The document discusses Uganda's robusta coffee industry, including the history and production of robusta coffee in Uganda, the quality and market outlook for Ugandan robusta, and an overview of the Uganda Coffee Farmers Alliance (UCFA) which works to support smallholder coffee farmers through organizing them into producer organizations, depot committees, and an apex organization to facilitate improved marketing, access to services, and incomes.

1. Presentation by Tony Mugoya
Executive Manager
Uganda Coffee Farmers Alliance
e-mail: tony.mugoya@ucfa.or.ug
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2. The Uganda Coffee Map
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3. Brief history of Robusta in Uganda
 Many species of Robusta
coffee are indigenous in
Uganda.
 Wild Robusta still grows in
natural forests around the
Lake Victoria Basin.
 Robusta coffee plants in
Uganda have adapted to a
range of environments and
altitudes.
 These characteristics
together with variations in
disease resistance offer a
great potential for coffee
breeding.
3

4. Evolution of commercial Robusta
coffee farming in Uganda
 Historically, coffee had
cultural significance in most
parts of Uganda.
 Coffee beans were used in
ceremonies of brotherhood
and friendship.
 Commercial production of
coffee in Uganda started at
the beginning of the 20th
Century.
 In 1991, the Government
liberalized the coffee industry
which enabled farmers to
obtain higher prices resulting
in commercial production.
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5. Distribution of Robusta Coffee in Uganda
 Robusta coffee is more tolerant
to heat and flourishes at low
altitudes.
 As a low land crop, Robusta
coffee yields well from 1000
meters altitude up to medium
altitude of 1600 meters.
 However, the fertile crescent of
peripheral lands around Lake
Victoria form the major Robusta
producing area.
 In Uganda most of the Robusta is
grown by smallholders in small
individual plots where it is often
mixed with other crops such as
banana in the traditional shamba.
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6. Robusta production in Uganda
 The relatively low cost of
coffee production in Uganda
makes Ugandan coffee
growers fully competitive
with other producers.
 The Uganda government
policy through the Uganda
Coffee Development
Authority (UCDA) has been
encouraging rapid
replacement of the old low
productive coffee with high
yielding, quick maturing and
disease tolerant clonal
Robusta coffee.
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7. .. Robusta production in Uganda
 However, with Coffee Wilt
Disease (CWD) devastating
Ugandan Robusta coffee trees
including clonal coffee since
1993s, the Coffee Research
Center (COREC) started
caring out breeding work to
attain CWD resistant
cultivars.
 By the end of 2010, 7 CWD
resistant lines had been
approved. Consequently,
tissue culture laboratories
and nursery operators were
earmarked to do mass
multiplication.
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8. Quality of Uganda’s Robusta
Differentials for internationally traded
Robusta Coffees
 Uganda produces what is
considered by the market to Origin Differential
be one of the world’s best c.i.f. Europe
[US$/Mt]
volume Robusta coffee. Uganda Screen 18 +150 – +200
 Most of Uganda’s Robustas Uganda Screen 15 +50 – +100
are grown at medium altitude
just above 1000 meters above India Cherry AB +50 – +100
sea level which gives them a Uganda Screen 12 +10 – +50
less harsh and yet distinctively Ivory Coast Grade 1 +50
rich taste.
Vietnam Grade 1 +30 – +35
 Uganda’s Robustas have been screen 18
highly rated in the Indonesia Gr. 4/80 -40 – -80
international market. defects
Vietnam Gr. 2/5% -100 – -120
 This high rating is reflected in
Note: All prices are quoted against LIFFE –
the price offered for Ugandan USD/Metric Tons and on CIF Basis;
Robusta coffee. July 2009; Berhard Rothfos GmbH.
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9. Development of Differentials for
internationally traded Robustas 2004 -2009
$/mt 320,00
West II East Stand. Indonesia Vietnam
290,00
2004 2005 2006 2007 2008 2009
260,00
230,00
200,00
170,00
140,00
110,00
80,00
50,00
20,00
-10,00
-40,00
-70,00
-100,00
-130,00
-160,00
-190,00
-220,00
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Note: All prices are quoted against LIFFE –USD/Metric Tons on CIF Basis; July 2009; Source: Berhard Rothfos
GmbH Standard “West II” refers to Grade II of West African Robustas (Ivory Coast, Cameroon); “East
Standard” refers to Uganda Robusta Screen 15; “Indonesia” Standard refers to Indonesia Grade4/80 defects;
“Vietnam” refers to Vietnam Grade 2/5% of defects.
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10. Market Outlook: Supply and demand
projections 2010 to 2020
180
170
160
150
140
million bags
130
120
110
100
90
80
Total production Total consumption Production trend High 2.4% Consumption 2% Low 1.5%
Source: ICO
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11. The Ugandan Smallholder Coffee Farmer
Characteristics Why low income
Subsistence Farming Poor agricultural practices
Limited use of inputs;
Coffee intercropped fertilizers and crop
with bananas, various protection products
types of beans, cassava,
fruit trees
Very low coffee yields,
approx. 550-600 Kg/Ha
(green coffee)
0,4 – 1,2 ha of land
Very strong dependency on
Approx. 300 coffee trees middlemen for access to
loans and access to market
Mainly family labour Weak position in the value
chain
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12. Prospects for Uganda’s Robustas
 Efficient /competitive internal market – farmers receive a high %-
age of FOT price
 The Ugandan coffee industry is organised through a multi
stakeholder platform which is private sector led. The
government through UCDA has promoted coffee trade.
 There is low direct taxation on coffee exports.
 Farmers are encouraged to grow high yielding varieties, employ
good husbandry and participate in marketing by the apex
organization called the Uganda Coffee Farmers Alliance (UCFA).
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13. UCFA Description
UCFA is a farmer owned apex organization, established
to provide marketing and other support services to
coffee farmers’ organizations in Uganda. UCFA supports
the commercial development of these farmer
organizations though strong emphasis on marketing and
linkages with important service providers such as
financial institutions, input suppliers and extension
providers.
UCFA’s development has been supported by the Hanns
R. Neumann Stiftung (HRNS) especially through Farmer
Organization Development.
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14. UCFA Background
 The idea to form an apex organization was
initiated by coffee farmers back in 2006.
 Farmer leaders in Mityana and Mubende met
in various farmers fora to discuss the apex.
 Later on an apex formation committee was
elected to spearhead this process.
 UCFA was incorporated on 4th May 2010 as a
company limited by guarantee.
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15. Why Farmer Organizations?
 To empower farmers to create economic opportunities
 To provide farmers ownership and decision-making
 To reduce (eliminate) dependencies
 To enable market access and participation in the value chain
 To enhance bargaining power and achievement of economies of
scale
 To make smallholders interesting partners for service providers
 To encourage “farmer to farmer” learning
 To enable farmers to engage in dialogue with other stakeholders
15

16. Organizational Development Process and Structures
Producer Depot Committee Uganda Coffee
Organization (PO) (DC) Farmers Alliance
25 - 35 Farmers Approx. 20 POs Association of DCs
Area Village Level Parish Level National Level
Key Mobilization Coordination of PO activities Coordination of DC activities
Functions Extension Bulking Market access
Collection of Coffee Value addition Link to service providers
Entry point for new Farmers → Coffee logistics → Capacity building
Quality control Strategic partnerships
Marketing Representation
Code of conduct
Key Roles Executive Committee Executive Committee Board of Directors
Lead Farmer Control Committees Executive Manager
Demo Holder Marketing manager Support staff
FFS Host DC Extensionist
FFS Facilitator
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17. 3-Tiered Organization Structure
UCFA
DC DC
PO PO PO PO
17

18. Requirements for performance of
the model
Leadership &
coordination Apex
Trust
Extension and
UCFA
Research info Compliance
with code of
Market conduct
information
Active
Market access Participation
Value addition
Farmer Field
Organizations Information
Linkages to
service
PO & DC Business
providers approach
Compliance Improved
with code of quality of
conduct coffee
Transparency Improved
Farmers production of
coffee
1

19. Organizational Development – 3 tier model
Organization No. of
level Farming
UCFA Households
PO Producer 20-30
Organization
PO (PO)
Depot 500-700
PO Committee
DC (DC)
DC PO
Uganda 2011
PO DC Coffee 15,000
Farmers
PO DC Alliance 2012
(UCFA) 30,000
PO
PO 2013
35,000
2014
53,000
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20. UCFA Growth
 The original members of UCFA were 24 pioneer
DCs in Mityana and Mubende districts.
 These DCs were fully developed and had already
been incorporated as companies.
 Other 24 DCs in Luwero and Nakaseke are
currently being incorporated into companies.
 These are officially joining UCFA before the end of
2012.
 Other 34 DCs in Masaka and Bukomansimbi, and
also Ruwenzori region are undergoing development
and are expected to join later by 2014.
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21. CFAU project locations and beneficiaries
Project Districts Direct Beneficiaries
(Households)
Mityana/Mubende 15,000
Coffee Luwero/Nakaseke/
regions of 15,000
Uganda Nakasongola
and CFAU
districts
Masaka 15,000
Kasese 8,000
Total 53,000
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22. UCFA Governance Structure
General Assembly
Board of Directors
Business Finance Disciplinary
Committee Committee Committee
Executive
Manager
Financial Administration
Officer Officer
Office Assistant Driver
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23. UCFA VISION
 Improved livelihoods of coffee
farmers in Uganda.
UCFA MISSION
 Improving livelihoods by providing
efficient marketing and support
services that enhance
commercialization of agriculture.
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24. STRATEGIC OBJECTIVES
 To support the adoption of best practices in
farmers’ operations.
 To facilitate access to business and managerial
skills.
 To promote good leadership among coffee
farmers’ organizations
 To create partnerships with other stakeholders
in the industry.
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25. To support the adoption of best
practices in farmers’ operations.
 Promote marketing of
quality coffee by
supporting a quality
assurance system.
 Establish an efficient
coffee marketing
system that offers
competitive prices.
25

26. How the marketing chain changes
Supply Chain before Alliance Project
Farmer selling to 2nd
to 1st
Kiboko at farm Intermediary,
Intermediary, to Export
gate at the processing and
selling the company
lowest value selling FAQ on
coffee on…
point … …
Supply Chain of Coffee Farmers Alliance
Farmer selling through DC (Coffee Farmer Company)
green coffee … that provides value chain services: to Export
quality control, bulking, processing, company
logistics and marketing …
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27. Value Addition achieved per Kg of coffee
(after by-passing middlemen)
Selling Delivering
Selling at
8% at Hulling 12% through
Farm Gate
Factory Exporters
+ 20%
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28. New marketing chain after Alliance Project intervention
Importers (Consumers)
Exporters
Millers
UCFA (Farmers’ Organization) Members
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29. % of FOT value achieved by UCFA farmers
From UCDA Monthly Reports
60 Kg bags Tot. Value $ Value $/Kg
Export Month
Robusta coffee FOT basis FOT basis
October’11 167,645 18,335,972 1.82
November’11 150,004 16,664,613 1.85
December’11 168,198 18,760,197 1.86
January’12 159,416 17,988,471 1.88
February’12 157,890 17,670,095 1.87
Total 803,153 89,419,348 1.86
Average price Exchange rate Average price
% of FOT value
Ush/Kg Ush/USD (BoU) USD/Kg
DCs on delivery
4,465 2,562 1.74 93.5%
to Kampala
Farmers after
3,967 2,562 1.55 83.3%
DC deductions
Farmers outside
3,272 2,562 1.28 68.8%
project
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30. To facilitate access to business
and managerial skills.
 Coordinate business skills capacity development; in areas
of banking, credit access, financial management, etc.
 Coordinate managerial skills capacity development; by
participating in developing and training of farmers
leaders on their terms of references and job
descriptions.
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31. To promote good leadership among
coffee farmers’ organizations.
 Develop with members a professional code of conduct.
 Enforce compliance to the professional code of
conduct.
 Ensure that adequate controls exist in member
organizations.
 Ensure that members understand and adhere to
provisions of their constitutions and articles of
association.
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32. To create partnerships with other
stakeholders in the industry.
 Develop strategic
partnerships with
credible public and
private organizations.
 Ensure farmer
representation at
local, national,
regional and global
fora.
32

33. CORE VALUES
 Transparent
 Responsive
 Innovative
 Proactive
33

34. GUIDING PRINCIPLES
 Good governance
 Best practice
 Commercial orientation
 Sustainability enhancement
34

35. UCFA Principles on Good
Governance
 Democratic
leadership.
 Transparency and
accountability.
35

36. UCFA Principles on Best Practices
 Implementation of Good Agricultural and
Business Practices.
 Increased participation in the value chain (The 5
Value Options – Acquire, Retain, Add, Create &
Distribute)
36

37. UCFA Principles on Commercial
Orientation
 Training in business and management skills.
 Transformation of farmers’ groups into
viable business units (and transformation of
farmers from merely being subsistence
coffee producers into being farm
entrepreneurs).
37

38. Principles on Sustainability
Enhancement
 Promoting social sustainability by advocating for
the entire household.
 Promoting ecological sustainability by supporting
environmental conservation.
 Promoting responsible practices in farmers’
operations.
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39. Guiding Papers
 Memorandum of Understanding
 Spells out the roles and duties of UCFA
 Spells out the regulations within UCFA
 Members’ Agreement
 Describes financing of operations
 Defines membership
 Defines management of operations
 UCFA’s code of conduct
39

40. UCFA members’ professional
code of conduct
1. Members of Uganda Coffee Farmers
Alliance will be farmer organizations
that are purely commercially oriented.
2. Members of Uganda Coffee Farmers
Alliance must be fully transparent and
accountable in all their transactions and
operations.
40

41. UCFA members’ code of
conduct
3. Members of Uganda Coffee Farmers
Alliance must adhere to principles of good
governance which should include
democratic leadership.
4. Members must aggregate an agreed
amount of coffee through Uganda Coffee
Farmers Alliance for further value addition
and bulk marketing so as to achieve
economies of scale and a collective
bargaining power.
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42. UCFA members’
code of conduct
5. Members of Uganda Coffee Farmers
Alliance must strictly apply the best
business practices so as to achieve
competitiveness.
6. Members of Uganda Coffee Farmers
Alliance must promote and ensure strict
implementation of Good Agricultural
Practices among their farmers so as to
ensure high quality and quantities of their
coffee. etc.
42

43. UCFA’s Activities
 Create linkages with
service providers e.g
financial institutions
 Avail new services
e.g farmers’
insurance schemes
 Participate in
farmers’ advocacy
programs at local,
national and
international levels.
43

44. UCFA’s Activities
 Participate in new
innovations e.g Land
inventorization.
 Coordinate cupping
training with UCDA.
 Contribute to
development of
farmer organization
registration criteria.
 Participate in
community radio
broadcasts.
44

45. UCFA’s Activities
 Participate in Uganda
Coffee Platform
activities e.g SC
meetings, ASHMs etc
 Participate in policy
formulation e.g NCP,
NCS, NCES, etc
 Coordinate agro
input financing
schemes
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46. Conclusion
 “Emwanyi bwe bugagga”!
 “Coffee is wealth”.
Thank You!
Obrigado!
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