{"id":30382,"date":"2022-05-01T17:27:16","date_gmt":"2022-05-01T17:27:16","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition"},"modified":"2022-05-01T17:47:42","modified_gmt":"2022-05-01T17:47:42","slug":"experts-weigh-in-on-debate-about-coffee-value-addition","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition","title":{"rendered":"Experts weigh in on debate about coffee value addition"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Uganda. <\/strong><\/span>Players in the coffee sub-sector have described concessions given to Uganda Vinci Coffee Company (UVCC) to add value to the country\u2019s green beans as curious.<\/p>\n<p>Mr Nathan Nandala Mafabi, the chairperson of Bugisu Cooperative Union (BCU), has described the process that ends up with value being added to coffee as \u201cunsophisticated\u201d and hinged on capital and machinery.<\/p>\n<p>Coffee, Lubowa hospital deals: State capture or attempt to fight graft?<\/p>\n<p>UCDA boss loves the aroma in coffee deal<\/p>\n<p>\u201c[Value addition in coffee] is one of the easiest things to do because [one is] basically roasting, grinding [and packaging],\u201d Mr Mafabi said, adding, \u201cWe don\u2019t need sophisticated equipment\u2026$5m [gets you] huge equipment\u2026you don\u2019t give all those exemptions to one woman (UVCC director Enrica Pinetti) to take them in one day.\u201d<\/p>\n<p>Mr Mafabi opines that instead of awarding concessions to \u201can individual who has so far failed to deliver the multi-billion specialised hospital [in Lubowa]\u201d, the government should have channeled capital to local firms in the trade.<\/p>\n<p>The government has, however, taken exception to the agreement it entered into with UVCC being framed as bad. Appearing before the House this past week, Finance minister Matia Kasaija was quick to say the agreement will benefit Ugandans not least because UVCC will pay a competitive and market-determined price.<\/p>\n<p>\u201cThis agreement does not deter other potential investors from investing in value addition. UVCC provides an opportunity for the country to fetch better prices for high grade coffee,\u201d he said, adding, \u201c[UVCC] aims to establish several hubs across the country intended to enhance traceability of farmers and to eliminate middlemen.\u201d<\/p>\n<p>Players in the coffee sub-sector have, however, noted that value addition is not the silver bullet that the government projects it to be.<\/p>\n<p>In a February Op-Ed piece, Andrew Rugasira, who attempted to put high-quality roasted and packaged coffee on shelves in the Global North, wrote: \u201c\u2026the value-added coffee market is defined by historical asymmetries in capital availability, logistics, information technology and purchasing power between consumer and producer countries.\u201d<\/p>\n<p>He further warned: \u201cAs I learnt, at great cost, just because you roast your coffees here doesn\u2019t guarantee that you will be competitive in European consumer markets. Five companies control 50 percent of the global market for roasted coffees (Kraft, Sara Lee, Nestle, P&amp;G and Tchibo); and four companies control 40 percent of the world coffee trade (Ecom, Neumann, Louis Dreyfus and Volcafe).\u201d<\/p>\n<p>Whether UVCC has a magic wand to surmount such asymmetries remains to be seen. What appears to be clear is that Ugandan coffee farmers keep running into headwinds and the agreement between the government and UVCC won\u2019t insulate them from this.<\/p>\n<p>\u201cWe have applied for capital investments, but we have not managed\u2026Instead of giving those incentives to non-Ugandans, give them to Ugandans who will in turn employ Ugandans and therefore plough more into the economy,\u201d Mr Mafabi reasoned.<\/p>\n<p>Butiru County lawmaker, Gerald Wakooli agrees. He says: \u201cPeople are willing to add value, but they don\u2019t have capital. Some few people tried to go to the bank to get loans so that they can outsource the required equipment, but they get knocked back by high interest rates.\u201d<\/p>\n<p>He adds: \u201cThe VAT is extremely high on even the basic equipment that our people need to use. That makes it harder to access the basic machine like a hauler. In the long run, the grassroot farmers who attempt to polish it end up using motors to just pound it as a way of removing the green coating.\u201d<\/p>\n<p>Mr Wakooli recommends that the government sets up a farmers\u2019 bank that will specifically address the financial needs of farmers. Once created, the bank can give farmers capital at low interest rates in addition to other forms of support.<\/p>\n<p>Uganda is Africa\u2019s largest coffee exporter and sits in seventh position on the global scene.<\/p>\n<p>Lubowa hospital site deserted, abandoned- VIDEO<\/p>\n<p>Faces behind Uganda Vinci Coffee unveiled<\/p>\n<p><strong>For More News And Analysis About <a href=\"https:\/\/www.africa-press.net\/uganda\">Uganda<\/a> Follow <a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Uganda. Players in the coffee sub-sector have described concessions given to Uganda Vinci Coffee Company (UVCC) to add value to the country\u2019s green beans as curious. Mr Nathan Nandala Mafabi, the chairperson of Bugisu Cooperative Union (BCU), has described the process that ends up with value being added to coffee as \u201cunsophisticated\u201d and [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":30381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[233,240,234],"class_list":["post-30382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Experts weigh in on debate about coffee value addition - Uganda<\/title>\n<meta name=\"description\" content=\"Players in the coffee sub-sector have described concessions given to Uganda Vinci Coffee Company (UVCC) to add value to ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Experts weigh in on debate about coffee value addition\" \/>\n<meta property=\"og:description\" content=\"Players in the coffee sub-sector have described concessions given to Uganda Vinci Coffee Company (UVCC) to add value to ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-01T17:27:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-01T17:47:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/05\/postQueueImg_8.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1556\" \/>\n\t<meta property=\"og:image:height\" content=\"1037\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Experts weigh in on debate about coffee value addition\",\"datePublished\":\"2022-05-01T17:27:16+00:00\",\"dateModified\":\"2022-05-01T17:47:42+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition\"},\"wordCount\":675,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2022\/05\/postQueueImg_8.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/experts-weigh-in-on-debate-about-coffee-value-addition\",\"name\":\"Experts weigh in on debate about coffee value addition - 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