Description:
All ACP Agricultural Commodities Program, European Commission, ACP Group of States
Despite losing global market share over the last 20 years, Uganda remains a major coffee producer, accounting for approximately 2.5 percent of global coffee production. In 2008-2009, coffee exports accounted for almost a quarter of Uganda's formal export earnings and were estimated to generate income and employment for up to 1.3 million Ugandan households. As such, the coffee industry is extremely important to both the rural population and the Ugandan economy. However, the sector exhibits significant levels of production volatility, caused in part by unmanaged risks. Despite the occurrence of numerous risks, the sector has always managed to produce significant, albeit variable, volumes of coffee for export, but the historic resilience of the sector does not automatically imply that the industry will avoid longer-term decline if it fails to proactively manage potential risks going forward. The government of Uganda and the Uganda Coffee Development Authority (UCDA) has already implemented a number of initiatives and programs to mitigate some of the above-mentioned risks. However, many of the existing initiatives need to be strengthened, and some new activities added, to ensure insofar as possible the comprehensive management of all key risks facing the coffee supply chain. An in-depth evaluation of individual solutions was beyond the scope of this exercise; an exhaustive listing of potential risk management solutions, and an assessment of the cost-benefit ratio of different risk management options, needs to be undertaken by the government of Uganda and UCDA