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Cyb2011 12.Pdf yearyear bookbook 2011/122011/12 As the Nile finds its way to the north, it creates some marvelous waterfalls and later streams that water the coffee grown in Uganda 50th Anniversary Edition Uganda at 50 Years: Milestones of the Century and Strategies for the Future. 50th Anniversary Edition A Uganda Coffee Federation publication 1 2 50th Anniversary Edition 50th Anniversary Edition 3 year book 2011/12 As the Nile finds its way to the north, it creates some marvelous waterfalls and later streams that help nourish and water the coffee grown in Uganda 50th Anniversary Edition Uganda at 50 Years: Milestones of the Century and Strategies for the Future. A Uganda Coffee Federation publication Editor: Betty Namwagala 0414 343 692/8 E: [email protected] Associate Editor: Robert Waggwa Nsibirwa Editorial Team Assistant editors: Samson Emong Helen Mirembe Design &Layout: Ideas Advertising +256 312 109 544 E: [email protected] Publishers: Uganda Coffee Federation 2nd Floor, Coffee House Plot 35 Jinja Road Tel: +256 414 343 692/77 E: [email protected] www.ugandacoffeetrade.com 4 50th Anniversary Edition 50th Anniversary Edition 5 Inside 7. President’s Statement 10. UCDA MD’s Statement 11. Executive Director’s Statement 12. Coffee: A Commodity that has stood the times 19. Coffee’s Contribution To Uganda’s Economic Development Since Independence 26. aBi Trust and Coffee Value Chain Development in Uganda 30. Milestones of the Century in Trade and Marketing Coffee in Uganda and Strategies for the next Century 36 Climate Change From A Farming Perspective 41. Third Uganda Coffee Day 47. Direction Of The Uganda Coffee Industry From The Farmer’s Perspective 51. Technical overview of environmental impact of land application of pulping effluent from wet coffee processing. 56. Production And Processing Problems Of Arabica Coffee Farmers In Eastern Uganda 66. Apendexes 72. What is UCTF 73. Ucf Member Benefits 74. Ucf Member Profile 78. Advertiser’s Index 6 50th Anniversary Edition President’s Statement ganda exported just over 2.7m bags of coffee during the David Barry coffee year 2011-12 split 70% robusta and 30% arabica UCF President Uby volume. This was down about 400k bags from the previous year. Direct export earnings came to a total of $393m of which Arabica coffees contributed 43%. Volumes produced and exported were disappointing as most of us had envisaged total exports a little over the 3.0m bags mark but it seems various weather factors were adequately negative to severely impact the size of the Robusta component of the crops. There were many positive efforts made in the industry by Uganda Coffee Development Authority and the private sector assisted by the Government of Uganda, Non-Governmental Organisations and Donors. These multiple efforts combined with relatively decent prices seem to have rekindled small holder and medium sized farmer’s enthusiasm for coffee growing. The UCDA report indicated that about 17million shade and coffee tree seedlings were planted during the year which is highly significant. About half of the 44 registered exporters in the country each exported more than 1% of total country exports with the top 10 exporters responsible for around 80% of exports. Uganda coffee was directly exported to 37 countries outside of the enlarged EU which accounted for 67.5% of the total. Sudan remains a key destination for Uganda coffees taking over 400,000 bags during the year whilst the USA absorbed about 100,000 bags. Uganda is following the international trend to certify more of its coffee. Coffee exporters and farmer organisations expanded their sustainable projects. Mr. Robert Waggwa Nsibirwa of the African Coffee Academy who was elected the chairman of the 4C association has brought to the table the issue of low coffee productivity, a topic largely overlooked by the certification standards but understood by everyone actually working with smallholder farmers. One of the key features of the international market last year was the pronounced blend, changing from Arabicas to Robustas which took place in many markets. Price has been one of the One of the key features of the international market last key drivers of this development as it is increasingly clear that year was the pronounced blend, changing from Arabicas to economically hard-pressed consumers have not stopped drinking Robustas which took place in many markets. coffee but have rather switched to cheaper blends. The resulting fall in Arabica prices and differentials has been tough on Ugandan Arabica farmers and dealers but the adjustments have been made COFFEE FUTURES MARKETS PRICES (Oct 11 - Sep 12) and the business model remains intact and profitable. 250.00 200.00 Most of the people we speak to seem optimistic about the prospects 150.00 for coffee production in Uganda and it seems increasingly evident US CTS / LB CTS US 100.00 that the focus on coffee over the last few years is starting to pay 50.00 dividends. We are optimistic about volumes in the coming coffee - year; and with decent enough prices and satisfactory weather we can look forward to both improving volumes and excellent ROBUSTA - LIFFE ARABICA - ICE ARBITRAGE qualities across the range of coffees produced. 50th Anniversary Edition 7 8 50th Anniversary Edition Structured commodity trade Are you a trader or exporter of products produced or processed in Uganda? Stanbic Bank provides tailor made trade finance solutions to meet your specific needs. Richard Wangwe Head, Agriculture Uganda We offer structured trade and commodity finance: Warehouse Receipt Financing Trade Finance Export Facility To facilitate procurement and bulking of commodities To finance the purchase of coffee produced in the for export or sold locally. current season by pre-financing firm fixed price, fixed quantity off take contracts entered into with Pre and Post Season Agricultural Commodity international buyers. Stanbic Bank advances financing Financing Facility to buy coffee from buying companies for export. Facility to finance the purchase, processing, packaging and exportation of commodities for The above can either be self liquidating international export. collateral managed or financed against fixed assets Collateral Managed Agricultural Commodity Our Structured commodity trade finance solutions Warehousing Facility ensure faster payments from international buyers in Collateral managed facility to finance the import addition to providing customized financial solutions to of cereals and grains, that will be released against meet your cash flows needs. payment by the client for the purpose of milling and subsequent distribution to local markets. Trade Finance Coffee Procurement Facility For procurement of processed coffee produced by local farmers, for on-sale to international buyers. Contacts us at: Stanbic Bank - Agriculture Financing 9th Floor, Short Tower, 17 Hannington Road, Crested Towers Building. P O Box 7131 Kampala. Tel +256 417 154 000/446/210 Stanbic Bank Uganda Limited A financial institution regulated by Bank of Uganda License Number A1. 01350th Anniversary Edition 9 UCDA MD’s Statement wish to congratulate all the coffee stakeholders upon completion Henry Ngabirano of the 2011/12 coffee year. The year was characterized by reduced MANAGING DIRECTOR, UCDA I coffee volumes compared to 2010/2011 due to weather related factors, pests and diseases and price fluctuations. As a result, coffee exports for the year were down by 13.4% and 12.5 % in volume and value respectively. Coffee continues to play a vital role in Uganda’s economy contributing to about 20-30% of the foreign exchange earnings and employing over 3.5 million households. Due to its importance the Government of Uganda has always taken coffee as a priority export crop and it has featured in its many programs such as: Prosperity for All Programme (PFA); National Export Strategy (NES); Plan for Modernization of Agriculture (PMA) and National Agricultural Advisory Services (NAADS), among others. In order to increase production, the Government through UCDA, has increased the momentum in coffee replanting and rehabilitation programme, through mass production of Coffee Wilt Disease Resistant planting materials using tissue culture and this is aimed at increasing coffee production and productivity. Support has also been given to the coffee scientists to do more research given that many challenges are foreseen as a result of climate change. With this, it is envisaged that by 2015 coffee exports will have increased to 4.5 million bags from the current annual average of 3 million bags. The International Coffee Organization (ICO) predicts that, coffee production for the coming year will increase at an estimated volume of 144.1 million bags an increase of 7.2% compared to 134.4 million bags in 2011/12. Global coffee consumption is increasing steadily at 2.4% per annum. There is a growing demand for sustainable coffees in consuming countries and therefore this is an opportunity that we need to exploit. Value addition at all levels of the coffee value chain is being promoted through wet processing in both Arabica and Robusta coffees, a practice that has improved on the quality and incomes of the farmers. UCDA will continue to ensure that quality standards are adhered through enforcement of Coffee Regulations. His Excellence the President has come out strongly to emphasize the importance of maintaining high quality Ugandan Coffee while the Police and Local Authorities have allied with UCDA to enforce it. On behalf of UCDA Board, Management and Staff I wish
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