Abstract:

Coffee is among the key commodities prioritized by the Uganda Government’s National
Development Plan III for value addition for increased household incomes, exports earnings and import substitution. But, despite Uganda being one of the leading coffee producers in the world and its relative importance on the economy, domestic consumption of coffee products is very low. In response to this, several initiatives have been initiated towards sustainable production of coffee for domestic consumption and export to enhance farmers’ income. Accordingly, a feasibility study has been conducted to explore the structure, conduct and performance of the coffee products, including beverages and cosmetics, to create opportunities for improving the profit margins of the different actors along the chain. The objectives of this study were to: (1) assess the status of market segments of the target coffee products in selected urban, semi-urban, rural markets in Uganda; (2) profile and analyze critical coffee value chains, value chain actors, regulatory and institutional factors with potential influence on the targeted coffee products; (3) profile and determine potential research, product development, capacity building, market and value chain development partnerships for successful commercialization of the targeted coffee products; and (4) identify financing opportunities and challenges for the commercialization of the coffee derived products. Data for this study was collected using qualitative and quantitative methods from eight commercial cities across the country including: Jinja, Kampala, Wakiso, Mbale, Mbarara, Masaka, Arua, and Gulu. 160 Coffee consumers and potential users and 80
coffee traders, 82 cosmetics traders, across Kampala, Central, Western, Eastern and Northern
regions, were randomly selected for the study. Additionally, KIIs from 5 processers and 12 FGDs for both coffee and cosmetics, each comprising of at least 8 members of men and women, were also conducted. Descriptive statistics are reported.