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Farmers near the Ugandan city of Mbale used to sell their unprocessed coffee beans to a trader. He would grind the beans and sell them on to an exporter. After doing the final processing, the exporter would package the coffee and export it. Now the Bufumbo Organic Farmers Association (BOFA) exports directly to a Danish importer. “BOFA hires the processing and grading services. For the final product the farmers get 6,000 Ugandan shillings ($2.58) per kilo, twice as much as they would normally get from the sale of unprocessed coffee beans. If you look at the costs as well, about 80 percent more profit remains”, calculates Musa Muwanga for us.

Pilot project

Muwanga is Chief Executive Officer of NOGAMU, the National Organic Agricultural Movement of Uganda. “Three years ago, we started this pilot project. Farmers already produced organic coffee, but it took two years to get the official organic certification.”
Things happened quickly after that. Initially, one hundred farmers exported their coffee via BOFA but now, at the end of 2010, there are as many as 830 farmers doing so. “This is important,’ emphasizes Muwanga. “The more volume, the more bargaining power.” Farmers benefit from the large demand for organic coffee. Another three buyers have shown an interest in BOFA coffee.”

Big potential

NOGAMU would like to copy the success of direct export to other farming cooperatives. “The potential is very big,” concludes Muwanga. “But we must be sure that there are enough resources to support farmers for at least three years. In half a year you cannot support them sustainably.”