your description
should be more substantial
than a reiteration of a textbook
definition of a coffee.
There are strict international
protocols to coffee cupping by
some institutions like the Coffee
Quality Institute (CQI) of the
Specialty Coffee Association of
America (SCAA). The methods followed in the industry
are quite varied and almost every good cupper has his or
her own permutation. You can cup under conditions you
like, but try to stay close to the international standards in
case you need to cup with other people.
The secret to becoming a good coffee cupper is
simply trusting yourself by practicing regularly
and be humble enough to continue to learn
from others.
In the beginning, coffee was for upper
class meeting places for people
to chat, create beautiful
ideas and
brainstorming,
for people
who knew
exactly what they
28
You may be intimidated by people that
try to impress you with some abstract
description of a coffee. This is more of a
romantic tribute to a coffee rather than a
reality. Cupping coffee should be fun and
interesting, but not a contest of who is
more articulate. On the other hand, your
description should be more substantial
than a reiteration of a textbook definition
of a coffee.
Cupping coffee
wanted to experience with that very cup of liquid gold.
Coffee is now becoming more accessible for everyone
and it would be such a selfish thing not to share such a
beautiful drink with everyone. Currently, more and more
people are becoming better informed about coffee.
People are demanding for fresher and better cups of
coffee.
Although there are countless coffee lovers on the watch
for not properly brewed coffee, the ones with big bucks
who shape the industry are not always acting in favour
of coffee lovers but are more interested in what goes into
their pockets.
It is time for the passionate coffee drinkers to join
together and create coffee fora and start supporting and
teaching each other about coffee.
In golf there is a saying that “don’t hit imaginary golf balls
with invisible golf clubs”, in coffee we should say
“Don’t sell coffee if you can’t make coffee”
29
30
UCTF in
n pictures
31
SECOND UGANDA COFFEE DAY:
THE JOURNEY CONTINUES.
Dr. Pascal Musoli, Plant Breeder, COREC / NARO who
outlined the process scientists went through to identify
the 7 lines that are resistant to the CWD. He revealed
that there are other 10 CWDr lines that are about to be
released and appealed to the stakeholders to take the
matter of CWDr multiplication with the utmost urgency
because failure to do that will mean that their efforts are
in vain.
Mr. Peter Benders, CEO, Xclusive Cuttings Ltd was the
keynote speaker for the day while Mr. Ishak Lukenge;
Managing Director, KDS Coffee, Treasurer – UCTF made a
wrap up.
T
he day was 6th October 2011, when all the coffee
enthusiasts headed for Nakanyonyi Coffee Centre
to mark the 2nd Uganda Coffee Day. The event
attracted over 350 participants. The theme for the
day was “Public-Private Partnerships (PPP) for rapid
multiplication of the 7 CWDr Lines
The directors for the programme of the day were
Mr. Ayub Kalule, the Managing Director, Job Coffee and
Director of UCTF and UCDA; and Ms. Betty Namwagala,
the Executive Director of UCTF.
The speakers for the day included:
Mr. Angello Mukasa, Project Manager, Nakanyonyi
Coffee Centre; he gave an overview of the Centre, its
achievements, challenges and opportunities.
Mr. David Barry; Managing Director, Kyagalanyi Coffee Ltd
and UCTF President gave an overview of the 2010/2011
coffee season while Mr. Francis Chesang, Development
Manager, UCDA who represented the Managing Director
gave an outlook of the 2011/2012 season.
Mr. Hannington Karuhanga; Managing Director, Savannah
Commodities and Board Member of UCTF and UCDA who
shared the UCTF vision for the CWDr multiplication with
the coffee fraternity.
32
The occasion was graced by the Minister of Agriculture
in Buganda Kingdom Owek. Lutaaya Mukomazi, Eng.
Kafeero Sekitoleko Robert, Member of Parliament for
Nakifuma County representative for Mukono District,
Mrs. Kusasira Peace Mubiru who is also a member of
the Committee on Agriculture, Animal Industry and
Fisheries, Development Partners, Scientists, Private Sector
Foundation Uganda, UNFFE, Representatives from the
Ministry of Agriculture, Animal Industry and Fisheries
(MAAIF) and Bank of Uganda (BOU), Agro Input Suppliers,
Coffee farmers, Traders, Processors, Roasters, UCTF
Members, among others.
Nakanyonyi Coffee Centre was an ideal place for the
Coffee Day because some work with CWD resistant
varieties was already underway through a multilocational breeding trial with COREC where 24 lines were
evaluated; of which 6 were released varieties. There has
also been clonal multiplication of the 6 varieties in the
nursery. The Centre expects to start a mother garden
with the new CWDr varieties in April 2012 and which will
be followed by distribution of the new varieties to the
farmers in 2014.
In his keynote address, Mr. Peter Benders the Chief
Executive Officer (CEO) of Xclusive Cuttings Ltd informed
the stakeholders that currently his farm deals with
floriculture and it produces more than 100 million
cuttings per year. He explained that there are 6 storage
tanks for irrigation water with different compositions
of fertilisers and all the water is disinfected with active
chlorine. He uses fertigation in all green houses that is
electronically controlled.
plantlets throughout the country through established
nurseries where farmers can access those planting
materials
He envisaged that if the programme was to start by
in 2012, by 2024, all the 200 million seedlings planted
would be in full production. However, he pointed out
that if the farmers were to purchase the seedlings at the
current market price, they should be highly subsidised
because of the high cost of production of these seedlings
in relation to the conventional methods currently used.
The campaign if well executed would add an estimated
annual Robusta export value of $300 million per year
with 200 million productive trees from a current annual
Robusta export value of $272 million (2010/2011)
which is only approximately 10% of the national
budget, in other words, the campaign could double the
contribution of coffee to the national budget as well as
increasing the income of coffee farmers.
In order for the replanting campaign to be successful,
there is need to forge strategic partnerships between
public, and private sector including development
partners, sufficient funding for requirements, favourable
He expressed his willingness to diversify into coffee
should the opportunity arises and that he has got
sufficient area of expansion that can deliver the 200
million high quality coffee seedlings to Uganda’s coffee
farmers. He stated that the programme has got four
phases:
Phase 1: Large-scale multiplication of the seven varieties
through tissue culture and this process could take about
8 months.
This will be followed by Large-scale weaning and
hardening of the TC plants in greenhouse which can take
about 9 months. Phase 3 entails the distribution of the
rules/regulations of government, sort out logistical issues
in the distribution of plants to farmers, proper collection
of farmer payment for plants and ensure transparency in
distribution and cash collection.
The most resounding issues of the day were the need
to cement the partnerships between the public and
private sectors; put in place policy implementation of
the programme and be focused on vision of sector. The
stakeholders appealed to the government to increase
funding in coffee production and research because
coffee is the most strategic cash crop that can alleviate
poverty, and increase foreign exchange earning and
thereby resuscitating the economy of Uganda.
33
34
35
36
37
AGRICULTURAL FINANCING: THE CASE FOR SMALL SCALE
FARMERS by Tony Mugoya
S
mall scale farmers
or smallholders
are those who
usually have limited
resource endowments.
The definition of
smallholders differs
between countries
and between agro
ecological zones
(AEZs). For instance,
in favourable areas
with high population
densities smallholders
may be characterized
as those cultivating less
than one hectare of land, whereas in semi-arid areas they
may be managing more than 10 hectares. Smallholder
farms are usually family farms, with labour including
management usually supplied by the household.
By 2001, smallholder farming in Uganda was estimated
at 2.5 to 3.0 million holdings and accounted for 94% of
all the crop production. The typical smallholder farmer
cultivates 0.5 – 2.0 hectares per year. Production of
coffee lies mainly in the hands of a large number of
smallholders, therefore, providing employment to rural
families. In Uganda most of the coffee is produced on
small farms with most of the labour being provided
by family members although hired labour is used
occasionally for harvesting.
The number of small scale coffee farms ranges from
500,000 to 1.3 million. These farms are characterized
by intercropping; with banana and coffee being the
predominant farming system. In Uganda nearly all
the Robusta and most of the Arabica is grown by local
cultivators in small individual plots, with an average farm
size of 0.25 hectares for Robusta and 0.18 for Arabica.
Smallholders are faced by other challenges in addition to
their small land holdings. Most of them have low yields
due to a number of reasons which include among others;
limited application of improved agricultural inputs like
fertilizers and improved varieties, low adoption rates for
Good Agricultural Practices (GAPs), the continuous use of
rudimentary farm implements that are labour intensive
and low levels of mechanization among others.
38
Agricultural tools and equipment exhibited at the 2nd
Uganda Coffee Day
The low levels of production among smallholders results
in low cash incomes from their agricultural enterprises. In
fact, most smallholders are subsistence farmers who feed
from “hand to mouth”. They hardly produce significant
surpluses that can provide adequate incomes to take
them to the next harvest season. This negatively affects
their cash flows which are limited to the harvest seasons.
Small scale farmers usually have no regular income
sources. The smallholders have limited diversification
of profitable agricultural enterprises. This results in low
saving rates among smallholders.
Most small scale farmers do not keep farm records, lack
farm management and business plans and these factors
make it difficult for any financial institution to adequately
assess their financial performance.
The National Development Plan refers to Uganda’s
divergent land tenure system and overlapping land
rights as one of the constraints to growth in the
agricultural sector since it impacts negatively on long
term investments in agriculture. Many smallholders have
no land titles and hence are unable to use their land as
collateral for loans from financial institutions.
The Uganda Coffee Farmers Alliance (UCFA) and its
partner Hanns R. Neumann Stiftung are working towards
the development of commercially oriented farmer
groups that have a strong focus on value addition and
marketing that also provide an efficient channel for
small scale coffee farmers to increase their incomes. This
intervention has led to an inevitable requirement of
smallholders to deal with formal financial institutions.
Many farmers don’t have land titles that can be used as
collateral in acquiring loans
This means that small scale farmers are unattractive to
financial institutions due to their numerous limitations.
The inability to acquire formal financial services has
forced these farmers to turn to middlemen who double
as “loan sharks” as their sole financiers. These loan sharks
provide the necessary liquidity requirements to cater for
unavoidable cash needs of the smallholders.
These middlemen are normally based in the villages
and they offer “soft loans” (without traditional collateral
requirements) to the small scale farmers. Their security
is normally a farmer’s yield at the harvesting season. The
downside of these arrangements is that the farmer’s
yield is greatly discounted to up to 30% - 40% of the
real crop value at harvest. This practice is so common
in coffee growing communities and is responsible for
quality deterioration since these middlemen are always
in a hurry to recover their money and cannot afford to
wait for coffee cherries to properly mature or ripen. These
middlemen employ early (albeit improper) harvesting
as their risk management strategy to speed up “loan”
repayments.
This arrangement has kept many small scale farmers in a
“vicious cycle” of poverty since their already low incomes
are further reduced by the abnormally high interest rates
that they pay to the village loan sharks. This implies that
small scale farmers are left with very low income balances
that keep them in a perennial poverty trap.
This state of affairs calls for appropriate interventions
that can “free” small scale farmers from the poverty trap.
This calls for substitution of the village loan sharks with
formal financial services. The challenge has always been
building the capacity of smallholders to make them
acceptable to traditional financial institutions. Likewise,
raising the interest of traditional financial institutions to
even consider smallholder farming has equally been a tall
order.
UCFA has played a critical role in demystifying the
concept of banking and formal lending among small
scale coffee farmers. This has been achieved by building
linkages with formal financial institutions through
signing of memoranda of understanding that enable
provision of field financial training to smallholders,
organizing meetings between financiers and farmers to
explore business opportunities.
UCFA is promoting financial dialogue between financiers
and farmers that has enabled the development of
appropriate products that are relevant to smallholders.
This has promoted financial inclusion of small scale
farmers by reducing their dependency on middlemen
for financing and creating opportunities for them to deal
with the formal financial sector.
The marketing system that UCFA farmer groups employ
has raised the interest of financial institutions in that
significant cash flows occur at the levels of coffee bulking,
value addition and transportation. In this respect,
financial institutions have started providing marketing
finance to UCFA groups leading to an increase in turn
over. Loan recovery is guaranteed since all proceeds from
coffee sales pass through the group accounts.
The writer is Preparing memorandum of association with
Centenary Bank official
39
Marketing finance has served as an entry point for
financial institutions to provide other products. Since
marketing financing has provided the UCFA farmer
groups with the ability to off-take all their members
produce, the concern has been raising the individual
members coffee yields. This development has in turn
resulted in input financing of individual farmer members.
The input finance scheme employs 2 approaches. One
being the individual merit approach where a deserving
farmer is seconded by his/her group to obtain credit from
a financial institution. Such a farmer provides his/her own
collateral while the group supplements this by providing
information on his expected yields, past production and
coffee sales history.
The second input finance approach is the group
guarantee. In this case, farmers in a village level group
called a Producer Organization (PO) guarantee each other
to obtain credit from a financial institution. Each member
of this group who obtains credit must provide collateral
to the rest of the members who guaranteed him/her. This
collateral ensures commitment to repay the loan. The
bright side is that the collateral to the group may include
assets such as livestock which would ordinarily not be
acceptable to financial institutions as security for loans.
Other products that are increasingly being provided
to UCFA members include personal financing that
include school fees loans among others. Similarly, an
increasing number of member farmers are now obtaining
development loans for such requirements as home
improvements.
The business relationship between financial institutions
and coffee farmers is growing with the provision of more
products and on the strength of increased understanding
of each others’ business models. UCFA is promoting a
“financial renaissance” by getting the farmers out of the
farm gate economy in to the formal financial arena where
they exhibit business acumen through their commercially
oriented groups. The UCFA has proved that smallholders,
even small scale farmers, when properly organized can
become serious business partners to financial institutions
on a merit basis.
UCFA farmers attending an input finance training conducted
by Centenary Bank in Luwero
However, in order to reach more small scale farmers,
there is need to ensure continuous provision of financial
literacy training, business skills development, loan use
effectiveness assessment and performance monitoring
and evaluation.
The writer is the Executive Director Uganda Coffee
Farmers Alliance e-mail: tony.mugoya@ucfa.or.ug,
Cell phone: +256772309599
40
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43
Uganda Coffee Federation Members “Walking
the Talk” in CWDr Materials multiplication
By Robert Waggwa Nsibirwa - CEO; Africa Coffee Academy; Vice President UCF
U
ganda’s coffee
sector has set
itself a goal to
produce and export
4.5 million bags
by 2015. With the
growing worldwide
demand for coffee
and high prices, this
will significantly
increase foreign
exchange earnings
in the country
and benefit millions of coffee farmers. One of the key
strategies to increase production is a massive replanting
campaign with varieties that are resistant to Coffee Wilt
Disease (CWD). In Uganda, CWD was first observed on
Robusta coffee areas bordering the Democratic Republic
of Congo (DRC) in 1993. By 2002 it had spread to many
parts of the country, where it destroyed over 44.5% of the
crop. This reduced Uganda’s coffee exports by nearly 50%
and led to economic losses of 80-270 million US dollars
annually between 1996 and 2007.
The search for Robusta CWD resistant varieties started
in 1997 at the Coffee Research Centre (COREC). Some
22 Robusta clones with high farming potential were
initially selected out of the 167 CWD resistant clones.
These together with the four (4) clones identified from
field responses were planted in field trials in 2007-8 and
the first generation of seven CWD resistant Robusta lines
are now ready for multiplication and planting. In order
for Uganda’s Robusta farmers, and the coffee sector as
a whole, to benefit from these varieties, an immense
replanting campaign needs to be put together that
covers all Robusta areas.
At the second Uganda Coffee Day at
Nakanyonyi Coffee Centre in Mukono
last October, it was agreed that a Public
Private Sector Partnerships was the way
to deliver this objective through a rapid
multiplication process using tissue culture.
44
Xclusive Cuttings in Magigye: Hi-tech facilities that can be
used for weaning and hardening coffee from the tissue
culture laboratory.
At the second Uganda Coffee Day at Nakanyonyi Coffee
Centre in Mukono last October, it was agreed that a
Public Private Sector Partnerships was the way to deliver
this objective through a rapid multiplication process
using tissue culture. Already some large, hi-tech growers
have expressed interest in participating and while this
can potentially deliver large quantities, there are several
challenges involved in putting this framework together
yet, the farmers and the coffee sector need these disease
resistant varieties as soon as possible to reach the targets
in coffee volume set by the sector for 2015. Therefore
UCTF members have decided to complement the tissue
culture initiatives in order not to lose time needed to
produce the tens of millions of seedlings required.
The second Uganda Coffee Day.
UCTF is registered as a non-profit
company, limited by guarantee.
Its membership includes; coffee
exporters, coffee processors, farmers,
companies that supply equipment
and supplies to coffee exporters and
processors, clearing and forwarding
companies, insurance companies, banks and
international coffee trading houses in Europe.
UCTF’s vision is to have sustainable coffee production
and trade in Uganda and its Mission is to engage and
work with all stakeholders to promote sustainable coffee
production and trade to achieve its Goal of sustaining
and increasing volumes and quality of traded coffee.
Specifically, UCTF’s own Strategic and Operating Plan
– 2011-14 includes: “Increased efficiency and speed in
multiplication and replanting of CWDr” (Strategic Goal II
– Strategic focus). It has been estimated that, on average,
Ugandan coffee growers are operating at 52% capacity,
so there is substantial scope for the unutilized capacity
to be used for multiplication. A number of these have
already started multiplication of the CWDr lines at their
own expense, and there is strong support for up-scaling
these activities. Furthermore, these members, some of
whom are major international traders, have excellent
accounting practices, governance and transparency,
which suits them ideally to PPP.
There is, therefore, already a body of expertise,
experience and infrastructure within the UCTF
membership, which will ensure the success of this
program.
UCTF has put forward a medium-to-long term program
to make a major contribution, by upgrading and
expanding existing small private sector multiplication
and distribution infrastructure, through the collaboration
of its members in a structured program. The program
plans to produce and plant over 15 million hardened
coffee seedlings over five years; and over 53 million
seedlings over 10 years, by traditional cutting
multiplication and distribution, using the facilities of
UCTF member around the country. The program, with
a total cost of 2.26 million USD, is projected to increase
Uganda’s export earnings from coffee by 1.6 million USD
by year 5 and 97 million USD by year 10.
A Public Private Partnership framework is being
promoted to enable this project to proceed as quickly
and productively as possible. At least half of the UCTF
members are to participate in the production of about
1,000,000 CWDr seedlings each per year under the PPP
arrangement, by establishing and/or expanding the
multiplication infrastructure at their own facilities.
Coffee nursery: These facilities need to be scaled up in order
to get the required number of planting materials
The following are the anticipated complimentary benefits
to arise from the program:
•
Cutting multiplication is a very well proven method,
with predictable genetic outcomes – it is low risk;
•
In excess of 15 and 53 million CWDr seedlings will be
produced over a five and 10 year period, respectively,
and distributed to 61,000 farmers in 5 years time
and 215,000 farmers in 10 years time, through the
members’ networks;
•
An estimated 0.22 million extra bags of coffee will be
produced for export over ten years, generating an
estimated export value of 97 million USD;
•
The multiplication capacity in the Uganda coffee subsector will be permanently expanded by 10 million
seedlings per year;
•
That multiplication capacity will be geographically
distributed across a number of sites, thus mitigating
localized risks (climate, disease etc);
•
Distributing multiplication to centers around the
country will reduce logistics costs and provide
farmers with local support and training – supply is
brought close to demand;
•
The distribution and support network can also be
used to distribute tissue culture seedlings from other
PPP initiatives;
•
A network of new or improved “Coffee Centers of
Excellence” will be created throughout Uganda –
national coffee quality and income will be driven
upwards;
45
•
The network can be used to take on the second,
and subsequent, generations of CWDr varieties that
NARO is developing.
The UCTF head office is providing world class project
management and co-ordination, financial
management, and administrative support to the
program. The program team comprises senior
executives of the participating UCTF members. Total
project costs are estimated at 2.35 million USD and
this includes:
•
Establishing 30 acres of mother gardens planted with
the CWDr varieties;
•
High input management (drip irrigation, fertilization)
to maximize cutting production;
•
Building or extending suitable nursery structures for
weaning and hardening of the cuttings at each site;
•
Nursery and extension staff;
•
Training of nursery and extension staff;
•
Farmer support in Good Agricultural Practices;
46
•
Project management, coordination and support
(quality management, financial
management and administration)
led team.
by UCTF
UCTF members will finance a substantial part of the
costs of the project through matching strategic
partner funds. Many strategic partners have been
approached to participate with specific measureable
output targets associated with their individual inputs
on a proportional basis, or on differing aspects of the
program.
Building on the above membership and corporate track
record, the program is to “pump prime” a substantial
increase in CWDr seedling multiplication facilities
within the industry over a 5 year period. These
facilities will be sustainable thereafter by the industry
itself, and will produce very substantial benefits
to national coffee production and quality on an
ongoing basis as demands change from disease to
weather and so on.
ACROSS AFRICA: COFFEE HIGHLIGHTS
RWANDA: SCIENTISTS TO HELP FIGHT THE ANTESTIA
COFFEE PEST
A
team of internationally renowned scientists from
the US and Europe, are to come to Rwanda to
tackle the ‘potato taste defect’ which has been
threatening the country’s vital specialty coffee sector.
According to a statement from the Global Knowledge
Initiative (GKI), the organization that is sponsoring the
scientists, the defect thought to be caused in part by the
“antestia bug” threatens to deter international buyers
from purchasing Rwandan coffee. When these bugs feed
on plants, they can affect the taste of the fruit from the
plants.
The team will work in collaboration with the National
University of Rwanda’s where Dr. Daniel Rukazambuga
and his team are to devise means of overcoming the
coffee pest. Through their research they hope to discover
the link between the antestia bug and the potato taste
defect that is affecting specialty coffee.
The Head of the Coffee division at the National
Agricultural Export Board (NAEB), Dr. Celestin Gatarayire,
said the pest has always been there and it hasn’t greatly
affected Rwanda’s coffee export because they were doing
their best to control it. “Every year, we have a program of
controlling this pest and we keep carrying out research to
find better control measures,” Dr. Gatarayire said.
He however added that the collaboration with
International scientists was a good initiative and would
improve control measures for the pests.
officer. “By lowering the transaction cost of partnerships
and clarifying the context for them, we think the 21st
century will be marked by unprecedented levels of
knowledge partnerships like this one.
UGANDA: UCTF HOLDS ITS AGM
On 10th November 2011, Uganda Coffee Trade
Federation held its 12th Annual General Meeting where
new office bearers were nominated. Mr. David Barry
retained his position as the Chairman/ President, Mr.
Robert Waggwa Nsibirwa the Vice President and Mr. Ishak
Lukenge the treasurer. The other directors include: Mr.
Hannington Karuhanga- Managing Director Savannah
Commodities, Mr. Ayub Kalale Kalule – Managing Director
Job Coffee Ltd, Mr. Roy Lugone Managing Director –
Kawacom (U) Ltd and Mr. Costas Stamos, Managing
Director of Great Lakes Coffee Company.
The AGM was followed by the Coffee Dinner where
a number of key players were recognised for their
distinguished services rendered to the Coffee industry.
These included the Late Hon Kibirige Sebunya, Mr.
Charles Karamagi, Late Joseph Kamulegeya, Hon. Tress
Bucyanayandi, Minister of Agriculture, Animal Industry
and Fisheries, Mr. Francis Nagimesi, Mr. Muganga and
Mr. Paul Mugambwa. The event was presided over by the
Hon Dr. Atwooki Kasirivu, Chairperson, Committee on
Agriculture, Animal Industry and Fisheries.
Smallholder farmers who saw their coffee profits leap
from 20 cents a kilo to $2.00 per kilo, mainly through
quality improvements, investments in technological
upgrading and capacity building but now these gains
are at risk. According to GKI’s statement, if the incidence
of potato taste is not addressed, it’s likely to roll back
the gains experienced in the coffee sector. On average,
19,000 to 21,000 tonnes of coffee is exported annually.
The scientists will devise a multi-pronged strategy
for ridding Rwanda’s specialty coffee of potato taste
defect and will also assist Rwanda in reaching out and
making contacts with people grappling with similar
problems globally.” We believe science has entered The
Collaboration Era,” said Sara Farley, GKI’s chief operating
Hon. Robert Kasule Ssebunya receiving a Prize on behalf of
the Late Hon. Kibirige Ssebunya
47
RWANDA:
JAPAN SETS ITS EYES LOCAL RWANDA COFFEE
According to Robinah Uwera, an official in charge of
international coffee marketing at the National Agriculture
Export Board (NAEB) in Rwanda, officials from The
Specialty Coffee Association of Japan (SCAJ) will visit
Rwanda to explore the country’s opportunities. This came
after NAEB officials participated in an exhibition attended
by over 6,000 Japanese and organised by SCAJ, in Tokyo,
Japan.
Uwera noted that about 2,400 Japanese attended coffee
cupping (coffee tasting) sessions and, liked Rwandan
coffee and many of them promised to visit Rwanda and
explore the opportunities there with coffee as a priority.
Rwanda’s envoy to the Asian nation, Dr. Charles
Murigande revealed that there was a huge potential for
Japan to contribute to Rwanda’s economic development
since Japan is the third largest economy in world and one
of the most technologically advanced countries.”
TANZANIA:
MOSHI’S TCCO FACING FINANCIAL IN PROBLEM
The Tanganyika Coffee Curing Company
Limited (TCCCo) in Moshi, may face
liquidation due to serious financial
constraints that may lead to its demise.
TCCO milling plant was established
over 90 years ago to specifically mill
parchment Arabica coffee produced in
Tanzania.
TCCCo has since the 1997/1998 crop
season been underperforming due to
the mushrooming private curing plants
- five in the northern zone and two in
the southern zone - that have forced
TCCCo to operate at 50% of its installed
capacity.
Mr Swai, Company’s Board Chairman
disclosed that milling services have
been declining from 65,736 tonnes
of parchment coffee during the 1980
/ 1981 crop season to an abysmal
3,256 tonnes last season. “To reduce
overheads, TCCCo management had to
restructure but operational costs were still high owing to
reduction in milled coffee and worn out machinery. Now
the company is in the process of working out alternative
sources of income that will keep it afloat.
48
ETHIOPIA: ETHIOPIAN COFFEE LOSING FAVOR
OVERSEAS OVER COMMODITY EXCHANGE
CONTROVERSY
Several specialty retailers and coffeehouse chains in the
United States are shunning Ethiopian coffee following
concerns that listing of the commodity on the national
trading exchange adversely affects the product’s quality.
Their fear sprung from the fact that rules of the Ethiopian
Commodities Exchange (ECX) forbid buying coffee
directly from farmers and disclosure of places where
most of Ethiopia’s beans are grown.
Starbucks, the biggest among the U.S. coffee retailers,
has been at loggerheads with the Ethiopian Government
since 2006 over efforts to place the commodity on the
ECX. It has been arguing that commodity exchange rules
are violation of regional branding practices. Now its
rivals, such as Intelligentsia, Portland-based Stumptown
Roasters, and other small specialty dealers, who until
now have been purchasing products directly from
growers, are cautiously weighing concerns over buying
anonymous coffee at the ECX. The coffee retailers are
also worried over quality issues following rejections
by authorities of their appeals for certification of bean
names.
The government wants to channelize sales of all
coffee produced in the country through the ECX. The
commodity is key to sustainability of trading at the ECX,
as other crops produced domestically lack clout and
volume to attract international buyers. The gradation of
coffee according to quality helps increase the price of
Ethiopian coffee, which will ensure better return for bean
growers. Trading at the ECX also prohibits agents and
foreigners access to small stations and farmers’ power to
bargain with the buyers.
In the last fiscal, the ECX traded coffee, sesame, and navy
beans of about 504,000 tons. The organized trading is
growing fast and conditions of domestic farmers have
improved during the last three years due to its operation.
However, retailers and critics continue to disapprove
centralized trading of coffee on issues, such as quality
of products and shortcoming in payment system, to
farmers.
While the Ethiopian Commodities Exchange, established
in 2008, has helped the country as a whole, it has also
made it largely impossible to know where most of the
nation’s beans are grown. Coffee roasters say that
while the quality of Ethiopian beans tends to remain
high, the nation’s trade rules may be negatively
affecting sales to people looking for single-source
coffees.
legal conditions among which are, demonstrated access
to coffee markets, capacity to market coffee and in case
of big volumes, the firm must produce a bank guarantee
worth K. Sh15 million.
However, the board will not issue a marketing agent
licence to an individuals or firms that are indebted to
farmers or farmers’ organisations.
UGANDA:
NEW COFFEE EXPORT RULES MAY SLOW EXPORTS
Earlier in the year; the Uganda Revenue Authority
introduced new regulations requiring all exports leaving
the country to be inspected at the border crossing. The
new procedure required all coffee through the Uganda
–Kenya border to be offloaded for customs inspection at
the border.
KENYA: COFFEE MARKETERS FRET AS CBK PLANS
TO LICENSE NEW AGENTS
A wave of panic has gripped the closely-knit coffee
marketing fraternity following an announcement by
the Government to license more agents. The Coffee
Board of Kenya (CBK) requested companies wishing
to market coffee to apply including the existing
millers. However, the new players were cautioned
to strictly adhere to rules recently published by
Agriculture Minister, Mr Kipruto Arap Kirwa. The
gazetted rules follow consultations between his Ministry,
CBK and key stakeholders, including millers and growers.
However, the latest announcement by CBK had triggered
panic among millers, who have been holding interim
marketing licences. The millers had in the past argued
against opening coffee marketing to competition saying
that there was little coffee to market and that allowing
new entrants could spell economic doom to existing
players.
The new fee and marketing rules have sparked fresh
worries. The rules have exposed the existing players to
open competition. The rules, stipulate tough conditions
for any commercial firm wishing to market coffee on
behalf of the growers and CBK is committed to licensing
as many players provided they meet the technical and
The authorities said the rule was crucial in verifying
the goods for export through Kenya port of Mombasa
this meant that seals fixed on the containers had to
be broken, and there was no guarantee that new
seals would be acquired. In case of bulk loaded coffee
containers, it could lead to spillage of cargo. The cargo
would also be subjected to very big risk of being stolen
enroute to Mombasa. In addition to this, the process
would cause unnecessary delays that would lead to
missing of vessels and subsequently leading to exporters
incurring penalties/ claims for late deliveries as well as
branding Uganda as an unreliable origin. Coffee is usually
inspected by Uganda Coffee Development Authority and
other Inspection agencies at the time of loading after
which seals are fixed on to the container as an assurance
that coffee was inspected and in good condition.
49
However because of the strong relationship that exists
between Uganda Coffee Development Authority, Uganda
Revenue Authority and Uganda Coffee Trade Federation
(the coffee exporters’ association) the matter was
resolved and containers were allowed to move smoothly.
UGANDA: COFFEE FARMERS BLAME DEALERS FOR
POOR QUALITY
The farmers in Western Uganda, under their umbrella
group, the Ankole Coffee Producers Co-operative
Union, accused coffee dealers of tampering with quality
through poor handling and adulteration. The coffee
farmers raised the concern at their 4th annual general
meeting at Katungu Mothers Union hall in Bushenyi
district. The farmers accused dealers of using crude
methods, especially during drying. They claim that some
businessmen mix coffee with stones and husks in order
to earn more profits from the coffee exporters.
The interest of the coffee dealers (middlemen) is to
make profits regardless of the methods applied. “We
appeal to the Government to intervene because when
Uganda coffee loses market, it is the farmers to suffer”,
Eliab Ngambe the union chairperson appealed. They
noted that Uganda’s coffee could lose value on the
international market as a result, unless the Government
enforces quality standards in the industry. Ngambe said
that despite their efforts to organise farmers through
reinstating co-operative societies, they were facing much
competition from the coffee dealers who use reckless
means to gain an upper hand in the coffee business.
Meanwhile, the coffee production campaign that took
place in the greater Masaka and Western
Uganda left many coffee hulling factories
lamenting. The campaign covered the
districts of Kalungu, Masaka, Bukomansimbi,
Sembabule, Rakai, Isingiro, Sheema,
Bushenyi, Ntungamo and Mbarara.
Over thirty factories were closed. The
reason for the closure ranged from too
poor hygiene, processing coffee above
the required moisture content, some were
operating illegally with no valid licence, lack
of husk chambers thereby polluting the
environment, drying coffee on bare ground,
while those found with mouldy coffee was
destroyed. Mr. Anthony Sembatya, the
chairman of the Masaka Coffee Processors
said that the campaign had led to loss of
50
millions of shillings, since a single factory processes
approximately 3,000kg daily and advised UCDA to
sensitize the farmers in villages about proper coffee
handling and quality. However this has been done over
and over again and the major culprits are the processors
who knowingly process the wet coffee.
BURUNDI: BURUNDI COFFEE FARMERS SEEK A STAKE
IN WASHING STATIONS
In mid December 2011, Burundi’s coffee growers
threatened to stop selling produce unless they are
granted a controlling stake in the country’s washing
stations, said Joseph Ntirampeba, the President of
National Federation of Coffee-Growing Associations of
Burundi, known as CNAC.
The country started selling its coffee-washing and
purification plants to closely held companies in 2009,
with Webcor Ltd, a Swiss company, buying 13 stations.
Plans are underway to dispose off the remaining 133
stations. Ntirampenda said farmers have a right to have a
controlling stake in the washing stations since the funds
used to construct these stations came from taxes they
paid from the coffee deliveries.
In the meantime, the government has expressed concern
about the dwindling coffee production in the country
and called upon operators in the sector to help increase
production instead of constructing new Coffee Washing
Stations. This was echoed by the Minister for Agriculture
and Livestock Development, Mrs Odette Kayitesi who
told the stakeholders that they should not be interested
in installing more washing stations while plantations
were disappearing and with no new fields being
established.
However, the decline in coffee production is attributed
to various external and internal factors including the loss
of interest in the coffee as a growing number of farmers
have been replacing coffee plantations with food crops
or do not give adequate care to the current coffee fields.
There are also a substantial proportion of coffee shambas
that have not been cultivated for decades hence
contributing to the poor yield.
KENYA: COFFEE GROWERS LOSE MILLIONS AS
THIEVES RAID FARMS AND FACTORIES
Coffee farmers across the country are losing millions
of shillings through theft of the crop from farms and
factories. Cartels of the rich and well connected people
are exploiting the sharp rise in prices on the international
market to make a killing. These cartels hire middlemen to
buy or steal coffee from farmers. Coffee on farms and in
transit from factories to millers is not spared.
In Murang’a County, Kigumo and Kandara, thugs have
been harvesting ready berries under the cover of
darkness which has prompted farmers to guard coffee
factories and farms at night. The farmers’ predicament
started two years ago when coffee started attracting
impressive prices in the international market. This led
to an increase in illegal trade of the cash crop. Hawking
of the crop has also emerged as a serious challenge.
“Middlemen offering ready cash have flooded the region
to buy the crop from farmers in their farms but they do
not take it to the societies as stipulated by the Coffee Act,”
said Simon Kamau a farmer from Kandara.
In Central and Eastern, stolen coffee is sold to private
millers yet in Nyanza and Western, the crop is being
smuggled into Uganda in large quantities. Farmers blame
the government for licensing private millers and allowing
them to buy directly, fuelling thefts. A farmer who sought
anonymity said coffee berries were now being stolen
from the farms. “We are living in fear. It is better to uproot
the coffee than be tormented day and night,” he said.
A 50-kg bag sells for as much as K. Sh24, 000 across the
border. In scenes reminiscent of the Chepkube days of
the 1970s, coffee is being ferried across the border in
trucks, pick-ups and even boda boda taxis. Chepkube
is a small trading centre on the Kenya-Uganda border
in Bungoma County which was the focal point of coffee
smuggling during the 70s boom. Many smugglers
became instant millionaires from the astronomical prices
triggered by a drought-induced crop failure in Brazil, the
world’s largest producer.
Some farmers are now forced to hire extra security or
spend sleepless nights at the farms and factories to
guard their crop. However, this has proved futile, as was
tragically shown in Bungoma where seven people were
killed as farmers tried to foil a robbery at Namang’ofulo
factory near Sirisia town. The chairman of the society,
Mr Samuel Malaba, said coffee worth nearly Sh1 million
Kenya Shillings was stolen. Earlier in the year, five people
drowned in the River Malakisi while smuggling coffee
into Uganda. Today, farmers claim top businesspeople,
security and provincial administration officials have
jumped onto the gravy train.
The President of Kenya has officially directed the Police
boss to move with speed to end the rampant coffee
thefts that threaten the industry.
TANZANIA: COFFEE BUYERS IN TARIME ACCUSED FOR
CHEATING FARMERS
Coffee farmers in Tarime District, Mara Region in
Tanzania have accused some companies of buying
the their coffee at low prices while indicative prices
remained high contrary to directives given by the
Tanzania Coffee Board (TCB) and requested for quick
intervention by the relevant authorities. This was
echoed by Mr. Boniface Bhoke at the 10th Anniversary
of the Tanzanian Coffee Research Institute (TaCRI).
Tarime District Commissioner (DC) Mr. John Henjewele
praised TaCRI for introducing new coffee varieties that
are disease resistant in Tarime and urged farmers to
seriously consider processing their coffee before selling
it in a bid to attract good prices. Tarime is the leading
coffee producer in Mara Region.
51
KENYA: COFFEE CROP FACES THRIPS OUTBREAK.
Coffee growers in Kenya are dealing with a serious
outbreak of thrips. Thrips are small insects that feed on
many commercial crops, and in severe infestation can
cause premature wilting, delayed leaf development and
premature fruit shedding. The infestations could prove
crippling for many farmers, especially amidst recordhigh coffee prices worldwide.
“Coffee farmers are advised to perform regular pest
surveys in their farms to monitor thrips population and
take appropriate measures,” the Kenya-based Coffee
Research Foundation said in a statement, adding that
other infestation and leaf rust may also be increasing.
Meanwhile, the Director Coffee Research Foundation has
urged the Kenya coffee farmers to take up new coffee
varieties that are higher yielding so as to benefit from the
high prices of the commodity in the world market. With
increasing global demand amidst decreasing production
especially from African producers, coffee farmers are
encouraged to maximize on the positive changes.
Kimemia revealed that for the country to achieve its
economic blueprint Vision 2030′s target of exporting
100,000 metric tons of coffee, farmers need to adopt
varieties developed for the local farms namely Ruiru 11
and the recent Batian variety
UGANDA:
MINISTER URGES FARMER TO GROW MORE COFFEE
Agriculture state minister Prof. Zirubaberi Nyiira Mijumbi
said the Government wants to increase coffee exports
by more than one million bags next year. “The dollar
is appreciating at a faster rate because our foreign
exchange earnings have declined and we hope coffee
exports can address this,” said Mijumbi.
The minister said this while presiding over the Kibaale
district coffee show organised by Café Africa, the Uganda
Coffee Development Authority and the local government
at Nalweyo Primary School in Kibaale district.
Mijumbi said the country was exporting 2.5 million bags
of coffee annually but hoped to increase that number
to over 3.5 million bags. He added that the agricultural
sector was capable of employing the youth who had
been complaining about job scarcity in the country. “I
want to assure you that my sector has the capacity to
employ all the youth in this country,” Mijumbi said.
52
The minister said the Government wants to bring the
youth to the fore in as far as addressing agriculture and
the unemployment challenge was concerned. He said
the Government wanted coffee farmers to increase their
coffee acreage because the more coffee they grow, the
more money they were likely to earn after the sale of the
coffee.
DRC:
STRATEGY TO REVITALIZE COFFEE GROWING IN DRC
The Democratic Republic of Congo (DRC) has laid out
strategies to revitalise the coffee sector. A number of
nurseries have been set up. In the eastern province of
South Kivu, coffee cultivation is being encouraged in
all its eight districts. “In June and July 2011, over 414
kilogrammes of Arabica coffee seeds were distributed to
the eight districts to cultivate. The seeds were procured
from the National Seed Service, said Nkamizama Bola, the
sector chief for the National Coffee Bureau (known by its
French acronym, ONC) in Bukavu, the provincial capital of
South Kivu.
In other parts like Orientale Province, the robusta
variety is being promoted and grown. Training in good
agricultural practices is on going in all coffee growing
areas. The coffee recovery programme is expected to cost
over 100Million dollars and 50% of this has already been
allocated in the 2012 National budget. Mr. Jean Cyrile
Bozeme, National head of the ONC, indicated that the
rest will be raised from the ONC and the Common Fund
for Commodities, among others
The strategy for DRC is to achieve a production level of
120,000 tonnes of coffee by 2015. According to experts,
Congo’s export volume fell from around 119,320 tonnes
tourist-oriented establishments serve higher-quality
coffees prepared using standard European methods to
their visitors.
KENYA: STATE WAIVES K.SHS 176M COFFEE DEBT
of coffee in 1989 to just 897 tonnes in 2009, and less
than 6,000 tonnes in 2010, due to numerous factors
such as the civil wars of 1997 and 1998 that led to coffee
plantations and processing facilities being neglected or
abandoned.
Meanwhile the Executive Board of the Common Fund for
Commodities (CFC) has approved the financing of a new
project aimed at improving sustainable livelihoods of
coffee producers affected by or displaced by war in the
Eastern Province of the Democratic Republic of Congo
(DRC).
The project is sponsored by International Coffee
Organization (ICO). According to ICO report, the total
cost of the project is 1.61 million US dollars, including a
contribution of 1.37 million US dollars from CFC, of which
700,000 dollars will be contributed by OPEC Fund for
International Development.
TANZANIA:
TANZANIA COFFEE CONSUMPTION GOES UP
The Director General of Tanzania Coffee Board said local
coffee consumption has slightly gone up compared to
the past. Eng. Adolph Kumburu revealed that domestic
coffee consumption stood at an average of 5% of
the country’s total output, up from 1%. “The rate of
local coffee intake could be as high as 10%,” and that
promotional campaigns were being stepped up to
improve both production, quality and consumption
habits in the country.
He added that small-scale farmers accounted for about
90% of total coffee produced in Tanzania in the form of
inter-cropping but the Tanzanians continue to prefer
tea to coffee. Yet, on the other hand, most of Tanzanian
The Government of Kenya waived an outstanding
loan debt of Sh176.3million for coffee farmers in
Machakos and Makueni counties. Addressing hundreds
of the leaders of the farmers’ co-operative societies’
in Machakos, Co-operative and Marketing Minister,
Joseph Nyagah, said the waiver was meant to improve
and stabilize the coffee-farming sector, which had
drastically declined in the region. Nyagah pointed
out that the waiver would be channeled through cooperatives societies of the respective members. He called
upon the farmers who had abandoned the crop to revive
it, now that the Government had taken over the burden
of paying the loans. He also added that coffee prices
had shot up in recent years, and urged farmers to take
advantage of the situation by doubling their production
and assured the coffee farmers that the Government was
doing everything possible to revive the defunct Kenya
Planters Cooperative Union (KPCU).
ZAMBIA: NORTHERN COFFEE CORPORATION REVIVED
Zambia re-launched Northern Coffee Corporation,
formerly known as Kasama Coffee Company, which was
closed in 2008 after it defaulted on loans. The firm used
to produce a third of Zambia’s 6,000 tonnes of coffee at
peak in 2004.
Zambia’s coffee output is expected to more than double
to 1,800 tonnes by 2015 from an estimated 840 tonnes in
2011 after its top producer revived operations, a senior
industry official said. Speaking to the Reuters, Mr. Joseph
Taguma, general manager of the Zambia Coffee Growers
Association said that “The future of coffee production
looks bright and just needs to be backed with critical
long-term finance.”
“We conservatively project 2012/13 output to rise to an
exportable production of 1,300 tonnes and in 2013/14 to
1,500 tonnes and then 1,800 tonnes in 2014/2015.”
Coffee production would then rise by a minimum of 300
tonnes per year and Northern Coffee Corporation would
contribute significantly to this production, he said.
“We are happy about the prospects for coffee as a
commodity because the world is generally faced with an
increasing rate of coffee consumption,” Taguma said.
53
AS ARABICA COFFEE PRODUCTION IN UGANDA PERKS UP,
THE ROBUSTA COFFEE VOLUME IS GOING DOWN; WHAT IS
THE ARABICA AREA DOING RIGHT?
By John Schluter
T
he improving trend in
Uganda’s coffee production
and exports over the last few
years has brought with it a strong
growth in the export volumes
of Arabicas, whilst the Robusta
volumes have shown little
improvement – even declining in
some years.
London LIFFE Market (Robusta) - 5 years chart
Price is believed by some to be the main driver in the
small-holder economy. There is little doubt that the
higher prices for Arabica since 2009/10 have had a
definite impact on the response of farmers, and they are
generally taking more interest in their coffee. With the
New York market above 200 cents, the Arabica farmer
can earn a reasonable living from even a relatively small
stand of coffee trees. The smaller rise in Robusta prices
has reflected in part the lower cost of growing Robusta,
and the supply/demand dynamics of the global coffee
economy.
New York ICE Market (Arabica) – 5 years chart
54
But price is only one of several factors which determine
production levels and farmer responses. What is striking
about the Arabica sector in Uganda’s coffee industry is
the increasing investment from the private sector, and
the closer interface between the market (the exporter)
and the farmers.
In many of the districts on Mount Elgon we have seen
new coffee washing stations being built by exporters or
private investors.
These bring the market to the doorstep of the growers,
and the interests of both are served, as the washing
station starts to work with the farmers to improve
their agricultural practices, providing inputs supply
and extension services. The shared benefit from
these activities and a growing relationship of trust
between seller and buyer brings with it the benefit of
an improving productivity and enhanced quality. This
is reflected in the better differentials being paid for the
Uganda Arabica coffees in the international markets, and
their appreciation by a widening number of roasters.
set to those of the normal coffee export business. The
farmer groups require patient development, the building
of capacity, time to develop their organisations. The
daily coffee market, with its turbulent volatility, the ever
moving prices and exchange rates, requires constant
attention and focus. For exporters wishing to enter
the business, it probably needs the development of a
separate department – or even company – to handle the
different rhythms of coffee production.
With the outlook over the coming 5 – 10 years of
continuing demand growth, and the challenges on the
supply side of the industry, given Uganda’s growing
conditions and quality characteristics, there is a good
opportunity for those wishing to invest in commercial
farming.
Estimated Supply & Demand up to 2020 (Source: ICO)
The challenge of Robusta, on the other hand, is the
difficulty of bringing the market closer to the producer,
or of the exporter being able to interact with the smallholders. There have been over the last few years a
number of projects which have focused on improving
yields and quality in the Robusta coffees. These have
produced some excellent results. The Uganda Coffee
Farmers’ Alliance, in their first project areas of Mubende
and Mityana, have seen productivity increase from
around 500 kgs per hectare to about 1200 kgs/ha. Their
structuring of the farmers into companies, selling directly
to the exporters in Kampala has had a very positive
impact on prices earned by the farmers from their coffee.
Despite this, it seems farmers in these groups continue
to sell a large part of their coffee outside the groups. A
closer look at the issue reveals that this is largely due to
the farmers’ need for finance at times of the year when
he has no coffee to sell. Some estimates put the losses of
farmers due to their needs for “income smoothing” during
the year as high as 50% of their total revenue. This also
leads to coffee being harvested before it is fully ripe, in
order to meet cash flow needs, or to try to avoid possible
theft of the ripe cherry, which is a hazard in some areas.
Inevitably the quality suffers, and the resulting FAQ sold
into the market does not receive the same prices as the
coffee from the organised groups who are able to sell
their coffee directly to exporters.
The overall theme of “Scaling up private sector
investment in coffee production” is a particular challenge
in this area of the majority of the dry-processed Robusta
crop. Whilst in Arabica, the exporter or private investor
can build a wet-mill, and start to work with a group of
farmers in the vicinity, aiming to build loyalty through the
services offered; this is not the same with Robusta. The
development of farmer groups among the small-holder
Robusta producers requires a completely different skill-
This has its own challenges, but there are areas where
land is available, and with Robusta prices around $1800
– 2000/ton FOB, with the yield from new varieties in a
well-managed context of probably better than 2 tons
per hectare, coffee has the potential to be a profitable
business for the serious investor.
The challenge of Robusta, on the other hand, is
the difficulty of bringing the market closer to the
producer, or of the exporter being able to interact
with the small-holders. There have been over
the last few years a number of projects which
have focused on improving yields and quality in
the Robusta coffees. These have produced some
excellent results. The Uganda Coffee Farmers’
Alliance, in their first project areas of Mubende
and Mityana, have seen productivity increase from
around 500 kgs per hectare to about 1200 kgs/ha.
55
Uganda’s Coffee Exports from 1964/65 - 2010/11.
COFFEE
No SEASON
1
64/65
2
65/66
3
66/67
4
67/68
5
68/69
6
69/70
7
70/71
8
71/72
9
72/73
10 73/74
11 74/75
12 75/76
13 76/77
14 77/78
15 78/79
16 79/80
17 80/81
18 81/82
19 82/83
20 83/84
21 84/85
22 85/86
23 86/87
24 87/88
25 88/89
26 89/90
27 90/91
28 91/92
29 92/93
30 93/94
31 94/95
56
QUANTITY
(60 Kg Bags)
2,158,736
2,855,621
2,637,862
2,967,825
2,670,201
3,193,638
3,032,609
3,139,559
3,677,100
3,283,183
2,861,399
2,431,524
2,449,737
1,742,575
2,353,031
2,219,802
1,973,458
2,785,647
2,194,888
2,519,024
2,500,031
2,392,198
2,280,206
2,318,341
3,114,396
2,364,751
2,085,004
2,030,829
2,088,642
3,005,205
2,792,753
VALUE
US $
76,820,312
106,126,982
146,548,850
139,078,017
162,473,613
185,874,447
130,818,018
145,469,659
175,549,153
228,518,975
175,337,140
245,222,753
558,512,578
312,097,360
389,108,354
433,471,715
230,463,637
322,030,310
295,259,322
392,677,096
367,591,092
390,362,568
308,594,658
263,239,573
294,867,882
139,566,731
121,343,113
101,442,768
108,873,991
273,658,850
432,651,034
AVG PRICE
US $/Kg
0.59
0.62
0.93
0.78
1.01
0.97
0.72
0.77
0.80
1.16
1.02
1.68
3.80
2.99
2.76
3.25
1.95
1.93
2.24
2.60
2.45
2.72
2.26
1.89
1.58
0.98
0.97
0.83
0.87
1.52
2.58
AVG PRICE
US $/Kg
0.27
0.28
0.42
0.35
0.46
0.44
0.33
0.35
0.36
0.53
0.46
0.76
1.72
1.35
1.25
1.48
0.88
0.87
1.02
1.18
1.11
1.23
1.02
0.86
0.72
0.45
0.44
0.38
0.39
0.69
1.17
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
95/96
96/97
97/98
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
4,148,803
4,237,114
3,032,338
3,647,989
2,917,257
3,074,773
3,146,381
2,663,888
2,523,042
2,504,890
2,002,324
2,704,236
3,211,256
3,054,848
2,668,971
3,149,423
388,916,157
355,126,641
276,476,134
282,995,511
164,763,789
104,776,424
83,936,951
104,787,094
115,705,844
162,146,235
170,362,075
256,580,844
388,412,769
291,832,877
266,673,061
448,890,669
1.56
1.40
1.52
1.29
0.94
0.57
0.44
0.66
0.76
1.08
1.42
1.58
2.02
1.59
1.67
2.38
0.71
0.63
0.69
0.59
0.43
0.26
0.20
0.30
0.35
0.49
0.64
0.72
0.91
0.72
0.76
1.08
Source UCDA
57
COFFEE EXPORTS BY DESTINATION FOR COFFEE YEAR 2010-11
Quantity in 60 kilo Bags
DESTINATION
QUANTITY
1
E.U.
1,459,970
2
Sudan
460,032
3
Germany
258,461
4
Belgium
200,715
5
Italy
165,901
6
Switzerland
119,797
7
Spain
98,034
8
U.S.A.
95,168
9
Poland
32,979
10
Portugal
30,299
11
Holland
30,103
12
Russia
26,280
13
Israel
23,741
14
Slovenia
22,202
15
Romania
20,791
16
France
20,685
17
U. K.
16,108
18
Egypt
10,476
19
Australia
9,370
20
Algeria
9,352
21
Kenya
8,561
22
Morocco
7,900
23
Denmark
7,224
24
Japan
5,937
25
Canada
5,382
26
Hungary
1,053
27
Norway
960
28
Singapore
668
29
Hong-Kong
640
30
Greece
634
Total
3,149,423
Source: Uganda Coffee Development
Authority
58
118,422
200,269
187,487
159,880
142,834
172,243
129,578
193,356
306,392
334,502
257,823
281,227
665,410
69,590
66,457
50,260
55,300
51,131
56,336
45,962
54,104
64,532
41,671
50,916
59,151
3,149,423
10,761,243
19,394,818
18,580,525
17,495,886
15,938,202
20,795,170
15,844,878
24,484,235
41,108,666
44,052,764
32,059,107
34,090,554
154,284,625
12,539,111
12,811,912
10,111,007
12,485,120
11,950,718
14,044,553
11,152,999
14,771,417
17,112,925
10,376,649
12,193,492
14,734,721
448,890,669
146,711
185,004
208,903
209,993
184,432
145,988
91,882
105,498
173,598
210,977
170,178
124,236
711,571
52,300
48,507
63,852
53,021
78,361
73,696
60,758
71,882
61,358
55,238
47,106
45,492
2,668,971
11,789,081
15,012,284
16,509,486
17,019,416
14,653,763
11,613,230
7,242,599
8,641,248
14,644,776
18,950,466
16,056,668
11,351,674
103,230,931
6,883,497
6,950,918
9,188,988
8,126,715
11,624,043
10,352,161
8,303,960
9,592,094
8,376,326
8,581,474
7,645,086
7,605,669
266,715,621
Source: Uganda Coffee Development Authority (UCDA)
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
ARABICA
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
TOTAL
151,155
220,268
251,386
269,395
248,364
195,535
142,893
158,341
209,503
215,767
203,986
138,544
648,551
28,079
46,464
47,262
59,816
71,241
60,722
62,832
62,279
44,523
49,800
56,249
59,284
3,053,688
17,139,504
21,582,136
24,439,607
24,046,556
22,481,152
16,769,099
11,754,995
12,875,835
17,194,480
16,910,898
16,433,983
11,220,734
78,912,759
3,818,259
5,892,864
5,878,310
6,422,790
8,562,260
7,154,243
7,304,272
7,290,706
6,016,435
6,453,488
7,128,798
6,990,335
291,761,739
131,879
165,986
237,168
326,466
281,583
238,938
177,037
179,389
228,771
289,684
276,757
179,840
497,105
40,697
32,878
35,351
34,409
36,430
40,310
60,189
52,053
49,336
35,396
47,370
32,686
3,210,603
12,722,394
16,742,817
24,416,389
34,736,650
31,583,620
30,141,261
22,484,225
21,620,095
27,944,904
36,693,251
34,705,424
22,269,379
72,337,792
4,927,599
4,257,336
5,068,397
4,990,387
5,389,755
6,156,947
9,477,784
7,878,807
7,581,507
5,324,249
6,802,180
4,482,845
388,398,201
115,013
174,587
196,685
255,416
182,090
207,763
94,685
139,965
208,479
227,364
195,432
147,003
559,754
40,558
76,141
52,024
60,712
40,009
57,636
42,471
44,595
36,300
41,500
35,417
32,391
2,704,236
9,287,693
14,744,480
16,369,909
21,368,320
15,137,262
17,251,142
8,026,750
12,762,155
20,283,411
23,556,869
19,395,567
14,595,988
63,801,298
4,069,398
8,215,760
5,836,821
6,999,422
5,008,525
6,977,573
4,928,768
5,144,792
4,000,843
4,776,409
4,101,088
3,741,899
256,580,844
71,774
121,407
132,336
156,047
91,747
86,973
76,946
89,157
167,401
149,759
147,366
117,401
594,010
49,922
60,646
48,008
72,667
74,015
68,987
69,696
34,164
20,047
26,551
28,160
41,147
2,002,324
4,469,897
8,093,316
9,381,631
11,016,259
6,912,473
6,490,296
5,868,690
6,946,257
12,428,399
11,050,922
11,452,930
9,762,200
66,470,317
4,809,598
6,379,170
5,467,618
8,663,022
9,201,115
8,140,598
7,845,734
4,021,072
2,146,047
2,660,751
2,927,946
4,207,647
170,343,588
APPENDIX 2.
EXPORTS BY TYPE OF COFFEE AND MONTH 2010/2011 - 2005/2006
MONTH/ 2010 /2011
2009 /2010
2008 /2009
2007 /2008
2006 / 2007
2005 /2006
TYPE
QUANTITY VALUE
QUANTITY VALUE
QUANTITY VALUE
QUANTITY VALUE
QUANTITY VALUE
QUANTITY VALUE
ROBUSTA 2,484,013 294,606,045 1,957,400 163,484,690 2,405,137 212,848,980 2,713,498 316,060,409 2,144,482 192,779,546 1,408,314 103,873,270
59
60
1,400
640
1,700
650
1,920
6,833
6,514
0
700
1,610
5,280
3,400
0
2,450
1,960
330
360
6,511
14,370
10,130
10,580
11,172
7,360
18,407
6,100
5,749
4,939
970
5,796
7,449
0
7,200
2,630
12,129
12,538
7,668
8,205
8,394
38,314
18,780
20,754
22,920
23,688
11,961
6,963
18,428
30,049
39,443
24,092
1,534
18,912
50,413
12,912
16,210
26,712
29,702
24,746
7,156
15,876
2,326
4,092
17,370
Dec
Ugacof Ltd
Kyagalanyi Coffee Ltd
Kawacom (U) Ltd
Olam (U) Ltd
Savannah commodities
LD Commodities Ltd
Lakeland Holdings Ltd
Kampala Domestic
Stores
Ibero (U) Ltd
Great Lakes Coffee
Pan Afric Impex
Job Coffee Ltd
Wabulungu Multi
Purpose
Kamba Petroleum Ltd
Nakana Coffee Factory
Armajaro Commodities
Penform Trading Ltd
Mbale Importers &
Expor
Ankole Coffee Processors
Kaweri Coffee Plantation
Ankole Coffee Producers
Nov
Oct
330
2,880
0
5,053
6,699
0
2,100
320
15,558
10,828
11,125
8,939
12,975
24,892
36,577
21,370
24,886
13,486
350
11,317
5,175
Jan
680
0
685
5,293
4,021
0
700
1,970
11,200
10,726
7,255
6,065
5,164
38,714
20,910
20,204
31,026
5,310
8,068
9,230
3,857
Feb
0
2,012
330
2,989
1,003
5,250
0
980
11,760
11,862
4,360
3,680
2,402
35,135
35,420
28,952
24,554
8,552
27,716
10,874
1,714
March
640
640
0
2,628
1,323
3,488
1,500
1,857
11,180
9,830
7,473
7,045
7,178
16,509
18,445
16,717
30,647
11,113
0
12,900
12,524
April
0
640
1,334
3,578
4,006
1,304
5,420
1,640
15,451
12,600
13,884
10,311
16,713
35,936
29,637
27,364
19,894
20,602
1,294
11,240
18,002
May
680
320
1,060
8,773
6,844
10,860
3,127
980
19,919
14,874
19,050
13,169
13,952
52,178
42,696
26,783
17,129
34,338
26,326
28,130
25,610
June
930
320
2,100
6,749
6,376
10,344
2,100
0 19,140
11,797
24,734
19,078
7,831
60,552
25,090
28,639
38,279
37,880
9,392
33,151
25,432
July
2,380
613
1,370
2,656
4,678
11,898
2,324
830
13,118
3,700
14,078
22,841
3,076
47,799
39,745
42,791
24,731
25,610
1,967
22,490
15,818
August
COFFEE EXPORTS BY INDIVIDUAL EXPORTER AND MONTH FOR 2009 / 2010 (60-kg bags)
EXPORTER
APPENDIX 3.
2,310
0 0 3,848
664
6,725
1,336
330
16,345
10,972
9,508
9,886
0 65,870
41,578
30,758
31,665
9,500
64,831
13,310
10,957
Sept.
9,900
9,985
10,339
59,476
52,977
49,869
28,957
15,107
159,671
142,504
135,365
125,548
93,796
472,660
378,023
313,170
274,421
224,867
204,644
176,609
171,097
TOTAL
0.31
0.32
0.33
1.89
1.68
1.58
0.92
0.48
5.07
4.52
4.30
3.98
2.98
MKT.
SH
15.00
12.00
9.94
8.71
7.14
6.49
5.60
5.43
0 266,726
0
0
0 237,747
0
0
0
0
0
0
0
0 188,012
0 350
0
320
0
0 0
0
0
0
61
383
0
360
320
0
334
960
360
320
640
360
320
0
0
0 215,180
0
0
0
0
0
0
0
0
320
0
0
Source: Provisional figures derived from UCDA Monthly Reports
Bakwanye Trading Co
Coffee Services Ltd
Gumutindo Coffee
Coop
Anderson Investments
Ltd
Kitasha
A.J.S. Coffee Ltd
Gatto Estates
Three Farmers
Uganda Coffee Exp
Centre
Risala
Union Export Services
(UNEX)
Trans Gaz Company
Zigoti Coffee Works
Bridge Commodities
GRAND TOTAL
0
293
44
193,965
0
0
0 0 0
700
0
0
0
1,850
0
0
0 223,099
0
0
0
0
0
0
0 0
974
1,440
1,140
0
0
0 176,561
0
0
0
0
0
0 700
0
1,294
360
570
0
0
0 253,270
0
0
700
0
0
0 0 0
1,360
360
0
0 0 0 370,924
0 0 1,046
0 0 0 0 0 1,040
0 2,040
300
0 0 375,843
0 0 700
0 0 990
0 1,300
0 2,319
320
0
0
0 309,303
0
0
0
288
900
330
0 0
960
1,992
320
0
0
0
340,378
600
0
0 634
960
340
0 4,631
1,360
660
800
300
293
44
3,151,008
600
334
2,446
1,942
1,860
1,660
1,050
6,375
8,908
8,211
8,000
0.01
0.01
0.00
100.00
0.02
0.01
0.08
0.06
0.06
0.05
0.03
0.20
0.28
0.26
0.25
61
APPENDIX 8.
SELECTED UGANDA FORMAL EXPORTS BY QUANTITY AND VALUE (USD $ ‘000)2006 - 2010
Unit
2006
2007
2008
Traditional ExUnits
Value
Units
Value US$ Units
Value US$
ports
US$
Coffee
Tonne
126,887 189,830 164,540 265,853
200,640 403,179
Tobacco
Tonne
15,794
26,964
26,384
66,301
29,042
66,448
Tea
Tonne
30,584
50,873
44,015
47,629
46,022
47,222
Cotton
Tonne
18,480
20,474
16,230
19,571
7,960
13,214
Non - Traditional
Exports
Fish and Fish
Tonne
36,461
145,837 31,681
124,711
24,965
124,436
Products
Petroleum Prod000Litres 81,976
36,401
87,148
38,553
97,365
48,183
ucts
Cement
Tonne
38,706
5,774
99,483
19,104
325,155 77,504
Telephone for Cel- Tonne
0
19
522
40,720
781
69,209
lular
Iron & Steel
Tonne
27,024
22,458
43,674
40,469
54,525
64,394
Animal/Veg Fats
Tonne
18,568
17,088
47,474
62,850
37,694
46,121
& Oils
Sugar & ConfecTonne
25,930
11,760
72,772
33,451
88,959
39,611
tionary
Beer
000 Litres 18,913
8,835
45,922
23,049
58,950
40,032
Maize
Tonne
115,259 24,114
101,233 23,816
66,671
18,250
Cocoa beans
Tonne
7,632
10,016
9,404
15,936
8,982
22,834
Roses & Cut flow- Tonne
4,989
20,987
5,267
22,782
5,349
28,790
ers
62
280,209
57,170
59,761
23,186
103,372
181,324
32,000
44,446
17,888
21,501
45,224
30,203
29,066
27,829
26,275
91,967
38,541
94,440
11,882
3,910
23,601
166,251
16,478
3,727
99,139
50,629
51,633
55,787
49,519
55,246
44,950
20,914
38,206
35,121
22,474
60,169
55,656
55,181
361,716 71,358
863
78,687
390,344 82,796
548
58,846
72,388
80,369
127,651
283,891
68,662
68,263
19,919
185,927
543,854
54,378
23,242
378,767
231,098
200,319
1,215,404
2,714
453,420
137,984
832,824
135,593
219,622
72,449
123,033
133,452
111,736
121,308
190,215
238,764
230,759
256,536
247,481
294,839
626,007
1,422,962
285,545
273,748
96,364
5-Yr Totals
Value US$ Units
Value US$
106,562 99,314
23,376
159,433
32,373
54,555
11,891
2010
Value US$ Units
2009
Units
6,937
15,092
27,087
7,568
53,019
861
11,681
4,417
707
22,214
3,240
195
0
3,048
7,821
68
218
20
494
63
Kg
Tonne
Tonne
Tonne
000Kwh
Tonne
Tonne
Tonne
000 Litres
Tonne
Tonne
Tonne
,000
Tonne
Tonne
,000
Tonne
kgs
Tonne
Tonne
127
8
176,657
962,194
4,547
4,855
18,063
5,530
5,473
1,667
8,032
3,293
4,808
28
609
1,167
518
189
117
4,335
8,162
122,579
1,151
101
5,945
65,927
684
28,109
9,153
2,142
20,942
2,269
422
23
5,798
7,361
55
194
4
24,739
22,532
3,602
14,154
65,368
1,949
23,081
6,052
5,021
13,042
3,329
192
95
3,250
3,114
239
304
10
25,426
37,211
2,055
430
396
148
30
312,987
1,336,669
5,447
8,696
17,325
14,324
9,724
6,124
18,114
3,187
6,262
1,551
1,331
1,976
1,117
256
43
6,950
10,099
65,783
Source: Statistical Abstracts - Uganda Bureau of Statistics (UBOS)
Gold & Gold Components
Rice
Beans & other
Legumes
Sesame seeds
Electric current
Cobalt
Soap
Plastic Products
Water
Cattle hides
Vegetables
Vanilla
Live animals
Soya beans
Fruits
Hoes & Hand tools
Pepper
Other Precious
Metals
Bananas
Ground nuts
Other Products
Total Exprts (USD)
12,107
82,041
1,616
17,172
6,558
3,136
5,160
3,706
254
198
2,630
3,290
333
320
7
38,289
38,140
931
211
695
28
66
419,686
1,724,300
15,884
10,870
20,033
17,003
13,099
8,916
12,518
4,375
3,039
1,822
1,536
5,332
649
580
481
10,435
17,630
50,746
118
69
393,931
1,567,612
13,369
13,172
11,748
10,878
10,188
7,500
5,996
5,146
4,908
3,908
1,076
932
780
617
166
16,736
14,720
23,097
471
88
12,065
75,401
723
32,314
7,612
12,178
10,869
3,271
235
7
918
2,904
142
111
283
33,323
24,417
918
128
88
374,099
1,621,604
12,882
12,505
18,120
18,835
10,096
7,404
17,061
4,290
4,352
3,985
294
722
545
496
429
16,456
10,200
30,077
3,207
348
0
51,839
341,756
5,833
112,357
33,792
23,184
72,227
15,815
1,298
323
15,644
24,490
837
1,147
324
136,869
149,387
14,443
1,014
341
1,677,360
7,212,379
52,129
50,098
85,289
66,570
48,580
31,611
61,721
20,291
23,369
11,294
4,846
10,129
3,609
2,138
1,236
54,912
60,811
292,282
63
64
WHAT IS UCTF
Vision
To have sustainable coffee production and trade in Uganda
Mission Statement
Engage and work with all stakeholders [esp. UCDA, NUCAFE, COREC] in the coffee industry to
promote sustainable coffee production and trade
Goal
Sustain and increase volumes and quality of traded coffee
The UCTF 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.
65
UCTF MEMBER BENEFITS
The federation has set up a system aimed at rendering a range of services to its members, which
include.
66
•
Facilitating policy dialogue on coffee related issues on behalf of the coffee 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.
•
Coordination of trade related issues on behalf of the coffee industry for the benefit of
members
•
Provision of vital trade information that is critical to the trade activitiesss of the members. We
also publish the Coffee Year Book, Uganda Coffee News and a monthly newsletter.
•
Provide Networking opportunities for members through such activities as the CEO Forum,
dinners and other special events.
•
Coordination of training –aimed at enhancing the skills of its members in 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.
•
Technical advice on coffee related matters.
•
Programmes aimed at enhancing the quality of Ugandan Coffee including monitoring of
members adherence to the UCTF code of conduct.
•
Arbitration services aimed at resolving disputes regarding contracts entered into locally by
UCTF members or other parties (in the coffee business) who may choose to use such services.
•
Promotion of Uganda coffee:- Did you know that the Uganda Coffee home-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 MEMBERSHIP PROFILE
1. ORDINARY MEMBERS / COFFEE EXPORTERS
Name
ARMAJARO UGANDA LIMITED
Address
P.O. BOX 14625
Location
Plot 2219/2377, Bweyogerere Kampala
Telephone
+256 414 285842
Fax
+256 414 285684
EmailSebastian.greff@armajaro.com
Contact
Mr. Sebastian Greff-Country Manager.
Name
GREAT LAKES COFFEE COMPANY
LIMITED
Address
P.O. Box 27198 Kampala
Location
Plot M289 Ntinda Industrial Area
Telephone
+256 414 286961
Fax
+256 364 286960
Emailglc@imul.com
Contact
Mr. Telis Nicolaides - Managing Director
Name
IBERO (UGANDA) LTD
Address
P.O Box 23139, Kampala
Location
7th Street Industrial Area
Telephone
+256 414 34 2621/9, 343629
Fax
+256 414 34 2646
Emailprocurement@ibero.co.ug
Contact
Mr. Eugene Nsereko - Commercial and Operation Manager
Name
JOB COFFEE LTD
Address
P.O Box 4152, Kampala
Location
Plot 555/7, Kawempe Industrial Area
Telephone
+256 414 255914/ 312 262993
Fax
+256 414 251783
Email
jobcoffee@infocom.co.ug /
jobcoffee@yahoo.com
Contact
Mr. Ayub Kalule - Managing Director
Name
Address
Location
KAMPALA DOMESTIC STORES
P.O Box 25604 Kampala
6/8 Nyondo Close, Bugoloobi Industrial
Area
Telephone
+256 414 235597
Fax
+256 414 235304
Emailkds@infocom.co.ug
Contact
Mr. Ishak K. Lukenge - Managing Director
Name
Address
Location
KAWACOM UGANDA LTD
Plot M284, Ntinda Industrial Area
Kampala
Telephone
+256 414 22611/9
Fax
+256 414 505632/ 222612
Emailsales@kawacom.com
Contact
Mr. Roy Lugone - Managing Director
Name
KAWERI COFFEE PLANTATIONS LTD
Address
P.O. Box 264 Mubende
Location
Plot 1 Kitemba, Mubende
Telephone
+256 362 600600
Fax
+256 362 600610
Emailmail@kaweri.com
Contact Mr. Jeremy P. Hulme – Managing Director
Name
Address
Location
KYAGALANYI COFFEE LTD
Plot 1-3 Spring Road 5th Street Industrial
Area
Telephone
+256 414 344021/ 251447
Fax
+256 414 230145
Emailkcl@kyagalanyi.com
Contact
Mr. David Barry - Managing Director
Name
Address Location
LD COMMODITES LTD
Plot 278/79 Ntinda Industrial Area,
Kampala
Telephone
+256 414 285614
Fax
+256 414 286322
Emailmatthiau.simian@ldcommodities.com
Contact
Mr. Matthiau Simian.
Name
Address
Location
OLAM (U) LTD
Plot 7/9 Mapeera Road, Nalukolongo Industrial Area- Kampala
Telephone
+256 414 566731/ 566886
Fax
+256 414 251013
Emailiyer.suresh@olamnet.com
Contact
Mr. Iyer Suresh- Managing Director
67
Name
Address
Location
SAVANNAH COMMODITIES LTD
4/5 Nyondo Close, Bugoloobi Industrial
Area
Telephone
+256 414 252541
Fax
+256 414 258254
Emailsavannah@infocom.co.ug
Contact
Mr. Hannington Karuhanga –
Managing Director
Name
UGACOF LTD
Address
Location
Plot 246 Kireku, Bweyogerere
Telephone
+256 414 250024/25
Fax
+256 312 250020
Emailreception@ugacof.com
Contact
Mr. Charles Angebault
Name
WABULUNGU MULTI-PURPOSE ESTATES
Address
P.O. Box 27544 Kampala, Uganda
Location
Plot 508 Bombo Rd, Kawempe, Kampala
Telephone
+256 414 254485
Fax
+256 414 254485
Emailsmmayanja@yahoo.com
Contact
Mr. Samuel Mayanja – Managing Director
2. ALLIED MEMBERS
Name
Africa Coffee Academy
Address
P. O. Box 23648, Kampala, Uganda
Location
Plot 31B Bandali Rise, Bugoloobi, Kampala
Telephone
+256 752 442480
Fax
+256 414 342082
Emailoffice@africacoffeeacademy.com
Contact
Mr. Robert W. Nsibirwa – President / CEO
Trade Coffee Academy
Name
Address
Location
Telephone
Fax
Email
Contact
Trade 68
AUDIT CONTROL AND EXPERTISE (U)
LTD
P. O. Box 22749, Kampala, Uganda
Plot 31 Clement Hill Road, Kampala
+256 414 233973/ 348425
+256 414 235471
ace.uga@ace-group.net
Mr. Amos Tumwesigye, Country Manager
Collateral Managers / Credit Support Organisation
Name
EAGLE EYE AFRICA LTD
Address
P.O. BOX 25300
Location
Plot No. 83, 6th Street industrial Area.
Telephone
+256 414346625/6
Fax
+256 414346624
Emailed@eagleyeafrica.com
Contact
Mr. Shahzad B. Tejani.
Trade Input suppliers.
Name
ICONA CAFE
Address
Principe De Vergara 136 2800 Z Madrid
Country
Madrid, Spain
Telephone
+3491 3837700
Fax
+3490 2337700
Emailiconacafe@iconacafe.com
Contact
Mr. Vicente Olazabal.
Trade Coffee Buyer
Name
KENFREIGHT (U) LTD
Address P.O. Box 7492 KAMPALA
Location
Plot 1906, Jinja Rd, Bweyogerere
Telephone
+256 041 287801/286955
Fax
+256 041 286950
Emailhpule@kenfreight.co.ug
Contact
Mr. Pule Humphrey.
Trade
Transport & Logistics
Name
SPEDAG INTERFREIGHT (U) LTD
Address P.O. Box 4555 Kampala
Location
Plot 284 Nakawa Industrial Area, Kampala
Telephone
+256 414 505805/6
Fax
+256 414 505803
EmailMartin.Richner@spedaginterfreight.com
Contact
Mr. Martin J. Richner – Regional Exports Manager
Trade
Name
NK LOGISTICS (U) LTD
Address P.O. Box 27188, Kampala
Location
Plot 1900 Block 216 Old Kira Road, Rm 29
Telephone
+256 414 288372
Fax
+256 414 288373
Emailnk.logisticsuganda@yahoo.com
Contact
Mr. Steven Kintu- Managing Director
Trade
Name
ORIENT BANK LTD
Address
Location
Plot 6/6A, Kampala Road
Telephone
+256 414 236012-5
Fax
+256 414 348039
Emailmail@orient-bank.com
Contact Mark Harwood – Executive Director
Trade
Commercial Bank
Name
Address
Location
STANBIC BANK
Plot 17, Hannington Road - Crested
Towers - Kampala
Telephone
+256 414 234710/11/13-24 /
+256 312 224 111/600
Fax
+256 414 231116
Emailugandainfo@stanbic.com
Contact
Managing Director
Name
TRANSAMI (U) LTD
Address
Location
Plot M611 Ntinda Road
Telephone
+256 414 336000
Fax
+256 414 286458
Emailsdv.uganda@ug.dti.bollore.com
Contact
Koen Rombouts - Transport & Logistics Manager
Trade Transport & Logistics
UGANDA COFFEE ROASTERS
ASSOCIATION
Address
Location
Plot 35, Jinja Road
Telephone
+256 414 343678
Fax
+256 414 343692
Emailucra@ugandacoffee.org
Contact
Mr. Moses Amone-Co-ordinator..
Trade Roasters Association
Name
69
70
71
Advertisers’ Index
SDV Transami
Inside Front Cover
Interfreight (U) Ltd
Page 1
Stanbic Bank
Page 3
Kyagalanyi Coffee Page 8
Orient Bank
Page 25
3ways Shipping
Page 39
Olam
Inside Back Cover
UCDA Back Cover
On Behalf of the Board, Members, and Management of Uganda Coffee
Trade Federation (UCTF), I Wish to Convey our Sincere Appreciation
for your Support Towards the Publication of the Coffee Year Book
2010/2011 – Betty Namwagala - Editor.
72
73
Uganda Coffee
Development Authority
VISION
Making Uganda
a distinguished
producer of
high value coffee
MISSION
To promote and oversee
the development of the
coffee sub-sector through
production of clean planting
materials, support to research,
value addition, quality assurance
and timely dissemination
of market information to
stakeholders
OBJECTIVES
SERVICES RENDERED
Promote, monitor and improve
marketing of coffee to optimise foreign
exchange and farmers’ earnings
Support coffee development through
production extension services
Ensure that the quality of coffee
exports meet Internation standards
Identity priority areas for investment
in the coffe industry
Promote coffe as a value added product
Support production of clean planting
materials through coffee research
and nurseries development
Promote domestic consuption of
Uganda coffee
Provide price and production forecasts
Harmonise activities of coffee sub-sector
associations in line with industry goals
Register and license coffee sector players
Policy analysis and developement
Maintain a register of sales contracts
Provide regulatory and quality assurance
services during buying, processing
& marketing
Promote coffee value addition
If you have enjoyed Uganda Coffee tell others ...
If not satisfied tell us:
Coffee house,
Plot 35, Jinja Road P.O. Box 7267, Kampala, Uganda
Tel: +256-41-4-256940, +256-31-2-260470 Fax: 256-41-4-232912
E-mail:ucda@ugandacoffee.org
website:http//www.ugandacoffee
74 Uganda Coffee Trade Federation

cyb2010_11 - Uganda Coffee Federation

Transcription

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