Established in 1991, Uganda Coffee Development Authority (UCDA) supports all coffee development activities from research to coffee consumption. We spoke to UCDA Managing Director Henry Ngabirano. Excerpts:-
What does UCDA do?
We support all development activities right from research through coffee consumption. Anything in the value chain we have our fingers maintained in terms of support. On top of that we also provide information we collect; statistics on behalf of government in terms of coffee processing. We do financially support the research institute under the NARO to do researchable areas we have identified in the coffee industry like yield, better quality, and weed and disease control. All these areas we have supported in terms of collaboration with the research institute.
Do you have a link with farmers?
Yes, we are linked with grassroots farmers because we do support coffee production. The link is at governance at the board whose composition is largely private sector with representation of the coffee farmers, processors and exporters. So our link with the farmers is through their representation on the board and since it is the board that approves the programmes and makes decisions, I think the farmers are adequately covered.
The crop has been hit by a number of diseases like coffee wilt. How are you fighting the diseases?
The disease was first identified in this country as early as 1993, which of course looks like a long period; it had to be subjected to research. First of all to understand the disease, to understand how it spreads, and look what immediate interventions or mitigation mechanisms we can put in place to stop the disease. We had a collaborative study with Commonwealth Agricultural Bureau and immediately reduction practice for disease control like coffee hygiene that can reduce its spread was encouraged. This would unfortunately be by uprooting the coffee tree and burn it to avoid further spread. During this time, research for resistance and vector control mechanism was going on. Since then we have made considerable breakthrough now that resistant varieties are available and can be availed to farmers when enough propagation (multiplication) of these varieties is done.
What value do you add to Ugandan coffee?
Value addition in coffee can be categorized into two. There is value addition through presentation; how you package the coffee. In this category is where we have specialty or organic coffee. Then there is value addition at manufacturing level where we talk of coffee roasting where you usually transform the coffee bean through flavours. As such we might be the only African country that has got a brand owned by Africans in the international market. You will see many examples, whether Colombian coffee on shelf or Kenyan coffee on shelf but all that coffee to the best of my knowledge is not owned by that producing country.
How much coffee do we currently export?
On the average 210,000 tonnes. Sometimes we do better than that and sometimes we do less. But in the past 20 years that has been the average.
You are running a coffee production campaign. How is it going?
This campaign is done annually. But in the past three years we thought we should have a major focus on production because of the devastation the industry has gone through as a result of the coffee wilt disease, the low prices and the attention being taken to the fancy crops. So far to say that we bring back the coffee sector into order we focused on planting. This planting drive also focused on areas that used not to grow coffee in the north and north east hence the need to have the coffee production campaign which is in its third year.
What challenges does coffee sector face?
The biggest challenge in coffee is a macroeconomic one in that it results from the inadequate financing of the agricultural sector both at government and financial institutions levels. Farming is seen as risky so banks seem not to want to put in money. At industrial processing level and trade, I see finances reasonably coming. I would say most of the trade finance for coffee is quite developed and I think it is successful because of the short time it has. In three months one would have gotten the money invested in the short term coffee trade. In terms of long term investment, like setting up a factory, roasting and soluble plant as government has often talked of there we still have limitations. The limitations range from finances to collateral. What collateral do you put up to borrow $60 million to invest in establishing a soluble plant? And there are not many Ugandans in the coffee sector who have all that money. To me the biggest challenge in the coffee industry is the fact that we do not drink coffee in Uganda. If we were drinking as much coffee as the Europeans and North Americans do, for sure the story here would be different. So until we have grown to drink coffee and change our perception about coffee from a sport drinking rather than consumption we shall have that hurdle.
Other than having people change their attitude toward coffee consumption, what other solutions do you have in mind?
If we don’t leave it to economic growth and macroeconomic solutions taking place, I think there has to be deliberate intervention for developing this area. Otherwise we would say no this is a liberalized economy let things take their course. For us to grow there has to be deliberate interventions like having differential pricing, agricultural loans or government putting in money for development. Government thinks it should have a role in building roads and airports why can’t it have a role in building a factory that will support 12 million out of the 30 million Ugandans; and contributing 25% of the foreign exchange earning. Building a factory for 12 million Ugandans I think it is a public good especially where for 107years that has not been done by the private coffee farmers. I strongly believe coffee should be treated as a public good.
What's the way forward?
Other than really trying to attract more funds both public and private funds in the coffee industry, other than changing attitude about coffee consumption in Uganda, I think the only remaining factor, which I think is an issue of attitude, is how does the rest of the developed world look at us being the centre for processing coffee for their consumption. That something made in Uganda can be consumed in New York still carries question marks. We must get our processes to world class standard, the packaging, quality of service, etc. I think we would have to look at all these to do better.
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