NUCAFE is the hub of a membership of 155 associations and cooperatives representing more than 150,000 coffee farming households. It draws it membership in 19 districts from the major coffee growing regions of Uganda, namely Rukungiri Busheni, Masaka, Rakai, Mpigi, Wasiko, Jinja, Kayunga, Inganga, Mbale, Sironko, Kapchorwa, Nebbi, Gulu, Mukono, Bududa, Manafa, Lira and Arua. In November 2010, Nucafe’s Feasibility study and business plan for the development of a Centre of excellence was received. A first quick analysis makes clear – that though the plan seems to have potential – there is room for improvement and clarification on multiple issues. During the company assessment (March 2011) Nucafe's management capacity, business potential and business plan were analyzed. An in-depth understanding of the practice and performance of Nucafe was obtained and an action plan as a roadmap towards the development of a sound and bankable business plan by the end of 2011 was developed. Targets of the action plan are as follows: • Nucafe will select 40-50 associations that will be organized in 5/6 coffee hubs • Overview of training and infrastructure/ICT needs at FA/coops/nucafe level that need to be addressed for professionalizing procurement and prefinancing • Nucafe will asses its financial management structure and systems at national and FA-level and its appropriateness for pre-finance • 50 FA's will be trained (6 coffee hubs: leaders + business managers) on business and procurement management • Income market linkage fee increased with 40% (28 UGX mobilised 8235 EUROs) • Nucafe identifies an appropriate land/location for establishing warehouse • Nucafe develops most appropriate warehouse scenario. • Nucafe will contract and train 4 procurement officers • Adequate feeing structure designed. • Two new buyers identified • 40% increase in sales in 2011 (…MT) • 1 bankable business plan for coffee procurement and marketing

NUCAFE is the National Union of Coffee Agribusinesses and Farm Enterprises. It is the national umbrella association that brings coffee farmers of Uganda together. It is a membership based association representing 125 Associations. NUCAFE’s system of operation is premised on the Farmer Ownership Model (FOM) and is implemented using the Farmer Group – Association framework, which is designed to help small scale coffee farmers to adopt a business view of farming and organize themselves to assume as many roles in the value chain as possible to keep pace with market and consumer demands. Over the last five years Nucafe has improved its service delivery and its institutional capacity. Nucafe is actively servicing some 7,000 farmers and the challenge is to consolidate this support. However, in spite of support to its activities by various donors, Nucafe cannot generate sufficient own income to become financially sustainable and is not able to meet its overhead costs. The main goal of this project is to continue empowering farmers to profitably commercialize coffee for enhanced incomes of farmers and NUCAFE’s own financial sustainability. Specific attention in 2011 is given to support the business managers and to strengthen the bulking hubs.

Nucafe will continue to work with some 20 Associations, representing about 7000 farmers and their families. But Nucafe is also increasing its activity range through other funding in this project (mainly from DANIDA and CAFNET) Activities focus on capacity building of the farmers at Association and group level through implementation of the farmer ownership model, market linkage to exporters, improvement of quality and quantity of the coffee produced, provision of disease resistant planting material, information dissemination, linking to credit institutions and input suppliers. There is also an extensive gender program empowering women as active participants in decision making processes and Nucafe governance structures. Important is also the intensified Lobby and Advocacy program, mainly focusing on necessary adjustments in the National legal framework.

NUCAFE is an organisation that is actively providing services and support to 600 farmer groups consisting of 30 farmers per group (about 18,000 farmers in total) in Uganda. In the last two years, NUCAFE has provided its members with necessary services. However, it was felt that NUCAFE needed to be more focused and targeted in order to achieve higher level of quality service delivery. The target of NUCAFE in 2007 is to concentrate its work in 8 districts with 20 Farmers Associations/sub counties with an estimated 7,000 farmers distributed in about 200 groups. These selected farmers have shown indication that if supported effectively will be able to market and obtain a premium for good quality to a tune of at least 1,000 MT during the coffee season year 2007. The coffee will be marketed directly to exporters or through the recently established warehouse receipt system. A relationship of trust has been built up with a number of exporters, which is however still fragile. It will be very important to maintain and consolidate this relationship in 2007. In 2007, Nucafe will continue its service delivery in terms of training (of directors and Association and Group leaders) and information dissemination. They will intensify (with a limited number of selected Associations) their market linkage function with more emphasis on quality measurement at Farmers Association's level. Equally important is the implementation of their sustainability strategy (market linkage fees). This should enable Nucafe to become more financially independent.

This project is a follow-up/consolidation of the first 1-year project for Total Quality Control & Improvement. Members were trained and sensitized, membership was structured (Quality producers´ Groups - Association model), marketing of good quality value added coffee (green coffee in stead of dried cherries) was started. This second year will be a consolidation of the structure through further service delivery, training, value adding, market information, marketing, promotion. Members will continue to use their knowledge and the Nucafe structure to produce bigger quantities of good quality processed coffee making use of the existing direct marketing possiblities (sales direct to exporters, through warehouse receipt system, commodity exchange). Nucafe will ensure quality and traceability of the produce of its members. Further focus of Nucafe is on the organisation of input supply, the improvement of the image of Uganda coffee, certification of a number of its groups and the establishment of a sustainability system for the organisation.Nucafe will also continue to lobby for the implementation by government of coffee reforms and the continuation of the replanting programme.

Uganda is a major coffee producing country in the world, but there is a lack of information among farmers on issues concerning food safety, quality and standards. 95% of Uganda´s coffee is exported to Europe and Europe requires importers more and more to meet stringent standards (SPS, TBT). In order to maintain Uganda´s position in the market, the National Union of Coffee Agribusinesses and Farm Enterprices (NUCAFE)wants to put in place a Total Quality Initiative Program. This means to develop coffee specific standards for coffee stakeholders in Uganda to follow. A training and information dissemination campaign also needs to be carried out among farmers. This will ensure coffee quality and will make Uganda´s coffee competitive.