Kampala — Uganda's coffee farmers reaped record export earnings, totaling over US$ $1.4 billion from the sale of 6.35 million 60-kg bags during the 2023/24 coffee year ending September 30.
This marks a substantial increase from the previous year, which saw 6.14 million 60-kg bags exported, valued at US$ $940.1 million. However, the sector faces an impasse over the proposed dissolution of the Uganda Coffee Development Authority (UCDA), a regulatory body that has supported the industry for over three decades.
The UCDA's potential dissolution and integration into the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) has sparked widespread debate countrywide, drawing criticism from stakeholders, particularly from coffee-growing regions.
UCDA behind coffee success
The UCDA, established by an Act of Parliament in 1991, is credited for driving Uganda's coffee industry growth through quality regulation, value chain development, and export facilitation.
Members of Parliament, particularly from regions dependent on coffee farming, argue that the dissolution of UCDA would dismantle critical support systems, hampering the progress achieved over the years.
Dr. Abed Bwanika, a Member of Parliament from the Kimaanya-Kabonera Constituency in Masaka District, argues that UCDA has been a pillar of stability in the sector, noting, "Dismantling it would undermine the coffee industry's progress."
"We recommend that rationalization of UCDA, if done, should be with a transition period of five years to allow establishment of systems, structures and personnel that meet the requirements of quality control and accreditations," Dr. Abed Bwanika said recently while presenting a minority report to Parliament. "The bill should be amended to require a statutory instrument by parliament to effect its commencement."
Several members of parliament, including Asinasi Nyakato (Hoima City Woman MP), Florence Kabugho (Kasese Woman MP), Stella Isodo (Ngora Woman MP), John Paul Lukwago (Kyotera County), and Charles Matovu (Busiro South), have also in their minority report opposed the rationalization, advocating for a specialized agency to manage coffee, akin to practices in successful coffee-producing countries like Brazil, Vietnam, and Colombia.
"In successful coffee-producing nations, coffee is regulated by specialized agencies. Uganda must adopt this model to avoid regulatory risks," Nyakato said.
Michael Lulume Bayiga (MP,Buikwe South) cautionS against losing the entity's accreditation, which he claimS could take five to ten years to regain, as Aisha Kabanda (Butambala District Woman MP) criticizes the government for proposing to abolish UCDA, emphasizing its historical role in supporting coffee farmers.
Similarly, Brenda Nabukenya (Luweero Woman MP) highlighted the importance of maintaining UCDA's standards for coffee quality as the Leader of Opposition in Parliament; Joel Ssenyonyi, reiterated the need to consult constituents, arguing that the Bill affects the livelihoods of 12 million coffee growers.
With UCDA's stewardship, Uganda's coffee export volume has grown steadily, fueled by initiatives such as distribution of coffee seedlings and training farmers in best practices.
The authority also enables Uganda to meet international standards. Indeed, the authority is at the moment working round the clock to ensure that Uganda aligns with the European Union's new regulations on deforestation-free coffee set to take effect next year.
Many who are in support of UCDA remaining an autonomous agency of government argue that the specialized oversight UCDA could ensure Uganda's exports remain competitive amid these international regulatory measures.
Genesis of UCDA's stalemate
The government's decision to consider merging UCDA's operations with MAAIF is part of a broader rationalization initiative aimed at streamlining government agencies to reduce the cost of running ministries, departments and agencies.
Parliament has since passed a legislation to merge the Cotton Development Organisation (CDO), Dairy Development Authority (DDA), and National Agricultural Advisory Services (NAADS) into the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF).
This merger adds to the Uganda Trypanosomiasis Control Council (UTCC) and the Agricultural Chemicals Board (ACB), both of which have already been incorporated into their parent ministry.
As of September this year, nearly 20 agencies had been rationalized since the beginning of the Fiscal Year (FY) 2024/2025. For example, within the Ministry of Gender, Labour, and Social Development (MGLSD), various councils--including the National Youth Council, National Women Council, National Children's Authority, National Council for Disability, and National Council for Older Persons--are set to be merged into a single secretariat.
The Uganda Warehouse Receipts System Authority has been integrated into the Ministry of Trade, Industry, and Cooperatives. A similar fate has befallen Uganda Free Zones Authority and the National Physical Planning Board, which have been consolidated and returned to the National Planning Authority (NPA) under the Ministry of Finance, Planning and Economic Development. Interestingly, NPA will also absorb two additional organizations: the National Population Council and the National Physical Planning Board.
The Uganda National Meteorological Authority (UNMA) has transitioned into a department under the Ministry of Water and Environment. The Higher Education Students Financing Board (HESFB), the National Library of Uganda, and the Uganda National Commission for UNESCO have all been restructured to become part of the Ministry of Education and Sports. In addition, under the Ministry of Tourism, Wildlife, and Antiquities, the Uganda Wildlife Education Centre (UWEC) has been merged with the Uganda Wildlife Authority (UWA), among other integrations.
However, the proposal to send UCDA into MAAIF has met strong opposition, with key stakeholders saying it has a strategic importance to the East African nation. Kasanda NorthMP, Patrick Nsamba, has called for a cautious approach.
"The agriculture ministry has already struggled with managing the growth of sub-sectors, such as tea and cotton. Adding coffee to this list will further destabilize the industry and potentially deprive farmers of their livelihoods," he told local broadcaster, NTV, during an interview on Oct.24.
Currently, tea and cotton sub-sectors are on their deathbed as tea farmers especially in Tooro sub-region have abandoned tea growing in favour of other crops, such as maize and beans, due to the persistent drop in prices of the beverage on the international market.
Cotton, once a source of income especially in northern and eastern Uganda where growers aspired to outcompete each other in the acreage covered and income earned, could soon become a crop of the past because of pests and diseases and changes in climatic conditions coupled with limited government support.
"So, let the government learn from the rationalization of cotton, Dairy and NAADS first then head to coffee," Nsamba said. However, State Minister for Animal Industry, Rtd Col Bright Rwamirama told Parliament on Oct.24 the government does not intend to abolish UCDA. However, its mandate will be executed through one of the ministry's departments.
"The authorized agency we're talking about right now derives its authority from the government," he said. "I want to say that the ministry of agriculture is not in the intensive care unit. If it was in the intensive care unit, it would not produce children."
Export markets and competing demands
Uganda exports the bulk of its coffee to Italy, Germany, Belgium, and other European markets, which account for nearly three-quarters of Uganda's coffee exports. With Europe remaining Uganda's primary market, meeting EU requirements is paramount for local producers.
The push for "deforestation-free" certification is particularly relevant, as Uganda's coffee production frequently intersects with natural forest regions. In response, UCDA has initiated programs to support sustainable farming practices, which stakeholders fear may falter if integrated into a broader agriculture department.
Other key African markets, such as Morocco, Sudan, and Kenya, also rely on UCDA's quality assurance protocols, which ensure Ugandan coffee's high reputation. With global coffee production projected to increase by 7.1 million bags in 2024/25 due to recovery in Brazil and Indonesia, maintaining Uganda's competitive edge is crucial. Analysts warn that transferring UCDA's functions to MAAIF could lead to lapses in quality control, risking the country's reputation and revenue in the competitive global market.
Heated debate and political undercurrents
The debate over the National Coffee (Amendment) Bill, 2024, which proposes UCDA's dissolution, has ignited tensions including in Parliament.
The decision to advance the Bill, which awaits a clause-by-clause review, has polarized members of parliament along regional lines. MP'S representing coffee-growing regions have strongly opposed the dissolution, while those from other areas largely supported it. Speaker Anita Among has faced criticism for pushing the Bill forward despite objections from opposition members and representatives from coffee-growing constituencies.
"I urge Baganda (and other Ugandans) to continue growing coffee: your livelihood is more important than the motives of present day politicians," said Buganda Kingdom Premier, Peter Mayiga, a day after Parliament voted to advance the National Coffee (Amendment) Bill, 2024.
He said the Kingdom of Buganda has severally advised against scrapping UCDA since it superintends coffee production, upon which nearly two million Ugandan households depend.
"Apparently, scrapping UCDA is a punishment against Baganda, who contribute nearly 50% of coffee exports, since Speaker Anita Among (and those who support scrapping UCDA) see the Amendment Bill as a victory against Baganda," he added in reference to a controversial video that captured the tension before the vote in parliament.
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In the video, Speaker Among is heard urging Denis Hamson Obua, the NRM Chief Whip in Parliament, to prevent the MPs from Buganda from blocking the proposal, which many interpret as antagonistic toward the Baganda.
In a post on X, Mayiga expressed his bewilderment at how and why bringing this authority under the Ministry is viewed as a success against Buganda, a region that has most of its members of parliament in the opposition, specifically the National Unity Platform (NUP).
Looking ahead
However, Minister of State for Agriculture, Rtd. Col. Bright Rwamirama, said the rationalization plan is designed to benefit the sector in the long term.
"Given the tensions surrounding UCDA's rationalization, the government has granted a three-year transition period. This will provide time for stakeholders to understand that the same government that supported UCDA aims to empower farmers to earn more," Rwamirama noted. The coffee stakeholders remain skeptical.
The outcome of the National Coffee (Amendment) Bill,2024, will shape the future of Uganda's coffee industry, impacting the livelihoods of millions of households. Uganda's coffee farmers are now caught in the crossfire, uncertain of whether the sector will continue to benefit from a dedicated regulatory body.
With the global coffee market set to expand, Uganda's place in the industry may depend on the government's ability to balance cost-saving measures with the need for specialized oversight.
Dr. Ian Clarke, the proprietor of Clarke Farm in Kyenjojo District, said the government's decision to return the Uganda Coffee Development Authority (UCDA) to the Ministry of Agriculture may stem from a desire to enhance value addition for the crop before export, aligning with President Museveni's vision.
However, this decision does not clearly connect how reassigning UCDA to its mother ministry as a department will effectively achieve that goal. For now, Uganda's coffee farmers and exporters will likely continue reaping the benefits of increased production and exports. However, as the coffee farmers await Parliament's final decision, the stakes remain high for Uganda's most valuable export commodity.
