Uganda on track to beat December deadline on coffee exports to EU

KAMPALA, October 10, 2024 — Uganda’s coffee exports to the European Union [EU] wouldn’t’ not be affected by the December 2024 deadline of the EU Deforestation-free Regulation [EUDR], according to Minister of State for Finance, Planning and Economic Development [General Duties], Henry Musasizi who told the Members of Parliament [ MPs ] on Agriculture Committee that all processes were on track to beat the deadline.

The EU, following outcries from agricultural commodity-producing countries, companies, and civil society organisations, has decided to delay the implementation oC, cocoa, and palm oil, among other products.

The latest development was announced early last week by the European Commission President, Ursula von der Leyen. The implementation of the EUDR was originally meant to begin on December 30, 2024, for large businesses, and December 30, 2025, for micro and small businesses.

It should be remembered that on December 5, 2022, the EU approved the EUDR policy which requires that coffee, cocoa, and other agricultural commodities like palm oil, exported to the EU are sourced from land that was not deforested after December 31, 2020.

However, here in Uganda, minister Musasizi told the MPs that the Finance ministry of Finance would release the Shs 13.9 billion by October 20, 2024 for the Uganda Coffee Development Authority [UCDA] to carry out certification of the coffee products to ensure they are deforestation free and therefore legible to enter the EU market.

The Agriculture Committee that met the minister on Tuesday is handling a petition to Parliament by SEATINI- Uganda, a non-governmental organisation where the petitioners questioned Uganda’s readiness to implement the EUDR policy.
“There should not be any worry; this money will be released at a go so that the activity is done by the December deadline. I assure you that we are putting in place all the necessary steps as a country to comply with the regulation,” he said.

The minister added that at the start of the 2024/2025 financial year, UCDA engaged with the agri-business initiative development which received Shs 16 billion to establish the EUDR Coordination Unit.
“The funds have been made available to the private sector to kick start the establishment of the EUDR Coordination Unit by Café Africa which will carry out partial awareness activities and registration of 900,000 coffee farming households,” he said.

Musasizi’s reassurance followed concerns from lawmakers who underscored the urgency of the matter saying that failure to beat the deadline would affect Uganda’s earnings  from the coffee exports.

On average, according to the minister, Uganda earns an estimated US$ 500 million annually in coffee exports to the EU.

Deputy Chairperson of the  Committee, Hope Nakazibwe urged the minister to make-good on his pledge to release the funds to UCDA.
“We are remaining with barely three months so we have to work so hard to ensure that the release is tangible,” she said.

Buvuma Islands County representative, Robert Migadde said that by now, UCDA should have started implementation of the policy.
“This is our number one export commodity and if we are to tag this to the target of December, we are really far back,” Migadde said.

MP Eock Nyongore Enock, Nakaseke North County urged government to take implementation of the EUDR seriously saying that the EU’s position can easily spill over to other countries.

The EUDR mandates that exporters must provide specific documentation for supply chain commodities including detailed land use, proof of compliance of local production legislation and due diligence statement for entire supply chain.

https://thecooperator.news/eu-delays-mandate-for-businesses-to-curb-supply-chain-deforestation/

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