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Assessment of coffee production and trade in Uganda
Bamwesigye, Dastan
The study assesses some effects on factors on coffee production and export in Uganda, examines the economic effect of trade liberalization of the coffee subsector in Uganda, and nonetheless establishes the different types of ties used for coffee development in East African region as well. The study employed both Regression and Correlation methods to analyse the data collected from the coffee value chain, Regulators, and the farmer families. Analysis of a time series data on production, export, world prices and domestic consumption data from the Food and Agriculture Organization of the United Nations (FAO), and Uganda Coffee Development Authority (UCDA) was done using ordinary least squares (OLS). The results illustrated that coffee production and the world price index have a positive relationship with coffee exports in Uganda. Nonetheless, indicated an inverse relationship between domestic coffee consumption and exports. The study further shows that coffee exports, domestic consumption and world price have a positive relationship with production. The research findings show that there are statistically significant relationships between Family Ties and Coffee development in Uganda (r= -0.038, p-value< 0.025 (=0.822)), Farm to Farm ties (Beta=-0.304, t=-2.253p<0.025 (=0.014)), and Friendship Ties and Coffee development (r= -0.222, p-value< 0.025 (=0.048)) respectively. The study recommends that the government of Uganda as a matter of urgency implement the existing coffee policies and if necessary, make some modifications to improve production and promote the product on the international markets for more competitiveness and maximum earnings.
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