Prime
Optimism as coffee earnings gross Shs4 trillion
Exports receipts grew due to an increase in earnings from coffee. Photo / File
What you need to know:
- In a July 18 statement, the UCDA announced that Uganda earned Shs4.2 trillion in the last Financial Year (FY), the highest earnings ever recorded.
A section of legislators want more funds, previously given to private entities to promote coffee trading channelled to cultural institutions, days after the Uganda Coffee Development Authority (UCDA), announced all time high earnings for the country.
In a July 18 statement, the UCDA announced that Uganda earned Shs4.2 trillion in the last Financial Year (FY), the highest earnings ever recorded.
“In 2023/2024 coffee exports were 6.13 million bags valued at $1.144 billion. This was an increase in value compared to FY 2022/2023 when exports were 5.8 million valued at $846 million,” the statement reads in part.
The Authority attributes the growth to effective regulation and the high quality of the Ugandan coffee to attract higher prices.
Parliament early this year blocked the rationalisation of UCDA under the Ministry of Agriculture on the premise that the Authority is key in advancing the coffee agenda, benefits that could be undermined by the merger.
The UCDA in its statement reported a revenue generation of Shs82.2 billion. Dr Emmanuel Lyamuleme, its executive director, in an X post said this development signals the country is on the right trajectory to achieve the target to earn $1.5 trillion annually from exporting 20 million bags.
In light of this news, the Katikkiro of Buganda, Charles Peter Mayiga tweeted: “The Kingdom of Buganda launched the coffee production campaign Emmwanyi Terimba, in 2016. Coffee growing in Buganda has risen greatly and over 50 percent of coffee exports are from Buganda.”
It is against this background that legislators want Shs75 billion provided in the Budget to improve coffee value chain development under a partnership with private companies—Coffee Investment Consortium, Great Lakes Coffee, and Inspire Africa Coffee—channelled to cultural institutions.
“We ask government to reallocate Shs75 billion that was allocated for value addition towards cultural institutions like Buganda, Busoga, Tooro, Bunyoro and others, plus religious institutions that have tremendously encouraged their followers to engage in coffee production,” Mr Geofrey Solo, the Bukomansimbi South MP, told a press conference at Parliament on Friday.
Hillary Kiyaga, the Mawokota North Member of Parliament, said: “Our coffee ranks as one of the best quality. If we have kingdoms on board that can motivate people to produce more, we have potential to be one of the biggest supporters. So let us not scatter our resources.”
President Museveni, a proponent of value addition, has supported partnerships with private entities as a way to increase the country’s earnings.
The legislators also want the government to regulate the prices of the bean. They argue that speculators use the fluid prices to rip off the farmers by offering low gate firm prices. The legislators want the government to strengthen regulation of agricultural inputs like fertilisers and pesticides.
“The coffee prices have been low yet coffee is one of our main exports. It is important that we maintain these prices. We ask that the government to set a minimum price for a kilogramme of fair average coffee to at least Shs12,000 to give farmers confidence to invest. If it goes higher that is better for us,” Mr Kayemba said.
The Authority reported that farmers are earning the highest prices in 30 years. A kilogramme of Kiboko coffee goes for Shs5,000, while Fair Average Coffee goes for anywhere between Shs12,000 and Shs13,000.
But a report of the International Coffee Organisation, a global coffee body established under the auspices of the United States, that Uganda exited in 2022, indicated a decline in production by key producers in Africa, including Uganda. This was attributed to adverse weather conditions.
