TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020
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The Coffee Yearbook A publication of Uganda Coffee Federation 2019/2020 Uganda Coffee Resilient Through COVID-19 and the New Normal Save the Date: Emmwanyi Best of the Pearl Uganda Coffee Terimba Project Cupping Competition Day 2021 - Mbale & Auction The Coffee Yearbook 2019-2020 1
Kyagalanyi Coffee Limited Creating value in Ugandan coffee, from field to cup For more information, get in touch. kcl@kyagalanyi.com 2 The Coffee Yearbook 2019-2020 +256-312-265-251
T H E C O F F E E THE Y ECOFFEE A R B O OYEARBOOK K 2 0 1 6 2016 / 2 /0 2017 1 7 DELIVERED TO PERFECTION A perfect cup of coffee starts with coffee beans of Spedag Interfreight Uganda Ltd. the highest quality. And reliable logistics, delivering Plot M284, Nakawa Industrial Area P.O. Box 4555 the coffee to where it is needed, when it is needed. Kampala, Uganda We are your dependable partner, offering you the perfect solution for the transport and logistics of +256 414 562 000 your coffee exports from Uganda. kampala@spedaginterfreight.com www.spedaginterfreight.com UGANDA COFFEE FEDERATION 2 0 M I L L I O N B A G S B Y 2 0 2 0 The Coffee Yearbook 2019-2020 PROMOTING YOUTH DEVELOPMENT IN THE COFFEE INDUSTRY THROUGH COOPERATIVES, VALUE ADDITION AND INNOVATIONS. Uganda Coffee Federation 3 31
THET COFFEE H E CYEARBOOK O F F E E 2016 Y E / A2017 R B 2O 0O 1K6 / 2 0 1 T7 H E C O F F E YE EA R B O O K2 0 1 6 / 2 01 7 UGANDA LIMITED a member of the ecom group with its third Uganda single origi n, special Please visit our new location at; KAWACOM UGANDA LIMITED PLOT 2921, BLOCK 111 KAMPALA INDUSTRIAL BUSINESS PARK NAMANVE P.O.BOX 22623, KAMPALA UGANDA 4 TEL: +256 The Coffee Yearbook 2019-2020 393 260201 PROMOTING YOUTH DEVELOPMENT IN THE COFFEE INDUSTRY THROUGH COOPERATIVES, VALUE ADDITION AND INNOVATIONS. 0 MUganda 2 34 I L L I Coffee O N BFederation A G S B Y 2 0 2 0 2 0 M I LUganda L I O Coffee N B Federation A G S B Y35 2 0 2 0
TABLE OF CONTENTS 36 20 22 06 | Writers’ Profiles 30 10 07 | Uganda Coffee Like Her Population Is Young And Resilient 10 | Uganda’s Resilient Coffee Sub-Sector 16 | Uganda Coffee: Resilient Through Covid-19 And The New Normal 18 | Covid-19 And 2020 The Year That Was! From The Lens Of A Woman In Coffee. 20 | Fairtrade Boosts The Resilience Of Ugandan Coffee Producers 22 | A 12 Months Coffee Exporter Nightmare 26 | Coffee Farmers Body Acquires Industrial Solar Plant 30 | About Uganda Coffee Day 36 | The Emmwanyi Terimba Initiative: Increasing Quality and Quantity of both Coffee and Livelihoods of the People of Buganda 40 | Statistics 49 | Membership / Stakeholder Visits 50 | UCF On Social Media 61 | Coffee Puzzle 2020 63 | Advertising Index 26 EDITORIAL TEAM Editor in Chief Associate Editors Advertising Publishers Paul Martin Maraka Lillian Nakawojjwa Ryan Abby Mulumba Uganda Coffee Federation Ryan Abby Mulumba +256701373771 1st Floor, Coffee House Plot 35, Jinja Road Email. ucf@ugandacoffeefederation.com Tel: +256704588839, +256785996524 The Coffee Yearbook 2019-2020 5
WRITERS’ PROFILES Dr. Iyamulemye Kenneth Barigye Phil Schluter Dr. Iyamulemye is the Managing Kenneth Barigye, is the Managing Phil Schluter has been in coffee Director of Uganda Coffee Director of Mountain Harvest, a for over 25 years. Having spent his Development Authority where he company established in 2017 in early childhood in East Africa, he currently leads a team of about response to the collapse of coffee has always had a passion for using 150 staff to promote and oversee Cooperative as a coffee trader and coffee as a vehicle for economic the coffee industry by promoting exporter focused on specialty coffee. development and social change. research, coffee production, He is now the Managing Director of productivity, and domestic coffee Olam Specialty Coffee Europe Ltd consumption. Dr. Iyamulemye and remains very involved in the East represents Uganda at the African coffee scene. International Coffee Organisation (ICO) – the main intergovernmental organization for coffee which brings together exporting and importing Governments to tackle the challenges facing the world coffee sector through international cooperation. He is a past chairman of the ICO Finance and Administration Mugenyi Musenze Robert Committee. Mugenyi Musenze Robert is Ssenkulu (Chief Executive Officer) Teopista Nakkungu of the Buganda Cultural and Teopista has had a distinct career development Foundation- BUCADEF as an advocate and promoter of was established to achieve coffee development. She supports, sustainable improvement in the lobbies and advocates for women’s living standards and welfare of the economic empowerment, across all people, coffee value chains. At present, she is doing this through her current work, coordinating the activities of the IWCA Uganda Chapter. Teo is an Advisor to small and medium- sized organizations. She mentors emerging professionals and investors along the coffee value chain in Uganda. Teo holds a bachelor’s degree of Food Science and Joy Muruku Technology of Makerere University. Joy Muruku is the Regional Rachel Nankumba Communications Officer at Fairtrade Rachel Nankumba is a communications Officer with NUCAFE having Africa’s Eastern and Central Africa experience in corporate communications, public relations, writing and Network based in Nairobi, Kenya editing, media relations. She is also familiar with agriculture, education, organisational communications, news media, and marketing. 6 The Coffee Yearbook 2019-2020
PRESIDENT’S MESSAGE UGANDA COFFEE LIKE HER POPULATION IS YOUNG AND RESILIENT The young girl holding red cherries on the cover of the magazine summaries Uganda Coffee – as it is or rather as it should fight to be. Uganda has been growing Arabica coffee over 100 years and Robusta Coffee since the dawn of time. Both crops have remained central to the past, present and future of Uganda and the global coffee industry. In spite of this, Uganda is only starting to take centre stage in world coffee landscape while stamping its clear contribution to the high quality and consistent volumes of coffee needed to feed the world’s caffeine demand. Efforts from both the private and public sector need to commended for this growth. As regional production has continued to decline and the more recently the Pandemic has hurt the Coffee Market – Uganda has managed to stay the course even in these rough headwinds registering the highest volumes of coffee exported ever. In this edition of the Uganda Coffee Year Book we feature articles from the Uganda Coffee Development Authority – highlighting Uganda coffee’s resilience throughout the Covid19 Lockdowns, Exporter’s experiences throughout the pandemic trading crisis, innovations in quality competitions, energy conservation, certification and domestic consumption. I would like to thank the Board for all the support and active participation in our resilient coffee industry. I would like to thank the young team at the UCF Secretariat let by Mr. Paul Martin Maraka – that has brought a fresh drive, energy and “vibe” to how we deliver services to our members and coffee stakeholders. Uganda Coffee like her Population is Young and Resilient – we must aggressively continue to nurture her growth and protect her so she can continue to care for us for another century. Owek. Robert Waggwa Nsibirwa President Uganda Coffee Federation The Coffee Yearbook 2019-2020 7
Transforming Smallholder Coffee Farmers’ Livelihoods through Ibero Uganda's Sustainable Sourcing Strategy Rethinking coffee sourcing, in 2017, Ibero Uganda set up NKG BLOOM Uganda – an initiative of the Neumann Kaffee Gruppe (NKG) to ensure the long-term viability of green coffee supplies by providing smallholder farmers with the opportuni- ties and resources they need to run their farms at full potential and enter a pathway out of poverty. NKG BLOOM addresses barriers to farmer success and offers individual farmers and farmer groups bespoke combinations of services centred around financing, which is oen the core bottleneck faced by farmers, yet it is essential to unlocking the huge potential that these farmers hold. The Ibero Uganda Farmer Services Unit provides farmers with not only financing, but high-quality inputs and any know-how they need to run Contact us at Ibero Uganda their farms at full potential and maximize their net incomes. In striving for transparency and traceability, mobile soware ▶ Gabrielle Rosenau, Country Manager links each coffee bought by Ibero to the work being done in gabrielle.rosenau@nkg.coffee the field, the farmer or farmer group that produced it, and the ▶ Rachel Nakasiita, Farmer Services Manager green buyer who purchases it. With this strategy, Ibero Uganda rachel.nakasiita@nkg.coffee is proud to be aligned with the Ugandan Coffee Road Map. ▶ Michael Mugisha, Commercial & Operations Manager michael.mugisha@nkg.coffee About Ibero Uganda Key services for farmers Good agricultural Founded in 1994, we are on a mission of providing the best Mobile money High-quality practices & financial internal marketing service that will ensure maximum benefit advances fertilizers literacy trainings for individual coffee producers and maintain the prestigious position of Ugandan coffee in the international market. Our team of dedicated and experienced staff is specialized in every Key services for farmer groups area of our business that includes quality control, export Working Increasing processing, logistics and risk management. Ibero Uganda is IT systems for capital group strength a company of Neumann Kaffee Gruppe, the world’s leading coffee deliveries financing green coffee service group. For8 more Theinformation, please visit our website: nkgbloom.coffee/uganda Coffee Yearbook 2019-2020
MAAIF Ministry of Agriculture Animal Industry and Fisheries A CELEBRATION OF ARABICA AND THE MOUNT ELGON COFFEES 7TH OCTOBER 2021 | VENUE: MBALE CITY Website: www.ugandacoffeeday.com | Event Hashtag – #UgandaCoffeeDay2021 The Coffee Yearbook 2019-2020 9
UGANDA’S Ismail Zavuga showing the UCDA team what RESILIENT COFFEE his farm looked like before the intervention. Looking on is Apollo Kamugisha, UCDA’s SUB-SECTOR Director of Development Services BY DR. EMMANUEL IYAMULEMYE O nset of the pandemic Globally, as of 15 February 2021, there were 108,484,802 confirmed cases of COVID-19, including 2,394,323 deaths, reported to the World Health Organisation. To curb the spread of COVID-19, several countries beginning with China, where the disease was first reported, banned international travels, imposed lockdowns and devised standard operating procedures (SOPs). Uganda adopted preventive and mitigation measures, such as a three-month lockdown to control the spread of the virus. Although the lockdown was meant to keep the number of cases down, it inadvertently affected the economy. According to a 2020 International Coffee Organisation (ICO) report, the impact of COVID-19 in the coffee sub-sector was felt through a labour supply shortage, either directly due to illness or indirectly The COVID-19 pandemic has as the movement of farm labourers and migrant workers was undoubtedly had an impact on the limited by guidelines on social distancing, lockdowns, and travel restrictions. coffee sub-sector affecting everyone along the value chain - farmers, COVID-19 also disrupted the internal logistics networks and the processors, exporters, baristas, roasters, functioning of the export infrastructure, resulting in delays of coffee shops, and consumers. Dr. shipment as well as increased trade and transaction costs (ICO, Emmanuel Iyamulemye, Managing 2020). Director, Uganda Coffee Development Authority (UCDA), talks about how the Furthermore, a study by Lakuma et.al, (2020) on the effect of COVID-19 on Ugandan businesses revealed that nine out of Ugandan coffee sub-sector coped during ten businesses reported experiencing an increase in operating the height of the pandemic. expenses. The study also found that agriculture enterprises 10 The Coffee Yearbook 2019-2020
were worst hit due to challenges of accessing inputs The Minister of Agriculture hands over donations from arising from transport restrictions and the ban on the coffee subsector to the national COVID-19 task weekly markets while prices of agricultural outputs have force. Coffee stakeholders donated 2 pickups, Shs 142m, declined due to reduced demand. ground coffee, maize and beans In 2020, UCDA commissioned its own study of the impact of the COVID-19 pandemic on the value chain coffee sub-sector as one of the sectors to contribute players in the coffee sub-sector in Uganda. The UCDA significantly to the Agro-industrialization agenda of study reiterated the findings of the ICO and other Uganda. To ensure that the Government continued studies. to grow the economy, it facilitated the movement of cargo (coffee inclusive) within and out of the country. Challenges to the sector For this reason, the industry thrived during the period, Extension services, use of productivity-enhancing the logistical challenges including border post delays inputs like fertilizers, pesticides, and herbicides, and notwithstanding. coffee buying reduced and this led to low harvests, and significant declines in revenues and profits. Primary Between March and April, Uganda had an and secondary processors were also affected with unprecedented increase in prices as international many processing businesses remaining closed during roasters rushed to buy as much coffee as possible to the national lockdown. The processors had little or no access to credit, and limited access to coffee from farmers which exacerbated the challenge of under- capacity utilisation in the factories. Processing plants At the height of the pandemic, were forced to cut down on the number of their Uganda displaced India as the employees while roasters were unable to sell coffee as number one coffee supplier on cafés remained closed. The requirement to observe the standard operating procedures such as buying sanitizers, the Italian market. Between temperature guns, masks for employees led to an April and December 2020, increase in costs and hence a decrease in profits. Italy imported 130,653 60 kg bags of coffee from Uganda. The good news Eclipsing India on the Italian On a positive note, with the restriction in movements market is pegged on the quality both into and within the country and the closure of of Uganda’s coffee and resilience cafés, several café operators resorted to online marketing and home and office deliveries. of coffee production in Uganda during the COVID 19 pandemic Fortunately, there was good news on the export front. and lockdown. The National Development Plan III recognizes the The Coffee Yearbook 2019-2020 11
attributed to the fact that Uganda is a price taker in the international coffee market on one hand, but also shows Uganda’s price discovery whereby the market responds almost instantly to the 543,251 direction of the global market. Number of 60kg Although the farm gate prices were bags of coffee lower than in the pre-pandemic period, the reduction was not as exported in July high as at the exporter level most likely due to the competition from the exporters in a bid to fulfil their contractual obligations with the foreign buyers. stock in their coffee houses. Ugandan coffee was in high Policy implications demand because it is highly competitive due to its good The UCDA study findings have key policy implications. quality, and is cheaper than some of the branded coffees The Government needs to target coffee value chain on the market. At the height of the pandemic, Uganda players among the key beneficiaries of the COVID-19 displaced India as the number one coffee supplier stimulus packages. Micro-finance institutions such as on the Italian market. Between April and December SACCOs need to be supported to enhance credit access 2020, Italy imported 130,653 60 kg bags of coffee from by farmers and ensure that the loan repayments are Uganda. Eclipsing India on the Italian market is pegged cognizant of seasonality and harvest cycles. It is also on the quality of Uganda’s coffee and resilience of coffee evident that primary and secondary processors require production in Uganda during the COVID 19 pandemic business support services such as e-commerce for better and lockdown. business and financial management to make them more resilient to shocks like COVID-19. At the same time, from July to September, Uganda registered an unprecedented increase in monthly coffee Other key policy implications include the need to exports surpassing the 500,000 60 kg bags in a single organise farmers in groups to facilitate extension, month for the first time in three decades. In July, Uganda credit and provision of other services to organised exported 543,251 60 kg bags of coffee valued at US$ cooperatives, the need to promote local coffee 49.78 million. In August, Uganda exported 519,683 60 kg consumption to provide an alternative to the bags of coffee valued at US$ 46.06 million and 506,470 international market, promotion of good quality roasted 60 kg bags of coffee valued at US$ 44.64 million were coffee at affordable prices through specific training exported in September 2020. Overall coffee exports and exploring ways of reducing the cost of packaging for the coffee year (October 2019 to September 2020) totalled 5,360,859 bags worth US$ 512.23 million compared to 4,439,808 bags worth US$ 433.95 million the previous year - a 21% and 18% increase in quantity and value respectively. Uganda’s monthly exports were high in 2020 on account of the high coffee harvest at the end of 2019. However, this largely holds for Robusta exports whose quantity and value was consistently higher for 2020 compared to 2019, but Arabica coffee exports experienced a decline Government’s focus is now from May to August 2020 compared to the same period shifting to ensuring productivity in 2019. per tree from 0.6kg of clean Although the global coffee prices had been trending coffee to 1.1 kg and growth of downwards even before the COVID-19 pandemic, the domestic coffee consumption trend continued with intensity in volatility during the from the current 6 percent per pandemic period. Thus, despite the increased monthly capita to 15 percent by 2025. exports, the corresponding values were lower due to low export prices on account of lower global prices. This is 12 The Coffee Yearbook 2019-2020
UCDA has introduced rehabilitation and fertilizer distribution programme to increase production and productivity Government’s focus is now shifting to ensuring productivity per tree from 0.6kg of clean coffee to 1.1 kg and growth of domestic coffee consumption from the current 6 percent per capita to 15 percent by 2025. To this end, the Authority has introduced a coffee rehabilitation and fertilizer distribution programme. The main purpose of this program is to increase coffee production and productivity of the old and unproductive tree stock, through stumping of the old trees and application of fertilizers. UCDA extension officer harvesting coffee. Farmers are encouraged to use fertiliser to increase the yield Despite the challenges brought on by the COVID-19 of their coffee plants pandemic, UCDA has continued to offer the necessary support to industry players to ensure a smooth flow of cargo by increasing efficiency in coffee sales registration materials to make coffee more affordable to the and export certification. UCDA also continues to fulfil its consumers. mandate to promote and oversee the coffee industry by supporting research, promoting production, controlling With UCDA spearheading the Coffee Roadmap, these the quality, and improving the marketing of coffee to will be addressed. The roadmap, which has been optimize foreign exchange earnings for the country and transformed into a Coffee Sector Strategy 2020/21- payments to the farmers. 2024/25 and contributed significantly to the Agro- Industrialization agenda of the National Development Overall, COVID-19 largely affected the coffee produced, Plan III, is a transformative agenda to increase the procured and sold. It limited access to services such as production of coffee to 20 million bags of green coffee credit, and led to an increase in costs due to disruptions by 2025 and increase payments to farmers. caused by the lock-down. Through the key roadmap initiatives, farmer The recommended impact and coping mechanisms organizations and cooperatives are being strengthened for any future lockdowns need to be taken into to enhance commercialization for smallholder farmers consideration by all. These include sensitization and and ensure broad access to extension, inputs, finance, information sessions to create sustainable production, and aggregation. The initiatives also aim to attract promotion of different information dissemination channels including mainstream media, social media, investors into coffee production on a medium and and other technologies in providing extension services large scale, brand Uganda coffee to drive demand and to farmers, promotion of domestic coffee consumption, improve value and support local coffee businesses for stimulus packages to affected actors and relief support value addition including a soluble coffee plant. in form of tax waivers. The Coffee Yearbook 2019-2020 13
SPEDAG INTERFREIGHT Logistics Connecting Continents. SPEDAG INTERFREIGHT will handle your specialty coffee most SPIF as it is colloquially called is well known to all the coffee efficiently and at very competitive rates. Security is of exporters in East Africa and Trading Houses in the world. paramount importance to all our services and your coffee is We are providing outstanding logistics services for exports moving under seamless surveillance at all times. The tracking and imports to all the major coffee trading companies system reports the movement of the containers electronically based in East Africa and around the world. live throughout the journey. For physical support of the moving trucks in case of incidents the security company With a vast wealth of experience in providing logistics engaged operates escort vehicles equipped with CCTV and services in East Africa for over 27 years, we are able to 4 guards. We are pleased to offer this security concept provide tailor made solutions to our esteemed clients. for all our transport options i.e. ROAD and INTERMODAL. Customers entrust us their valuable coffee with utmost confidence as they can rely on SPIF to reach their buyers Additionally, we follow the highest industry standards in safely and in time. The logistic services include warehouse respect of certifications. IMS-ISO 90001:2015, ISO operations, transport to port, FOB operation and sea 14001:2015, ISO 45001:2018, ISO 37001-2016 are all part of freight. our operating standards. For warehousing, we have owned warehouse capacity of Please contact us for a tailor-made solution to your 15,000 square meters wherein we provide fixed and flexible requirements. warehousing concepts depending upon the requirement. The warehouses are supplemented with lifting equipment for efficient operation and container handling. Also they are fitted with CCTV cameras and round the clock security personnel for optimal security of the stored commodities. Spedag Interfreight Uganda Ltd. The warehouse is manned by experienced staff to handle Plot M284, Nakawa Industrial Area coffee. We provide machine bulk loading into liner bags, P.O Box 4555 loading of standard bags or special 1 ton bags into Kampala, Uganda containers. The warehouse operations are linked to an +256 414 562 000 internet-based warehouse management system which can kampala@spedaginterfreight.com be accessed remotely by our clients to give a real time stock position. Further SPIF is recognized by international financial institutions for collateral financing & management of coffee stocks stored in our warehouses. Efficient movements are the backbone of our service. We provide reliable transportation of the export containers through Road and Rail tailored to meet the shipping deadlines at the port and the budget for logistic services. SPIF has operating offices in the two major ports Mombasa, Kenya, and Dar es salaam, Tanzania along with offices in all country capitals and borders within East Africa. Our Export Team is very efficient for port operations and we have 1st class working arrangement with shipping lines to offer most competitive services including sea freights. We do stock all major shipping line containers in Kampala for the use of export traffic. Besides the traditional FOB services we also provide extension services such as transport insurance, fumigation, weighing of individual bags and VGM certification for containers, liaison with inspection agencies, palletizing, sampling & courier services to name a few. 14 The Coffee Yearbook 2019-2020
LOUIS DREYFUS COMPANY: Enlarged Code of Conduct for Coffee Suppliers P resent in all major coffee producing countries around the world, Louis Dreyfus Company (LDC) has experience in coffee merchandizing that spans more than three decades. In Uganda, we leverage our expertise to source the country’s Robusta and Arabica coffee varieties - from smallholder suppliers to farming cooperatives alike - and export these all over the world, supported by our warehouse and dry mill facility in Namanve Industrial Area. We firmly believe that sustainable agriculture is an absolute precondition for the economic welfare of farmers, and to enable future generations to enjoy high-quality coffee for decades to come. That is the mission of our sustainable coffee PUR Project strategy, working across three complementary pillars: 1. Boosting production of certified and verified coffee By 2025, LDC is committed to: 2. Supporting farming communities through sourcing 70% of all coffee purchased from collaborative initiatives in marginalized areas suppliers who signed the 2020 Code of Conduct 3. Sourcing coffee responsibly. tracing to farm level 20% of coffee purchased Through this approach, LDC aims to work from suppliers who signed our Code of Conduct alongside farmers in meeting the traceability and Guided by the company’s purpose to create fair transparency requirements of roaster customers and sustainable value for the benefit of current and committed to sourcing 100% responsibly-grown future generations, we are committed to promoting coffee by 2025-30. sustainable practices across all our activities, To achieve this, in 2020 LDC launched its starting at the heart of our supply chains, with enlarged Code of Conduct for Coffee Suppliers, farmers. which underpins our commitment to uphold international standards related to labor and human rights, health and safety, environmental Louis Dreyfus Company Uganda Ltd protection, business integrity and fairness, Plot 643 Kyaggwe Block 113 Namanve, compliance and governance, and transparency Mukono District and verification. P.O. Box 35021, Kampala, Uganda T. +256 204 000 500 www.ldc.com The Coffee Yearbook 2019-2020 15
UGANDA COFFEE RESILIENT THROUGH COVID-19 AND THE NEW NORMAL BY PHIL SCHLUTER The last 12 months will stay long in our memories. They have taught to adopt the takeaway option and us a lot. We have been reminded that the things we built our faith and find ways to attract customers and hope for the future on were less secure than we realized. Our economy facilitate a safe takeaway option. or bank balance, our health, or our abilities to work hard and build the Roasters have had to find new ways future have all proven to be unstable foundations. We have faced many to reach consumers at home to challenges. Some like bereavement are familiar though more frequent replace the sales they once enjoyed and harder to cope with. Some like home schooling are new to many through the HORECA sector. and try our patience and resolve. But we have also been reminded of those things which perhaps we took for granted, but which ultimately National situations in large make life worthwhile. The simple, everyday things in life. Our friends consuming nations are changing and families, meeting up for a drink or a meal or hugging those we weekly if not daily, and hence any love. I hope that if and when life returns to a semblance of normality precise statistics are out of date we do not quickly forget what this pandemic has taught us. about as fast as they are collected. Hence, any numbers given here represent an estimate of broad T he coffee market has been As coffee channels shift, the mantra trends. Home consumption, once no different. COVID has for the supply chain has been PIVOT; sourced 90% from retail outlets and bought its challenges, but DON’T PAUSE. Each link in the chain 10 % online, has moved to about in the responses to them has faced its own unique challenges a quarter online. And in the retail we have found some new ways – from harvesting with less available sector, customers are using small of operating which better the old labour, to processing with social local stores in preference to large ones, and some trends which will distancing, to being unable to have retail spaces. In the UK in March/ outlive the pandemic and continue certifiers or machine technicians visit April 2020 during the first national into the future. People are still – all the way to having to close your lockdown a Kantar report showed drinking coffee. That is clear. Talk of café in a national lockdown. a 63% increase in visit to small local an almost 100% correlation between stores – and this trend is still present global economic slowdown and Consumption has shifted. Some today. a drop in coffee consumption do markets have paused almost entirely. not seem to have materialized to The hospitality sector has ground to Work from home (now with its own the extent we had feared. Coffee is a near halt. High street cafés around recognizable 3 letter acronym - wfh) part of the staple diet of so many the world have closed their doors in is a new reality, and one which nations now, and hence whilst solidarity with national lockdowns. is likely to outlast the pandemic. consumption channels have shifted, Workplaces and offices lie empty Employees who are able to save overall consumption has remained with no more conversations around time commuting to work, and away remarkably resilient. the coffee machine. Cafés have had from the distractions of a busy 16 The Coffee Yearbook 2019-2020
workplace, are proving that they can 90%. Those who were nimble quickly traditional consuming countries be very efficient working from home set up or improved their online later in 2021. We would expect to – atleast in certain sectors. Most presence – with some unforeseen see a return to growth in overall employers are yet to address the benefits. They find that they can sell coffee consumption in 2022. The long term implications in terms of their coffee at over twice the price acceleration of digitalization will supplying coffee to their employees, – albeit with a lot more work – by not slow down. Hence, we foresee but it will no doubt become a new packaging it into smaller packets a growth in the specialty markets sector in the market, as companies and selling it online directly to as supply chains are shortened and look to keep their staff motivated – consumers. In addition, they are paid margins allow for higher prices to and awake! – whilst they work from upfront rather than being required producers. Other digital trends such home. to offer extended credit terms and as social media marketing, digital chase up debtors. A typical small documents (Seaway bills replacing High streets coffee consumption roaster in Europe has increased Bills of Lading) should stay with us, is likely to recover quite well once online sales from under 10% to over as should the power and importance national lockdowns are eased. 30% allowing them to compensate of traceability and origin stories. However, the move towards a halving of volumes with increased internet shopping is likely to have a margins to come out of 2020 with Supply chain issues will be with us significant impact on the retail sector perhaps 20% less revenue. for a while – containers are not in the going forward. With many large right place, we have to work shifts, or retail spaces closing, the footfall A consequence of the increasing work from home, certification visits may not be sufficient to support the population in the online space, and travel remain complicated, and anciliary services which once thrived and the higher prices obtainable face to face meetings are replaced on the congregation of shoppers. there in comparison to HORECA with zoom calls and inevitable However, some central districts sales – is that roasters have needed embarrassment of talking without once dominated by retail and offices to differentiate themselves to stand making any sound because you might migrate to entertainment and out. Whilst some of this is obtained forgot to unmute yourself! Many of food – so it will not necessarily lead through better packaging, website us seemingly need to put in 120% to lower consumption in the out of design and marketing through of our usual effort to achieve 80% home sector. social media – there is definitely a of the result, but in pivoting and competitive advantage in having digging new channels we open up The impact on roasters has been a better product and a better long term flows which will add to very varied. Some have found their story to go with it. So, somewhat our overall income streams once stream overflow, whilst other have counterintuitively, we have seen an the pandemic subsides. I would had it largely cut off. Amongst the increase in demand for expensive encourage producers in Uganda not larger roasters, those with a propriety coffees and higher qualities. We to lose heart. Broaden your client home delivery / capsule system have also seen an increase in new bases, to ensure that you have a have fared well. Consumers stuck at roasters starting up. The same wider chance of finding the streams home have looked for convenience. trend was clearly seen in the 2009 which are in flood. Send more Some have bought a new machine, financial crisis. We came out with samples. Concentrate on quality, and and those with existing machines many more roasters than existed don’t be shy to ask for prices which have used them much more often. when we went into it. Coffee is an cover your additional work and costs. The others who have gained are accessible business for those made those with well established retail redundant or looking for a change in I pray that once this pandemic is presences. With out of home direction. Passion for good coffee is over, we will find greener pastures, consumption impossible, consumers widespread and runs deep. and we will not forget the lessons have increased their coffee volumes it has taught us. We will cherish the in their weekly shops. So, what can we expect in the small things, and those close to us. The roasters who faced the strongest future? Coffee has proven again to We will celebrate the mundane and headwinds were those serving the be an affordable luxury and as such every day, and we will look back and out of home market. Typically white recession proof. As vaccinations see how some of the new channels label roasters or small specialty start to become available and the we dug with sweat and tears turned roasters. Their core volumes of weather warms up in the summer in into flowing streams which nourish espresso blends to hospitality the northern hemisphere, we hope us for years to come. locations dropped by as much as to see lockdowns eased in most The Coffee Yearbook 2019-2020 17
COVID-19 AND 2020 THE YEAR THAT WAS! FROM THE LENS OF A WOMAN IN COFFEE. TEOPISTA NAKKUNGU IWCA UGANDA CHAPTER SECRETARIAT A s we embarked on 2021, we are especially We joined a virtual platform Participate where we learn excited at the opportunities and new and share a lot of information, have participated in beginnings that the year has to offer, having international conferences like the Brazilian Coffee in Latin come out of a very trying year, 2020 revealed America to promoting coffee in Hong Kong and so many flaws in our systems that became even more stark others- the power of voices through technology. as women were the hardest hit when the COVID 19 pandemic struck. The pandemic did not only transform women resilience but the sector started to visualize the new normal and As the global pandemic began to unfold, with its what it means to ensure business continuity. Thanks to restrictions it offered space for issues of social injustices, our strategic partners, the chapter was able to continue discrimination of women escalates ; along with the low its advocacy work to address gender issues from coffee prices and other challenges, we learned about policy level to community level and also continued the immediate problems, such as the transit restrictions awareness campaign to embrace basic human rights for causing labor issues and transportation delays, the wellbeing of the whole family. frequently changing health protocols, unfulfilled coffee purchase contracts or complete cancellations in some The sector embrace technology and we did not miss a cases, concerns on next harvest preparations…the list is single sector platform meeting which helped us to get endless. This was challenging to everyone and more so updated and also shared learnings. These are the NPL to the women monthly meetings that now happen virtually. And Voir: the magic of Virtual technology . This was My take away from this year is that no matter how a time to think outside the box and start embracing big a challenge-: Pandemic, social injustices, industry technology. We started living for these connections uncertainties and waves ; the Coffee Keeps growing and where we discussed many things from health, families some how it remains the center of a reawakening world; and communities to businesses and resilience we shall always remain united by the love for coffee mechanisms. This was the time to do our best at which means so much to every one in the coffee sector. connecting with each other. The women in coffee embraced virtual technology and it was rewarding; While 2020 may have been a challenging year we are through the IWCA Global connection we attended looking forward to continuing the important work capacity building sessions with International trade center of Connecting Empowering and Advancing women ( ITC). Uganda chapter shared the amazing work on Fine throughout the coffee value chain.# strong women Robusta’s in the e conference by the African and Asian strong coffee @IWCA Uganda Chapter. Chapters. It is the same year IWCA celebrated 10 years in Africa where we reflected on our achievements. 18 The Coffee Yearbook 2019-2020
The Coffee Yearbook 2019-2020 19
FAIRTRADE BOOSTS THE RESILIENCE OF UGANDAN COFFEE PRODUCERS JOY MURUKU A The COVID-19 pandemic is having an unprecedented impact on s producers weathered farmers and agricultural workers, affecting their health, well-being and through these economic sustainability given disruptions in supply chains. The fair shockwaves, Fairtrade trade movement has worked hard over the last 30 years to establish in collaboration with sustainable trade relations and responsible supply chains with brands partners rolled out several initiatives and traders. The COVID-19 crisis threatens to break some of these to cushion producers from further supply chains and to turn back much of the progress that was very hard vulnerabilities. In March 2020 for to achieve. At the beginning of the pandemic in March for example, example, Fairtrade International we observed rapid and severe drop in orders as well as the inability of granted higher flexibility for the some Fairtrade Producer Organizations to export due to restrictions of use of the Fairtrade Premium movement. A spike in production costs due to mandatory requirements funds allowing their use to address for businesses to introduce hygiene and prevention measures was also emergencies resulting from the witnessed. pandemic. Fairtrade Premium is © Nathalie Bertrams A farmer member of Ankole Coffee Producers Cooperative Union Ltd in Uganda. Members of the Fairtrade Certified cooperative benefited from the Flexible Premium use and Fairtrade Producer Relief Fund which enabled them to access COVID-19 hygiene material such as soap and face masks. 20 The Coffee Yearbook 2019-2020
an additional sum of money that certified producers receive on top of the minimum price. Ordinarily, it is invested in socio-economic projects aimed at improving the quality of life for farmers, agricultural workers and their communities. The flexibility of its use therefore, provided immediate relief to producer organizations who utilized the Premium funds to purchase Personal Protective Equipment (PPEs) such as masks, soap, sanitizers, and install hand washing stations. With the rising cost of food emerging as a side effect of the pandemic, food security was also a major concern, hence further use of the funds to purchase food items. Over 100 Fairtrade certified producer organizations in Africa among them 18 coffee producer organizations extended flexible Premium use over a duration of 4 to 20 months, from Uganda benefited from this. to December 2020 ensuring that targeting 225,485 members of producers could continue take 127 Fairtrade organizations in 9 Fairtrade Africa represents 1,262,068 immediate actions as the impacts of countries in Africa. Of these, 5 farmers and workers from 596 COVID-19 evolved throughout the Ugandan organizations among certified organizations across the year. Certified producers like Kibinge them coffee producers will receive continent. This coupled with the Coffee Farmers Co-operative Society funding support to: purchase scale of the pandemic necessitated Ltd extended their resources to the more PPEs; procure raw materials the consolidation of more funds to community where they equipped to locally produce PPEs thereby cater for the vast needs of producer 4 health centres in the district with supporting COVID response while organizations. As a result, Fairtrade protective equipment and fuelled at the same time providing much alongside different partners brought ambulances for the sub-county and needed jobs and income to some together internal resources and in district surveillance team to make members of the community; May 2020, launched the Fairtrade regular follow up and transport implement awareness and advocacy COVID-19 Producer Relief Fund to infected people to hospitals. This campaigns to curb the spread of further secure the health, safety and demonstrates the commitment of COVID-19 and; establish wooden future of farmers. 7 coffee producer stakeholders within the Fairtrade vegetable greenhouses to tackle the organizations in Uganda successfully System as a whole to support growing food security challenges applied for the fund, collectively resilience across all spheres of due to lockdowns and fears of receiving 23,302.90 Euros to society. contamination in local food markets. implement relief initiatives including purchase of basic protective As COVID-19 manifested in various Fairtrade Certified coffee producers equipment, setting up local food waves, Fairtrade recognized that in Uganda continue to use available security initiatives, raising awareness while experts and leaders seek mechanisms to mitigate the on safety precautions, and meeting ways to manage it, its’ effects are be impact of the pandemic on their business continuity costs, among inescapable and will persist long health, wellbeing and economic others. after a possible cure is found hence sustainability. At the same time, the need for longer-term economic Fairtrade continues to offer virtual Communities too were not left recovery efforts. To address this, support to coffee farmers, equipping out. Decisions by producers such Fairtrade joined hands with GIZ, them with skills to develop effective as Bukonzo Organic Farmers making available 2 additional governance and leadership Cooperative Union saw thousands of producer relief and resilience structures as well as sustainable surrounding community members funding mechanisms. coffee management practices for benefit from food donations as robust business models that will well as essential items such as bar This has kick-started a series of stand the test of time. soap for washing hands. Fairtrade interventions to be implemented The Coffee Yearbook 2019-2020 21
A 12 MONTHS COFFEE EXPORTER NIGHTMARE KENNETH BARIGYE Mbale Lab Central Beds Makali Shed Wet Mill, Sironko G The past 12 months have indeed been a iven the importance of coffee to Uganda’s challenge in the coffee like we have never economy, coffee enterprises were allowed seen before – certainly for a 4 year old start to continue operations, but nevertheless Mountain up like Mountain Harvest. As the government Harvest suspended all field operations to protect the lives of registered the first COVID-19 cases in March company staff and the farmers we work with. The company 2020, it put in place measures to prevent also implemented new operating protocols to ensure safe the spread of coronavirus, restricting working conditions for essential staff and seasonal labors international and domestic travel, closing which measures increased the company’s production costs schools, suspending public transportation, by 17%. and directing residents to stay-at-home. Despite the fact that Mountain Harvest had On the market side, overall volumes completed coffee buying before government of coffee consumption did not decline significantly, restrictions were imposed and its focus but sales channels and price points changed. Sales at the time was on milling, sorting, exporting volumes shifted from cafés to supermarkets and online and sales, we still had to navigate an storefronts, as social distancing policies were put in operational environment that we had not place. Many specialty coffee roaster-retailers, Mountain planned for. This ranged from a reduction in Harvest’s primary market, were affected by these processing labor, to use of bicycles and trucks changes, as they sell most of their products through for movement. cafés or wholesale trade with other cafes. Roasters 22 The Coffee Yearbook 2019-2020
bee keeping projects, plant avocado and grow quality legumes. The writer, Kenneth Barigye, is the Managing Director of Mountain Harvest, a company established in 2017 in response to the collapse of coffee Cooperative as a coffee trader and exporter focused on specialty coffee. The company aims Farmers with Mt. Harvest Bag to improve the livelihoods of the farmers it sources from starting with and retailers who had a strong used to receive UGX5800 per kg of the 800 farmers from six districts on online model benefited from the parchment not settling for less than the slopes of Mount Elgon that we pandemic in the UGX 7500 and prices going as high currently work with. short term (and probably in the long as UGX 8500 per kg. term as well) and this resulted in a Mountain Harvest aims to de- reduction in of 50% in our export As we face the future, many specialty commodify our product by volume whose raw material had coffee roasters are employing providing roasters with top range unfortunately been bought by the strategies to adapt and recover green beans. To improve the quality time the world closed down. from COVID, shifting sales to of coffee, Mountain Harvest is non-café distribution channels, investing heavily in processing Despite suppressed demand from strengthening online sales by (hiring capable staff, training farmers Mountain Harvest’s target focusing on direct-to-consumer and installing infrastructure). We are market resulting from sales. To adjust to market also supporting those farmers from the COVID pandemic, Mountain conditions, Mountain Harvest has whom we are sourcing parchment in Harvest had some success bringing set modest sales targets for the improving their practices via training in sales from small roasters. The 2021 season, and has adapted its and decentralized processing company completed its third marketing strategies since most stations. season of operations (FY 2020: Jul coffee events, an important avenue 2019 – Jun 2020) with mixed results. for specialty coffee producers For our highest quality coffees we Buying volumes and revenues to meet specialty buyers, were are buying cherry and processing were down from previous years, canceled due to COVID. ourselves. By selling those beans while improvements in operational for significantly higher prices, we systems delivered higher average To better understand the inventory can buy coffee at a premium and quality in inventory, and investments in our supply chain, Mountain then share the increased profit with in centralized processing enabled Harvest partnered with CGA farmers; we invest in production of the production of new products Technologies to design and organic fertilizers and pesticides to (natural and honey processed build a new data and inventory improve soil and coffee tree health; coffees) with exciting new flavor management system to collect invest in income diversification profiles. and analyze data from farm (avocado and bee keeping); and through processing to export invest in technicians to train farmers As 2020 progressed, the to improve quality and financial in good agricultural practices. nightmare took another performance. The first version of direction! On the production the app was launched in Oct 2020 In this way, we see our engagement side, smallholder farmers on Mt and is currently being used to track with farmers as a pathway to build Elgon experienced very low coffee data from point of purchase through assets, create wealth, and support yields attributed to a normal to storage in Mountain Harvest’s thriving livelihoods, not simply a recovery period that trees go warehouse. continuation of bare subsistence through after a bumper harvest, or a slow and inadequate means and prolonged rains in the past Knowing that farmers were to reduce poverty. As productivity season which affected coffee trees’ as badly hit as the company and profitability increase, farmers, flowering. The yields reduced by with the reduction in the yield, cooperatives and enterprises return an estimated 60% and this has the company has partnered with the investment to their families and increased the farm gate price of donors to promote diversification communities by supporting others’ parchment by up to 24% from of income generating avenues at livelihoods and building strong the projections with farmers who the household level with farmers social capital and inclusive economic receiving startup capital to set up growth. The Coffee Yearbook 2019-2020 23
UGANDA LIMITED a member of the ecom group Kawacom specialty journey and Sipi Falls Specialty coffees Kawacom Specialty Coffee Sipi Falls Specialty Coffee Journey The Sipi Falls region is a land of people with great coffee culture gifted with many rivers and water Simply as put, Specialty coffee is special coffee falls embraced by the great Mt. Elgon forest that produced with special care from selected coffee stretches all the way to Kenya. The Sipi falls brand growing regions with unique climate or soil on the slopes of Mt. Elgon at altitude ranging conditions. between 1650 to 2000m+ has been enriched with more rainfall all year round hence better coffee We started this journey with great hope masked productivity. Coffee cherries are sourced based on with a little bit of doubt for the unknown but were altitude and agronomic practices, producing the surprised by what the first season birthed in 2015. different coffees meticulously on African beds to We produced some of the best naturals in Uganda end up with naturals with more complex fruity claiming first place in the Uganda-Congo taste of harvest competitions with a score of 86+ and a 3rd flavors and heavy bodies with great consistency place at regional taste of harvest competition same over time, thus making it to the top 5 positions of year. all competitions over the years. The trend has been continuous with previous This region has pioneered in the production of productions registering highest scores from our honey coffees, that is coffee pulped, dried with all the newly registered area of production called Maliba mucilage still stuck on the bean, giving the coffee in Kasese region with 87+ cup score at the 2017/18 syrupy and floral flavors with mild sweetness and taste of harvest competition. In general, this has a creamy mouthfeel. This has taken our specialty been a gradual development within our Sustainable interests to another level as people have fallen in projects as the specialty coffee industry keeps love with it in the coffee industry. growing bigger and better. 24 The Coffee Yearbook 2019-2020
Mt. Rwenzori Maliba Specialty coffee The fertile semi rock volcanic soils coupled with a vast number of rivers, lakes and Mt Rwenzori forest have created a good environment for coffee to thrive. This rich culture with a good vegetation, hot springs and a good climate have benefited the cultivation of good coffee for Kawacom Namanve warehouse centuries all over the mountains. At Kawacom, we have produced the best coffee in Uganda in the first trial of the natural process with 87+ cup score. White Nile Specialty coffee This is a replica of Sipi in terms of structure and production processes, 2018/2019 is the first season for the West-Nile specialty project and we Mt. Rwenzori Maliba Specialty Coffee are looking at having the best out the area. The development of the project is a snow ball whereby we started small and are now realizing massive gains both in our clientele range and productivity. White Nile Specialty Coffee: Specialty drying shade The Coffee Yearbook 2019-2020 25
The ABI Trust team at the commissioning ceremony of the NUCAFE solar plant in Namanve COFFEE FARMERS BODY ACQUIRES INDUSTRIAL SOLAR PLANT RACHEL NANKUMBA T he National Union of Coffee NUCAFE as a nationwide coffee farmers’ organization is charged Agribusinesses and Farm with improving Household incomes for small scale coffee farmers Enterprises (NUCAFE) an umbrella through higher productivity, marketing coffee and helping to of coffee farmers in Uganda facilitate farmers access value addition services such as cleaning, with a membership of over 200 farmer drying, de-stoning, grading, color sorting, export handling, organizations and 200,000 households roasting grinding blending branding and packaging --- all of in all coffee growing regions of Uganda which require electric power. In the project detailed designing has acquired an Industrial Solar Plant to phase NUCAFE approached the Electricity Regulatory Agency realize optimal mix of electricity and solar (ERA), which reviewed the design and production capacity of the for its factories at Namanve in Mukono power plant of 172.3 kWp and found the design an innovation for District. The solar plant was launched on on and off grid industries that is responsive to the ever-changing Friday; 21 August 2020 during a colorful climate change needs. ERA advised NUCAFE on the regulatory ceremony presided over by Mrs. Josephine requirements for the plant such as exclusion of the plant from the Mukumbya, Group Chief Executive Officer, grid given that its production capacity was below the minimum Agricultural Business Initiative (aBi). It is threshold. From this innovation, ERA will work in partnership with the first of its kind and the largest roof NUCAFE to provide lessons to other agricultural value chain actors top industrial solar plant in Uganda for who may situated in off grid areas to use green energy and to processing and manufacturing of coffee. make the enabling environment for small power generation more favorable. 26 The Coffee Yearbook 2019-2020
The NUCAFE solar plant According to NUCAFE Executive Director, Mr Joseph Nkandu, the farmers body will optimize a mixed energy grid to run its various factories and machines that include, pre-cleaning machines, mechanical drier, hulling factory, grading factory, colour sorter electronic equipment, roasting factory, grinding coffee plant, blending mixer equipment, compressor and all lighting. “In the past our activities have been greatly hampered by frequent power outages,” Nkandu said in an interview, “but now with the availability of this land mark industrial solar power plant we hope to do our work without interruption due to power outages. Of course, Nkandu also disclosed that NUCAFE, as a limited company by guarantee we are not going to completely stop which comprises of over 200 rural without share capital NUCAFE has using hydroelectricity but this facility community-based coffee farmers worked towards empowering and will greatly reduce our dependency associations and cooperatives organizing smallholder farmers to on it. On the days when we don’t with over 1.5 million farmers, become the owners of their product have sufficient sunshine or when the intends to acquire more industrial in order to have a bigger say over batteries are down, we will still use solar plants for its hubs across the their crop’s financial transactions. hydroelectricity.” country such as Kabonera Coffee It also provides knowledge about Farmers’ Cooperative Society in better farming and harvesting skills Nkandu further explained that Masaka District, Lwamaggwa Coffee to improve the quality of coffee in NUCAFE has always aspired Farmers Cooperative Society in Rakai order to attract better prices and towards zero carbon emissions District, Kagango Coffee Farmers’ higher household incomes. They and being a no pollutant of the Cooperative Society in Sheema, have been able to make tremendous environment as well as a climate Bushenyi District, and elsewhere. The progress in this direction by using smart innovative organization. “By purpose of a mixed energy grid is what they call “Farmer Ownership being a no pollutant, we knew we optimized primarily on affordability Model” which enables farmers would be able to produce carbon while considering its sustainability in to take up more value addition neutral coffee so that we would the long run. roles within the coffee value chain operate in an eco-friendly specialty and reducing exploitation by coffee to attract premium prices,” “I must also mention that this middlemen, which has helped the he went on to explain. “I also have milestone achievement that was farmers to enjoy higher profits. to point out that electricity costs launched in August would not have from the national grid are so high been possible without the support Mrs. Josephine Mukumbya, Group and therefore NUCAFE always of our sponsors, aBi Group through Chief Executive Officer, Agricultural wanted to reduce processing costs aBi development Limited, the Danish Business Initiative (aBi commended and then put more money into the Government and the government NUCAFE leadership and pockets of farmers. After getting this of Uganda. We are further grateful management for its resilience and facility we expect to save at least to our technical partners from NIRAS innovation. She said the acquisition 60% of the amount of money that International from Denmark, the of the industrial solar plant is bound we have been spending on power Nordic Climate Facility (NCF) from to reduce NUCAFE’s overhead costs every month. Farmers will save on the Nordic Development Fund for and to contribute profoundly to electricity processing costs and their technical contribution.” farmers’ profits, production of better- increase their income by at least quality coffee for export and increase 30%.” Since its formation way back in 1995 the farmers resilience. The Coffee Yearbook 2019-2020 27
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