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The Minister for State for Foreign Affairs, Hon. Okello Oryem, has reiterated Government of Uganda’s commitment to increase Coffee Exports to China.

The Minister made these remarks while speaking at the one-day Hybrid event, the 1st Uganda Coffee Day organized by the Consulate General of the Republic of Uganda in Guangzhou in conjunction with the Embassy of the Republic of Uganda in Beijing, the Uganda Coffee Development Authority (UCDA) which was convened with the purpose of increasing the volume of exported coffee and coffee products from Uganda to China.

The event which took place simultaneously in Guangzhou at Guangzhou Jinda Coffee & Beverages Market, one of the largest coffee markets in Southern China, and UCDA Offices in Kampala featured a coffee cupping and tasting of the latest harvest of coffee samples of both Robusta and Arabica coffee.

The main objective of this event was to promote the unique quality of Uganda Coffee in China, create partnerships for importation of Uganda coffee into China and attract investments in value addition in Uganda’s coffee sector.

The Uganda Coffee Day is one of the activities to be held in commemoration of 60 years of Uganda- China relations under the theme “60 years of Strategic Friendship and Cooperation between Uganda and China towards a Shared Future in a New Era”.

The Minister commended the efforts of Uganda’s Consulate in Guangzhou and Embassy in Beijing for convening this event noting that this is in fulfillment of the Ministry’s deliberate policy to pursue Economic and Commercial Diplomacy in a bid to strengthen bilateral trade with China.

Hon. Oyrem informed that H.E. President Yoweri Kaguta Museveni, directed the Uganda Coffee Development Authority to accelerate the coffee production from 3.5M 60kg to 20M by 2025. He affirmed that engagements like these will afford a necessary platform to explore the different ways on how this can be achieved.

The Minister further noted that Ugandan coffee is now ranked 3rd globally in terms of quality and Government is looking at ways of supporting the private sector to penetrate the Chinese market which will give the farmer a good place in the global trade.

H.E. Zhang Lizhong the Chinese Ambassador to Uganda lauded the excellent bilateral relations between China and Uganda. He further commended the efforts of the Uganda Consulate and Embassy in China and the Uganda Coffee Development Authority (UCDA) for organizing this event to promote coffee exports from Uganda to China.

The Ambassador further reiterated Government of China’s commitment to increase bilateral trade and informed that one of the ways to achieve this is through increased export of Uganda’s coffee which has a unique taste and flavor loved by a significant percentage of Chinese people.

He also informed of the commitment of the Chinese Embassy in Uganda to continue offering UCDA technical support to achieve this common goal for the mutual benefit of both parties.

Dr. Emmanuel Iyamulemye, the Managing Director at Uganda Coffee Development Authority (UCDA), revealed that “Uganda is coming to China in a big way.” He further informed that Uganda’s coffee first arrived in China in 2003 and today’s event is one of the activities aimed at finding ways of how Ugandan coffee can penetrate the Chinese market.

He added that Uganda’s coffee roadmap of increasing coffee production from 3.5m bags to 20m bags by 2030 has been informed by lessons worldwide in terms of the market. He highlighted that “For China, UCDA is looking at a structured approach to offset the imports deficit through increased export volumes of coffee with a focus on high-quality specialty.

Amb. Fred Mugisha, the Acting Ambassador to China appreciated Minister Hon. Okello Oryem and H.E. Zhang Lizhong the Chinese Ambassador to Uganda for gracing the function as well as reiterating commitment to increase coffee exports to the Republic of China.

In his remarks, Ambassador Fred Mugisha hailed the good relations between Uganda and China. He thanked Mr. Cai Shuqiang and his team for the support and collaboration in organizing the Uganda Coffee Day in Guangzhou under the theme“60 years of Strategic Friendship and Cooperation between Uganda and China towards a Shared Future in a New Era”

He highlighted that Memorandum of Understanding between Uganda and the People’s Republic of China gives Ugandan coffee access to the Chinese market. He encouraged coffee exporters to take advantage of this MOU to increase coffee exports to China.

Mr. Cai Shuqiang, the President of the Jinda Coffee Market in Guangzhou, thanked the staff of Uganda’s Consulate and Embassy in China and the Uganda Coffee Development Authority (UCDA) for organizing this event the 1st Uganda Coffee Day in Guangzhou.

The President underscored the enormous potential for Uganda coffee in China. He expressed commitment to partner with UCDA and any other willing Ugandan Coffee exporting company in the exportation of Uganda coffee to China. He further emphasized that he would organize and lead a delegation of Chinese Investors to Uganda to explore more opportunities in the coffee sector once the COVID-19 restrictions on travel in  China are reviewed.

According to statistics from UCDA China’s coffee market is estimated at US$11.5bn in annual sales and is expected to grow by 10% in the next five years. Additionally, Coffee consumption in China is growing at between 15%-20% annually. With the increasing volumes of organically grown coffee, Uganda has an advantage over other African countries to capture the China coffee market.

The event attracted key players in the coffee sector i.e coffee importers & exporters, traders, roasters, dealers in coffee machinery & related equipment, media practitioners and relevant Government departments. It was concluded with an award prize-giving ceremony for Uganda’s best coffees in cupping and tasting presided over by Mr. Jacky Lee Judge and Panel Chief in Guangzhou. The following coffee brands won different prizes with Sipi falls Natural Anaerobic from Kawacom (U) Ltd winning followed by Natural from Mountain Harvest and  Mt Elgon UTZ AAA washed Arabica coffee.

Uganda coffee exporters have met with Uganda’s Deputy Head of Mission to Beijing, China, Amb. Fred Mugisha, to strategize on how to penetrate the China market.

The meeting held on 15^th April 2022 in Kampala, was a follow up of the first ever Uganda Coffee Day simultaneously held on March 17, 2022 in Uganda and China and was convened to discuss the coffee opportunities in China and the issues raised by coffee stakeholders in Guangzhou.

“We have been marketing and promoting Uganda coffee in China and of late, we have come across very serious[Chinese] companies that want to do joint ventures with Ugandan companies to get our coffee in the Chinese market,” Mugisha said.

China is the second biggest economy in the world with a huge middle class. Traditionally, Chinese were tea people but they are now shifting to coffee and according to Amb. Mugisha this provides Uganda a big opportunity. 

The Ambassador pledged the embassy’s support to exporters who are ready to do business in China. He noted that online marketing is the way to go and encouraged them to take advantage of the available online channels to market Ugandan coffee.

David Katungi, Director of Strategy and Business Development at Uganda Coffee Development Authority (UCDA), called on the exporters to embrace the opportunities in emerging markets such as China to sell their coffee. He reiterated Government’s pledge to support exporters and emphasized that Government has invested in interventions to increase production which will boost export.

“We have interventions geared towards increasing coffee production and productivity. In 2017, we launched the coffee roadmap whose target is to produce 20 million bags by 2025 and we are moving steadily towards that target and with the interventions that we have put in place such as providing seedlings to farmers, extension services and guiding farmers on good agricultural practices, we should be able to produce what is able to satisfy the market,” Katungi said. He encouraged stakeholders to continue investing in coffee before continuing to recount UCDA’s strategic interventions in China and other emerging markets.

“UCDA is working with Uganda’s foreign missions to promote coffee,” Katungi said. “Specifically, we have developed a coffee promotion strategy for China (which we will share with you at an opportune time). We are also in the process of developing an online marketing platform to explore the opportunity of promoting, and selling Uganda coffee online.”

The Acting Director Quality and Regulatory Services, Doreen Rweihangwe, notified the exporters that UCDA has profiled Uganda coffees according to agro ecological zones in partnership with Coffee Quality Institute (CQI). Exporters will be able to use the coffee profiles to market their coffee which is important for buyers who want to trace the coffee origin.

During the meeting attended by small and medium companies, exporters raised concerns such as the need for a warehouse in China, branding, marketing and promotion and trade financing among others.

“A warehouse is a necessity for us and the sooner we get it, the better for our entry into the Chinese market," Joseph Nkandu, the Executive Director at National Union of Coffee Agribusinesses and Farm Enterprises (NUCAFE), said. Nkandu also noted that there is need for the government to de-risk the market. He also stressed that there should be a deliberate effort to send young Ugandans to China to learn the language to prepare companies to do business in China.

Nkandu added that “finance is going to be an important factor” if Uganda coffee exporters are going to penetrate the Chinese market.

Aggrey Tumuhairwe, a partner in Kangumamu Agro processing and Exporters, a player already exploiting the Chinese market said that for Ugandan exporters to benefit from the China market, they will require an office there and will need to partner with Chinese companies. He said it is very difficult to break into the Chinese market without joint ventures. Tumuhairwe also noted that the quality of coffee and the consistency are key. He called on Government to support exporters through a brand awareness campaign of the country that will make Uganda known in China. This can then be supplemented with a coffee promotion campaign.

In an interview on the sidelines of the meeting, Katungi noted that Uganda has the capacity to satisfy the China market.

“We have seen a trend of several people entering the coffee industry to produce on a commercial level. There is a lot of land put under coffee production,” he said. “We see coffee production going up and investments going into it. So, we are confident that we have sufficient volumes to meet the huge market in China and other emerging markets.”

Katungi urged the exporters to build their capacity to provide quality coffee which will guarantee the market. The exporters, he emphasized, need to do due diligence to understand the needs of the coffee buyers in order to mobilize the kind of coffee required. In addition, they need to work together as no single exporter would be able to satisfy the market.

“Exporters would benefit more from this market if they came together and raised sufficient capital or meet the requirements because the volumes are high,” Katungi said. “Exporters should understand the dynamics of the China coffee market. One of those dynamics is that for one to supply and sustain supply they will need to partner with a local Chinese firm.”

Importantly, Katungi said that whereas China is a very unique market because of their culture, the general marketing principles apply. The exporters must ensure they meet the market quality requirements, they must be consistent with supply, they must be trusted and operate on pure acceptable business principles, he guided.

Coffee exports to China have been increasing over the years. For instance, Uganda exported 33,000 bags of coffee to China in 2018, 66,000 bags in 2019 and 83, 000 bags in 2020.

Coffee exporters had a clean sweep of the top positions at the Presidential Exporter Awards 2022, held in Kampala.

UGACOF, emerged top in the Presidential Exporter Awards for the year 2022, while Olam Uganda and Kawacom were 1st & 2nd Runner Up.

UGACOF is Uganda's largest coffee buyer, processor, and exporter with an export turnover of $100m per annum.

While receiving the award, Michael Nuwagaba, the Chief Operations Officer at UGACOF attributed the excellent performance of the coffee sector to the Coffee Roadmap launched by H.E The President, Yoweri Kaguta Museveni in 2017.

The Roadmap set a production target of 20 million bags by 2030. Since its launch, various efforts have been undertaken by different actors to see accelerated production of coffee.

"We have seen growth in our export volumes. Currently, we export over 1.2 million bags of coffee per year. This rise is a result of the efforts of the different actors," Nuwagaba said.

Uganda has seen a steady rise in coffee export volumes which had stagnated at 3.5m bags.

Coffee exports for 12 months (June 2021-May 2022) totaled 6.35 million bags worth US 837.14 million compared to 5.88 million bags worth US$ 540.54 million the previous year (June 2020-May 2021). This represents an increase of 8% and 55% in both quantity and value respectively.

The Uganda Export Promotions Board organizes the awards and is the national focal point for export promotion and development.

The Minister of State for Agriculture, Hon. Bwino Fred Kyakulaga launched the distribution of coffee wet processing equipment worth Shs 2.2bn to coffee processors from across the country yesterday. The launch took place at the Tirupati stores in Kyebando, Kampala.

The Ministry of Agriculture, Animal Industry, and Fisheries through the Uganda Coffee Development Authority (UCDA) gave out the Coffee Wet Processing Equipment (wet mills) to 35 Arabica-coffee farmers, cooperatives and institutions selected from different parts of the country.

The programme is part of UCDA's efforts to increase specialty coffee volumes and enable farmers and the country to earn premium prices from high-quality arabica coffee.

The Minister handed over five electric-powered wet processing units (UDC 2000) with a capacity to process 1,200 kgs of cherry per hour and 30 petrol-powered units with a processing capacity of 800kgs of cherry per hour. Once installed, the machines will pulp ripe coffee, separate the unripe and dry pods from the good parchment, and remove mucilage leaving high-quality parchment.

The equipment will serve farmers and groups in hard-to-reach areas of Kween, Lamwo, Bundibugyo, Ntoroko, Buhweju, Kanungu, and Kisoro that have all benefited from the program.

Officiating at the launch of the distribution of the wet mills to the selected beneficiaries in Kampala, Fred Bwino Kyakulaga, the State Minister for Agriculture, said that Uganda has 18 commercial wet mills only compared to dry mills which are over 850.

He noted the need to scale up wet processing to produce commercial volumes in Arabica and Robusta growing areas which will fetch farmers premium prices.

Bwino added that the main objective of procuring the 35 wet processing equipment is to increase the number of wet mills and enhance coffee farmers’ income through value addition by increasing the production of high-quality coffee.

Most of our coffee is processed and marketed as natural and misses the premium prices. Yet, if the coffee is processed as washed and specialty coffee, it earns more.

“For instance, one kg of natural Arabica (dry Uganda Arabica) coffee
fetches Shs14,000 while a kg of washed Arabica coffee fetches Shs18,000,” Bwino said.

“The wet mills will, therefore, increase the production of premium coffee which in turn will enhance the incomes of coffee farmers,” Bwino added.

Speaking at the same event, Dr. Emmanuel Iyamulemye, the Managing Director at UCDA, said that the Authority worked with Local Governments to select the beneficiaries.

"We went through a transparent and rigorous process to select the beneficiaries. Many farmer groups and cooperatives applied for the wet mills but since the funds available weren’t enough, the most qualified organisations were considered.

He added that the equipment will be installed and operational within two months. However, he cautioned the beneficiaries to use the wet mills for the intended objective.

“This is a conditional allocation from Government, and if the machines are not used properly, we shall take them back,” Iyamulemye said, urging beneficiaries to allow other farmers to use the equipment at no extra fee apart from operational costs.

Alfred Boyo, a director at Masha Coffee, who spoke on behalf of the beneficiaries, expressed gratitude to UCDA and MAAIF for availing wet mills to farmers, noting that they will handle them with care and make the best use of them.

He added that the Government should also consider investing more in secondary processing by making available relevant equipment like roasters and grinders.

SCOGEM Enterprises Ltd supplied the equipment. Walter Upoki Umika, the Managing Director at SCOGEM Enterprises Ltd, said all the machines are full coffee washing equipment and can do pulping, sorting, flotation, mucilage removal and have the flexibility to do honey coffee.
The smaller machines cost Shs40m each while the bigger ones cost about Shs220m each.

In FY 2020/21, Uganda earned US$ 559 million from 6.1 million 60-kilo bags. Placing substantial investment in the coffee sub-sector will be a game-changer for the country and the 1.8 million households who benefit from coffee.

JULY 14, 2022, KAMPALA, UGANDA - Coffee exports for 12 months (Financial year 2021/22) totaled 6.26 million bags worth US$ 862.28 million compared to 6.08 million bags worth US$ 559.16 million the previous year (Financial year 2020/21). This represents an increase of 3% and 54% in both quantity and value respectively, the UCDA June Coffee Report reveals (https://ugandacoffee.go.ug/file-download/download/public/82).

Uganda's coffee exports for the month of June amounted to 530,365 60-kilo bags of coffee valued at US$ 83.79 million. This comprised 444,197 bags of Robusta valued at US $60.98 million and 86,168 bags of Arabica valued at US$ 22.82. This was a decrease of 14% in quantity but an increase of 43% in value compared to the same month last year.

Farm-gate prices for Robusta Kiboko averaged UGX 2,600 per kilo; FAQ UGX 6,450 per kilo, Arabica parchment UGX 10,500 per kilo and Drugar UGX 9,500 per kilo.

Robusta exports accounted for 84% of total exports higher than 77% in May 2022. By comparing quantity of coffee exported by type in the same month of last Coffee Year (June 2021), Robusta decreased by 21.44% in quantity but increased by 21.37% in value. The decrease in Robusta exports was mainly attributed to lower yields this year that were characterized by drought in most regions. This led to a shorter main harvest season in Central and Eastern regions and reduced harvests from Greater Masaka and South-Western regions whose peak is expected in July 2022.

Arabica exports increased by 62.77% and 174.46% in quantity and value respectively due to an on-year cycle characteristic of Arabica coffee production. Arabica fetched an average price of US$ 4.41 per kilo. Okoro CP/B from West Nile sold at the highest price of US$ 7.23 per kilo.

Ten exporters out of 55 companies which performed during June exported 74% of the total volume.

Italy maintained the highest market share of 40.25% followed by Germany 11.34%, Sudan 10.35% (10.74%) India 7.42% (7.27%) and Morocco 4.82% (1.95%). Coffee exports to Africa amounted to 109,506 bags, a market share of 21% compared to 70,782 bags (16%) the previous month.

Coffee exports for July are projected to be 600,000 bags.

The first-ever trade event between Uganda and Vietnam provided a unique platform to accelerate trade, bilateral relationships and most importantly gave Uganda Coffee Development Authority (UCDA) a platform to showcase the country’s coffee and cocoa to Vietnamese investors.

The event, the Uganda Vietnam Business Summit, was held on 25th November 2022 at the Vietnam Convention Center in Hanoi. It was organized by the Ministry of Trade, Industry and Cooperatives and the Ministry of Foreign Affairs sought to unlock investment and trade opportunities between the two countries.

In his address at the summit, His Excellency President Yoweri Kaguta Museveni called on Vietnam to invest in value addition of coffee and other agricultural products, minerals and products such as cars, computers and machines. Museveni assured the investors that Uganda has the best investment environment with readily available raw materials and skilled manpower.

Coffee research

Uganda is set to benefit from partnering with the largest producer of Robusta coffee in the world after signing a Memorandum of Understanding (MoU) to support collaboration and knowledge transfer on coffee production between the two countries.

On 24th November 2022, Hon. Frank Tumwebaze, Minister of Agriculture, Animal Industry and Fisheries signed the MoU with the government of the socialist republic of Vietnam represented by the Vietnam Coffee Coordination Board (VCCB).

The MoU will enable collaboration between Uganda and Vietnam to enhance coffee production and productivity, marketing, research in climate change and environment, research on varieties and extension services and value addition along the coffee value chain. Vietnam ranks as the largest producer of Robusta coffee with a production of 31.59 million 60kg bags in 2021/2022.

Coffee sub sector open to investment

Dr. Emmanuel Iyamulemye, Managing Director, UCDA in a panel discussion on value addition in agribusiness highlighted the opportunities available to investors of coffee in Uganda including preferential markets in the East African Community (EAC), African Continental Free Trade Area (AfCFTA), Common Market for Eastern and Southern Africa (COMESA), African Growth and Opportunity Act (AGOA) and the trade privileges from China, United Kingdom and the European Union markets for Uganda coffee products.

Dr. Iyamulemye highlighted investment opportunities in the export of green and roasted coffee, supply of coffee machinery, equipment, pesticides and fertilizers; production of coffee machinery, equipment, pesticides and fertilizers; production of packaging material such as gunny bags for the green coffee and pouches (Kraft or Matte) for roasted coffee; investment in washing stations that will enable production of fine and specialty coffee; soluble coffee production and investment in coffee roasteries and coffee shops.
 

Other panelists included Dr. Patience Rwamigisha, Assistant Commissioner Directorate of Agricultural Extension Services in the Ministry of Agriculture and Prince Bobby Juuko Kimbugwe, CEO Pure Grow Africa, who represented the private sector.
 

As UCDA works towards achieving the Presidential directive of 20 million 60kg bags of coffee by 2030 it is important to benchmark with such big producers on strategies that can be
used to accelerate production from the current 8.4 million bags.
 

Discussions at the summit focused on several priority sectors including agriculture with focus on coffee, forestry, aquaculture, grains, agricultural research, fertilizers, pesticides, dairy and tea. Other broad sectors include ICT, tourism, industry, trade, gas and minerals.
 

The Consular General of the Republic of Uganda in Guangzhou, Ambassador Judith Nsababera has tipped Ugandan coffee exporters, farmers, cooperatives and roasters on how to access the Chinese market.

This was during a discussion on the opportunities for export of Uganda coffee to China held at Serena Hotel, Kampala last week.

Ambassador Nsababera appealed to the coffee stakeholders to do due diligence on the Chinese companies they intend to deal with to avoid being disappointed.

She also emphasized the need for Ugandans to partner with local traders as this will assist in building trust between them and potential business partners.

“The competition for coffee in China is fierce. You need to have a local partner in China and you need to have your product readily available. The Chinese want to see, feel and touch the product you are selling [before they make any commitments],” Ambassador Nsababera said, pledging to support the coffee stakeholders who plan to do business in China.

UCDA Managing Director, Dr. Emmanuel Iyamulemye, said there are 72 registered coffee exporters whose details and credentials have been captured and are able to export to China.

Dr. Iyamulemye said the Authority is engaging digital platforms in China to be able to upload Ugandan products. Government will pay the required subscriptions and he called on stakeholders to make use of such platforms.

To address the issue of quality and trust, Dr. Iyamulemye said UCDA and Ugandan coffee players can do cupping sessions in China, adding that the list of companies that have excelled in the annual Best of the Pearl competitions can be shared with Chinese coffee buyers for purposes of building trust and quality assurance.

He said the Best of the Pearl competitions have given Ugandan coffee great visibility around the world.

Responding to the issues raised about inadequate funding, Dr. Iyamulemye said the Authority had attempted to have a Coffee Fund but this was dropped because the government already has the Consolidated Fund. However, he appealed to sector players to brainstorm on innovative ways of identifying sources of funding.

Aggrey Tumuhaire, an exporter with experience in the Chinese market told the meeting that the major challenge in China for business persons is understanding the market, adding that it is important to have brand awareness for a distributor to accept your product.

 According to Tumuhaire, the Chinese deal with people they trust and buy products they can physically see.

Nelson Tugume, the CEO of Inspire Africa, a coffee company exporting coffee to various markets, noted that while it is important to look at exports and the international markets, it is also important to add value for better prices for the farmer.

Tugume suggested the hydrogen technology which he says once it is in place and the coffee roasted, the product can take up to 12 months on the shelves without losing its quality.

He highlighted the need to grow domestic coffee consumption and called for affordable financing. The other challenges raised during the discussion was the issue of tariff and non-tariff barriers.

While giving a vote of thanks to the Ambassador, the Executive Director of the Agribusiness Development Centre (ADC), Josephine Mukumbya, said the sector needs a holistic approach to the challenges it is facing. For example, she said, financing alone may not address all the issues around the value chain.

Coffee exports to China have been increasing over the years. For instance, in 2018, Uganda exported 33,000 bags of coffee to China, 66,000 bags in 2019 and 83,000 bags in 2020.

The National Coffee Research Institute (NACORI) has developed new high-yielding and disease-resistant Arabica varieties that will make Ugandan farmers more competitive at the local and global levels once they are released on the market. The varieties were developed with support from the European Union (EU) under the European Union – East African Community Market Access Upgrade Programme (EU-EAC MARKUP).

“Uganda has been lagging behind in development of new Arabica varieties and this is going to be a landmark for the farmers and the sector,” Dr. Pascal Musoli, a plant breeder and top coffee and cocoa researcher at NACORI revealed.

This was during a meeting with members of the National Steering Committees, who visited the institute located at Kituuza, Mukono to learn how EU-EAC MARKUP has supported Ugandan scientists to carry out research and develop coffee and cocoa varieties to increase production and productivity. The lessons and good practices will be adopted by partner states to help unlock trade and investment opportunities in EAC.

Dr. Musooli noted that the support they received from MARKUP enabled NACORI scientists develop new Arabica varieties whose performance is above 200% of the old types. The new Arabica varieties are also resistant to diseases such as leaf rust and coffee berry disease compared to old varieties.

Under the MARKUP project, NaCORI received support to evaluate and release improved Arabica coffee varieties and carry out preliminary evaluation of cocoa clones. The mandate of NaCORI is to carry out research on coffee and cocoa in Uganda.

All activities related to research under the MARKUP project are implemented by NaCORI under the supervision of UCDA. The MARKUP project supported NaCORI to carry out research in four locations: Zeu in Zombo district, Kyenjojo, Kabale, and Buginyanya (Elgon region).

Dr. Musooli noted that while research was already ongoing into development of new varieties, the funds from MARKUP came at a critical time and made a big difference. According to Dr. Musooli, the new varieties performed above 200% in comparison to the old types and once released to farmers, they will help increase production and productivity for
farmers enabling them earn more.
 

The varieties are resistant to leaf rust and coffee berry disease which is going to reduce the burden on farmers to purchase chemicals to control diseases and pests.

The Deputy Director General, International Partnerships at the European Commission, Myriam Ferran, has pledged continued support to Uganda in the coffee and cocoa sub-sectors.

Ferran made the remarks during a visit to the Uganda Coffee Development Authority (UCDA) laboratory in March together with Ambassador Jan Sadek, Head of the European Union Delegation to Uganda, Caroline Adriaensen, Head of Cooperation and Sofian Dahmani from the EC International Partnerships Directorate. The visit was important in kick-starting strengthened cooperation between the European Union and UCDA in implementing the comprehensive value chains approach as part of the coffee and cocoa priority value chains for the Global Gateway in Uganda.

The European Union has been supporting the Ugandan coffee and cocoa value chains through two major projects implemented by UCDA over the past five years. The EU-EAC Market Access Programme (MARKUP) worth EUR 3.638.000 and the Coffee and Cocoa Value Chain Development (CoCoDev) Project in Uganda worth EUR 8 million (UGX 32.8bn) have supported the value chain development from smallholder farmers to certification, among other areas. The implementing period for MARKUP was 2018 to 2021 (with a second phase in the pipeline) while that for CoCoDev is 2022 to 2026.

During the visit, Ferran commended UCDA’s efforts in the coffee and cocoa sub-sectors and called on the Authority to involve refugee-hosting communities in coffee production. This, according to Ferran, would help to improve the lives of refugees and contribute to the inclusive growth of the coffee industry. Sixty-five percent of Uganda’s coffee exports go to the EU, placing the country in a position to compete favorably with other producing countries.

The team was hosted by UCDA’s Managing Director, Dr. Emmanuel Iyamulemye, who took them through a coffee cup-tasting session to appreciate the uniqueness of Uganda’s coffee. Also on display were Ugandan cocoa and cocoa products.

Dr. Emmanuel Iyamulemye, applauded the EU for the financial support, which, he said, is consistent with the Authority’s desire to strengthen cooperation with the EU in order to support the expansion of the coffee and cocoa sub-sectors.

“We have been supporting the private sector to improve their coffee and cocoa standards. [The CoCoDev] project will continue supporting the coffee and cocoa sub-sectors by focusing on commercialisation and providing grants to expand production,” said Dr. Iyamulemye.

Dr. Iyamulemye added that the EU support is also going to improve the cocoa regulatory framework. “For the first time, we are going to have standards for cocoa, and this will enable producers to access even more markets so that they can continue fetching premium prices,” he said.

The European Union’s support of the coffee and cocoa sub-sectors in Uganda is vital for the country’s economic growth. Uganda is known for its high-quality coffee beans and the EU’s continued support will enable the country to increase its production and expand its market reach.

Uganda is the leading exporter of coffee in Africa and the 7th largest producer in the world. With 65% of the coffee exported to the European Union, it is clear that this is an important market for Uganda.

The Government of Uganda through Uganda Coffee Development Authority (UCDA) is implementing the Coffee and Cocoa Development Project (CoCoDEV) under Inclusive Green Economy Uptake (GreenUp) Financing Agreement of the 11th European Development Fund (EDF).

UCDA will utilize part of the funds under CoCoDEV project to implement a matching grants scheme to support farmers to establish production units of coffee and cocoa.

The objective of the Matching Grant Scheme (MGS) is to stimulate and promote sustainable commercial- production and productivity in the coffee and cocoa value chain.

Deadline for submission of applications is 30th September 2023.

Eligibility criteria: To be considered for funding, the applicant must:

1. Be an individual commercial coffee/cocoa farmer, registered private entity, coffee/cocoa cooperative, coffee/cocoa association, coffee /cocoa Community Business Organization/communal group.

2. Be directly responsible for the preparation and management of the grant.

3. All applicants should be 18 years and above.

4. Must possess a land suitable for coffee/cocoa production of minimum 10 acres (4 hectares)

5. Legal land ownership/user rights. Land must be free from encumbrances and conflicts

6. Must possess land within the eligible districts

7. Must be willing to use own funds for initial investment in establishment of coffee/cocoa farms.

Eligible Activities: The funding will support the following production related activities include:

1. Procurement of planting materials (seeds, seedlings, clonal cuttings)

2. Carrying out good agricultural practices including climate change adaptation measures (shade trees seedlings and banana suckers)

3. Fertilizers (plant nutrition)

4. Pests, disease and weed management measures (pesticides, fungicides & herbicides)

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