)
)
President Yoweri Museveni has forecasted an increase in coffee prices, attributing this anticipated surge to severe drought conditions affecting major coffee producers in Brazil and Vietnam.
As such the president assured Ugandan farmers not to fret about the dissolution of the Uganda Coffee Development Authority (UCDA).
Museveni made these remarks on Saturday during a Thanksgiving event for Minister Dr Bright Rwamirama.
Global Climate Challenges Impacting Coffee Production
)
)
)
Brazil, the world's largest producer of Arabica coffee, is currently experiencing its worst drought in over 70 years.
This prolonged dry spell has severely impacted coffee plantations, leading to a substantial decline in output.
)
Similarly, Vietnam, the leading producer of Robusta coffee, is facing its most severe drought in a decade, with projections indicating a 20% drop in coffee production for the 2023/24 crop year.
These climatic adversities have already influenced global coffee markets.
Arabica coffee prices have soared to levels not seen since 1977, reflecting concerns over tightening supplies.
Robusta prices have also escalated, reaching record highs due to anticipated shortages.
In light of these global developments, President Museveni noted Uganda's potential to benefit from rising coffee prices.
“The coffee sector will perform much better now that UCDA is leaving. Even now we anticipate the coffee prices to rise significantly, partly because of the drought that is ravaging Brazil and Vietnam,” he said.
“Those two countries are suffering greatly and that is a big opportunity for us. “
Museveni further noted that Uganda's coffee production has significantly increased, from 2 million tonnes in 2013 to 9 million tonnes currently, largely due to initiatives like Operation Wealth Creation (OWC) and the efforts of local scientists in developing quality coffee seeds.
The President was critical of the Uganda Coffee Development Authority (UCDA), accusing it of overstating its role in the sector's growth and misappropriating funds.
He asserted that functions such as seed distribution and quality control have been effectively managed by the Ministry of Agriculture and the UPDF under OWC.
Museveni dismissed claims that the dissolution of UCDA would harm the coffee sector, expressing confidence that the industry would perform better without the authority.
Dissolution of UCDA Following Coffee Amendment Bill
The President's comments follow the National Coffee (Amendment) Bill, 2024, which he signed into law on December 20, 2024.
This legislation mandates the dissolution of UCDA, transferring its functions to the Ministry of Agriculture.
The bill's passage was contentious, with debates in Parliament marked by chaos.
Proponents of the bill argue that it aligns with government policy on rationalizing agencies to reduce public expenditure, while critics fear it may disrupt the coffee sector's stability and growth.