Uganda’s coffee sector has achieved a historic milestone, with export earnings reaching an unprecedented $1.4 billion from 6.35 million 60-kg bags in the 2023/24 coffee year, which ended on September 30.
This figure marks a substantial increase from the previous year’s $940.1 million from 6.14 million bags, highlighting a robust trajectory for Uganda’s coffee industry.
However, the growth is accompanied by a contentious debate over the proposed dissolution of the Uganda Coffee Development Authority (UCDA), a regulatory body that has supported Uganda’s coffee industry for over three decades.
The Ugandan government has proposed transferring UCDA’s responsibilities to the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) as part of a larger rationalization effort to streamline government functions and reduce administrative costs.
This proposal, however, has faced staunch opposition from lawmakers and stakeholders in coffee-growing regions, who argue that dismantling UCDA could jeopardize the progress achieved in coffee quality assurance, marketing, and farmer support.
“UCDA has been instrumental in establishing Uganda’s coffee on the global market. Dismantling it could erase years of development and jeopardize smallholder farmers’ incomes,” said Asinasi Nyakato, Woman MP for Hoima City.
Other advocates echo this concern, calling for specialized regulation in line with successful models in other major coffee-producing nations.
“In successful coffee-producing nations, coffee is regulated by specialized agencies. Uganda must adopt this model to avoid regulatory risks,” stated Florence Kabugho, Woman MP for Kasese.
Currently, nearly 75% of Uganda’s coffee exports are destined for European markets, with Italy, Germany, and Belgium as primary importers.
In the 2023/24 coffee year, Italy imported over 1.5 million 60-kg bags of Ugandan coffee, valued at approximately Shs1.4 trillion, while Germany imported about 1 million bags worth Shs950 billion, and Belgium 800,000 bags valued at Shs760 billion.
Meeting EU quality standards—a task expertly managed by UCDA’s quality protocols—is essential to maintaining these lucrative trade relationships.
Uganda’s coffee industry also benefits from strong demand in regional African markets, including Morocco, Sudan, and Kenya.
Morocco imported around 400,000 bags valued at Shs360 billion, while Sudan and Kenya collectively purchased nearly 300,000 bags, worth around Shs270 billion.
UCDA’s rigorous quality standards have been vital in establishing Uganda’s reputation across these markets.
The coffee sector’s impressive earnings this year also reflect UCDA’s efforts in supporting farmers through monitoring and evaluation visits across coffee-growing regions. As part of a UNDP-supported project, UCDA organized 14 radio talk shows to promote best practices in coffee management and raise awareness of the European Union Deforestation Regulation (EUDR), a policy impacting coffee exports to the EU.
However, with global coffee production expected to rise by around 7.1 million bags in 2024/25 due to output recoveries in Brazil and Indonesia, Uganda faces increased competition.
Analysts warn that Uganda’s competitive edge could be at risk if UCDA’s regulatory role is transferred to MAAIF.
UCDA’s contributions, which have helped Uganda’s coffee industry grow to account for over 15% of the country’s export earnings, include rigorous quality assurance, farmer training, and strategic market promotion.
As the debate over UCDA’s future continues, stakeholders and policymakers are urged to weigh the potential risks to Uganda’s reputation and gains in the global coffee sector.