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UCDA CALL CENTRE FREQUENTLY ASKED QUESTIONS (FAQS) Toll Free Line: 0800 35 35 30
www.ugandacoffee.go.ug
UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS) a
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TABLE OF CONTENTS OVERVIEW
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LOCATION
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PRODUCTION – PLANTING AND PLANTING MATERIALS
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PRODUCTION – YIELDS
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EXPORT AND VALUE ADDITION
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MARKETING AND COFFEE PRICES
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COFFEE PROFILES AND QUALITY
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS) 1
FREQUENTLY ASKED QUESTIONS FOR THE CALL CENTRE AGENTS OVERVIEW The UCDA Call Centre started operations in 2020. A Toll free line 0800353530 was procured from Airtel and installed at Technobrain Offices on 4th Floor, Statistics House. It is expected to inform clients about its services and also receive feedback from them. Outsourcing this important activity to Techno Brain which has vast experience in Call Centre Operations including regional presence gives us confidence in its ability to deliver. The Call Centre is manned by two agents who work from 8am to 5pm from Monday to Friday. During the off
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
hours, the system captures the callers’ numbers and the agents call them back at the earliest possible time. The agents have been trained to provide necessary information to callers. They have also been with equipped coffee handbooks (soft and hard copies) and other relevant material to guide them including lists of extension staff in the regions, of certified nurseries and so on. In the event that they are unable to handle a particular issue they have a list of Subject Matter Specialists to whom they escalate the issue. Subject Matter Specialists have been advised to respond in real time for the Call Centre to be effective.
LOCATION 1. Where is Uganda Coffee Development Authority located? The head office is at Plot 35 Jinja Road. UCDA also has an office at Uganda Manufacturer’s Association Grounds in Lugogo which houses a laboratory. There are also regional offices in Gulu, Mbale, Iganga, Mukono, Masaka, Bushenyi, Kasese and Fort Portal.
Gulu
UGANDA Mbale
Fort Portal Masaka
Iganga
Gulu
Mukono Kasese
Bushenyi
UCDA Lab, Logog0, Kampala UCDA Head Office, Plot 35 Jinja Road, Kampala
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PRODUCTION – PLANTING AND PLANTING MATERIALS 2. What coffee varieties can I grow? Depending on the location of the land, one can grow Robusta or Arabica. Robusta grows in low altitude areas such as Central, Eastern, Mid North, West Nile, Western and South Western Uganda within 900-1200 metres above sea level. Arabica is grown in the highland areas on the slopes of Mount Elgon in the East, Mt Rwenzori in the West, Mt Muhabura in the South Western region, Okoro highlands in West Nile plus other highland areas at an altitude between 1,200 and 2,500 metres aove sea level. Note: Robusta exports are about 80% of total coffee exports and Arabica coffee 20%.
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
3. Where can I get coffee planting materials or coffee seedlings? Coffee planting materials can be got from UCDA certified nurseries in the different districts. Find out from the caller where they are located, take down their details (name and number). Establish which certified nurseries exist in the caller’s area and call him/her back with the information. 4. When can I plant coffee? There are two coffee planting seasons in a year – March to May and September to November.
5. What other crops can I plant with my coffee? • Bananas – for shade • Cover crops such as the leguminous plants (cow peas and beans) to retain moisture in and add nutrients to the soil. • Various shade trees 6. Where can I get nursery coffee polythene packages? These can be obtained from private sellers around the country. 7. What fertilizer is best for coffee? It is recommended that a farmer carries out a soil test to know the nutrient status of his farm which will guide the amount of fertilizer to be applied. However, coffee requires fertilizers at different stages. NPK 17:17:17 or NPK 15:15:15 under compound blend can give good results. 8. How much does UCDA buy elite seedlings from certified nurseries? Following guidelines from the Ministry of Finance, Planning and Economic Development, Government is not buying seedlings at this time.
However, farmers may purchase seedlings from UCDA-certified nurseries. 9. What are the best quality coffee seeds to grow? For Robusta it is now recommended to plant Coffee wilt disease resistant (CWDR) clones which can be obtained from certified nurseries around the country. For Arabica, obtain vigorous seedlings from certified nurseries in the Arabica growing areas. 10. How can I control pests and diseases on my farm? Probe for more information: • What pest/disease is on the farm? • When was it discovered? • How many plants have been affected? • Have neighbouring farms been similarly affected? After determining what pest or disease it is, refer to the Arabica and Robusta coffee handbooks at: https:// ugandacoffee.go.ug/manuals. If the caller is not sure, take down his/her details and escalate the query to the subject matter specialist from the Directorate of Development Services.
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PRODUCTION – YIELDS 11. How much coffee can I harvest from one acre of land? a. Under traditional management (no inputs at all), a farmer harvests on average 247 kg of FAQ/ 346 kg of Kiboko (dried Robusta) per acre. b. Under good management, a farmer harvests 2,250 kg Kiboko/ 1,350 kg FAQ per acre for Robusta
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
c. For Arabica, under good management, 960 kg of parchment/ 770 kg of green beans is harvested per acre. Under poor management, the yield is 320 kg parchment/ 260 kg of green beans per acre. 12. How much coffee will each tree give me? Each tree will yield between 0.55 -2kg FAQ per tree for Robusta and 0.3- 1.5 kg green beans per tree.
EXPORT AND VALUE ADDITION 13. What value addition can farmers do so as to have better pay? • Ensure you use good quality seedlings/cuttings. • Practice good agricultural practices – water the plants especially during the dry season, mulch to retain moisture in the soil, apply manure and/ or manure, only harvest red ripe cherries, dry coffee on a clean surface (tarpaulin, raised beds, cemented floors, etc.), ensure you dry coffee to 14%
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moisture content, store the dried coffee in a clean place Process the coffee to kase (green bean) stage Roast and grind coffee
14. How can I become an exporter? Click on the Uganda Trade Portal link on www. ugandacoffee.go.ug for instructions on becoming an exporter and take the caller through the process.
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15. Which country or countries import Uganda coffee? Uganda coffee is exported to several countries around the world including the European Union, Sudan, United States of America (USA), Switzerland, Morocco, Egypt, Greece, Spain, Turkey, Kenya, South Africa, India, China, Russia, Japan, South Korea, Vietnam, Singapore, Australia and Mexico (www.ugandacoffee.go.ug/ Resources/Monthly_reports. 16. What is the current quantity of imported coffee? This information can be obtained from URA on request. 17. What is the current level of coffee exports (both quantity and value)? For the past five years, Uganda has exported an average of 4 million 60 kg bags valued at an average of US$ 435 million. Last Financial Year 2019/20, Uganda exported 5.1 million 60 kg bags worth US$ 415.13 million the previous year. 18. What is the percentage of coffee exports value to total goods exports value (fob)? Coffee exports contributes to about 15% of Uganda’s
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
goods export earnings (fob). 19. What is the current level of exports to the Far East (China, Singapore, Taiwan, Hong-Kong, Korea, Japan, Australia and New Zealand)? The export market to the Far East is growing. This is due to the increased promotion of Uganda coffee in these countries. 20. Who buys Uganda coffee? Sixty percent of Uganda’s coffee is bought by the top 10 buyers namely Sucafina, Olam International, Volcafe, Altasheel, Bernhard Rothfos, Ecom, Agro Industrial, Coex Coffee International, Strauss Commodities, Hamburg Coffee, Louis Dreyfus, Icona Cafe. 21. Where can I buy a machine for roasting coffee? Coffee Equipment and Services Ltd., 7th Street Industrial Area 22. What has the Government done to promote exporting of processed coffee? Government, through UCDA, has developed a new Coffee Strategy which hinges on quality
improvement and value addition on top of penetrating in traditional and emerging markets in line with the National Development Plan III that hinges on agro-industrialization. The Coffee Strategy has 6 strategic objectives namely: • Increase Coffee production and productivity; • Modernise post-harvest handling and storage; • Increase coffee processing and value addition; • Increase consumption of Ugandan coffee and its products, locally and internationally; • Strengthen legal, regulatory framework and institutional capacities for an enhanced coordinated delivery of targeted results; and • Increase mobilisation & access to Agricultural Finance.
In regard to Strategic Objective (iv), UCDA partners with the private sector to showcase Uganda coffee in international exhibitions and Trade Fairs. On the 6th Strategic objective, incentives such as concessions on funding by Uganda Development Bank, Bank of Uganda Agricultural Credit Facility (ACF) and Microfinance Support Centre, will be made. This will ensure access to funds by SMEs involved in coffee processing and exporting.
For the 3rd Strategic Objective, emphasis will be on 1) Training and sensitization of actors on good post-harvest handling practices and technologies 2) Investments in modern coffee drying technologies and practices, 3) Investments in modern storage facilities and promotion of improved storage practices, 4) Establishing new and upgrading existing national and regional laboratories for coffee assessments.
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MARKETING AND COFFEE PRICES 23. Where can I sell my coffee? If you are a farmer you can take your coffee to the primary processing factories(hullers), there are always buyers waiting at the factory or you may take to a buying store in your area. If you are a trader, you can establish contact with exporters and sell to them (refer to list of current coffee exporters).
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
24. How can I market my coffee? If you are a farmer, it is better to belong to a farmer group and sell in bulk. You will be able to negotiate for a better price when you are in an organized group. 25. Where can I get market information on the coffee sector locally and globally? UCDA disseminates market reports on a daily basis showing how both the London (Robusta) market and
the New York (Arabica) market performed and also the price trend for the local market. 26. How do farmers and other stakeholders receive the information? This information is disseminated via e-mail, the UCDA website at www.ugandacoffee.go.ug, social media and SMS. UCDA also produces a monthly report that is shared using the same channels. 27. Why doesn’t Government set minimum producer prices for coffee as it used to do in the past? The coffee sector is a liberalized one where there is free entry and exit into the coffee business. Therefore, prices are determined by the forces of demand and supply. 28. Are coffee farmers better off now than they were before liberalization? Yes, coffee farmers now get 60%-70% of the export price unlike before liberalization where they used to get 20%. Secondly, coffee farmers now get paid promptly and can sell their coffee at their own convenience unlike before when they would sell under their respective cooperatives and would wait for a long time to be paid.
29. Which country takes the highest market share? As a bloc the EU countries take the biggest percentage of Uganda’s coffee (about 70%). In Africa, Sudan takes the biggest percentage of about 12% and it is the second importer of Uganda’s coffee after EU. The EU countries include Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. 30. What is the market share of sustainable/ specialty coffees compared to conventional coffee? In the Coffee Year 2019/20 sustainable coffees had a market share of 4% of total exports and 7% of total export value. 31. How can Government help farmers to add value to their coffee? Government is doing a lot to ensure coffee farmers and other stakeholder realise value addition including: •
Provision of the right planting materials
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Provision of inputs e.g. fertilizers Provision of wet mills and motorized pulpers to able farmers and organizations Joint venture in China which has stimulated demand for Uganda coffee Provision of financial assistance to farmer cooperatives involved in certified/sustainable coffees Tax waiver on packaging materials
32. How is coffee marketed internationally? UCDA, in partnership with coffee exporters and producers, markets coffee at international exhibitions annually. UCDA supports its stakeholders to exhibit their coffee and meet with potential buyers at the various exhibitions in Europe, the United States of America, China, South Korea and Japan. Coffee is also marketed internationally in two major markets, the London International Financial Futures and Options Exchange (LIFFE) in UK for Robusta and New York Intercontinental Exchange (ICE) for Arabica. This was formerly called the Coffee Sugar Cocoa Exchange (CSCE). There are several commodity exchanges such
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
as in Brazil, Germany, France, Singapore where coffee is also traded. The coffee trading is guided by the International Coffee Agreement (ICA 2007). 33. What is the position of Uganda in Global Coffee Production? Uganda is ranked 8th in global coffee production and the second after Ethiopia in Africa. It contributes about 2.5% of total world production (https://farrerscoffee. co.uk/top-10-coffee-producing-countries-around-theworld/). 34. Does Uganda have an auction system? If not, which type of system does Uganda use? Uganda does not have an auction system. Coffee is sold directly by individual exporters to individual buyers who are guided by the New York Intercontinental Exchange (ICE) for Arabica and the London International Financial Futures and Options Exchange (Robusta) while negotiating the price of the coffee being bought or sold. This is referred to as the Direct Sales Mode. The international coffee transactions are guided by the European Delivery Coffee Contract (EDCC) which stipulates clearly the country and place
of arbitration in case of any breach of contract of either the exporter or the buyer. 35. What are the prices of coffee? The prices for coffee are posted on the UCDA website daily. Go to: www.ugandacoffee.go.ug. 36. Why are farm gate prices very low this year (2020)? Farm gate prices are currently low due to low global prices which dictate the movement of prices at the local level. Global prices are low due to an expected global supply surplus resulting from increased production from major world producers like Brazil and Vietnam on one hand and reduced demand due to COVID-19 pandemic. 37. Coffee prices are affected by both fundamental and technical factors. What are they and how do they affect the global coffee market? Fundamental factors are those related to supply and demand for coffee directly i.e. production, exports, stocks (both opening and closing stocks) and consumption.
Technical factors are those which rely on analysts who use a number of derivatives to ascertain where the markets would be heading-whether downwards or upwards. They normally use time series analysis (moving averages (MA), Relative Strength Index (RSI) and Over the Counter (OVC) to ascertain whether the market is oversold, undersold or normal. This assists the speculators to decide whether to invest in coffee or other commodities. Their decision has a bearing on the global pricing of commodities (coffee inclusive). 38. What are futures and options in coffee trading? How are they used in the coffee market? Coffee futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of coffee (eg. 10 tonnes) at a predetermined price on a future delivery date. Coffee options are option contracts in which the underlying asset is a coffee futures contract. The holder of a coffee option possesses the right (but not the obligation) to assume a long position (in the case of a call option) or a short position (in the case of a put
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option) in the underlying coffee futures at the strike price. This right will cease to exist when the option expires after market close on expiration date. Consumers and producers of coffee can manage coffee price risk by purchasing and selling coffee futures. Coffee producers can employ a short hedge to lock in a selling price for the coffee they produce while businesses that require coffee can utilize a long hedge to secure a purchase price for the commodity they need. Coffee futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable coffee price movement. Speculators buy coffee futures when they believe that coffee prices will go up. Conversely, they will sell coffee futures when they think that coffee prices will fall. 39. Where can I buy green coffee beans (kase/ hulled coffee)? You can buy coffee from farmers mainly at primary processing factory (huller) or if you are a trader you may wish to set up a buying store where farmers who store hulled coffee/Kase can always come to sell to you.
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
COFFEE PROFILES AND QUALITY 40. What are the quality characteristics of Ugandan coffee? Uganda grows two types of coffee (Arabica and Location
Altitude
Kasese
1,734m (5,692ft) 01º11´N 30º05´E
Rukungiri 1,585m(5,203ft)
Location
00º47´N 29º56´E
Robusta). These two types have distinct characteristics that separate them as shown below:
Type/Variety
Processing method
Analysis results
Arabica/SL14
Natural
• Fragrance& Aroma: Chocolate, caramel and fruity • Flavour: Lemon, Caramel & Winey • Acidity: Phosphoric
Arabica/SL14
Natural
• Fragrance& Aroma: Caramel& Fruity • Flavour: Complex with lemon and vegetable taste
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Location
Altitude
Location
Type/Variety
Processing method
Analysis results
Kisoro
2,335m(7,729ft)
01º17´S 29º41´E
Arabica/SL14
Natural
• Fragrance& Aroma: Caramel, Fruity & Nutty • Flavour: Salty, lemon, buttery & cedar • Acidity: Medium and well balanced
Bushenyi 1,569m(5,150ft)
00º32´S 30º11´E
Robusta/Nganda Natural &Erecta
Uganda Arabica Coffee profile- Moderate to heavy body with lots of citrus, chocolate and moderate acidity. Uganda Robusta Coffee Profile – • Washed Robusta: mild, olives, cinnamon, milk, chocolate • Robusta Naturals: fruity, dark chocolate, molasses, anise, cinnamon • Wild Naturals Robusta: blueberry, honey, spicy, cocoa, nutmeg, aromas, and flavors
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
• • • • •
Fragrance& Aroma: Caramel & spicy Flavour: Chocolate, caramel & buttery Body: Heavy Acid/salt: Low salt High acid Bitter/sweet balance: Low bitter high sweet
41. What are the grades that Uganda exports? Uganda exports various grades as shown in the table below: Arabica Grades
Robusta Grades
Washed
Natural
Washed
Natural
AA
Drugar
Washed Robusta
Screen 18
A+
Triage
Screen 17
A
Screen 15
B
Screen 14
AB
Screen 13
Arabica Grades
Robusta Grades
PB
Screen 12
C
BHP* 1199
UG
BHP 10:13
At farm level – Training of farmers in good agricultural practices to ensure good yields with high outturn • Training in good post-harvest practices i.e. selective picking, drying off the ground, storage in clean stores.
Triage Wugar Specialty Arabicas
Fine Robustas
*BHP – Broken and hand picked (Under-grades)
42. How does UCDA carry out quality assurance in Uganda? UCDA is mandated to ensure that the quality of coffee produced in Uganda meets the national and international standards. At nursery level – UCDA ensures that planting materials with the following attributes are distributed to farmers for planting: • Clean and free from pests and diseases • High yielding lines • Pest and disease resistant • Big screen size and high quality liquor
At primary processor level – Training processors, test running the hulleries, approving and registering only the approved factories. • Ensuring that the coffee cherry (kiboko) is below Moisture Content 14% at the point of hulling. • Ensuring that the stores are well constructed in well drained locations, well ventilated, well roofed and only store coffee. • Making sure that the factories are fitted with dust chambers to store all rubbish from coffee. • UCDA registers all coffee processing factories and stores annually after they have met all the procedures. At Exporter level – UCDA trains all quality controllers in exporters’ factories on physical grading, defect identification, coffee roasting, cup tasting and export procedures.
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•
•
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The exporters’ factories are inspected, test run and registered annually. Exporters register all their contracts with UCDA. The information that is capture includes the name of the exporting company, the details of the buyer, coffee grade, coffee quantity, price, destination and shipment period. The exporter applies for inspection by filling in and submitting the pre-shipment inspection form. All the coffee exports are inspected by UCDA prior to export to check for moisture content, physical defects, screen size distribution, roast identification and cup quality/ liquor. Every exportable grade has quality standards that it has to meet prior to export. (Refer to the Coffee Regulations 1994). The coffee lots that do not meet the standards are referred back for reprocessing, reinspected before export. The coffee exports are sealed after loading and issued with Quality Certificates to confirm that the quality of coffee meets the UCDA quality standards. The coffee is transported to the seaport and final destination sealed and documented. The documents are sent to the overseas buyers to process the payments. UCDA keeps the reference samples at the point of
UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
inspection and loading for a period of six months. In case of any quality claims, the samples are used for comparison with the buyer’s reference sample to check for consistency. 43. What has UCDA done to ensure farmers only harvest ripe coffee cherries? UCDA trains farmers in harvest and post-harvest handling of coffee. The trainings include modules on selective harvesting, proper drying methods (on drying racks, tarpaulins, cemented surfaces), drying coffee within 24 hours after harvesting, protecting coffee from contamination, covering coffee to prevent it from getting wet again and storage of coffee in clean places. 44. What are the key parameters that determine the quality of coffee? The key parameters that determine the quality of coffee are: • Moisture content: 10-12.5% • Colour: Bluish –Green, Grey –brown. • Smell: Clear of all off smells. • Out turn: This is the recoverable coffee from one form to another usually expressed as a percentage e.g. dried
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cherry to fair average quality (FAQ) is >50%, Parchment to FAQ is >80%. The defect percentages: Each grade has a maximum allowable defects – (Refer to Coffee Regulations 1994) Roast colour: the best coffees attain even roasts. Uneven roasts are a sign of defects or immature beans. Cup quality (liquor): High quality coffees attain balanced cups in terms of body, flavour and acidity. These cups should also be free from cup defects.
45. Which programmes has UCDA implemented to enhance the quality of Uganda coffee both domestically and internationally? • Continuous Quality Improvement • Quality Assurance • Coffee and Youth The programs include trainings, tours and competitions as follows: • Training of all quality controllers in the coffee industry and internship attachments of students from university coffee clubs. • Training of coffee processors and traders in green coffee grading and basic cupping.
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Farmer sensitization in the good harvest and postharvest handling of coffee. Roasters and brewers training to enhance skills in value addition. Awarding best performers in the coffee industry in terms of quality. Training youth in barista skills (preparation and serving of different types of coffee). Training of experienced quality controllers in coffee tasting (cupping skills). Holding national competitions in barista and cupping to select representatives for the International competitions e.g. World Cup Tasters, Africa Barista Championship, Fushan Barista Championship and World Barista Championships. Conducting a competition code named “National Taste of Harvest”. This is an annual event for selecting the best coffees produced in the year. These coffees are selected according to their cup quality. The best coffees are chosen with expert knowledge from a head judge. The farmers who present the best coffees are recognized. The best 5 coffees are presented to Africa Fine Coffees Association (AFCA) for auction in their annual conference and exhibition.
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•
Conducting the Coffee Origin Tour. This is a tour of potential buyers in the localities where coffee is produced. UCDA presents to the buyers the best coffee lots the country has to offer. These coffees are evaluated and given scores by a panel of cuppers from UCDA with an aim of marketing them. The buyers can choose the coffees from these lots and purchase them at a specialty price.
46. What is the level of domestic consumption in Uganda? What are the factors which have hindered growth of domestic coffee consumption in Uganda? Domestic Coffee consumption in Uganda is at 5-7% of the total exports. There has been a noticeable increase in domestic consumption with the establishment of cafés in major towns. The factors that have hindered domestic coffee consumption are: •
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The poor grades of coffee roasted and served in coffee shops. When a survey was conducted, it was found out that people were avoiding coffee drinking because it was of poor quality. The negative perception that coffee consumption is
UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
•
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hazardous to health. Many people still think that coffee consumption may lead diseases. A historically strong tea drinking culture. This was implanted by our colonial masters. Many people still prefer tea to coffee as a beverage. There is a deliberate effort to popularize coffee drinking by programs like “Coffee on the Road”. Costly and sophisticated coffee making machines. Coffee is perceived to be more expensive than other beverages.
47. What is UCDA doing to address this? • UCDA trains baristas, quality controllers, roasters to ensure quality coffee is produced • UCDA promotes the health benefits of coffee consumption • Access to finance for purchase of coffee making machines through an MOU with UDB 48. What is the current global coffee production and consumption? The global production for 2019/20 was 169.3 million bags and the Global consumption for 2019/20 was 168.49 million 60 kg bags (http://www.ico.org/prices/newconsumption-table.pdf).
UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS) 001
y Coffee House, Plot 35 Jinja Road,
Toll Free Line: 0800 35 35 30 Email: info@ugandacoffee.go.ug | Website: www. ugandacoffee.go.ug
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UCDA CALL CENTRE | FREQUENTLY ASKED QUESTIONS (FAQS)
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