Small-Scale Ugandan Coffee Farmers Face Stiff Competition in Value Addition From Big Companies

Uganda's small-scale coffee farmers are facing stiff competition in value addition from established companies despite government efforts to support and encourage value addition among smallholder farmers. Uganda exports mostly raw Arabica and Robusta coffee beans. The main market for processed coffee is domestic and regional, where demand has been growing in recent years, but penetration has posed big challenges to small-scale farmers and SMEs. Uganda is Africa's number one exporter of coffee in terms of volume and the second biggest producer behind Ethiopia.

To maximize returns from this crop, the government is continuously encouraging and supporting value addition. However, more efforts need to be put in place to provide a level ground in ensuring small-scale farmers and companies can get a fair share of this lucrative market.