Thursday, February 10, 2011

Uganda: Coffee Sector Can Be Revived - Expert

HE Ugandan coffee industry is facing challenges that range from the coffee wilt disease, declining volumes, climate change and lack of funding, which have contributed to the declining coffee exports. A Uganda Coffee Development Authority (UCDA) board member, Robert Waggwa Nsibirwa, also commonly referred to as the coffee encyclopedia, talked to Macrines Nyapendi about the challenges and what can be done to improve the sector.

Why are the coffee export volumes drastically dropping just after a few years of the massive replanting campaign that saw billions of shillings pumped into the sector?

The continued drop in coffee exports is a much bigger problem than some people think. There are several factors that have severely affected coffee production. These include industrialisation, urbanisation, population explosion and diversionary farming enterprises that have put enormous pressure on land.

Huge chunks of coffee farm land have been lost, thus reducing the land for coffee production. Weather patterns are increasing becoming volatile and unpredictable, with episodes of drought and erratic rainfall occurring with increasing frequency. These have also changed the production cycle.

Uganda has recorded an increase in the frequency of drought, with seven droughts between 1991 and 2000, almost four times more than those logged between 1981 and 1990.

The collapse of international coffee prices between 2000 and 2005 resulted in coffee farmers abandoning their fields in search for other income-generating activities.

This was aggravated by the spread of the coffee wilt disease that wiped out over 50% of coffee trees. Lack of political support and too much politicking has also affected the industry. For the past five years, UCDA has been applying for funding to have the seven lines of wilt resistant coffee multiplied and distributed, but none of the requests received a favorable response.

Nursery operators, who supplied seedlings during the replanting programme 10 years ago, are still demanding about sh1b. There are over 12 million seedlings available but UCDA has no funds to buy them. However, the industry is littered with several initiatives, giving small bursts of efforts.

But these efforts are not supported to create bigger ripples. Uganda, which is among the leading producers of coffee in Africa, does not have a national coffee strategy. UCDA, the regulatory body and development agency, is 'shy' of taking up the leadership role of the industry, yet the commodity's strategic importance necessitates a well coordinated and consistent sector strategy.

Coffee research in Uganda is dysfunctional and in a dire state on all fronts. Administratively, coffee research is a programme under the National Crop Resources Research Institute, competing with so many crops for already stretched resources.

The current state of coffee research cannot respond to industry demands of production, the eminent threats of disease, drought resistant varieties and the future requirements of improved productivity that need to guarantee the competitiveness of Uganda as a coffee producer.

Do you still have the vision of Uganda becoming Africa's largest coffee producer?

It is possible, if the Government improves its participation and funding of coffee activities. If you compare Uganda with other African producers, who have the funds and political support, it is fairing well.

How much is needed to have the seven lines of wilt resistant varieties multiplied?

Production can be stabilised if the Government avails funds to have 200m seedlings planted. The coffee research centre needs an initial boost of $1m because the varieties are already there in the laboratories.

What is the future of the coffee sector?

Good policies and improved funding will secure the sector and give it a competitive edge.

What is your comment on claims that the current system of trade and the way the coffee sector is governed are threatening the long-term social values of coffee farming families?

Coffee production in developing countries like Uganda has become unsustainable due to the low prices. A farmer on average earns about 6% of the finished product price, yet the cost of labour, time and effort spent working on the fields is 10 times higher.

This is due to the tremendous twists in the coffee economy that have evolved from good to worst. In the late 1980s, coffee producing countries earned about $10b to $12b annually from coffee exports, but this figure has now reduced to $5b. Yet the value of coffee retail sales in the consuming countries has risen from $30b to about $80b.

Liberalisation of coffee farming replaced the International Coffee Agreement, which used to regulate the global coffee market, ensuring equitable distribution of profits.

Of late, UCDA has been pushing for value addition. Why is value addition being emphasised amidst diminishing production?

The roasters in the West are reaping abnormal profits and the only way we can stop them from milking the farmers is by sending them a ready or finished product.

This will not only increase the farmers' income but also create jobs. Coffee is very relevant to the rural population because it grants them a stable income. Stakeholders need to get together and respond favorably to the farmers' needs.

Why are you are referred to as the coffee encyclopedia?

I am the president of the Africa Coffee Academy, an institution involved in trading in coffee equipment and machinery, training of coffee professionals, consultancy, and other aspects of the coffee value chain.

I have over 15 years of work experience in the coffee industry and I happen to have facts and statistics off head.

(Source: http://allafrica.com/stories/201102100737.html)

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