Workers prepare to sort robusta coffee at Kasaali Farmers’ Cooperative Society Limited (KACFA) in Kyotera District on May 20, 2024. PHOTO/MICHEAL KAKUMIRIZI
Coffee farmers and dealers in various districts across the country have expressed mixed reactions over the proposed Coffee Bill, 2024, currently before Parliament, with the majority saying it is uncalled for.
The Bill, which is an amendment to the National Coffee Act, 2021, seeks to dissolve the Uganda Coffee Development Authority (UCDA) and transfer its functions to the Ministry of Agriculture.
However, a section of legislators from coffee-growing areas claim that the ministry doesn’t have the capacity and capability to take on the roles and functions of the Authority. The Bill is to give effect to the government’s Rationalisation of Government Agencies and Public Expenditure (RAPEX) policy.
Mr Zakayo Vvaali, a pensioner and prominent coffee farmer in Jjongoza Village, Kalisizo in Kyotera District, said the move to rationalise UCDA won’t only affect farmers but also the country’s foreign exchange earnings as coffee has been a key foreign earner.
Graded robusta coffee is seen inside the processing unit of Kasaali Farmers’ Cooperative Society Limited (KACFA) in Kyotera District on May 20, 2024. PHOTO/MICHEAL KAKUMIRIZI
According to Mr Vvaali, unlike other government agencies that have been rationalised, UCDA has a good track record and has managed to hit all its targets.
“Due to UCDA, farmers have started to dry their harvested coffee beans on tarpaulins, which has improved the quality of coffee exported; I wonder why it has been rationalised,” he said during an interview yesterday.
Mr Abdallah Twaha Matovu, a coffee exporter and chairperson of Makukulu Coffee Farmers Cooperative Society Ltd in Bukomansimbi District, describes the rationalisation of UCDA as a deliberate attempt by the government to economically weaken coffee farmers in Buganda, Bugisu and Rwenzori sub-regions that have been benefited a lot from the crop.
According to Mr Matovu, after rationalising UCDA, it will be easier for the government to monopolise coffee exports as is the case with vanilla and fish.
“At the end, UCDA, which has been permitting many exporters to do business, will be de-registered and a single exporter, who is likely to serve the interests of government, will emerge,” he said.
Mr Ronald Musoke, one of the prominent coffee farmers in Lwankoni Sub-county, Kyotera District, said it is disturbing to hear that the government is tampering with an entity that has proven capability to manage coffee issues.
“If it’s about fighting wasteful expenditure, they should first fight corruption and reduce the offices of elected leaders. But they want to kill [UCDA] which generates its own funds and also contributes hugely to the National Treasury,” he said.
He added that he fears that these changes might affect the market of the currently profitable crop.
Mr Gerald Ssendawula, a former Minister of Finance and large-scale coffee farmer, said given the special position of the cash crop in Uganda’s foreign exchange earnings, it deserves a special body such as UCDA to take charge of its production and marketing.
“If it is put under the Ministry of Agriculture, there could be delays in decision-making since the ministry has a lot of other agricultural activities to take care of. Some international coffee meetings and decisions require immediate attention and responses and there should not be unnecessary delays,” he said.
Mr David Ntale, a coffee farmer and resident of Kiwangala in Kisekka Sub-county, Lwengo District, said UCDA has ensured quality assurance throughout the coffee production chain system by preventing the harvesting of green berries and drying coffee beans on bare ground where they get mixed with foreign objects such as stones and animal droppings.
“I think the government should first concentrate on boosting the capacity of agricultural officers in local governments to enable them to extend services to farmers like UCDA has been doing; maybe thereafter, they can think about rationalising the Authority,” he said.
Robusta coffee in the Buganda sub-region, central Uganda on May 20, 2024. PHOTO/MICHEAL KAKUMIRIZI
Mr Nathan Nandala Mafabi, the chairperson of Bugisu Cooperative Union and a coffee farmer, said despite the currently well-intended policy to rationalise entities in an effort to save taxpayers money, there is a need to spare UCDA.
He said coffee is one of the most treasured commodities after oil.
“For a long time, it has been one of the leading export earners in this country. And, the importance of coffee is not just a recent development, it is historically given that it is the coffee-producing communities of Buganda and Bugisu that guaranteed Uganda’s Independence,” Mr Mafabi said.
“Buganda contributed $500,000(about Shs1.8b) while Bugisu contributed $300,000(about Shs1.1b) to convince the British that Ugandans were capable of mobilising their own resources to run the country,” he added.
He said from July 2023 to June 2024, coffee exports earned the country $1.14 billion (about Shs.4.23 trillion).
“The coffee industry employs approximately 12 million people. It is, therefore, a commodity that needs special attention,” he said.
Mr Nandala, who is also the MP for Budadiri West and secretary general of the Forum for Democratic Change, added that coffee is not just a crop but a beverage.
“Actually, the US uses coffee as a beverage and a drug. And so, this beverage needs special attention right from planting, weeding, harvesting, and processing until it gets to that cup as a beverage,” he said.
“UCDA has painstakingly done this. I doubt that Maaif [Ministry of Agriculture, Animal Industry and Fisheries] has capacity to provide this oversight role,” he added, equating UCDA to the Institute of Certified Public Accountants in Uganda (ICPAU) and Uganda Law Society (ULS).
“These entities regulate and maintain standards in those bodies and they survive on fees from the organisations. If the government doesn’t have money to pay employees in UCDA, we can turn UCDA into a semi-autonomous organisation such as Uganda Law Society,” Mr Mafabi said.
Mr Steven Masiga, a coffee farmer and spokesperson of Bamasaba Cultural Institution, said as Bamasaba and farmers, there is need for sufficient legislative sensitisation on the consequences and benefits of the Bill.
“Parliament should pause a little bit and engage coffee farmers and consumers on the dissolution of UCDA,” he said.
Mr Simon Kwikiriza, the head of Household and Community Transformation in Ankole Diocese said: “I am 100 percent against taking UCDA to the ministry. Maaif has failed on tea, ranches, farm schools and many others. What reason do they have that they should be given another parastatal?” he wondered.
“UCDA has performed exceptionally well and what reason are they giving that it should be dissolved? unless they are those that have personal interests in this,” he added.
Mr Charles Ssebyala, a coffee farmer and resident of Luweero Town Council, said: “We know that the farmers are now aware of the coffee standards because of the dedicated sensitisation done by UCDA. UCDA has been visible on the ground and in direct contact with the farmer. Our fear is losing track of the coffee standards where UCDA has been scoring.”
Ms Ketra Nakalungi, a coffee farmer and resident of Genda Village, Butuntumula Sub-county in Luweero District, said her worry is the ability of the government to monitor the coffee standards in the absence of an independent agency that has direct links with the farmers.
“We should be talking about the government boosting the UCDA with more staff to help the coffee farmers and not dissolving the agency. I appeal to our leaders to mind about the coffee standards before dissolving UCDA,” she said.
However, Mr Michael J Ssali, a veteran journalist and coffee farmer in Lwengo District, said farmers shouldn’t get worried about the rationalisation of UCDA.
“We grew up seeing our parents growing coffee and were earning good money and this was before independence, but there was no UCDA,” he said.
“Our focus as farmers must be on the crop’s production and observation of the coffee regulations and guidelines as set up by the Ministry of Agriculture. The coffee crop’s value on the international market remains high and our concern should be on sustaining its profitability,” he added.
Mr Esau Barigye, a coffee farmer in Kashumba Sub-county, Isingiro District, said: “We do not know what that Bill and the merger is all about. Our trust is in the government and leaders that it has good intentions. We cannot oppose or support what we do not know”.
Mr Sowedi Sserwadda, the chairperson of Kibinge Coffee Cooperative Society Limited in Bukomansimbi District, said UCDA has done tremendous work enforcing coffee regulations, which has resulted in increased prices of the crop across the board.
“It is common knowledge that when the functions of UCDA are transferred to the mother ministry, it will affect coffee production and quality because the ministry has a lot to deal with,” he added.
Last Thursday tempers flared as Parliament for the second time deferred the debate and final processing of the controversial National Coffee Amendment Bill,2024, which seeks to revert the UCDA to its Ministry of Agriculture.
This did not go down well with legislators from coffee-growing areas such as Bugisu, and Buganda who are strongly opposed to the plan. When several legislators stood in disapproval of the outcome of the voice voting, Speaker Anita Among was forced to call for a head count vote, following rule 101 of Rules of Procedure. A total of 77 voted against the Bill while 159 supported it. The speaker adjourned the House sine dine (indefinitely).
Coffee farmers are seen at a value addition centre in Kyotera District on May 23, 2024. Farmers argue that unlike other government agencies that have been rationalised, UCDA has managed to hit all its targets. PHOTO/MICHAEL KAKUMRIZI
With more people going into production, the coffee roadmap target of producing 20 million 60kg bags by 2030 is likely to be achieved much earlier.
WHAT NEXT FOR BILL
The process
The Bill is already at the committee stage where each clause and any amendments will be debated. After the committee stage, it will go to the third reading, which will offer legislators the last opportunity to debate its contents before it is passed. Following decades of total state control of the sector, the coffee industry was fully liberalised between 1991 and 1992 and is currently entirely in private hands.
However, export quality control remains the responsibility of UCDA that grades and classifies all export shipments. In the first season of this year, Uganda is said to have produced far more bags of coffee than the 6.3 million that were produced in 2023 and earned the country $1.25 billion.
With farmers paying more attention to the crop and more people venturing into coffee production and turning formerly idle land into plantations, UCDA projects that the country could produce more coffee and earn far more money in foreign currency than it did the previous year.
*Compiled by Al –Mahdi Ssenkabirwa, Fred Wambede, Michael J Ssali, Hanifah Nanyanzi, Richard Kyanjo, Dan Wandera, Antonio Kalyango, Rajab Mukombozi & Felix Ainebyoona
