Kampala — The establishment of the Beijing Chenao Coffee Company Limited (BCCCL) could not have come at a better time for Uganda's coffee industry.

The agreement that was signed was indeed a milestone for Uganda's coffee sector and the entire country. It meant that for the first time in the industry's history, Ugandan coffee would be marketed as its own brand, Crane coffee, and not as a blend of other coffees.

But most importantly, it also paved way for Uganda to realise its first export to China, which is one of the country's leading trading partners in imported machinery, equipment and textiles.

"The joint venture opened a new chapter in trade relations between Uganda and China. For many years, the two countries have had close ties in matters of trade. But this is the first time a joint venture that brings a value added product to the market has been set up," according to a UCDA report. UCDA is the industry regulator.

It is anticipated that the export of coffee to China will not only benefit the coffee sector, but will also open a window of opportunity for other exportable goods from Uganda, like fish, horticultural products and others, which will help increase mutual trade between the two.

"The China market offers great opportunity for promotion of Ugandan coffee because it has the fastest consumption growth rates and it is the seventh largest economy in the world with high population estimated at 1.3 billion people," UCDA states.

"China also has a GDP of 1.1 trillion, at a steady growth rate of 7.8% per annum, has foreign trade value of $474.3b per year and a solid tourism sector generating $25b per year."

Under the Sino-foreign equity joint venture law, the Beijing North Star industrial (BNSIUG) group and UCDA agreed to establish a joint venture to promote Uganda coffee in China in January.

This led to the establishment of the Beijing Chenao Coffee Company Limited., officially launched in April last year the company was established with a share capital of $300,000 with UCDA owning 51% and BNSIUG 49%.

In order to ensure that the joint venture project is successful, UCDA has been supporting several programs at the production, processing and marketing levels of the coffee chain.

Under the replanting programme, old trees and those that have been destroyed by coffee wilt disease are being replaced so that production levels are maintained on a sustainable basis.

Also, considering the current over supply in the market, quality coffee will be the key to success in the global market. Especially with higher world prices.

"Under the UCDA quality program, the idea to revamp the pulped and washed robustas is being implemented. UCDA had been working with private farmers and several projects in the production of wet processed coffees," it states.