At the factory opening, Ugandan President Museveni said, “This is liberation from economic slavery. Our inability to add value to our exports has subjected us to economic slavery where for instance we earn a dismal US$1 per kilo of coffee beans exported to European roasting and packaging firms that sell a kilo at US$15.”
AllAfrica reports that the 1 million USD factory has a capacity to produce 3,000,000 kg annually. Thus far, the company has invested over USD 2.5 million in building infrastructure and marketing.
Good African Coffee controls a value chain that starts with Ugandan farmers and continues all the way to supermarket shelves. The company has worked with farmers to improve husbandry techniques and introduce financial services, allowing them to raise the value of the crop they produce to a premium. Good African Coffee Ltdbegan operating in Uganda as the Rwenzori Coffee Company in 2003.
The coffee exporter’s slogan, “Trade, Not Aid,” describes a type of social enterprise that they hope will multiply in East Africa. It puts the brand solidly in the Fair Trade market. The Guardian reports:
Good [African Coffee] is entering what supermarkets recognize as a lucrative niche market. The Fair Trade Foundation, which has 900 approved retail and catering products, had sales of £140m last year, up from £92m in 2003 and £63m in 2002. One in two shoppers knows the meaning of its logo, compared with 37% a year earlier, according to MORI.
Barbara Crowther of the Fair Trade Foundation said that it supported Mr Rugasira’s plan, although it saw a potential danger if other companies, not so committed to sharing profits, attempted to cash in. “There is a difference between corporate philanthropy and empowering growers to take control of their own lives,” she said.
The company has promised 50% of the profits to growers, their families, and their communities. New Vision compares this effort to that of the National Federation of Coffee Farmers of Colombia, who 50 years ago successfully launched and marketed Café de Columbia, represented by the fictional Juan Valdez.
Good African Coffee wants to expand its reach both in Uganda and the region, looking at coffee farms in Kenya and Tanzenia.
This type of initiative is an excellent way to promote local entrepreneurship. From the top to the bottom of Good African Coffee’s tightly integrated vertical chain, the company’s dedication to not only the quality of their product, but also the quality of life of the farmers is evident. Even more interesting is the training given to farmers to improve the quality and sale value of their crop.
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Africa’s First Coffee Roasting and Packaging Plant Opens in Uganda
AllAfrica reports that the 1 million USD factory has a capacity to produce 3,000,000 kg annually. Thus far, the company has invested over USD 2.5 million in building infrastructure and marketing.
Good African Coffee controls a value chain that starts with Ugandan farmers and continues all the way to supermarket shelves. The company has worked with farmers to improve husbandry techniques and introduce financial services, allowing them to raise the value of the crop they produce to a premium. Good African Coffee Ltdbegan operating in Uganda as the Rwenzori Coffee Company in 2003.
The coffee exporter’s slogan, “Trade, Not Aid,” describes a type of social enterprise that they hope will multiply in East Africa. It puts the brand solidly in the Fair Trade market. The Guardian reports:
The company has promised 50% of the profits to growers, their families, and their communities. New Vision compares this effort to that of the National Federation of Coffee Farmers of Colombia, who 50 years ago successfully launched and marketed Café de Columbia, represented by the fictional Juan Valdez.
Good African Coffee wants to expand its reach both in Uganda and the region, looking at coffee farms in Kenya and Tanzenia.
This type of initiative is an excellent way to promote local entrepreneurship. From the top to the bottom of Good African Coffee’s tightly integrated vertical chain, the company’s dedication to not only the quality of their product, but also the quality of life of the farmers is evident. Even more interesting is the training given to farmers to improve the quality and sale value of their crop.