Tuesday, 6 August 2013

COFFEE GROWING AS A MEANS TO BREAK THE POVERTY CYCLE IN AFRICA

Background
       By 1914 European and Asian farmers had established 135 plantations of coffee.
       The Coffee Board was set up in 1929, and then Coffee Marketing Board in 1959.
       The colonial government, eager to see the development of a cash –crop economy, divided the country into agro-ecological zones.
       In the 1950s extension workers promoted a coffee-planting program that saw coffee production reach 2 million 60kg bags by the early 1960s and more than 3 million by 1969/1970.
       Historically the colonial government used to enforce coffee production by using chiefs who used to inspect households. As a result coffee was named ‘Kibooko’.
       The subsequent years of civil strife in Uganda between 1972 and 1986 saw economic life stagnate  and coffee production fall back.   
       Prices recovered briefly following the frost which in June 1994 destroyed much of the Brazilian crop for that and the following year. Ugandan production increased in response to the higher prices with exports topping 4 million bags.
       By 1999-2000 and 2000-2001, exports had fallen back to around 3 million bags mark. 
       Currently the share of the farmer on the world price has gone up to between 70 – 75% after the liberalization of the sub-sector. However, government had consistently under funded the coffee sub-sector thereby frustrating the achievement of the 4.5 million bags by the year 2015.

Objectives of the campaign
       To mobilize over 5000 coffee farmers in 5years to plant and manage well established coffee gardens in each of Uganda’s coffee growing communities.
       To establish coffee nurseries within proximity of the beneficiary communities across the country.
       To identify register and train the beneficiary farmers in improved coffee growing management practices countrywide.
       To facilitate the establishment of vibrant coffee farmers producer and marketing associations.
       To distribute over 100.000.000 coffee seedling to beneficiary farmers by 2015.
       To work on the establishment of small wet-processing plants within the coffee communities for value addition and better prices to the farmers.
       To facilitate access to financial intermediaries for inputs and credit services. 

Achievements
       UCDA has been allocated UGx13bn($5m) in the financial year 2013/14 after serious lobbying
       Over 1,200,000 coffee seedlings since 2006 to more than 10,000 households
       13 processing plants have been set up since 2010 in a 15km radius, creating over 400 jobs for youth at the factories alone
       We have formed a parliamentary coffee promotion body. Over 100 MPs have joined the struggle to break the poverty cycle.
       Uganda now produces 3.2m bags and no.1 in Africa followed by Ethiopia.


Challenges
       Funding: For almost a decade funding of UCDA had stagnated at only 1bn shillings($387,000) which is quite little compared to the target of 4.5 million bags by the year 2015.
       Coffee diseases and pests like the Coffee Wilt Disease (CWD) and Coffee rusts, Black Coffee Twig borer.
       Rural-Urban migration;
       Decline in soil fertility.
       Climate change is another challenge.
       Population pressure: For instance in the Arabica areas land under coffee cannot be expanded leaving increase in productivity as the only option to increase coffee production.
       Limited promotional/coffee awareness campaigns in the local market
       Fierce competition for the good graded coffee from exporters, who prefer to sell in the international market than the local market because of better prices.
       Inadequate roasting equipment and packaging materials.
       Lack of financing for the value chain leading to very poor regulation of coffee quality.
       The collapse of primary cooperative societies and unions
       Emergence of middlemen under the privatisation/liberalization policy. These compromised the quality by harvesting green coffee berries.

Opportunities
       Government is fully committed to the coffee campaign with a target of 10m bags by 2018
       Development Partners are focused on the value chain more than ever; e.g. USAID’s “Feed the Future Project” estimated. at $17million 2014-17
       New farmer groups will ensure quality
       Coffee is the only cash crop that has stood the test of time
       Heavy investment in Road infrastructure and a good Rural Electrification program

 By HON. KASAMBA MATHIAS
CHAIRPERSON COMMITTEE OF AGRICULTURE ANIMAL INDUSTRY AND FISHERIES.
PARLIAMENT OF UGANDA

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