STRATEGIC PLAN 2016/17-2020/21 NUCAFE

NATIONAL UNION OF COFFEE AGRIBUSINESS AND FARM ENTERPRISES

P.O.BOX 34967 Kampala Uganda +256772595030

joseph.nkandu@nucafe.org www.nucafe.org

23rd October 2016

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1.0 Contents

EXECUTIVE SUMMARY ..................................................................................................................................... 2

BOARD AUTHORIZATION OF STRATEGIC PLAN ................................................................................................ 5

2.0 INTRODUCTION .................................................................................................................................... 6

1.1 Background ............................................................................................................................................ 6

1.2 National Development Framework and Coffee ..................................................................................... 6

1.3 Situational Analysis ................................................................................................................................ 7

1.4 Farmer Ownership Model (FOM) as the Business Model .................................................................... 10

1.5 Previous Planning Cycle Milestones Achieved and lessons learned. ................................................... 11

1.6 Current Planning Cycle ......................................................................................................................... 12

1.7SWOT Analysis ...................................................................................................................................... 13

3.0 VISION, MISSION AND CORE VALUES ................................................................................................ 15

2.1 Vision .................................................................................................................................................... 15

2.2 Mission ................................................................................................................................................. 15

2.3 Core Values .......................................................................................................................................... 15

4.0 STRATEGIC OBJECTIVES AND ACTIONS .............................................................................................. 16

3.1 Strategic Objective One (SO1) ............................................................................................................. 16

3.2 Strategic Objective Two (SO2) ............................................................................................................. 17

3.3 Strategic Objective Three (SO3) ........................................................................................................... 18

3.4 Strategic Objective Four (SO4) ............................................................................................................. 19

4.0 ACTION PLAN ........................................................................................................................................... 22

6.0 Operational Plan October 2016-September 2017………………………………………………………………….33

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EXECUTIVE SUMMARY

NUCAFE five year strategic plan 2016-2020, builds on the achievements created by the

farmer ownership model that the association pursued in the previous planning cycle. It

was a culmination of a consultative and diagnostic process by NUCAFE. This plan is

cognizant of the importance of coffee to the overall livelihoods of Ugandan farming

families and everyone else across the value chain for continued deepening of shared

value. For, coffee in the development agenda of the country is looked at as a major value

chain that will provide the impetus towards the realization of the country’s vision 2040.

The overall goal of the strategic plan is to deepen and upscale the farmer ownership

model through value addition to the coffee, enabling farmer access to productivity

enhancing inputs that respond to new global coffee trends and establishing a training

centre. This is in line with the overall national aim of creating avenues for enhancing

productivity and value addition to coffee. It is also in line with the Sustainable

Development Goals ending poverty and hunger. The vision of NUCAFE is, “Coffee farmers

profitably own their coffee along the coffee value chain for their sustainable livelihoods,

customer satisfaction and societal transformation.” The strategic objectives for the

planning period include; 1) to improve the organizational capacity of the association to

be able to deliver on its mandate; 2), to empower members; associations, cooperatives

and agribusiness enterprises in sustainable production; 3), to develop a new generation

of farmers that own their coffee and are integrated in coffee value chain; 4), to pursue

an enabling and conducive environment for the coffee value chain through advocacy and

lobbying.

Indeed, a number of opportunities lie along the planning path like; the favorable

Government focus on coffee as a strategic crop, the ready worldwide increasing demand

for coffee plus many coffee farmers in Uganda and other African countries that look to

NUCAFE to urgently deepen and upscale the farmer ownership model. There are also

challenges and risks like; the low productivity, ever reducing size of land, unstable green

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coffee prices on the world market, youth shying coffee farming plus the changing climate

conditions coupled with lack of access to low interest loans to farmers.

Hence, the strategic objectives in this plan are aimed at exploiting the opportunities while

minimizing the impact of the threats. It will be implemented in a phased manner using

the management team with skills that match the ever increasing demand for upscaling

the farmer ownership model to new places and commodities. To do that NUCAFE will

move to finalize the establishment of a fully fledged training Centre code-named,

“Centre for Agribusinesses for Farmer and youth Entrepreneurship

enhancement’’ (CAFÉ). The strategic plan will guide the preparation of the annual

operational plans for the planning period with a mid-term review within in the third year.

It is projected that the entire strategy will require a total UGX 8,692,119,400/= for its

implementation over the planning period. Resources will be sourced from both the

internal resources as well as any contributions from development partners and other

stakeholders.

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Strengthen Technical capacity of both staff and coffee members

Visio

n

Coffee farmers profitably own their coffee along

the value chain for sustainable livelihoods,

customer satisfaction and societal

transformation.

To establish a sustainable market driven system of coffee farmer enterprises

and organizations which are empowered to increase their household incomes

and improved livelihoods through enhanced entrepreneurship and innovation.

Missio

n

Strategic Ob

jectives

Strengthen the

organizational

capacity of

NUCAFE at the

CAFÉ in

deepening and

up scaling the

Farmer

ownership

Model

Empower

member

Associations,

cooperatives/

enterprises

towards self

sufficiency

Develop a

new

generation of

farmers that

own coffee

and are

integrated in

the coffee

value chain

Enable a

conducive

environment

for coffee

value chain

through

advocacy and

lobbying

Valu

es

Compassion Customer Satisfaction

Professionalism Equity

Integrity

Entrepreneurial Culture

Creativity and Innovation

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BOARD AUTHORIZATION OF STRATEGIC PLAN

The Board members below, do hereby authorize the NUCAFE strategy October 2016-

September 2021 and the operational plans from this strategic plan and that the plan is

work in progress.

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2.0 INTRODUCTION

1.1 Background

National Union of Coffee Agribusinesses and Farm Enterprises (NUCAFE) is the National

umbrella organization of coffee farmers in Uganda. It is registered as a company limited

by guarantee and not having share capital. The membership at the end of October 2015

stood at one hundred ninety five (195) members made up of associations and

cooperatives spread across all regions of Uganda. Some of the associations are

organized at regional levels into hubs, with a total of 16 hubs that are fully operational

and others are in the process of being fully operationalized.

NUCAFE’s operations are hinged on the Farmer Ownership Model (FOM) under which

the emphasis is on ensuring that coffee farmers profitably own their coffee along the

coffee value chain. The role of NUCAFE is to facilitate the achievement so far made by

addressing bottlenecks along the Value chain. In this endeavor, the strategic plan is

aimed at building onto the achievements registered by the association in the pursuance

of the its mission and vision.

1.2 National Development Framework and Coffee

Uganda’s Vision is to transform from a peasant society to a modern and prosperous

country by 2040 (Uganda Vision 2040). Currently agriculture contributes up to 22% of

the National GDP and with 60% of the entire labour force employed by the sector. As

such the country has to use agriculture as a springboard towards realizing Vision 2040.

It is estimated that a growth rate of 5% per annum over the period will be sufficient to

support the realization of the vision. Government plans to foster agribusiness and agro-

based industries in the country. At the sector level, coffee remains the leading

agricultural export commodity in the country and is expected to greatly contribute

towards the realization of the national vision. The Agricultural Sector Development

Strategy and Investment Plan 2010/11 to 2014/15 of Government of Uganda lists coffee

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as a strategic export commodity among those selected to be covered by sub-

programme 1.8: Promoting Strategic Enterprises. In this sub programme, emphasis is

placed on replanting coffee trees and expanding coffee production into Northern

Uganda with a view of increasing the overall quantity of coffee to achieve a target of 20

million bags by 2020. In addition to the above, all key plans and policies with a linkage

to coffee such as Government’s National Development plan 2010/11-2014/15, the

Agricultural Sector Development Strategy and Investment plan (DSIP) 2010/11 to

2014/15, the National Agriculture Policy 2013 and the National Coffee Policy 2013

emphasize value addition to the agricultural products in the country. The East African

Community (Burundi, Kenya, Rwanda, Taanzania, South Sudan and Uganda) strategy is

also aimed at boosting coffee production. All these regional and national Government

policies provide framework and opportunity for NUCAFE to implement its NUCAFE’s

strategy 2016-2020.

1.3 Situational Analysis

Coffee is the most popular beverage in the world with more than 400 billion cups being

consumed around the world each year. As a drink, coffee is second only to water in

terms of popularity. Consumption of coffee is heavily concentrated in the developed

countries with per capita consumption being highest in Finland followed by Denmark,

Sweden, Holland, Belgium, Norway, Switzerland, Germany, Austria and France as the

top consumers per capita in the EU region (ICO 2014). On the world market, the

dynamics of coffee prices are generally characterized by cyclical instability usually in

tandem with the production pattern.

Production of coffee on the other hand is mainly from developing countries led by Brazil,

followed by Vietnam, Indonesia, Colombia, Ethiopia, India, Honduras, Mexico,

Honduras, Uganda and Guatemala completing the top ten producers. Coffee production

normally follows a cyclical pattern with large crop harvest in one year being followed by

smaller crop harvest the following season. Global coffee production has consistently

been growing at a rate of 2% per annum in the last 10 years. However over the same

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period, as the global coffee production was consistently growing, production in Africa

has seen a steady decline at a rate averaging 2% and leading to Africa’s loss of global

market share at close to 11%. The leading ten producers of coffee in Africa are

Ethiopia, Uganda, Cote d’ivoire, Tanzania, Kenya, Cameroon, Madagascar, Togo, Guinea

and Rwanda with the region contributing 14% of the world coffee production (United

States Department of Agriculture 2014).

In Uganda, coffee remains the leading farming household earner and the most

important agricultural export for the country (UBOS Statistical Abstract 2013) with a

contribution of 20% of the total national export value in the last five years. Uganda is

the leading coffee exporter on the continent despite its production being less than that

of Ethiopia. The local consumption of coffee in Uganda is estimated at a trifling 5% of

production (though it is steadily increasing) compared to Ethiopia where Local

consumption is almost 50% of the country’s production.

Uganda, just like Ethiopia, has had a steady increase in production in the recent years

with current production estimated at 4,000,000 bags of coffee of 60 kilograms each.

However, this is way below the 50% of the estimated current potential production

capacity. The coffee produced is composed of both Arabica and Robusta coffee. As a

country, 75% of the coffee output is made up of Robusta leaving only 25% as Arabica

coffee. However, recent years have seen Arabica coffee reducing the output gap.

Robusta coffee is predominant because it prospers in the low altitude areas; Eastern,

Central, Western and South Western parts of Uganda. On the other hand, Arabic coffee

can only prosper in the highland areas on the slopes of Mount Elgon, Mount Rwenzori

and Mount Muhabura at altitudes of at least 1500m above sea level.

According to UCDA, the coffee subsector is dominated by smallholder farmers with only

a few large scale producers at present. The smallholder farmers largely produce on

highly fragmented pieces of land in most cases less than an hectare.

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Largely the coffee produced in the country is exported with little value added due to the

stringent food safety requirements on the world market and domestic consumption is

slowly growing. Value addition according to the value chain analysis of the coffee

subsector in Uganda report by UNDP (2012) is largely limited to post harvesting and

bulking by most farmers. The current value addition is mainly spear headed by NUCAFE

and its member associations and cooperatives that play an important role of creating

awareness and looking out for the interest of their members. These associations and

cooperatives that apply the Farmer Ownership Model are seen as being of significant

importance to the coffee industry.

A number of coffee processors have of recent come on board to undertake secondary

and tertiary processing of Coffee either as individual entities or in the form of

associations and cooperatives. This has also been supported by Government plans

through the National coffee policy in promoting value addition. Despite these

developments, there still remains a huge potential and need for value addition especially

at the tertiary processing stage for specialty coffee which may further be enhanced by

increased domestic consumption.

Along the coffee value chain, there is currently little participation by the youth despite

the huge potential. This according to Development of inclusive Markets in Agriculture

and Trade (DAMAT) Project report of 2012 can be attributed to inadequate access to

productive assets especially land and startup capital and the general negative attitude

towards agricultural activities in perennial commodities which are perceived as slow

income generating crops. This creates a huge potential for the youth to get involved

with adequate tailored intervention programmes especially if value addition is

emphasized.

On the side of gender involvement, the coffee production process largely involves both

men and women, with women dominating the farm related activities and men

dominating the market linkage activities. This creates an imbalance in the roles

compared to the benefits associated with the value generated because predominantly

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the men take charge of the sharing of the benefits at the expense of the women that

may have equally contributed to the final value. Hence the issue of gender equity in

terms of roles and benefits remains an issue in enhancing labour and coffee productivity

and quality. It is partly due to this gender gap that NUCAFE continues to pursue gender

equity as part of the family business management with succession planning and value

addition to coffee using the Farmer Ownership (FOM) Model. FOM is increasingly being

demanded by farmers from many countries and development partners such as the

Technical Centre for Agriculture and Rural Cooperation (CTA) of EU, Agriterra and

International Trade Centre (ITC) to mention but a few. In Uganda, Universities and

agribusiness incubators such as Makerere University and CURAD have taken FOM as

their business model for transforming the agricultural sector. The Model is now taken on

within the National Coffee Policy by the Uganda’s Ministry of Agriculture.

1.4 Farmer Ownership Model (FOM) as the Business Model

For a considerable period of time, NUCAFE has operated on the premise that coffee

farmers should be masters of their own development to own the coffee beyond farm-

gate until some relative value has been added before it exchanges ownership. This is

aimed at having a sustainable coffee value chain that promotes equity, coffee quality

and value through the enhanced skills that farmers gain by looking at coffee not only as

the coffee cherries they pick from the trees but as a valuable product that is consumed

by the final customers. This is being implemented through the NUCAFE’s model referred

to as the Farmer Ownership Model (FOM) which promotes creating shared value

through farmer value addition to the coffee before the final disposal to buyers. This is in

line with the national coffee policy that calls for value addition to agricultural

commodities by farmers and farmer associations. NUCAFE still envisages the success of

the farmer through creating shared value while promoting family coffee

entrepreneurship and succession planning. To this end, NUCAFE looks at this model

family catering for the man, woman and youthful children, both boys and girls.

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NUCAFE has grown into two strategic units; one being Entrepreneurship services Unit

and Social Development Unit. The entrepreneurship services unit provides services at a

fee with a view of enabling the farmers to go from one level of the value chain to the

next while the Social Development Unit is meant to more impact social transformation of

society starting with the coffee farmer as the centre point with a view of improving

members and the stakeholders’ livelihoods through providing technical, business

enabling environment and upscaling with capacity building business services. It is the

intention of this strategic plan that due attention is paid to having a coffee career and

entrepreneurship training centre that will deepen and upscale creating shared value and

climate resilience within and outside Uganda in coffee and other agricultural value

chains.

1.5 Previous Planning Cycle Milestones Achieved and lessons

learned.

NUCAFE’s efforts related to its previous strategic plan for the period 2012-2016 has

registered a number of strategic achievements while at the same time providing key

lessons for the organization. Indicated below are the key achievements that have been

realized during the previous strategic planning period in line with the milestones that

were set:

Key milestone Start End Achievement 1

Increase Specialty coffee exports/ sales

2012 2016 100% and increased demand

2

Business plan developed and implemented

2012 2022 200 farmers associations with 1m farmers organised, Coffee factory established, coffee shop established, roasting facility established, two brands, youth skilled, multipurpose incubation centre established

3 Acquisition of land & construction of 100 MT warehouse

2012 2013 2 acres acquired and first phase of warehouse construction

4 Service Portfolio redesign and client segmentation

2012 2012 Service portfolio re-designed involving client segmentation.

5 Delivery of farmer association capacity development

2012 2016 200 farmer associations and cooperatives

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6 Establishment and operationalization of regional collection hubs

2012 2014 16 hubs established, more progress needs to be made.

7 Acquisition and installation of roasting & grinding equipment

2013 2014 Acquisition done and installation of roasting and grinding equipment done

8 Acquisition and installation grading factory

2015 2016 Acquisition and installation of grading equipment done.

9 Commercialization of roast and ground coffee

2014 2016 Progressing well and high demand

10 Purchase of land as an extension to existing land

2016 Already obtained additional from UIA in Namanve industrial park

The key milestones will provide the impetus to NUCAFE in the current planning cycle

especially in addressing those areas that may have caused a delay or derailed the

operations as indicated in the SWOT analysis that follows.

1.6 Current Planning Cycle

The current planning cycle running from 2016 to 2020 was undertaken through a

consultative process involving farmers and representatives of the member farmer

cooperatives and associations as well as other stakeholders. The process involved

external consultants to eliminate the attachment to the old and familiar ways of

undertaking the planning process with consultations held with members at the hubs

level as well as discussions with some of the primary stakeholders for their input in the

planning process. It is the views of the members and the stakeholders that formed the

basis of the strategic plan which was approved following the normal NUCAFE approval

process.

The representative association members from the hubs who were involved in the

consultations included: Masaka, Rakai, Mpigi, Nebbi, Kapchorwa and Greater Bushenyi.

A participatory approach was used during the consultations and all members who

participated aired their views during these consultation meetings. It is the output of the

consultation meetings together with a review of the environment and the progress

made on the previous strategic plan that a SWOT analysis was undertaken.

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1.7SWOT Analysis

Indicated below is a summary of the analysis of the internal and external environments within which NUCAFE operates. A

clear understanding of the environment is critical for the success of the organization

Strength Weaknesses

Strong membership spread all over coffee producing

areas of Uganda

Factory (Grading, roasting, grinding, blending and

packaging units)

Competent and professional staff

Dedicated board of directors

Good strategic foresight of the business

Ability to bring coffee farmers together such as the

National coffee convention and festival

Ability to easily spread information on any innovation

and disease control measures

Strong relationship and linkage with other

stakeholders

Strong commitment to gender equity

Capacity to influence and inform policy

Ever increasing demand for services from

many member farmers and other stakeholders

outside of membership in one cycle

Inadequate funding

Inadequate presence and monitoring of

providers of inputs such as seedlings,

fertilizers and others

Lack of clear demarcation between the

agribusiness arm and the social

entrepreneurship arm

Inadequate capacity of members to keep

records of their operational activities

Opportunities Threats

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Ever increasing world coffee consumption

Existing number of coffee farmers who are yearning to

apply the farmer ownership model and become

members

High demand for the farmer ownership model from

other countries.

Implementation of the coffee policy

Available potential to procure inputs and other items in

bulk for the members to benefit from discounts

Ready existing demand for value addition services

An existing infrastructure of hubs

Financial institutions that are willing to work with

groups of farmers

Conducive national agenda for coffee

Existing market nationally, regionally and

internationally

Youthful Population-78% of population below 30.

Goodwill of the stakeholders especially Government

Liquidity of middlemen

Lack of low interest lines of credit.

Lack of appropriate legislation on the quality

of coffee produced.

Illiteracy among members leading to low

capacity to adopt quality control measures

Negative attitude to farming by the youth.

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3.0 VISION, MISSION AND CORE VALUES

2.1 Vision

Coffee farmers profitably own their coffee along the Value Chain for sustainable

livelihoods, customer satisfaction and societal transformation.

2.2 Mission

Improve livelihoods of smallholder coffee farmers.

2.3 Core Values We create an environment where compassion, professionalism, integrity, entrepreneurial

culture, customer satisfaction and equity are fostered.

Compassion: As leaders, we are empathetic and conscious of our members’

situation and have a strong desire to alleviate the conditions that might prevent

them from maximizing value from their efforts and we live exemplary social

entrepreneurial life.

Professionalism: We maintain and develop our staff to perform their work with

competence, dedication, transparency, expertise and due care.

Integrity: We act with honesty and adhere to fairness in an ethical way.

Entrepreneurial Culture: We nurture an environment that is conducive to

business development. We emphasize innovation and agility at the core of our

operations as we strive to make our offerings better and more effective.

Customer satisfaction and loyalty: We pursue the provision of services with

superior value to exceedingly meet the needs of all our customers

Equity: We embrace principles of fairness creation of shared value, an

environment where all stakeholders have the opportunity to succeed regardless of

gender, age, race or any other social classification.

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4.0 STRATEGIC OBJECTIVES AND ACTIONS

In line with our desire of competitively retaining and establishing our position in the coffee

market, NUCAFE is to pursue the following set of strategic objectives during this planning

cycle ahead.

3.1 Strategic Objective One (SO1)

Strengthen the organizational capacity of NUCAFE at the CAFÉ and associated

enterprises in deepening and upscaling the Farmer Ownership Model in creating shared

value. NUCAFE’s competitiveness can only be achieved with a well-developed, motivated

and trained human resource in place as well as the necessary infrastructure and facilities.

This will ensure higher returns to coffee farmers’ investments as they continue to own and

eventually sell a more valuable form of coffee to customers. In this case, NUCAFE looks

forward to upscaling its operations by completing the establishment of its coffee career

and entrepreneurship training centre (CAFÉ) before 2019.

Strategic Actions to meet SO1:

Finalize establishment of the training centre as a springboard to deepening and

upscaling the farmer ownership model.

Expand the warehouse facilities for coffee stocks at the factory.

Retain and build partnerships to upscale its business operations.

Implement the Strategic Human Resource Plan developed during 2012-2016 strategic

plan.

Strengthen the Human Resource Unit with adequate staffing as well as systems and

policies.

Standardize the human remuneration schemes based on experience, level of

education, risk, position, performance.

Re-align the organization into two distinct sections; operations and Compliance

(Finance/Administration) units under entrepreneurship and social development each

headed by a Deputy Executive Director who will work and execute their duties as

Managing Directors reporting to the Executive Director.

Establish motivation mechanisms for the members of staff.

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Maintain a capacity building system up to the hubs and cascading to the associations

and others.

Establish a user-friendly MIS system for both internal and external use.

Re-assert NUCAFE market position through brand positioning.

Create awareness about brand value and benefits to our customers.

Promote domestic consumption of coffee.

Improve the factory ecosystem through mitigation and adaptation measures.

Franchise the omukago coffee shop and manage the franchisees

Continuously re-evaluate product offerings for competitive pricing and value.

Continue participating in coffee contests, cupping tests in order to build awareness

and visibility of the members’ coffee.

Set the ground work for setting up farmers’ SACCOs and a fully-fledged bank.

Put in place succession planning for staff, management and governance.

Manage low hanging fruit project(s) for productivity and quality enhancement such as

the bio-fertilizer, irrigation and use of solar energy.

3.2 Strategic Objective Two (SO2)

Empower member associations, cooperatives and enterprises towards self sufficiency.

Initiate interventions that support efficient marketing system in order to enhance more

value to the coffee farmers. Encourage more farmers to associate and cooperate so as to

sell coffee collectively with economies of scale. In order to achieve this, NUCAFE will

focus on the following strategic actions.

Strategic Actions to meet SO2:

Continue benchmarking members’ coffee production processes with international

standards and provide feedback to members.

Characterize the quality of coffee based ecological zones and promote and market

as such from the different from associations and hubs in different ecosystems.

Form economic partnership with relevant players in the coffee value chain

domestically, regionally and internationally.

Train members in the areas of coffee Agribusiness management and climate

resilience through mitigation and adaptation strategies and practices.

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Support the logistics that smoothen the delivery process of the coffee through

certifying or recommending service providers such as for transport, storage among

others.

Organize farmer to farmer visits and exchange activities at least once every

quarter at the hub level within the region, nationally and internationally.

Establish digitalized system that links member cooperatives and associations to

NUCAFE that allows members to track their coffee to the final destination.

Partner with ICT firms to create an innovative platform for sharing of coffee market

information by all stakeholders to ensure constant access and availability of up-to

date statistical information.

Facilitate the establishment of a fund to improve farmers cashflows.

Set up soil analysis unit initially at the Secretariat but to be cascaded to the hubs.

Publish a periodic market information.

Support the acquisition of trade finance by members

Support the setting up of certified coffee seedlings nurseries, input providers and

other service providers along the value chain.

Promote production of food crops for family food security as well as rearing

animals to facilitate sustainable manure production by the farmers.

Establish a data base on key aspects of coffee production including; input data,

output data, financing, value addition and employment data.

Establish exchange programs with other similar associations and cooperatives

internationally.

Produce complete coffee farming manual/guide from preparation to post harvest

handling.

Support the utilization of Modern Agricultural practices.

Put in place succession planning for staff and leadership.

3.3 Strategic Objective Three (SO3)

Expand the development of new generation of farming families that continue to own their

coffee and are integrated in the coffee value chain for shared sustainable value. This can

be achieved through deepening and upscaling creating shared value using the farmer

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ownership model where farmers own their output along the coffee value chain and hence

the corresponding benefits.

Strategic Actions to meet SO3

Promote and support to family entrepreneurship and succession planning at

household, association, hub, staff, Board members and share with academic

institutions and other stakeholders.

Develop terroir coffees with geographical indications which can result into

sustainable brands from specific Ugandan coffee sources of origin.

Develop and establish own financial institution that will evolve eventually into a

Bank that will ensure access to affordable financing mechanism to farmers.

Support record keeping by farmers’, right from preparation of land for planting to

the marketing of the output.

Create an environment where value addition services are provided by the youth

such as transporting of the coffee.

Support and improve gender equity and participation of women and youth at all

levels of the value claim.

Promote the entrepreneurial skills and attitude through the Farmer Ownership

Model

Institute a system that promotes and rewards innovation to farmers, leaders and

staff

Support more farmers to upgrade from farm gate markets to more value added

markets

Support a climate Change awareness and adaptation mechanisms for farmers

Innovate and expand value addition beyond roasting and grinding through

establishment of other associated self sustaining businesses e.g printing of

packaging materials.

3.4 Strategic Objective Four (SO4)

Lobby and advocate for the improvement of the business environment within the national,

regional and global coffee industry.

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Advocacy and Lobbying are necessary in order to sustainably support the growth of the

coffee industry in the country and internationally. NUCAFE will endeavor to achieve this

by focusing on the following strategic actions.

Strategic Actions to meet SO4

Build Partnerships with coffee stakeholders and continuously consult such entities

through signing of MoUs for ease of working with and legalize such relationships.

Network with stakeholders on promoting climate smart mitigation and adaptation

practices along the entire coffee value chain.

Position NUCAFE as the coffee industry information and knowledge centre for

advocacy and citizen engagement holding public offices accountable.

Disseminate all coffee industry related policies and regulations to the lowest level

of NUCAFE membership.

Participate in enactment of regulations and by laws that will ensure effective

enforcement of laws.

Lobby for board representation to entities that support coffee and agriculture in

general especially in the function of research, funding, regulatory and

development.

Develop unifying policy positions on issues that are related to coffee and

agriculture in general

Advocate for Government support towards youth and women incubation in

business to acquire entrepreneurial skills to create jobs and incomes.

Support training on technical, market research and soil fertility research for

increased coffee production and quality

Improve the information flow system between NUCAFE and coffee farmers

associations /co-operatives

Support and build capacity of farmer associations to influence policy change.

Network with other agencies, coffee associations/co-operatives to campaign,

demonstrate, advocate on the different issues affecting small-scale farmers.

Strengthen Corporate Governance of all member associations/cooperatives.

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Advocate for Government support to farmer associations to acquire infrastructure

for value addition.

Facilitate and lobby government to improve on policies in land use and land

ownership in addition to inheritance pronouncements.

Initiate a communication strategy that involves a Master plan for lobbying and

advocacy and quarterly newsletters with wide dissemination.

Strengthen communication, promotion and marketing strategy to include family

farming based approach; women and youth entrepreneurship in the value chain.

Support the translation of Coffee related policies, regulations and other relevant

documents into local languages.

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4.0 ACTION PLAN

Vision: Coffee farmers profitably own their coffee along the Value Chain for sustainable livelihoods, customer satisfaction and

societal transformation

Mission: To establish a sustainable market driven system of coffee farmer enterprises and organizations which are

empowered to increase their household incomes and improved livelihoods through enhanced entrepreneurship and innovation. Strategic

Objective

Strategic Action Indicators Time Frame in Years Responsibility

1 2 3 4 5

SO1 Finalize establishment of the training

centre as a springboard to deepening

and upscaling creation of shared value

using farmer ownership model.

Certificate of completion ED

Retain and build partnerships to

position and upscale the various

business operations.

MOUs signed ED

Implement the Strategic Human

Resource Plan developed during

2012-2016 strategic plan.

No. of staff trained ED

Strengthen the Human Resource Unit

with adequate staffing as well as

systems and policies.

Human Resource

Assistant hired

ED

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Undertake staff induction on joining the

organization and at least one training

activity in the areas of Agribusiness

management and Good agricultural

practices.

Induction Program in

place

HR&A

Strengthen the Human Resource Unit

with systems and policies

Percentage of Staffing

levels against

establishment

HR&A

Standardize the human remuneration

schemes based on experience, level of

education, risk, position

Remuneration schemes approved

HR&A

Re-align the organization into two distinct

units; entrepreneurial and social units

each headed by a Deputy Executive

Director who will work and execute their

duties as Managing Directors reporting to

the Executive Director

Organizational structure

approved

ED

Establish motivation mechanisms for the

members of staff

Motivation Scheme

approved

HR&A

Maintain a capacity building system up to

the hubs and cascading to the

associations and others

Number of capacity

building activities

conducted

DES

24

Establish a user-friendly MIS for both

internal and external use

MIS in place DES

Re-assert NUCAFE market development

through farmer empowerment and brand

positioning

Percentage of NUCAFE

market share

BMO/ED

Create awareness about brand value and

benefits to our customers

Percentage of brand

awareness attained in

the market

BMO/ED

Promote domestic consumption of coffee Increased domestic

Consumption

DES

Improve the factory and generally the

CAFÉ’s ecosystem for mitigation and

adaptation including landscaping, use of

solar

Mitigation and adaptation

strategies put in place

DES

Set in place franchise development

process for the whole or part of FOM or

CAFE and manage the franchisees

Number of CAFEs

franchised

DES

Continuously re-evaluate Service/product

offerings for competitive pricing and value

Number of product

innovations developed

Continue participating in coffee contests,

cupping tests in order to build awareness

and visibility of the members’ coffee

Number of coffee

contests and tests

participated in

ED

25

SO2 Bench mark members’ coffee production

processes with international standards

and provide feedback to members

Percentage members

coffee meeting

recognized standards

ED

Characterize the quality of coffee based

ecological zones and promote and market

as such from the different from

associations and hubs.

Number of ecological

zones meeting the

required quality coffee

standards

DES

Form business partnership with relevant

players in the coffee value chain

domestically, regionally and

internationally

Number of business

partners formed

DES

Train members in the areas of coffee

Agribusiness management and Climate

Smart agricultural practices.

Number of members

trained in Agribusiness

management and GAPs

DES

Support the logistics that smoothen the

delivery process of the coffee through

certifying or recommending service

providers such as for transport, storage

among others

Number of Hubs

logistically supported

ED

Organize farmer to farmer visits and

exchange activities at least once every

quarter at the hub level within the region,

Number of farmer to

farmer visits and

exchange programs

DES

26

nationally and internationally organized

Establish business systems at

cooperative and association level that

allows members to track their coffee to

the final destination

Number of coffee tracking

systems established at

various hub levels

DES

Partner with ICT firms to create an

innovative platform for sharing of coffee

market information by all stakeholders to

ensure constant access and availability of

up-to date statistical information.

Number of collaborative

and Innovative ICT

platforms established

DES

Facilitate the establishment of a fund to

smoothen farmers cashflow

Number of members

accessing financing

ED

Set up soil analysis unit initially at the

Secretariat but to be cascaded to the

hubs

Soil analysis units

established

DES

Publish a periodic market journal Number of market

journals published

ED

Support the setting up of certified coffee

seedlings nurseries, input providers and

other service providers along the value

chain

Number of certified

seedlings nurseries and

service providers

established

ED

27

Promote production of food crops for

family food security as well as rearing

animals to facilitate sustainable manure

production by the farmers.

Number of successful

food security programs

DES

Support the acquisition of trade finance

by members

Number of members

accessing trade finance

support

ED

Establish a data base on key aspects of

coffee production including; input data,

output data, financing, value addition and

employment data

Data base established ED

Establish exchange programs with other

similar associations and cooperatives

internationally

Number of international

exchange programs

established

Production of more Coffee farming

manual/Guide from preparation to Post

harvest handling

Quality production

manuals published

DES

Support the utilization of Modern

Agricultural practices

Percentage of Fertilizers intake to average output per acre by members

DES

SO3 Put in place family coffee business and

succession planning mechanism at

household, association, hub and

Business Management

and Succession plan

developed

DES

28

secretariat considering both staff and

Board members.

Develop and establish own financial

facility that will evolve into a Bank that will

ensure farmer access to affordable

finance

Financial Institution

established

DSD

Support record keeping by farmers’, right

from preparation of land for planting to the

marketing of the output

Number of farmers

trained in record keeping

DSD

Create an environment where value

addition services are provided by the

youth such as transporting of the coffee

Number of youth

participating in the value

addition activities

DES

Support and improve gender equity and

participation of women and youth at all

levels of the value claim

Proportion of women and youth along the value chain

DES

Promote the entrepreneurial skills and

attitude through the Farmer Ownership

Model

Number of farmers trained in entrepreneurial skills

ED

Institute a system that promotes and

rewards innovation to farmers, leaders

and staff

Number of farmers awarded innovation accolades

DSD

Enable farmers to upgrade from farm gate Number farmers participating in export

DES

29

markets to more value added markets markets

Support a climate Change awareness and

adaptation mechanisms for farmers

Number of climatic change awareness and sensitization programs designed

DSD

Innovate and expand value addition

beyond grading to roasting and grinding

Proportion of coffee exports originating from NUCAFE members

DSD

SO4 Build Partnerships with coffee

stakeholders and continuously consult

such entities through signing of MoUs for

ease of working with and legalize such

relationships

Number of partnerships and collaboration MoUs signed

ED

Position NUCAFE as the coffee industry

information and knowledge centre for

coffee entrepreneurship, advocacy and

citizen engagement holding public offices

accountable

Number of inquiries and consultations made through NUCAFE by relevant stakeholders

ED

Disseminate all coffee industry related

policies and regulations to the lowest

level of NUCAFE membership

Number of Local

language translations

ED

Participate in enactment of laws,

regulations and bye laws that will ensure

effective enforcement of laws.

Number of coffee

law/policy consultations

and regulations enacted

ED

30

Lobby for board representation to entities

that support coffee and agriculture in

general especially in the function of

research, funding, regulatory and

development

Number of relevant

bodies where NUCAFE is

on the board.

ED

Develop unifying policy positions on

issues that are related to coffee and

agriculture in general

Number of coffee policy

amendments established

ED

Advocate for Government support

towards youth and women incubation in

business to acquire entrepreneurial skills

to create jobs and incomes.

Number of successful Advocacy

ED

Support training on technical, market

research and soil fertility research for

increased coffee production and quality

Number of training

support programs

generate

DES

Improve the information flow system

between NUCAFE and coffee farmers

associations /co-operatives

Effective information flow

system established

DSD

Support and build capacity of farmer

associations to influence policy change

Number of policy interventions initiated by members

DSD

31

Network with other agencies, coffee

associations/co-operatives to campaign,

demonstrate, advocate on the different

issues affecting small-scale farmers

Number of Advocacy

networks

DSD

Strengthen Corporate Governance of all

member associations/cooperatives

Board level training

conducted

ED

Advocate for Government support to

farmer associations to acquire

infrastructure for value addition

Advocacy strategy in

place

ED

Facilitate and lobby government to

improve on policies in land use and land

ownership in addition to inheritance

pronouncements

Advocacy strategy in

place

ED

Initiate a communication strategy that

involves a Master plan for lobbying and

advocacy and quarterly newsletters with

wide dissemination

Newsletter for advocacy

published

DSD

Strengthen communication, promotion

and marketing strategy to include family

farming based approach; women and

youth entrepreneurship in the value chain

Communication strategy/

plan developed

DSD

32

Support the translation of coffee related

policies, regulations and other relevant

documents into local languages

Number of national,

regional and local level

coffee related policies

translated in local

languages

DSD

5.0 Cost implication of the strategic plan 2016-2020

Indicated below is the high level cost implication of the strategic plan implementation

No Objective Year 1 Year 2 Year 3 Year 4 Year 5 Total

SO1

Strengthen the organizational

capacity of NUCAFE at the CAFÉ

and associated enterprises in

deepening and up scaling the

Farmer Ownership Model

359,900,000

535,450,000

202,290,000

222,519,000

844,770,900

2,164,929,900

SO2

Empower member associations,

cooperatives and enterprises

towards self sufficiency

450,000,000

488,000,000

536,800,000

590,480,000

649,528,000

2,714,808,000

SO3

Develop a new generation of

farmers that continue to own their

coffee and are integrated in the

coffee value chain for sustainable

345,000,000

379,500,000

381,150,000

419,265,000

461,191,500

1,986,106,500

33

production

SO4

Lobby and advocate for the

improvement of the environment

within the coffee industry.

310,000,000

335,000,000

362,500,000

392,750,000

426,025,000

1,826,275,000

Grand Total

1,464,900,000

1,737,950,000

1,482,740,000

1,625,014,000

2,381,515,400

8,692,119,400

34

6.0 Operational Plan October 2016-September 2017

Strategic

Initiative

Strategic Action Indicators Target Months Responsibili

ty

S

t

a

r

t

1 2 3 4 5 6 7 8 9 10 11 12

1

End

Family Coffee

Business

Management

and

Succession

Planning

Develop an MIS to

enable easy to – and –

fro family business and

organizational

information exchange.

A digital Management

Information System

developed and installed

with a dashboard

100 FAs1 M & E

Officer

Carry out research to

establish the status of

family coffee

businesses.

Report on the status of

family coffee

businesses in the coffee

value chain.

30 FAs HR&A

Develop modules of

family business

management and

succession planning

No. of modules

developed

No. of modules printed

1000 ED

1 FAs = Farmer Associations

35

Train farmer

associations/cooperative

s and farmers in family

coffee Business

Management and

succession planning

No. of

farmers/associations/co

operatives trained

No. of families trained

20,000

Brand

development

through

Specialty

Coffee

Development

and domestic

consumption

Bench-mark members’

coffee production

processes with

international standards

of specialty coffee and

provide feedback for

continuous

improvement.

Number of members

meeting recognized

specialty standards

30 FAs DED

Characterize the quality

of coffee based on

different ecological

zones and promote and

market as such from the

different farmer

associations and

cooperatives at

-Number of farmer

associations and

ecological zones

meeting the required

specialty coffee

standards.

-Amount of coffee

marketed as terroir

30FAs DES

36

Omukago Coffee shop

and export markets.

coffee.

-Coffee shop with

traceable terroir

coffees.

Re-assert NUCAFE

market position through

brand positioning

Percentage of

NUCAFE market

share

4,800MT ED/DED

Create awareness about

brand value and benefits

to our customers.

Percentage of brand

awareness attained in

the market.

10% Brand

Manager

Promote domestic

consumption of coffee

Increased domestic

Consumption

1% ESM

Develop a

farmer owned

financial

institution

Develop and establish

own financial institution

that will evolve into a

farmer owned Bank that

will enhance farmer

access to affordable

finance.

Documentation of the

roadmap to establish

the financial institution

in place.

Sept

30,16

DES

Encourage members to

save part of their

proceeds after marketing

Record of portfolio of

savings

50m FM

37

Complete

establishment

of the

Training

Centre

Finalize construction

training centre to deepen

and upscale operations.

Training Centre

launched and

operational (completion

certificate)

Sept ED/ESM/DE

D

Build Partnerships to

deepen and upscale

Number of partnerships

and collaboration

MoUs signed

5 ED

Develop coffee social

entrepreneurship

curriculum

Number of Modules

produced and copy of

curriculum

1000 ED

Develop social

entrepreneurial skills

using Farmer Ownership

Model and the value

chain approach.

Number of cohorts

trained in deepening

and upscaling the

farmer ownership

model

20,000 ED

Institute a system that

promotes and rewards

innovation to adopters;

farmers, youth, women,

farmer leaders and staff

Number of adopters;

farmers, staff and youth

awarded social

innovation and

entrepreneurship

accolades of FOM.

20,000 DSD

Enable farmers to

upgrade from farm-gate

markets to more value

added segments of the

Number of farmers

participating in the

value added markets.

20,000 DES

38

coffee value chain.

Lobby and

advocate for

the

improvement

of the

environment

for

smallholder

coffee

farmers.

-Create awareness of the

Coffee Policy as

appropriate.

-Advocate for enactment

of the Coffee Law

-No. of farmers reached

in the dissemination of

the National Coffee

Policy

-No. of

engagements/meetings

with Parliamentary

committee on

Agriculture.

20,000 MAM