66
13/14
Opportunities forproduction,marketinganddistribution
of coffeeplantingmaterials
(i)
Some farmers from central region especially Masaka
are ready to pay the price of sourcing cuttings of
planting materials; this will provide a ready market
for such materials which in turn stimulate nursery
production.
(ii)
If seedlings are delivered on the right time to the
farmers (beginning of rains), some farmers are ready
to transport thematerials to theirhomes thus reducing
the distribution costs for the suppliers
(iii)
Coffeebuyingcompaniesespecially theexportersare
interested in distributing plantingmaterials to farmers
withingroups that they haveestablished relationships
with, especially those with certified specialty market
arrangements.
(iv)
Government through UCDA is planning to increase
on the number of planting materials given to coffee
farmers, which will stimulate demand that will be
fulfilled by new investment in proper nurseries in the
country
(v)
With increased support and interest of donors in the
coffee industry, nursery operators will have a bigger
market for their plantingmaterials especially through
sensitization of the farmers and support to the
replantingprogram
(vi)
The northern region has been identified to have
favourable weather conditions to support coffee
production. This will create a bigger outlet for the
plantingmaterials producedby nursery operators
(vii)
International market for coffee has improved over
the last five years. Thiscreatespotential for expanded
production which will attract investment into more
plantingmaterial production by nursery operators
Measures required toachieve sustainability
Althoughmost nurseryoperators indicated theability tosupply
enough planting materials if given large orders, measures
shouldbe instituted to ensure that efficient and reliablequality
materials are supplied. Suchmeasuresmay include;
(i)
Nurseries should be located near the farming
communities with the minimum coverage of a sub-
county but preferably at a parish level to ensure that
planting materials are collected and transported by
the farmers themselves to reducedamages. Farmers
will be in a better position to only pickwhat they can
manage toplant and look after.
(ii)
Emphasis should be placed on technologies like
cuttings and tissue culture since they maintain the
genetic purity compared to elite seed where over
time genetic segregation takes place and quality
deteriorates. There is lack of a proper genetic bank
for Robusta in Uganda although some work is
being done at Kituuza, it is not enough to reduce on
degeneration of thematerials.
(iii)
Tissue culture technology/ materials should also
be promoted because of ease of traceability, new
materials can be rapidly multiplied, and the centre
and nursery can be linked together to help maintain
quality.
(iv)
Given the high incidences of emerging diseases and
pests like Black Coffee Twig Borer and changes in
climate in the coffee industry, field assessments
should be carried out at regular intervals by UCDA
to compare supply of plantingmaterials with current
output. The results will in turn provide information on
the production trend of coffee in the country.
Table 9:KeyMarketing anddistribution challenges andproposed solutions
Challenge
Proposed solution
Latepayment:ThoughnurseryoperatorsdeliverasperUCDA requirements,
it takes about 12 months to receive payment compared to the agreed 2
months. This reduces the profits of the nursery operators due to accrued
interest on borrowedmoney from financial institutions
UCDA should adhere to the stipulatedperiod in
the contract.
High distribution costs; Distribution involves loading, unloading and
transport of seedlings from thenurseryup to thecentral locationsespecially
at sub-county headquarters. Since rural roads arepoor, highdamage rates
are recorded thus decreasingprofit attainedby the supplier.
Distribution of seedlings should be costed
separately from the actual cost of a seedling or
give a percentage of the price for transport.
In addition, distribution costs could be reduced
by supporting nursery establishment at parish
level.
Lack of contractual obligation by UCDA; Nursery operators have a
challengeonhowmuch toproduce for UCDAas they lack aMemorandum
of Understanding (MoU) which indicates UCDA requirements. UCDA
always come in formature seedlings andusually someof the seedlings are
not bought and this discourages the nursery operators not toplantmore.
To ensure stable supply of seedlings, UCDA
should sign a MoU with nursery operators
before nursery bed preparation indicating what
UCDAwill buy for the following season.
Low prices; The price offered by UCDA of UGX 300 per seedlings has
remained constant for the last 5 yearsmaking it difficult for the suppliers to
take care of current inflation rates in themarket.
UCDA should annually review the price based
on assessed production figures and impact of
inflation on inputs and transport costs.
Lackof records;Mostof thenurseryoperatorsdidnothave functional record
systems in place, this makes it difficult for them to make proper financial
decisions matching with their concerns. There is lack of information on
demand/number of farmer group requiringdirect supply plantingmaterials
Nursery operators should be trained in proper
recordmanagement to provide key information
on proper nursery business assessment.
Source: Survey data 2014
