A new state–of-the-art coffee factory in Luweero is set to change the fortunes of farmers, improve coffee quality and drive up value addition.
The factory located in Wobulenzi along the Kampala-Gulu Road was constructed by the Uganda Coffee Farmers Alliance (UCFA) with support from the European Union under the European Union-East African Community Market Access Upgrade Programme (EU-EAC MARKUP).
With a processing capacity of 50 metric tonnes of coffee daily, the factoryserves 24 Cooperatives in Luweero, Nakaseke, Nakasongola and Kayunga and benefits 60,000 households.
According to Tony Mugoya, the Executive Director of UCFA, Luweero grows a lot of Robusta coffee yet farmers have been faced with challenges of post-harvest handling and lack of facilities to process the coffee.
Due to the lack of processing facilities in the area, farmers were forced to sell cherries or kiboko to middlemen which earned them low prices for their coffee.
Limited awareness about coffee quality parameters and little knowledge of the benefits of proper coffee handling in regards to the final prices offered by buyers was a big drawback to farmer incomes.
Mugoya says that with the establishment of a factory in the area, and continuous training of farmers on coffee quality, transformation will follow. He is confident that the farmers will earn more since the factory will help them overcome the majority of the challenges they faced in the past.
“Farmers can now dry their coffee to the right moisture content, bring it to the factory for hulling, bulk it and export it directly to buyers,” said Mugoya.
He added that UCFA has a financing programme that extends credit to farmers who are members of the cooperative at affordable interest rates.
According to Mugoya, access to finance is one of the hindrances in the production of quality coffee since some farmers are forced to harvest and sell unripe cherries to meet household demands.
Mugoya made the remarks during a courtesy visit by officials from the European Union Delegation in Uganda led by Sanne Willems, Head of Sustainable Development. The team also comprised UCDA staff. The visit by the EU was part of activities to assess the achievements of the EU- EAC MARKUP.
Mugoya thanked the EU for the support extended to UCFA which enabled them set up the modern coffee factory in the region. UCFA has a similar plant set up in Mityana also funded by the EU.
The delegates inspected the various sections of the factory and the installed equipment such as the hullers, gravity separator, dryer, husk chamber, coffee laboratory, warehouse among others.
UCFA has also set up a coffee laboratory. Coffee from the cooperatives is roasted, cupped, and profiled before export to match the unique demands of coffee buyers. This level of value addition has enabled farmers to earn more. The lab also serves as a skilling center for youth.
The team visited Kyalugondo Farmer’s Cooperative Society. According to the Chairperson of Kyalugondo Farmers’ Cooperative Society, the newly constructed factory is a critical investment in the area and will transform the livelihoods of the coffee farmers. Kyalugondo is one of the 112 cooperatives that make up UCFA.
A meeting with the cooperative’s leaders provided insight into the impact of value addition at the farm level. The cooperative chairperson introduced the 24 cooperatives under his leadership, illustrating how enhancing coffee quality through better drying practices and expert agronomy had transformed farmers’ lives, increased production and improved market access.
The EU team also visited the UCFA coffee laboratory and cupped some of the Robusta coffees produced by the different cooperatives. According to Mugoya, UCFA has emphasized quality throughout the value chain which will enable farmers earn higher prices/ premiums from the coffee. Cupping coffees at the factory premises is one of the ways to ensure quality before coffee is exported.
The factory brings value addition closer to farmers. It is a one-stop processing center for export-ready coffee. It has a huller, cleaners, graders, colour sorters, gravity separators, a dryer, and warehouses. It is the first in the region with this level of equipment.
About EU-EAC MARKUP
The European Union-East African Community Market Access Upgrade Programme (EU-EAC MARKUP) was an initiative of the EAC Partner States funded by the EU that aimed at addressing both supply side and market access constraints of some of the key export-oriented sectors, with particular focus on exports to the EU and ACP markets. In Uganda, the programme focused on two commodities namely coffee and cocoa.
The general objective of the Project was to contribute to the economic development of Uganda by increasing the value of coffee and cocoa exports to the EU.
Specifically, the project aimed to enhance market access to EU and the East African region by supporting private operators in the coffee and cocoa value chains to improve quality and quantity of the produce and retain premium prices for the same through niche markets. The implementing period for MARKUP was 2018 to 2021.
In Uganda, MARKUP supported six companies, including Uganda Coffee Farmers Alliance (UCFA) through a Matching Grant Scheme. The other companies that benefited from the matching grant scheme were Rubanga Cooperative Union, Ainea and Sons Company Ltd (Cocoa), UGACOF Ltd, New Bukumbi Coffee Processors Limited, and Outspan Agric. Ltd (Cocoa).
The matching grant scheme targeted small and medium enterprises in the coffee and cocoa subsectors to boost production, reduce harvest and post-harvest losses while allowing for increased market access and visibility for the products on the European Union and East African Community markets.