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UCDA explains EUDR impact on Uganda’s coffee exports

by Juliette Namakula | Assistant Editor
08/11/2024
in AFRICA, Business, FEATURES, News
Reading Time: 5 mins read
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Israel Ssebugenyi, UCDA technical officer, speaks to stakeholders in Fort Portal during the 'Coffee for Tomorrow' campaign. The initiative aims to register coffee farmers under the National Coffee Traceability System, ensuring compliance with EU sustainability regulations and promoting environmentally responsible farming practices for the future of Uganda's coffee industry.
Israel Ssebugenyi, UCDA technical officer, speaks to stakeholders in Fort Portal during the ‘Coffee for Tomorrow’ campaign. The initiative aims to register coffee farmers under the National Coffee Traceability System, ensuring compliance with EU sustainability regulations and promoting environmentally responsible farming practices for the future of Uganda’s coffee industry.

FORT PORTAL – As Uganda’s coffee industry navigates evolving global markets, it now faces new regulations aimed at ensuring environmental sustainability. The European Union’s (EU) Deforestation Regulation (EUDR), which goes into effect in 2024, will require exporters to prove that the coffee they send to the EU does not originate from land that has been deforested after 2020. This marks a critical change for Uganda’s coffee sector, as Europe remains the largest destination for Ugandan coffee, accounting for 66% of its exports.

Israel Ssebugenyi, a technical officer with the Uganda Coffee Development Authority (UCDA), briefed stakeholders in the coffee sector on how this regulation will impact farmers and exporters.

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Leaders from across the Rwenzori sub-region, which includes the districts of Kabarole, Kasese, Bundibugyo, Ntoroko, Kyenjojo, Kyegegwa, Bunyangabu, Kamwenge, Kitagwenda, and Fort Portal City attended the meeting. Among them are the Resident District Commissioners (RDCs), district agricultural and production officers, district chairpersons, as well as representatives from local farmer groups, cooperatives, and coffee farmers.

Ssebugenyi emphasized the importance of complying with the EU’s new rules, particularly in verifying the origins of coffee grown in Uganda.

“The key requirement for coffee exporters is to prove that the beans do not come from land that has been deforested since 2020,” Ssebugenyi explained. “This can be verified using satellite imagery, and exporters will need to provide detailed geolocation data for all participating farms within the supply chain.”

The implementation of the EUDR is part of a broader international push toward sustainability, which Uganda must embrace to maintain its strong foothold in the global coffee market.

Farmer Registration Crucial for Compliance: How the National Database Supports Uganda’s Coffee Sector

 

One of the most significant changes prompted by the EUDR is the need for farmers to register their coffee plantations. This registration process is designed to streamline the verification process and help exporters meet EU requirements.

Ssebugenyi clarified that the farmer registration initiative, which has raised some concerns, is not about imposing taxes on farmers, but rather about building a comprehensive national database that will support compliance with international regulations.

“Farmer registration is not a new concept. It has always been part of the Coffee Act, which was amended to create a national database for planning and monitoring purposes,” he said. “This database is essential for ensuring that Uganda’s coffee industry can meet the EU’s stringent sustainability standards.”

Ssebugenyi reassured farmers that registration would not lead to additional taxes. Instead, it would help government agencies and exporters accurately track the origin of coffee and meet international sustainability and environmental standards. The database will also provide better planning tools for the coffee sector, ultimately helping farmers access more resources, including better inputs and technical support.

Geolocation Technology to Ensure Accuracy:  How Satellite Imagery Will Verify Coffee Origins

The use of advanced geolocation and satellite technology is central to verifying that coffee exported from Uganda is sourced from land that complies with the EUDR. Ssebugenyi highlighted the growing importance of accurate farm mapping, saying that satellite technology could pinpoint farm locations with remarkable precision.

“We now have access to technology that can map coffee gardens with extreme accuracy, even down to specific coordinates,” Ssebugenyi said. “These tools are essential for verifying that coffee is grown in compliance with the EU’s deforestation requirements.”

The technology is so precise that farmers can use their smartphones to map their land, even without walking the entire field. This accuracy, combined with farmer registration, will allow Uganda to meet the EU’s documentation standards while maintaining transparency throughout the supply chain.

 

Uganda’s Role as Africa’s Leading Coffee Exporter:  Challenges and Opportunities in Expanding Markets

Uganda’s coffee industry is facing mounting challenges, including climate change, market access, and fluctuating prices. Despite these hurdles, the coffee sector remains one of Uganda’s top foreign exchange earners, contributing approximately 14% of national revenue over the past decade. In the 2022/2023 financial year, Uganda earned $1.15 billion from coffee exports.

However, Ssebugenyi pointed out that Uganda should not become overly reliant on the European market. With 66% of Uganda’s coffee exports going to the EU, the sector faces risks if regulations change or if market access becomes restricted. To mitigate this risk, UCDA has been working on expanding coffee exports to emerging markets in Asia, the Middle East, and Africa.

While the EUDR is currently the primary concern, Ssebugenyi noted that a new regulation, the Corporate Sustainability Due Diligence Directive (CSDD), will come into effect in 2027. This regulation will require companies to prove that they are operating in compliance with human rights laws and demonstrate fair treatment of workers throughout their supply chains.

“The CSDD will expand the scope of compliance to include human rights practices. It’s critical for Uganda’s coffee sector to prepare for this change now,” he said.

UCDA Corporate Communications Manager Laura Walusimbi urged district leaders, local governments, and political heads to play an active role in encouraging coffee farmers, traders, and processors to register under the National Coffee Traceability System. Walusimbi made the remarks on behalf of Dr. Emmanuel Iyamulemye Niyibigira, UCDA’s Managing Director.

The system is a critical step in ensuring that Uganda’s coffee industry meets international standards, particularly the EUDR, which requires that products exported to the EU be deforestation-free.

“We cannot overstate the importance of this registration process,” Walusimbi said. “It is essential for improving market access, ensuring compliance with local and international regulations, and supporting the sustainable growth of our coffee sector.”

The registration program is part of Uganda’s broader strategy to ensure compliance with the EUDR, which will impact Uganda’s coffee exports to the European market, a major buyer of Ugandan coffee. The EU accounts for more than 60% of the country’s coffee exports, making it crucial for Uganda to meet sustainability standards.

Walusimbi emphasized that the registration process is free of charge and aims to build a comprehensive database of coffee stakeholders, from farmers to exporters. “Once registered, farmers will benefit from better access to extension services, updated market information, and global trade opportunities,” she added. “This is an opportunity for Uganda’s coffee industry to strengthen its global competitiveness and ensure future growth,” she said. “We must all work together to make this a success.”

Gilbert Rubaihayo, Kyenjonjo District Chairperson called on government to address perceptions about government programs and diversify Uganda’s coffee export markets.

Rubaihayo pointed that where as the goal of the coffee registration is to better support farmers many mistakenly view programme as primarily a means of taxation or a burden, rather than a tool for support and sustainability. “For too long, government programs have not been well communicated to the public,” Rubaihayo said. “We need to tell farmers that registration is not about imposing taxes or fees,” he said. “It is about building a system that will help us support them in the long term.”

Emmanuel Tumwizire, the UCDA Regional Manager for Rwenzori sub region, highlighted the growing importance of Uganda’s coffee sector, which is now one of the country’s most valuable exports, especially in the Rwenzori region, home to both Arabica and Robusta coffee farmers.

He acknowledged the progress made by farmers in overcoming past challenges, particularly those related to poor handling practices. However, he warned that unsustainable farming practices, such as stripping immature coffee, continue to undermine the sector’s long-term viability.

“Poverty cannot be an excuse for unsustainable practices,” Tumwizire said. “By harvesting mature coffee, farmers can earn a reasonable income, but stripping coffee might seem like a quick solution that ultimately leads to lower-quality beans and reduced earnings.”

Tumwizire emphasized that meeting the EUDR requirements is essential for maintaining access to this vital market.

“The EUDR enforces sustainable practices that ensure our coffee farmers contribute to environmental conservation,” Tumwizire explained. “To comply, we need accurate data on our farmers, which is why registration is so crucial.”

He also addressed concerns from some farmers who fear that registration might lead to increased taxes. He reassured the audience that the registration process is intended solely for planning and support purposes, not taxation. By registering, farmers will receive targeted assistance, including access to fertilizers, seedlings, and other resources, based on the actual number of registered farmers.

“We have received concerns that registration might be about taxes, but that is not the case. Registration is for planning purposes, and we want to ensure that every farmer receives the support they need,” Tumwizire said.

He urged district representatives and farmer leaders to actively encourage farmers to register and to correct any misconceptions.

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Tags: Agriculturecoffee exportsCoffee For TomorrowCoffee IndustryCoffee TraceabilityDeforestation-FreeEU ComplianceEUDRFarmers RegistrationFarmers SupportGlobal TradekampalaLocal GovernmentsRwenzori Regionsustainability.Sustainable FarmingTraceabilityUCDAUgandauganda coffee

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