A cross section of coffee farmers and the general public has said the National Coffee Act, 2021, is intended to cripple Ugandan coffee sector.
The President signed the Coffee Bill into law on 31 August 2021 and on 13 September 2021 the Act was gazetted under supplement Act No. 17.
The Act, which is aimed at maintaining quality in the coffee sector that is Uganda’s biggest foreign exchange earner, requires, among others that all coffee farmers register and acquire licences.
But according to several Ugandans, and coffee farmers, the new legislation is intended to give more powers to the government without helping the ordinary farmer.
They are particularly incensed by clauses of the new Act that demand registration of all coffee farmers and punishment for those who do not dry their coffee properly.
Robert Kabushenga, a former CEO of Vision Group and coffee farmer said: “Just like that, in this one legislation, the Ugandan political establishment & bureaucrats have sentenced the Ugandan coffee sector to death. It is just a matter of time now.”
Charles Onyango Obbo, a veteran journalist, added: “Old bad Uganda is returning in this coffee law. Someone observed that “it’s…to be implemented by people with no stake. Farmers are going to be ripped off. It’s rent-seeking at its worst”. Unbelievable, you’ll need a bureaucrat’s licence to brew & sell a cup of coffee in Uganda!”
Kevin Omukungu, a coffee farmer, said they need incentives and help and revival of cooperative unions to export coffee on their own and not jail terms.
“We all know this law is designed to essentially make farmers poor. Temutusiluwaza,” he said.
Andrew Wandera wondered why government always looks at regulation as a tool to stifle growth.
“Streamlining the value chain of coffee production was necessary but the spirit of this law will not enhance anything in the ecosystem. A “Comply or Else” approach will never support growth,” he said.
Hillary Bamulinde said: “Uganda has come up with a new coffee law which among other provisions will require you to have a license to operate a coffee shop & prescribes a 2yr jail term if you don’t look after your coffee garden well. This country specialises in putting solutions where there’re no problems.”
Owen Singula, said the first bill draft was good until some people added in “unfavourable clauses without thorough consultation and research.”
“This act makes Uganda Coffee Development Authority (UCDA) more of a coffee police. Farmers don’t respond well to threats I hope they abandon the plantations,” he said.
Joseph Kivumbi said: “You will see more coffee plantations cut down than being planted…. Threats and coercion will not promote coffee production.”
Solomon Kisakye Mukuye added: “Has UCDA defined what quality means?Who was consulted before this law was put in place? Legislators or farmers? Was a study done to warrant this as the best foot forward? Was there an emergency being addressed?”
Wambwa Davies said: “The development of this law wasn’t well represented. Much as they wanted to organise the coffee sector, some gaps need to be addressed. In Bugisu, we have survived on small coffee gardens. I wonder how someone with small pieces of coffee will be registered.”
However, according to the Uganda Coffee Development Authority (UCDA), the new law is pro-farmers.
“Registration supports the creation of a traceability system that ensures even small holders farmers with microlots can earn premiums from well managed gardens,” UCDA says.
According to the Act, a person shall not operate a pulpery, buy coffee, grade coffee, roast coffee, brew coffee, operate a coffee shop or coffee store, a warehouse of coffee huller or process or export coffee on a commercial basis without a license issued by UCDA.
According to the Bill, the government will channel information or materials about coffee to only registered farmers.
The Act has also proposed tougher sanctions for those who flout the new procedures.
For example, the Act states that farmers found operating an unauthorized nursery bed, selling or distributing coffee seedlings, harvesting immature coffee beans or poorly drying and storing them face a fine of 48 currency points (about Shs900,000) or a two-year prison sentence.
Other offences, which will attract a maximum sentence of 120 currency points (about Shs2.4m) or five-year jail term, include drying coffee on bareground and processing coffee without a license.
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