Coffee growers in Uganda

Out to Lunch

#OutToLunch: Resilient coffee farmers will make money regardless of UCDA fate

By Denis Jjuuko Whether on coffee tables, bar tables, parliamentary tables, or presidential tables, the talk has been about coffee following the contentious coffee bill that seeks to amend the National Coffee Act 2021. The main tenet in the bill is the proposed dissolution of the Uganda Coffee Development Authority (UCDA). Depending on who you listen to, UCDA is either angelic, demonic or a combination of both. Maybe the debate wouldn’t even have reached its current crescendo had the Speaker of Parliament not caught on a live mic urging her colleagues to do something about the Baganda. Whatever, she meant, the Baganda seemed to be the target. You see, 50% of the coffee grown in Uganda is from Buganda, a source of livelihoods for almost every household in the region. Many kids in Buganda go to school because of the incomes derived from coffee by their parents and guardians. Coffee and of recent, enjoys a demigod status among the people of Buganda. It hasn’t been like that though for the last few years. Many people in Buganda had given up on growing coffee until about 2016 when the kingdom started its famous Emmwanyi Terimba (coffee is profitable) campaign reminding people of the good old days of Mmwanyi Zabaala (another variant of coffee is profitable). Mmwanyi Zabaala was usually a reference to the powerful Bantam motorcycles that people in areas like Masaka massively bought as a result of profits from coffee especially in the 1960s, 1970s and 1980s. Farming is usually not for the fainthearted and prices can significantly fluctuate especially for a product that is largely exported. Prices are many times determined on global markets. Weather changes in Brazil, Colombia or Vietnam, for example, can have a significant impact on Uganda’s coffee. And domestic demands in those larger producer markets can also have impact. Speculators on the futures markets in the global financial capitals can also have an impact. But also, people can simply give up on something by losing hope. Leadership is usually required to restore hope, reminding people that those who “lose a loved one, don’t sleep by the graveside.” Once people are inspired to realize that not every light at the end of the tunnel is of an oncoming train, they could easily wake up and do something for themselves. That is what happened in Buganda circa 2016. With inspiration from the leadership in Buganda, people in the region started growing coffee again. Seeing the uptake in the crop, UCDA sought for a partnership to work together. The end result had been increased exports and increased incomes for the people in the region and indeed elsewhere. A coffee tree lasts about 45 years. So those who had abandoned their trees didn’t all have to plant new ones. Many just did stumping, allowing the coffee to sprout and flourish again. Others planted new ones. Within 2-4 years, they were making money again. I remember a trip to Bukomansimbi about four years ago where I met a man who had been a boda boda rider in Kampala and had decided to return to the village. He had revived his coffee garden and had managed to build himself a decent house and rentals somewhere in Kyengera, just outside Kampala. He regrated the years he had spent in Kampala riding a boda boda and before it, working as a taxi conductor. That was well before the average coffee prices of around Shs13,000 per a kilo of fair average quality. With the prices being offered today, there is real income in the pockets of ordinary Ugandans. And not just ordinary Ugandans, the country’s is benefiting as well as income from coffee exports are topping USD210m per a month. Regardless of what the government of Uganda does, coffee will remain a highly demanded crop across the world. The biggest consumers of coffee in the world don’t grow it and they are not about to give it up. They will continue to demand for it. The traders and the entire value chain is not about to give up coffee. Since the demand is assured, those who are growing coffee should not return to the previous years of feeling pity for themselves. They should instead increase the acreage those who can, look after their coffee trees well and do whatever is necessary to increase production of quality beans. Those that won’t give up, regardless of the prices or scrapping of UCDA would still be better than a farmer that don’t have anything to sell. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch Government can grow coffee and sell to Vinci

#OutToLunch Government can grow coffee and sell to Vinci By Denis Jjuuko In just 14 pages, A4 size, independent Uganda gave away perhaps the most generous concession ever on any agricultural product, taking back the country to the days of the Imperial British Company – a colonial enterprise that subjugated farmers and the entire population and left previously wealthy nations in abject poverty. The ministry of finance entered into an agreement with controversial businesswoman Enrica Pinetti — she, you guessed right, of Lubowa International Specialized Hospital to be the sole buyer and exporter of Uganda’s coffee. After collecting tons of money in promissory notes and other forms, Enrica is still struggling to build a plinth wall. The ministry of finance claimed, of all things, that “heavy rains” have delayed the project! The agreement as controversial as the so-called investor will see her company Uganda Vinci Coffee Company, a novice in the sector (and we heard registered on the same day the agreement was signed), given “priority of supply of coffee….before registering any contract or acknowledging any arrangement for the export of coffee beans (including screen 18 and above), so that the company will have ample supply of coffee to sustain its operations.” Vinci claims that it will build a 60,000-tonne capacity plant in Namanve starting with a paltry 27,000 tonnes but the agreement is silent on when Vinci will grow its capacity to the 60,000-tonne mark. I highly doubt that they will ever get anywhere close to the promised capacity and there is no clause in the agreement that penalizes them if they don’t. In the year ending October 2021, Uganda exported 6.55 million 60kg-bags translating into 393,000 tonnes. Vinci will only be able to process, if they ever build the plant, a paltry 6.8% for which they get a concession similar to those given to British companies during the colonial period. The rest of the coffee, Vinci will just export for the next 10 years without remitting any taxes and determining even the price of electricity they will consume. The other laughable clause in the agreement is that Vinci will employ a mere 246 workers who they will even disenfranchise by not contributing to NSSF for 10 years. A company employing just 246 workers should never be given control of a sector that employs perhaps a quarter of the country’s population. The ministry of finance claims that this is the best deal ever for Uganda and “nobody else asked.” I think nobody thought that anybody could sign such an agreement hence the lack of other players with better capacity than Vinci to ask. But Uganda, it seems is the epitome of “ask and you shall be given.” The controversy of such a deal is that Uganda doesn’t own any coffee. If it was oil or some other minerals that belong to the country, nobody would be complaining. As a smallholder coffee farmer, I pay for everything — seedlings, irrigation, fertilizers, transport, and wages without any support from government. Government should, therefore, not “undertake to take all reasonable measures to give priority of supply of coffee” to Vinci or anybody else as they don’t at the moment own any coffee. Coffee belongs to farmers and therefore government can’t decide who they sell it to. Let Vinci compete for my beans and I will decide whether I sell to them or the competitor next door. Traders should also decide whether to sell to buyers in Sudan, Germany, China, Italy or anywhere else and not be forced to sell to one company. It takes only 18 months for coffee to mature and become harvestable. I don’t know how long Vinci will take to build her factory but given her performance with the Lubowa hospital project, this will take years to be built if it will ever be built. As Vinci builds its factory, government can start planting coffee on its vast land (or even acquire more land) which they can then “undertake to take all reasonable measures to give priority of supply of coffee” to Vinci. I don’t think any coffee stakeholder or farmer will raise any finger when beans from the government’s farms are given to a single buyer. The writer is a communication and visibility consultant. djjuuko@gmail.com

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