Addis Ababa, 08 March 2015 – The coffee community from Africa and around the world gathered in the Ethiopian capital for two days of engaging debate at the 4th World Coffee Conference, hosted by the Government of Ethiopia.
The 77 Member Countries of the International Coffee Organization (ICO) and over 900 attendees, including coffee growers and representatives from government, the private sector, and international agencies participated in a range of discussions related to the theme of the Conference, ‘Nurturing coffee culture and diversity’.
His Excellency Mr Hailemariam Desalegn, Prime Minister of Ethiopia, inaugurated the Conference and the First Lady of Ethiopia, Mrs Roman Tesfaye, addressed the audience during a panel on gender equality in the coffee sector.
Over 20 high-level speakers from around the world participated in debates and discussion around the theme of the Conference with issues ranging from gender equality in the coffee sector to the role of public policy in increasing farm productivity.
Coffee Market Outlook
The Executive Director of the ICO, Mr Robério Oliveira Silva, presented an outlook for the global coffee market to members of the press during the WCC in Ethiopia. ICO’s current estimate for global coffee production in crop year 2015/16 is of 143.4 million 60-kg bags, 1.4% higher than last year. Lower production in Brazil of 43.2 million bags has been compensated by increases in Vietnam, Colombia and Indonesia, among others. In Africa, production is rising by 6.1% to reach 17.1 million bags, representing nearly 12% of the world total. In Ethiopia, output is currently estimated at 6.4 million bags, 3.4% less than last year, as the inconsistent rains have had a negative effect on the crop. Looking ahead to crop year 2016/17, Brazil’s National Food Supply Company (CONAB) have initially estimated production in the country at between 49.1 and 51.9 million bags. This could potentially be a record crop for Brazil, higher than the 50.8 million produced in 2012/13.
Global coffee consumption in calendar year 2015 is estimated at 152.1 million bags, up from 150.3 million in 2014. Total consumption in importing countries is estimated at 104.9 million bags, while exporting countries have increased at an average rate of 2.1% over the last four years to reach 47.3 million bags.
These production and consumption figures suggest that 2015/16 will be another deficit year in the coffee market, with demand exceeding supply. This gap is being filled by buildup in stocks, particularly in exporting countries, in previous years when output was higher.
Coffee prices have stabilized recently, but they remain at very low levels. The average price of the ICO composite indicator price was 111.75 US cents/lb in February, 0.8% higher than the previous month, but down from 141.10 cents a year ago. This decline in the coffee market over the last 18 months has been mostly attributed to the ongoing depreciation in the Brazilian real against the US dollar, along with a broader weakness in global commodity prices.
Export levels have also remained strong, allowing inventories in importing countries to be well restocked and give roasters a considerable buffer against any short-term supply concerns. This has prevented prices from maintaining any significant rally.
About the World Coffee Conference
Every four to five years, the International Coffee Organization holds a high-level World Coffee Conference to enable discussion around critical topics for the global coffee sector. The first three Conferences took place in London (2001), Brazil (2005) and Guatemala (2010).
Uganda Coffee Development Authority will be holding coffee promotions dubbed “Coffee Expos 2016” in three regions of the Country, namely Central (Kampala), East (Mbale) and western Uganda (Marana and Fort portal.
The campaign starting today 18th March,2016 at Garden City shopping mall in Kampala before rolling out to other parts of the country is aimed at promoting local consumption, and at the same time attract players in the sector to showcase their products.
According to the Quality Assurance Manager of UCDA, Ms. Doreen R. Rweihangwe this drive will see operation of Coffee bazaars, demonstrations on coffee preparations by baristas, Coffee talks by experts and dissemination of Coffee relevant information.
UCF will be part of the drive to support and get you details of this important event.
Private Sector Foundation Uganda (PSFU) has entered into a Memorandum of Understanding with (MOU) with Buganda Kingdom to develop a corporation that will promote the business entities within Buganda Kingdom. The two parties shall explore modalities of collaboration, information sharing and working together to organize events, expos or trade fairs. They will also explore modalities of using their strategic resources to support business in the Kingdom to achieve enterprise growth, job creation and increased income while leveraging on the programmes managed by PSFU.
The signing ceremony was done at Bulange Mengo on 9th March 2016 by Mr. Gideon Badagawa Executive Director PSFU and Owek. Robert Waggwa Nsibirwa Minister of Finance Investments Planning and Economic Development. This was done in the presence of the Katikiro of Buganda Owek. Charles Peter Mayiga, Ministers from Buganda Kingdom and distinguished delegates from Private Sector Foundation Uganda (PSFU).
The Katikiro of Buganda Owek. Charles Peter Mayiga, thanked PSFU for the initiative and promised that the Buganda Kingdom will strongly work with PSFU to promote business, that will lead to competitiveness in the Buganda Kingdom. He noted that this partnership will also enable the Kingdom achieve its five-year business strategy.
The Katikiro called on the business people in the Buganda Kingdom to form partnerships and cooperatives that will enable them achieve more. “There is need for more investment in the Agricultural sector which employs more than 70% of Uganda’s population.” The Katikiro said.
Mr. Gideon Badagawa Executive Director PSFU thanked the Buganda Kingdom for the partnership and promised to support business competitiveness through various sectors. He called on the business people in Buganda Kingdom to use the opportunity to develop their businesses to enable them compete locally, regionally and at the international level.
Through this MOU, the businesses, cooperative groups and people living in Buganda will benefit from the various trainings, capacity building programs and access to grants managed by PSFU. The Kingdoms Partnership Unit in Buganda Investments and Commercial undertakings Ltd (BICUL) will work with the Kingdom Ministries and PSFU to ensure successful implementation of the various programs.
To all our Esteemed members,
Uganda Coffee Federation would like to thank you for your cooperation and support.
We wish you a Joyful and blessed Easter holiday.
According to statistics from Uganda Coffee Development Authority, 30% of Uganda’s total crop exports end up in the Republic of Sudan earning the country millions of dollars plus employment opportunities along the supply chain. Coupled with this, is the significance of this bi-lateral trade as an important contributor to intra-Africa trade still considered to be lowest by recent studies.
All this good news could be at stake following new regulations issued by the Ministry of Cabinet where new and stringent measures have been proposed paralyzing trade.
According to the new measures all green coffees will have to meet new Quality tests on top of this are exorbitant fees levied by new certification agent.
Industry observers have welcomed this development with mixed reactions citing double certification, violation of I.C.O quality standards and making our market noncompetitive.
“It is strange that anybody would suspect Uganda coffee for atomic components considering we have never had major nuclear development or War” Remarked a coffee quality specialist looking at the new requirements.
The good news however, is that U.C.D.A and stakeholders have embarked on a diplomatic agenda to for an inter-governmental dialogue to resolve the contentious clauses of the new regulations to facilitate normal trade relations between the partner CO-MESA states.
Below are comments from some of the industry players:
“Sudan is an important market for our members, as UCF we are doing everything within our means to facilitate a speedy resolution of contentious issues for normalization of trade” – Betty Namwagala, ED UCF.
“I’m very optimistic that the on-going high level dialogue will cure the prevailing anxiety so that things move on normally” – KDS Managing Director Ishaac Lukenge
“We have running contracts with our Sudanese buyers so any further delay in handling this matter could jeopardize our contractual obligations” – Mr. Hemish Dave MD Export Trade Co.
“Any attempt to halt trade gravely affects the farmers who are the most vulnerable within the value-chain thus all players must navigate this situation at a terrific speed” – Seaton Mathew, Kyagalanyi.
When: Thur 1st October, 2015, 10am
Where: GLADFarm in Kapeeka – Nakaseke District
Theme: FOCUS ON PRODUCTIVITY: THE COFFEE SECTOR AT THE CLIMATE CHANGE FRONTLINE
Guest of Honour: The Ambassador of Norway, H. E. Susan Eckey
Keynote Speaker: Mr. Anthony Kagoro. Climate Change Specialist
R.S.V.P: MUGENYI Robert-0752-612516
The Uganda Coffee Day is an annual convention of coffee stakeholders that marks the beginning coffee year in Uganda to focus and appreciate a selected challenge of the industry and also share in the mitigation strategies of going forward in the coffee year.
Date: 4th October 2012 Venue: Coffee Research Center Kituza, Mukono Theme: Uganda@50, Milstones of the Century and Strategies for the Future. Time: 9:00 am There will be Transport to the Venue at Coffee House from 7am to 7:45am.
The coffee season in South Western and Western Uganda has gathered steam and the traders’ activities have increased. At the meeting between UCDA Managing Director and the UCTF members, on 25th May 2011 at Sheraton Hotel in Kampala, several recommendations were made on how the coffee quality could me maintained as the season set in. One of the recommendations was the intensification of monitoring and regulation enforcement especially at processing by UCDA Field Technical and Extension staff.
This Monday 27th June 2011, a team of coffee professional lead by UCDA and comprising of UCTF, UCFA and NUCAFE is travelling to the South Western and Western part of Uganda visiting the districts of Masaka, Rakai, Bushenyi among others; to enforce coffee regulations at the processing level and also provide practical actions on what the coffee growing districts can do to improve/maintain quality standards.
The task team will hold meetings with local authorities on the need to develop and implement coffee bi-laws that puts a stop to harvesting and marketing of un ripe coffee (including buying of flowers or green coffee in the garden), middlemen buying coffee from farmers that is not yet fully dried, drying coffee in trading centers or at factories, drying coffee on bare ground and sun drying FAQ by processors and traders among other quality issues.
The team task will work with local authorities to enforce the registration of coffee buyers at sub-county level as well as stopping buyers from dealing in coffee trade without buyer’s store licenses and processors operating without valid processing license.
The quest for maintenance of good quality is a continuous one with all stakeholders involved. It’s our sincere hope that the taskforce will not only disrupt but will set the stage for sustained and wholesome quality enhancement fight from all stakeholders. As usual The Coffee Talk will give any updates from the activities of the taskforce. Let’s all support them in this noble endeavor.
UEPB Set to finalize the “Uganda Coffee Export Strategy”!
The process of updating the Coffee sector strategy in order to improve its export competitiveness on the global market for the next 5 years was launched on the 1st of February 2011. The process is being spearheaded by the Uganda Export Promotion Board (UEPB) with technical and financial assistance from the International Trade Centre (ITC).
As part of the process, the core team has held several consultative meetings to refine the outcomes of the first and second stakeholders workshop which did highlight issues affecting the coffee sector. A third stakeholder meeting is planned for next week to further the consultation process.
It is against this background that Coffee sector stakeholder will be meeting for three days for a consultative meeting at Hotel Africana from Tuesday 28th to finalise the plan.
For details please contact Mr. Simon Peter Okiring on mobile number 0773101072, 0414230250/230233 or Email email@example.com for effective planning.