TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020

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TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020
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
TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020
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
TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020
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
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TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020
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
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    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
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TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020
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
TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020
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
TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 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
TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020
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 o‡en 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 so‡ware     ▶ 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
TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 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
TheCoffee Yearbook - Uganda Coffee Resilient Through COVID-19 and the New Normal 2019/2020
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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