By Apollo Mubiru
Uganda Coffee Development Authority (UCDA) wants sh35 billion for the installation of a coffee traceability system in the financial year 2024/25.
Janet Okori-Moe, Chairperson, Parliament’s Agriculture Committee explained to the Parliament budget committee that UCDA is seeking to establish a national traceability system that will ensure compliance among farmers with regulations by European Union, that bars the production of agriculture products like coffee from deforested areas.
“The traceability system will register coffee value chain actors (farmers, nursery operators, processors, roasters and exporters). It is one of the key regulations of the European Union for coffee exportation. UCDA requires sh35 billion for establishment of this system but no funds were provided in the budget for 2024/24,” Okori-Moe submitted.
However, Dickson Kateshumbwa (Sheema Municipality) queried the request wondering, “When you say that UCDA requires sh35b to establish a traceability system, is this made on Mars, what kind of system is this, sh35b? Have you interrogated them to tell you, have you benchmarked?”
Uganda Coffee Development Authority (UCDA) is also seeking for additional sh13.952b to fund some other unfunded critical issues including; sh1.566b to promote Uganda’s coffee in China, sh1.66b to promote Uganda’s coffee in Middle East and Maghreb, while another sh1.2b is required to construct a coffee hub in Kyambogo.
“Then you look at establishing a coffee hub in Kyambogo at sh1.2b to promote people to drink coffee really? You need to help us in some of these things, sh1.5b for promotion of coffee in China. There is already a market of coffee in China that we aren’t fulfilling. We need to interrogate some of these figures, otherwise, it becomes hard for us to rationalise some of these figures,” Kateshumbwa submitted.
Parliament is set to consider the 2024/25 National Budget Framework Paper during the Thursday plenary sitting.
Coffee exports
According to official data from the Uganda Coffee Development Authority (UCDA), coffee exports for the closing month of December 2023 showcased a mixed performance as the nation exported 401,336 60-kilo bags, totaling $65.94m (sh243.38b).
A detailed breakdown reveals 337,026 bags of Robusta, valued at $52.84m (sh195.79b), and 64,310 bags of Arabica, valued at $13.10m (sh48.37b). In a comparative analysis by type in December 2022, Robusta witnessed a positive upswing with a 1.68% increase in quantity and a substantial 30.32% surge in both quantity and value. Conversely, Arabica exports experienced a decline, registering a decrease of 26.38% in quantity and a corresponding 31.02% decline in both quantity and value.
Emmanuel Iyamulemye, the Managing Director of the Uganda Coffee Development Authority (UCDA), said that the monthly performance of coffee exports fell short of the previous year, primarily attributed to delays in the harvest season caused by persistent rains.
“The inclement weather not only hindered timely harvesting but also led to a delayed drying process for the newly harvested coffee. Additionally, a smaller-than-usual harvest in the Elgon region further contributed to the overall decline in export performance,” he said.
The data further reveals that in December 2023, the distribution of Uganda’s coffee exports showcased distinct market shares across various destinations. Italy retained its position with the highest market share at 39.45%, a significant increase from the November 2023 27.68%. Following closely, India secured a market share of 12.05%, up from 7.59% in November. Germany held 11.47% (down from 20.50%), Morocco accounted for 6.12% (compared to 2.86%), and Spain maintained a share of 5.96%, a slight uptick from 5.53% in the preceding month.
The top 10 primary destinations for Uganda’s coffee collectively held a substantial market share of 92.25% in December, marking a notable increase from the previous month’s figure of 86.72%. This underscores the concentration of Uganda’s coffee exports in key markets and highlights the growing significance of these destinations in the overall distribution network.
In December, coffee exports to Africa totaled 56,253 bags, securing a market share of 14%, a slight decrease from the previous month’s 16%. African nations importing Uganda’s coffee included Sudan, Morocco, Algeria, South Africa, Egypt, and Kenya.
Meanwhile, Europe maintained its position as the primary destination for Uganda’s coffees, commanding a 67% share of imports, slightly lower than the 68% reported in November 2023. This reaffirms the continent’s pivotal role in Uganda’s coffee export landscape.
