B-Open Nordic in Sweden are assisting a new sutainable coffee company from Uganda called Absolute Farmers Uganda Coffee Ltd. We are Business Advisor to this new Coffee and Agricultural Value Chain Development Company in Uganda to build a reliable and strong supply chain for coffee.
Uganda has some 500.000 small coffee farms, each has less than 2.4 acres of land and many only have 1 acres land to farm. Coffee is Ugandas best foreign exchange earner after tourism and you can find both Arabica and Robusta in Uganda, around 75% coffee grown are Robusta. Actually coffee are the main cash income farmers have as the normally eat what else they grow. Only few percent of the coffee grown are consumated in Uganda, but more coffee shops are developing in urban areas. Most coffee are exported but not always to Europe and USA as alot is exported to other African countries, Middle East and Asia.
Some of the challenges we see in the market are low tonnage production, mainly one variety of coffee, poor quality work and systems in place, not so many are or can be Fairtrade certified (too expensive), high export (transport) cost as Uganda has no seaport, weak supply chains and too many small Cooperatives, not larger Companies that can handle quality issues and volume demands.
We also see opportunities as European buyers want quality but also are prepared to pay premium price for quality. Large customers are open to start business with sustainable businesses in Uganda. Fairtreade certified business that can develop more business to Europe. If Farmers Association and Cooperatives and cooperate more they can develop products suitable for European demand. Ther is a big operation area with coffees and ready for expansion.
B-Open Nordic is a business consulting firm founded in 2004 that focus on management in knowledge driven businesses and international business development. We are helping with strategic advise and support for the new company Absolute Farmers Uganda Coffee. We have been in Uganda and met stake-holders, Cooperative and individual farmers to understand the current challenges and opportunities within coffee business from Uganda. We are now assisting this new Company finding right funding, financing and partnership for more Public and Private Partnership creating a new Agricultural Value Chain Development Company and strong supply chain for coffee in Uganda.
Interested to know more about this project? Contact us today!