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Companies dominating Uganda’s coffee exports

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By Ashita Chopra

For six months in a row, Kyagalanyi Coffee exported more coffee than any other exporter in June, according to data from Uganda Coffee Development Authority (UCDA).

UCDA indicates that at least 37 companies exported coffee to different parts of the world in June.
However, 80.89 per cent of the total export volume was contributed by only 10 companies.
Coffee remains one of Uganda’s largest foreign exchange earners.

In the period running between June 2019 and June 2020, according to UCDA, coffee exports earned Uganda $496.15m compared to $415.13m in the same period last year.
During the period, export volumes grew to more than 5.1 million bags compared to more than 4.16 million bags in the same period last year.
In June, Uganda exported a total of 420,373 60-kilogramme bags of coffee valued at $39.99m.

UCDA also indicates that Kyagalanyi Coffee topped the list of exporters, contributing 18.54 per cent of the export volume in the June.
The company, which has for long been one of Uganda’s largest coffee exporters, exported 77,930 60 kilogramme bags, of which 37,370 bags were of Robusta and 40,560 bags Arabica.

Olam Uganda, which came in second, contributed 11.43 per cent of the total export volume, which represented a total of 48,041 bags.
Out of this, 36,908 bags were of Robusta while 11,133 bags were Arabica.

Ideal Quality Commodities, which exported a total of 45,590 bags, contributed 10.85 per cent of the export volumes while Ugacof contributed 9.52 per cent of the volumes with 40,005 bags.
Unlike, Ethiopia, which consumes much of its coffee, Uganda exports much of its coffee to Europe and parts of Africa.

In June Italy took much of Uganda’s coffee. At least 130,653 bags were exported to the country while 96,250 2 bags were exported to Sudan. At least 47,476 were exported to Germany.
In the period, Kawacom, contributed 6.91 per cent of the total export volume, representing about 29,041 bags.
Louis Dreyfus Company, contributed 5.32 per cent (22,362 bags), while Ibero contributed 5.39 per cent (22,672 bags).

Other larger exporters in the period included Touton Uganda, which contributed 4.88 per cent (20,525 bags) and Kampala Domestic Store, which contributed 4.04 per cent (16,996 bags) of the export volume.
Besmark Coffee Company rounded off the top 10 coffee exporters, contributing 4.02 per cent (16,885 bags) of the total export volume.

Top Uganda coffee buyers
During June, Olam International bought more coffee exports from Uganda than any other company.
At least 13.36 per cent, which represents 56,153 bags was bought by Olam International. Altas Heel Import & Export bought 11.16 per cent (46,900) of Uganda’s coffee while Volcafe bought 9.37 per cent or 39,385 bags.
Other buyers included Sucafina, which bought 8.86 per cent (37,257 bags) and Bernhard Rothfos, which bought at least 5.39 per cent of the exported volumes.

Ecom Agro-industrial bought 5.27 per cent or 22,152 bags while Cofftea, AldwamiCo, Bercher Coffee Consulting bought 4.58 per cent (19,250 bags), 3.74 per cent (15,720 bags) and 2.99 per cent (12,557 bags) of Uganda’s coffee, respectively.
Coex Coffee International bought 2.36 per cent or 9,926 bags.

Original Post: Daily Monitor

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FARM NEWS

National Coffee Forum Petitions Parliament Over UCDA Merger

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Coffee stakeholders through National Coffee Forum say UCDA merger will disrupt the coffee sub-sector. Coffee is one of the leading sources of foreign exchange for Uganda

Coffee stakeholders through the National Coffee Forum – Uganda (NCF – UG) has petitioned Parliament through the Speaker over the proposed mainstreaming of Uganda Coffee Development Authority (UCDA) into Ministry of Agriculture, Animal Industry and Fisheries (MAAIF)

The government plans to merge a number of Agencies to the line Ministries in a move aimed at saving about Shs1 trillion annually. If the move succeeds, UCDA will be taken to MAAIF.

However, coffee stakeholders through NCF – UG say that they find the proposal to take UCDA to MAAIF untenable and detrimental to the coffee sub-sector.

NCF-UG is a private foundation whose membership includes farmers, processors, exporters, roasters, brewers and researchers, among others.

The Forum Chairperson Francis Wakabi says that mainstreaming the entity will negatively affect the achievements Uganda has attained in coffee production and export.

“This decision will negatively affect our access to the international market and will stunt Uganda’s economic growth opportunities by distorting the functions of UCDA that have stabilized the industry over the years,” said Wakabi in a petition dated February 21, 2024. The petition was copied in to the Chairperson of Parliament’s Committee on Agriculture, Animal Industry and Fisheries as well as all MPs.

He adds that Uganda should not risk its achievements by tampering with UDCA that is the main contributor to our coffee success story.

“Mainstreaming it would therefore disrupt the many livelihoods that depend on the industry and adversely affect the badly needed foreign exchange for the country,” the petition reads in part.

As a result of UCDA coffee regulation, Wakabi says that Uganda’s competitiveness was elevated on the global market, ensuring high quality Uganda coffee and enabling Uganda’s coffee to displace that of Brazil and India in Italy and UK coffee markets.

“… World over, coffee is supervised and regulated by a specialized body like UCDA for purposes of institutional memory and specialized focus. Experience from Ethiopia and Kenya who disbanded their specialized coffee authorities and mainstreamed them back into the relevant ministries had to reverse their decisions after registering negative outcomes,” said Wakabi.

The Forum further says that the European Union (EU) buys over 60% of Uganda coffee, making it the biggest market for Uganda.

“The EU has introduced a new regulation called the EU deforestation regulations (EUDR) which bans export of coffee from deforested land, taking effect from 2025. This calls for farmer traceability and the EU commission in Uganda is already working with UCDA to implement the said regulations. They require a country to constantly monitor deforested areas and map all the farmers for purposes of implementation of the farmer traceability program to maintain a high standard of quality. It was reported that Uganda has achieved most of the requirements under the EUDR and required a few steps to be declared compliant. Monitoring and implementing the scheme for the millions of farmers is a tedious activity which requires a specialized unit that can be best implemented using the already established structures of UCDA. Disrupting the current UCDA structure will not only halt the progress made in achieving compliance, but also risk reversing the gains made,” added Wakabi.

He avers that UCDA has been able to greatly contribute to Uganda’s improved Coffee quality through implementation of programs such as certification of Coffee nurseries to ensure quality of planting materials, Provision of Coffee specific extension services and agronomy to improve production and productivity, Provision of technical expertise in Coffee rehabilitation, post-harvest handling practices and pest and disease management and provision of coffee processing equipment like wet mills to farmers and cooperatives to improve quality and promote value addition. The coffee stakeholders are worried that once UCDA is taken to MAAIF which is loaded with many crops and projects, coffee, a key source of foreign exchange for Uganda may not get the necessary priority. Coffee stakeholders argue that if indeed Parliament is a people-centred institution, it should listen to the views of farmers and other stakeholders and retain UCDA as a semi-autonomous agency.

“Given the above position with the attendant reasons, the NCF advises that the proposed mainstreaming of UCDA into MAAIF should not be implemented and that the proposed Bill No. 30 (part VII) be dropped in order not to disrupt the industry and the progress made under the stewardship of UCDA. All coffee stakeholders are unanimously in agreement with this position,” reads the petition in part.

Source: businessfocus.co.ug

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FARM NEWS

Govt to import 10 million vaccines to control cattle disease

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Entebbe, Uganda.  Government is set to import 10 million doses of vaccines to enable scaling up of ring vaccination as the fight to eradicate Foot and Mouth Disease (FMD) in Ugandan cattle enters a new phase.

Cabinet chaired by President Yoweri Museveni on Monday also proposed that once ring vaccination is complete, farmers start paying for the FMD vaccines in a compulsory vaccination scheme, and thereafter, trade in animal products, will be restricted to those adhering to the plan.

Minister of Agriculture, Animal industry and Fishers Frank Tumwebazwe on Monday shared the resolutions after Cabinet laid out strategies to contain the disease that has hit 36 districts.

Cabinet agreed to create a revolving fund to enable procurement of sufficient FMD vaccines to facilitate compulsory bi-annual vaccination of the susceptible domestic animal population. It also approved a plan for farmers to pay for the vaccines while government covers other costs.

“Vaccination is to be made compulsory. Proof of vaccination will be a precondition for any farmer to sell any animal products,” said Minister Tumwebazwe.

“I appeal to fellow livestock farmers and stakeholders to understand and appreciate these effort as we steadily move to eradicate FMD in Uganda just like other animal diesases like rinderpest wre eradicated.”

Ntoroko veterinary disease surveillance team conducting FMD surveillance and sample collection

The 36 districts currently affected and under quarantine are Budaka, Bukedea, Bukomansimbi, Bunyangabu, Butaleja, Fortportal City, Gomba, Ibanda, Isingiro, Kabarole, Kasanda, Kayunga, Kazo, Kiboga, Kibuku, Kiruhura, Kumi, Kyankwanzi, Kyegegwa, Kyotera, Luuka, Lwengo, Lyantonde, Mbarara, Mbarara City, Mityana, Mpigi, Mubende, Nakaseke, Nakasongola, Namisindwa, Ngora, Ntungamo, Rakai, Rwampara and Sembabule.

All districts neighboring the affected districts are at high risk, under strict surveillance, and the authorities have been advised to remain vigilant.

These include Apac, Amolatar, Bugiri, Bushenyi, Butaleja, Hoima, Iganga, Jinja, Kabale, Kaberamaido, Kaliro, Kamuli, Kamwenge, Katakwi, Kasese, Kibaale, Kiboga, Kyenjojo, Mbale, Masindi, Mayuge, Mukono, Namalemba, Nakapiripirit,
Palisa, Rukungiri, Sironko, Wakiso and Soroti.

Tumwebaze assured farmers that in the next one or two months, his Ministry expects to receive and dispatch 2.3 million doses of the FMD vaccine to the affected and susceptible districts for ring vaccination scale-up.

He told parliament earlier that as a way of increasing availability of Foot and Mouth Disease vaccines in the country,
Uganda’s National Agiculture Research Organisation (NARO) has started the process of formulating and developing an FMD vaccine for Uganda.

Source: The independent

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FARM NEWS

Farmers losing Shs4 trillion due to livestock diseases

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ScienceDirect has revealed that farmers in Uganda lose more than $1.1b (Shs4.1 trillion) in aggregated annual direct and indirect loss due to the rising spread of tick-borne animal challenges, with the commonest and economically damaging tick-borne disease being the East Coast Fever.

The livestock industry in Uganda and its productivity continue to be threatened by a number of diseases many of which are tick-borne related.

This, Dr Anna Rose Ademun, the Ministry of Agriculture commissioner animal health, said results from arcaricides that have become resistant, thus the need to ensure collaboration and get solutions to the problem.

“There are ongoing efforts by the Agriculture Ministry, in collaboration with the Food and Agriculture Organisation to support diagnosis of tick resistance to acaricides at regional laboratory centres but this is not enough,” she said during the livestock industry key stakeholders meeting in Kampala, which had been convened to discuss and prioritise areas for tick control.

The stakeholders included veterinarians, extension staff, farmers, processors and government representatives.

Ministry of Agriculture is already working on the Managing Animal Health and Acaricides for a Better Africa Initiative, which seeks to, among others, provide sustainable solutions to enable small-scale farmers maximise the potential of their cattle by developing and practicing methods that can successfully manage tick infections in cattle.

During the meeting, the TickAcademy App, which will support farmers in managing tick infestations was also pre-launched.

By the end of January, farmers and extension workers will be able to access the app’s educational content, which includes simple-to-watch films, to help them become knowledgeable about tick control.

Mr Enrique Hernández Pando, the GALVmed head of commercial development and impact, said the Managing Animal Health and Acaricides for a Better Africa Initiative will be important in tackling acaricide resistance challenges as well as help farmers and animal health officers to access creative methods of addressing the problem of acaricide resistance.

During the meeting, stakeholders jointly agree to train and sensitise field staff and farmers about tick management strategies that work, as well as strengthen the diagnostic infrastructure and testing capabilities for tick resistance and other animal health-related concerns.

Others will involve making it easier for farmers to obtain credit from savings institutions run by farmer groups at a reasonable cost so they may purchase specialized equipment for applying pesticides.

Mr Nishal Gunpath, the Elanco Animal Health country director south and sub-Saharan Africa, said they will support the Initiative to drive livestock in a better direction, noting that it will also help small-scale livestock farmers to maximise their potential.

Original Source: Daily Monitor

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