The Minister of Public Service, Muruli Mukasa, has strongly defended the government decision to dissolve the Uganda Coffee Development Authority (UCDA) and integrate it into the Ministry of Agriculture, despite strong resistance from opposition Members of Parliament and influential coffee farmers.
Speaking to reporters in Kampala on Thursday, Minister Mukasa said that there has been a widespread misconception among coffee farmers that the remarkable achievements in the coffee sector are solely attributed to UCDA.
Mukasa’s remarks come just a day after Parliament passed the National Coffee Amendment Bill 2024, which includes the abolition of UCDA, with its responsibilities now transferred to the Ministry of Agriculture.
Although UCDA has been credited with a range of achievements in the coffee sector, including the increase in coffee prices for farmers and the notable growth in export volumes, the minister said the agency does not own or manage any nursery beds. This, he suggested, highlighted the exaggerated nature of the praise directed at UCDA.
“UCDA was portrayed as the savior, the one who has the coffee. But you ask, where is one nursery or half a nursery of coffee for UCDA? It’s not there. Yet even the farmers are made to believe that it is UCDA [that has transformed the coffee sector]. Their (farmers) own coffee; they are made to believe that that is UCDA,” Minister Mukasa said.
The move to disband UCDA and merge its functions into the Ministry of Agriculture is part of a broader governmental policy aimed at streamlining and rationalizing various government agencies to enhance efficiency and reduce redundancy.
Despite this, several opposition Members of Parliament have raised concerns that the true motive behind merging UCDA with the Ministry is to pave the way for a single investor to monopolize the purchase of all coffee produced in Uganda.
However, Minister Mukasa firmly denied such claims, describing them as baseless and unfounded.
“Nobody is going to touch your coffee. The government is going to make sure everything is okay, and the guidelines are there, and they will help you actually grow even more coffee and better coffee,” he said.
The Minister also addressed the issue of tribal sentiments that have dominated public debate, especially on social media surrounding the coffee sector. This followed remarks made by the Speaker of Parliament, Anita Among, which were perceived by many as being tribal and appeared to target a specific tribe.
This, he said, has portrayed coffee as a tribal sector.
“Coffee now moves from being a plant to now being a symbol of national achievement for an ethnic group. It is what defines a Muganda now. That a muganda and coffee are one and the same. Therefore, you touch coffee, you are touching me,” he said.
Uganda’s coffee sector has registered significant achievements for Uganda and hugely contributes to the country’s GDP.
Uganda’s coffee exports for the financial year 2023/24 achieved an unprecedented milestone, reaching an all-time high of USD 1.14 billion.
According to the UCDA report, these exports mark the highest value and volume recorded in the past thirty years.
“Coffee exports for twelve months (Financial year 2023/24) totaled 6.13 million bags worth US$ 1.14 billion compared to 5.76 million bags worth US$ 846.02 million in the previous year (Financial year 2022/23). This represents an increase of 6.33% and 35.29% in quantity and value, respectively,” the UCDA June 2024 report reads.
The record-breaking performance not only highlights Uganda’s status as one of the leading coffee-producing countries but also signals its ability to meet rising global demand while maintaining exceptional quality standards.
Coffee exports in June 2024 alone amounted to 667,037 60-kilo bags, worth USD 162.36 million. This comprised 614,486 bags of Robusta valued at USD 149.95 million and 52,551 bags of Arabica valued at USD 12.42 million. This was an increase of 18.24% and 79.14% in quantity and value, respectively, compared to the same month last year.
During the month of June 2024, the average export price was USD 4.06 per kilo, 35 US cents higher than in May 2024 (USD 3.27). It was USD 1.38 higher than in June 2023 (USD 2.68/kilo).
