Friday, September 13, 2024
Home Change Makers Brewing Beans Into NUCAFE

Brewing Beans Into NUCAFE

by Jacquiline Nakandi
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By Herbert Musoke

From a young age, Joseph Nkandu learned that coffee was Uganda’s top income earner. Despite his parents being coffee producers in Namayumba, Wakiso district, he did not see the financial benefits.

“I struggled through school because we had no money, despite my parents being coffee farmers,” he recalls.

This was during the 1980s and early 1990s. As he grew up, he was determined to understand why many coffee farmers remained poor while those higher up the value chain prospered.

His research eventually led to the formation of National Union of Coffee Agribusiness and Farm Enterprises (NUCAFE), one of Uganda’s leading coffee farmers’ associations.

Nkandu notes that although coffee has been Uganda’s primary cash crop and major export earner for decades, many coffee farmers continue to live in poverty.

The Uganda Coffee Development Authority (UCDA) reports that by 1914, European and Asian farmers had established 135 coffee plantations covering 58,000 acres across Uganda.

However, the crop was abandoned when prices fell in the 1920s. The Coffee Board was established in 1929, later becoming the Coffee Industry Board in 1943 and the Coffee Marketing Board in 1959, with the goal of commercialising, regulating, and marketing coffee.

In the early 1930s, coffee production among African farmers was minimal, with only 17,000 acres under cultivation. Besides Uganda, coffee was also grown in Malawi, Kenya, and Rwanda.

Joseph Nkandu, the ED NUCAFE shows off his coffee products. Photos by Herbert Musoke

In Uganda, coffee cultivation spread across the greater Masaka area, Luwero, Mubende, parts of Bushenyi, West Nile, Mukono, and Elgon.

Nkandu explains that during the colonial era, government enforced coffee production through chiefs who inspected households to ensure compliance with production and quality standards.

This led to coffee being colloquially known as “kibooko” (coffee grown under duress). Today, coffee is cultivated in 117 of Uganda’s 146 districts.

Of these, 83 districts grow only Robusta, 17 districts grow only Arabica, and 17 districts grow both types.

According to UCDA, there are 330 million coffee trees in Uganda, with 240 million Robusta and 40 million Arabica trees.

Arabica is primarily grown in the Elgon and Rwenzori regions, including Kapchorwa, Bukwo, Mbale, Manafa, Bulambuli, Bundibugyo, Ntoroko, Kabarole, and Nebbi.

Robusta is cultivated in central Uganda and parts of the west, including Masaka, Kalungu, Ssembabule, Gomba, Mpigi, Wakiso, Luwero, Nakaseke, Mukono, Nakasongola, Buikwe, Kayunga, and parts of the east like Mayuge, Kamuli, Luuka, and Namayingo.

Formation of NUCAFE

After completing his bachelor’s degree at Makerere University, Nkandu revived an association for coffee farmers to help them benefit more from their coffee businesses.

“To organise coffee farmers more effectively, we established NUCAFE in 2003 with 60 farmer groups. This number has since grown to 237, making the association truly national,” he explains.

These groups include the Kabonera Coffee Farmers Cooperative Society (Masaka), Lwamaggwa Coffee Farmers Association (Rakai), Kagango Coffee Farmers Association (Sheema district), Karangura Coffee Farmers Association (Kabarole district), and Tegeres Coffee Farmers Cooperative (Kapchorwa).

At that time, farmers often sold their coffee while it was still on the trees or even sold flowers. Those who persevered sold unprocessed dried coffee, known as kibooko.

Nkandu explains that for a group to join the association, they pay an annual subscription fee of sh100,000. They also hold annual general meetings to discuss and share important information. Leaders are convened for meetings in case of any emergencies.

Coffee farmer

At Bunjako, on the shores of Lake Victoria near Buwama, Nkandu runs a model coffee farm spanning several acres. Unlike most farmers, Nkandu employs the renowned ‘Brazilian model’ for coffee production.

He describes his farm as a model for others seeking to enhance their coffee yields.

“We guide farmers in their own communities on how to achieve maximum output. We provide coffee nurseries to ensure they have access to reliable and clean planting materials, and we encourage them to be innovative,” he explains.

Under the Brazilian model, Nkandu advises farmers to shift from the traditional spacing of 3×3 metres to 3×1 metres between rows of coffee and trees. This is particularly useful for those who do not have access to large plots of land.

With this approach, instead of having 450 Robusta plants per acre, a farmer can increase their planting density to 1,333 plants per acre.

If all other factors remain constant, this arrangement results in a higher coffee yield. Given the impact of climate change, irrigation is becoming essential. Currently, Ugandans consume only 3% of the coffee produced locally.

Farmer ownership model

Nkandu explains that after his studies to the level of masters in Italy, one of the countries with high coffee consumption rate, he realised that the biggest challenge leading to this, is coffee farmers not owning the crop, therefore, surviving on the mercy of the buyers, especially exporters who determine the prices.

On realising this, he went on a survey across the country, working with officials of UCDA, mobilising coffee farmers to have one voice, and cutting out the middle man so as to increase their earnings.

“This saw the formation of NUCAFE and the farmer ownership model, which is based on the farmer group association, a new farmer co-operative framework. It is an innovation aimed at supporting coffee farmers to organise themselves to assume as many roles as possible in the coffee value chain in order to increase their value share of the fi nished product,” he explains.

This model builds the capacity of farmers to remain in charge of their own affairs and to be responsible for their own actions. It also enables them work in partnership with other stakeholders as facilitators.

Drinking coffee

At this stage, the coffee undergoes a tasting process conducted by cuppers who assess its quality and aroma.

Nkandu explains that at the Namanve factory, 10% of the coffee collected each year is processed into drinking coffee.

This process involves roasting, grinding, and packaging. The coffee is branded under Omukago and NUCAFE, with prices ranging from sh6,000 for 100 grammes to sh44,000 per kg.

This coffee is predominantly sold in supermarkets across Uganda. In coffee cafés in developed countries, a kg of processed drinking coffee can fetch at least $150 per kg.

Quality assurance

When coffee arrives at the factory, it is first weighed and tested for moisture content. If the coffee is not sufficiently dried, it is re-dried at the factory, either as unprocessed coffee (kibooko) or using a dryer. To ensure high quality, the coffee undergoes several cleaning stages.

It starts with the first

 pre-cleaner machine, followed by a second pre-cleaner, and then proceeds to hulling. The coffee is then passed through a destoner machine to remove any stones.

Coffee is purchased according to its screen size, so parchment is taken to a grader — a machine that sorts beans by size, with screen sizes ranging from 18 to 12, which affects pricing.

“Previously, farmers did not have access to this level of sorting. Since joining NUCAFE, farmers’ income has increased by over 250% compared to what they earned from selling kibooko. The coffee is also tested on a gravity table to assess retention and bean density, ensuring it meets acceptable size standards,” Nkandu explains.

Additionally, a colour sorter — a sophisticated machine — is used to remove discoloured coffee beans, ensuring the production of specialty coffee with zero defects.

This rigorous quality assurance process not only sets a high standard for the coffee sector in Uganda but also aims to benefit future generations.

Challenges

Nkandu explains that they face several challenges, including securing adequate funding. To purchase machinery and implement various programmes, they had to borrow money.

 Despite these hurdles, their commitment to improving the coffee sector remains strong.

Employees

At the Namanve factory alone, there are 85 employees. In addition to this facility, NUCAFE operates seven other factories which collectively employ even more people.

Future

Globally, coffee consumption is on the rise, creating a growing demand for coffee production from both existing farmers and new entrants into the industry.

Nkandu is optimistic about the future, noting that 98% of coffee is consumed as a beverage. However, ongoing research is developing innovative products such as spirits, lotions, perfumes, yogurt, and cakes — all of which will require increased coffee supply.

Nkandu also highlights that Uganda produces some of the finest coffee in the world. To further support this, they plan to establish a research, innovation, and development centre.

Benefiting members

Nkandu says members get sh13,000 per kg of parchment coffee, with factories deducting sh1,000 for operational costs.

NUCAFE has facilitated the organisation of farmers into fully operational groups registered with government. Through best practices in pruning, weeding, fertilisation, and pest management, members can achieve a parchment out-turn of approximately 60%.

Members are compensated based on screen size which motivates them to strive for higher quality.

“To benefit the coffee sector more, we partnered with Makerere University and the National Agriculture Research Organisation to establish the Consortium for Enhancing University Responsiveness to Agribusiness Development Ltd (CURAD). CURAD mentors and develops business plans for students, transforming them into viable enterprises,” Nkandu explains.

CURAD serves as an incubation centre for these plans. Currently, CURAD operates three coffee processing factories in the Namanve industrial area, Kapeeka, and Kabanyoro.

Value addition

Nkandu explains that after organising coffee farmers, there was a shortage of coffee hullers. Those who did have hullers often paid farmers very little for their coffee.

“To address this, we formed partnerships with factory owners to hull the coffee on behalf of the farmers, allowing the farmers to choose their buyers. Factory owners were required to offer competitive prices,” he recalls.

This initiative was first implemented at Walakira’s factory in Masaka. At that time, Uganda was exporting fewer than two million bags of 60kg each to the international market.

Today, exports have surged to over six million bags, with a target of 20 million bags by 2030. In 2010, Uganda began exporting coffee, with the first consignment going to Italy.

The Italian customer was so impressed with the coffee that he visited Uganda to learn about its cultivation and awarded Nkandu a scholarship for a master’s degree in business management.

To ensure a sustainable supply for the export market, Nkandu’s team constructed a factory in Namanve. This hybrid facility utilises both solar energy and hydroelectric power. The association operates seven factories across Uganda — in Masaka, Bushenyi, Rakai, Kasese, and Kabarole, among others — primarily for processing parchment coffee.

Farmers in these regions bring their coffee to these facilities, which have a combined processing capacity of 10,000 tonnes per year.

The Namanve factory, with a capacity of 52,000 tonnes per year, handles additional processing.

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