Uganda's Coffee Sector Faces Increasing Pressure And Urgency To Meet Impending EUDR Regulations – CoffeeTalk

Uganda, Africa’s second-largest coffee producer and a vital supplier to the EU, has less than 12 months to prepare its coffee industry to meet EU deforestation rules. The European Union Deforestation Regulation (EUDR) imposes strict supply chain due diligence and reporting requirements on certain commodities and products imported into and exported out of the EU, including cattle, cocoa, coffee, palm oil, rubber, soy, and wood. The country faces challenges in meeting the EUDR, with only 170,000 farmers out of 1.8 million registered by the end of 2024.

The government’s response reveals the magnitude of the task ahead, as the current land tenure system poses a significant obstacle, with only 16% of agricultural farmers possessing proper tenure documents and 59% lacking any tenure rights over their farming land. Traceability requirements also present a formidable challenge, with over 112 registered coffee-exporting companies required to maintain detailed five-year records of their coffee sources. The traditional supply chain, involving more than 10,000 middlemen and 923 coffee-buying stores, complicates this requirement significantly.

Alternative markets like the United States, China, Australia, and Japan might absorb some of Uganda’s coffee, but basic economics suggest this shift could lead to lower prices and force vulnerable smallholder farmers to abandon coffee production in favor of crops with less stringent requirements. The path forward requires immediate action from the government, industry stakeholders, and farmers to protect the coffee sector. The future of Uganda in the global coffee market depends on its ability to adapt to these new regulatory demands while supporting vulnerable small-holder farmers through this transition.

In conclusion, Uganda needs coordinated action from the government, industry stakeholders, and farmers to protect its vital coffee industry and ensure its future in the global coffee market.

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