The Uganda coffee sector, one of the country’s vital economic drivers, is facing mounting pressure as farmers express growing concerns regarding the European Union’s (EU) newly enacted anti-deforestation policy.
The legislation, which aims to ensure that coffee and other commodities imported into the EU are produced without contributing to deforestation, has left many Ugandan farmers struggling to comply with the strict requirements, raising fears of economic repercussions for the nation’s thriving coffee industry.
Africa’s largest coffee producer
Uganda, often hailed as the ‘Pearl of Africa’, is Africa’s largest coffee exporter, with the commodity accounting for more than 20% of the country’s total export earnings. The nation is home to over 1.7 million smallholder coffee farmers, primarily producing Arabica and Robusta beans.
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With over 60% of Uganda’s coffee destined for the European market, satisfying these stringent standards is paramount for the sustainability of the coffee sector and the livelihoods of many farmers who rely on this vital crop.
Fears of state monopolization
As the Ugandan government strives to align itself with the strict environmental standards set forth by the EU, many local coffee farmers have expressed concerns that this policy could inadvertently empower the government to monopolize coffee production.
“We fear that the government may use this policy to control the pricing and distribution of our coffee. It feels like we are being pushed into a corner, where we have to comply with regulations that could severely impact our livelihoods,” Samuel Mukasa, a coffee farmer from the Mityana District in central Uganda explained.
He also commented that additional burdens and taxes may lead to increased financial strain.
“If we are taxed heavily, it will be difficult to maintain our farms and feed our families. Coffee is our only source of income.”
Government and coffee producers at odds
The Ugandan government, however, argues that the anti-deforestation policy is a necessary step in combating climate change and protecting the nation’s rich biodiversity which has come under threat from deforestation and unsustainable agricultural practices.
Officials contend that by implementing these regulations, Uganda can improve its reputation as a producer of high-quality, sustainably grown coffee and potentially unlock new markets and increase profitability in the long term.
Despite these assurances, skepticism remains rife among farmers. Aisha Nakiyingi, another coffee farmer in the same region, voiced her concerns:
“While we understand the need for environmental protection, we must also consider the impact on our livelihoods. We are already facing challenges from climate change, such as unpredictable weather patterns and pests. We need support and training to adapt to these changes, not just regulations that could push us out of business.”
Enforcement of anti-deforestation law postponed
The European Commission has suggested a significant postponement in the enforcement of its groundbreaking anti-deforestation legislation, proposing that this comes into effect on December 30, 2025 for large corporations, and June 30, 2026 for micro and small businesses.
Under the new regulations, farmers will be required to provide the precise geographical coordinates of their coffee fields to confirm that their crops are not grown on land that was not deforested after December 31, 2020.
Responding to these challenges, the Ugandan government has launched a National Action Plan that aims to assist the coffee industry to navigate compliance. Tony Mugoya, Managing Director of Uganda Coffee Farmers, indicated that the initiative is seeking to register over two million coffee-growing households.
“Currently, approximately 20% of farmers are compliant with EU standards. However, with the regulation’s timeline extended for another year, the urgency to achieve wider compliance is critical,” he stated.
Mugoya further noted that “the extension provides us with a window of opportunity to bolster our infrastructure for compliance monitoring and traceability of all products heading to the EU market.”
