ACPCU registers over Shs 1bln profit in FY 2021/22

SHEEMA – Ankole Coffee Producers Cooperative Union [ ACPCU ] located in Kabwohe Town Council, Sheema Municipality earned a profit of Shs 1.15 billion in the financial year [FY] 2021/22 compared to Shs 605.89mln earned in 2020/21.

The union’s General Manager John Nuwagaba disclosed the latest development during the 15th Annual General Meeting [AGM] held at its premises and graced by the Registrar of Cooperatives Robert Bob Bariyo Barigye and his predecessor  Fred Mwesigye.

Nuwagaba said the union’s turnover in the period under review increased to Shs 26.6bln in 2021/22 from Shs 23.7bln in 2020/21.

He said the union’s total assets rose to Shs 38.6bln during the period from Shs 26.6bln in 2020/2021 while the share capital amounted to Shs 7.7bln from Shs 6.8bln in 2020/21.

“I think there is some growth going forward at ACPCU, in 2019/20 our turnover was at Shs 22.3 billion in 2020/21 went up to Shs 23.7 billion but now it is at Shs 26.6 bln, its share capital has grown from Shs 6.8bn to Shs7.7bn which is not bad,” said Nuwagaba.

Nuwagaba attributed the drastic growth of ACPCU since 2006 to good leadership and smooth transition of power.

“Since inception, we have tried as much as possible to be transparent and as employees, we have been given the liberty to transparently recruit workers without undue influence of the board that makes the staff more committed and hardworking,” Nuwagaba explained.

However, Derrick Komwangi, the union’s project officer confirmed that ACPCU had a drop in exports as exported it shipped 2,630,539 kilogrammes of coffee in 2021/22 compared to the 2,915,160 kilogrammes exported in 2020/2021.

He attributed the low productivity to the harsh climatic changes Uganda faced during 2021/2022.

“Everyone knows that Uganda received a bad season and we did not get the coffee like what we previously got. In 2021/2022 the season was really not good and most of the coffee trees did not bear berries.”

The ACPCU board meanwhile allocated a higher premium of Shs 877.39mln to its members for the period under review.

Komwangi said, “Despite the decreasing volume, the value of coffee was high and even its prices are high but this is for a short time because even last year the payments were a little stable. When the shilling appreciates it pushes the prices up and you have to give more to the farmers.”

When you talk of premium if you do not export the substantial or the quality coffee you don’t qualify for one. Why we emphasize quality it’s that you benefit much from the external factors much of what we are seeing now is what is happening even in Brazil, Komwangi added.

ACPCU, he said, has registered a SACCO which started its operations on June 10, 2022, with capital of Shs 1.86bln.

Among other developments, the union also commissioned two coffee factories in Sheema and Ntungamo; installed coffee silos completed and tested awaiting commissioning as well.

According to the project’s officer, ACPCU is determined to construct a training centre that will also house coffee roasting facilities in the region.

“We haven’t finalized on the planning process but the land was secured to set up a fully-fledged facility to roll out coffee roasting and ground coffee,” he said.

Komwangi says productivity is still low which ACPCU wants to improve through organic fertilizer.

“Productivity per tree is still a challenge and that’s why we are now emphasizing farmers to apply organic fertilizer. Like for the Robusta coffee how much you can get averagely is 14 years older than that the trees start giving local coffee beans.”

“I think farmers need to do coffee as a business stock-keeping because if you don’t have records, it’s hard to improve or maintain the coffee business. Also, they need to focus on irrigation to match with the climatic change” Komwangi further appealed to farmers

Yekonia Tumwijeho, the Human Resource Manager, ACPCU targets to double its coffee export to 100, 000 bags from 50,370 bags as it strategises to become a leading local coffee export organization in Uganda.

ACPCU’s AGM comes at a time when Uganda is yet to join the rest of the world on July 2, 2022, to celebrate the 100th International Day of Cooperatives. A decade on from the UN International Year of Cooperatives, which showcased the unique contribution of cooperatives to making the world a better place.

This year’s Coops’ Day slogan—“Cooperatives Build a Better World”— echoes the theme of the International Year.

In Uganda, the Day will be co-hosted by ACPCU and Muhame Financial Services Cooperative Society Limited at Sheema Stadium, Kabwohe Municipality in Sheema district, according to the registrar of cooperatives.

Barigye emphasized that ACPCU leaders maintain teamwork to sustainably increase coffee production in the region.

ACPCU was started in 2006, shortly after some members broke off from Banyankole Kweterana Coffee Union (BKCU). Currently, it has over 20 primary cooperatives with a total number of 14,000 members and employs 87 permanent staff and 170 casual workers.

https://thecooperator.news/banyankole-kweterana-grappling-with-debts-ahead-of-next-agm/

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