DP rejects govt’s proposal to integrate UCDA into MoA

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KAMPALA - The Democratic Party (DP) has voiced strong opposition to the government's recent proposal to rationalize the Uganda Coffee Development Authority (UCDA) by merging it into the Ministry of Agriculture (MoA).

DP argues that such a move undermines UCDA's specialized role and expertise in boosting Uganda’s coffee industry.

The controversy follows a recent meeting in which President Yoweri Museveni, alongside parliamentary committees on finance, agriculture, and national economy, reached a consensus on passing a law to integrate UCDA into the MoA after a three-year transition period.

However, DP contends that this decision fails to recognize UCDA's significant contributions to Uganda's coffee sector.

Fred Mukasa Mbidde, the DP National Vice President, criticized the proposal during a media engagement at the party’s office in Balintuma, Kampala on September 17.

Mbidde asserted that UCDA possesses the necessary expertise and resources to independently seek out global markets and drive future growth.

“UCDA is equipped with the capability to conduct its own research and market analysis, which is vital for our coffee sector's advancement. Merging it into a cabinet ministry risks diluting its effectiveness and stifling its potential,” he said.

Furthermore, he underscored the historical significance of UCDA, suggesting that it should continue its legacy and build upon past achievements. He emphasized that Uganda’s coffee sector has been pivotal since the days of IBEACO, a historical organization that managed Uganda’s coffee and other crops until 1962.

Accordingly, Uganda is yet to penetrate the Middle Eastern coffee market, partly due to perceptions about the value addition of Ugandan coffee.

He urged the government to focus on strategic partnerships and branding to enhance Uganda’s coffee reputation on the global stage.

In addition, Mbidde criticized the current structure of Uganda’s agricultural sector, pointing out that the Minister of Agriculture does not serve as a presidential advisor on agricultural issues, unlike in other countries. He called for a reevaluation of the ministry’s role and suggested that it should collaborate more effectively with agencies like UCDA.

Fact File

In the fiscal year 2023/24, Uganda exported 6.13 million bags of coffee valued at US$1.144 billion, marking a 6.33% increase in volume and a 35.29% rise in value compared to FY 2022/23.

UCDA's rigorous quality control has led to improved coffee prices, benefiting farmers who are now enjoying the highest prices in three decades.

In FY2023/24, UCDA generated revenue of UGX 82.2 billion and Uganda Coffee is in high demand in global coffee markets for its quality.

The Coffee Roadmap, initiated by President Museveni in 2017, sets a target of producing 20 million 60 kg bags by 2030 and aims to generate US$1.5 billion annually from coffee exports.

UCDA, established by the UCDA Act of 1991 and subsequently updated by the National Coffee Act No. 17 of 2021, has played a crucial role in shaping Uganda’s coffee industry.

The agency’s future, under the proposed government plan, remains a contentious issue, with ongoing debates about its role and effectiveness in driving Uganda’s coffee sector forward.