Introduction
Kabonero Mountainous Coffee Growers Cooperative Society is a farmer-owned organisation based in the Rwenzori Region of Uganda, specifically in Bunyangabu District. Established to support smallholder coffee farmers, the cooperative focuses on enhancing coffee production, processing, and marketing. It currently serves around 600 members, primarily smallholder farmers who cultivate coffee on plots ranging from 0.5 to 3 acres.
The cooperative is Fairtrade certified, ensuring ethical practices, fair pricing, and community benefits for its members. It operates a central storage facility with a capacity of 100 metric tonnes located in Nyamba village, Kabonero Sub-County. Additionally, it maintains a satellite bulking center of 40 metric tonnes at Bulyamphaho and three micro-washing stations, each equipped with 1 metric tonne drying racks.
Kabonero possesses processing equipment including four coffee pulpers, a huller, a 20 kg/hr roaster, and a 15 kg/hr grinder. The cooperative emphasizes climate-smart farming practices to combat reduced productivity due to climate change and pests. It collaborates with partners like PRICON for business development services, including training in governance, financial literacy, and entrepreneurship.
Kabonero works closely with the Uganda Coffee Development Authority (UCDA) for quality regulation and oversight from nurseries to final products. It also partners with the National Coffee Research Institute (NaCORI) for soil testing and suitable coffee variety selection. Through these efforts, the cooperative aims to increase annual coffee production from 51 metric tonnes to higher volumes while promoting gender inclusivity and decent work principles. Kabonero’s initiatives include forming village savings and loans associations (VSLAs) to provide members with access to financial services and deter side-selling to middlemen.
TDC subsidies and coaching
Coaching (2019-2022)
Kabonero Mountainous Coffee was coached by the Trade for Development Centre in marketing, finance, and business management.
The marketing coaching for Kabonero Mountain Coffee led to significant advancements in their branding and market presence. While production volume by members decreased between 2020 and 2022 due to the COVID-19 pandemic, volumes purchased by the organization from members increased during the same period. Despite a rise in the member base, the number of certified members declined. Crucially, turnover under fair trade conditions increased between 2020 and 2021, resulting in higher farmer incomes over the two-year period. The coaching successfully developed a new brand name, logo, website, LinkedIn presence, and updated brochures, all vital marketing tools. However, the living income gap could not be precisely calculated due to difficulties in estimating farmer incomes amidst fluctuating inflation and interest rates.
Kabonero demonstrated some encouraging developments following the TDC coaching. In 2022, they achieved an increase in coffee supply, effectively fulfilling the Karangura contract, which highlighted their capacity to deliver quality product. Their business plan progressed to 80% completion, and while financial adjustments were identified, the team embraced the process of refining their projections. Notably, they successfully developed 3 project proposals, securing approval for one, and established 2 crucial partnership agreements. The completion of their roasting, grinding, and packaging factory marks a significant step towards diversifying revenue, adding a new channel to their operations. Furthermore, Kabonero has built up approximately 7,000,000 UGX in working capital for coffee purchases and maintained a commendable 100% compliance with environmental risk management standards, laying a solid foundation for future growth in these areas.
TDC funding
The project, funded by the Trade for Development Centre (84.148 euros), is designed to enhance coffee production, processing, and marketing for smallholder rural farmers in Uganda’s Rwenzori region. Implemented by the Kabonero Mountainous Coffee Growers Cooperative Society over two years, it will directly benefit 600 cooperative members and indirectly reach around 10,000 community members, with a focus on including women and youth.
The project will establish ten Farmer Field Schools to promote peer-to-peer learning and the adoption of climate-smart agricultural practices like agroforestry and soil conservation. Additionally, five coffee seedling nurseries and two indigenous tree nurseries will be created, managed by youth, and the cooperative will be supported in achieving organic and Rainforest Alliance certifications alongside Fairtrade, to access premium markets.
To provide financial support to members, the project will establish 20 new Village Savings and Loan Associations (VSLAs) and strengthen 15 existing ones, offering financial tools and training to discourage side-selling and encourage collective coffee marketing. Digital innovations will be used to engage youth, giving them access to weather alerts, disease management, and e-marketing. The project anticipates a significant increase in coffee productivity (from 2-3 kg to 4-5 kg per tree per season) and annual production (from 51 to 160 metric tonnes by 2027), almost doubling household incomes. It will also deliver social benefits through premium sharing and sustainable financial services, as well as environmental advantages through large-scale indigenous tree planting.
Progress
The cooperative has significantly bolstered its operational capacity by recruiting key staff, including Community Based Facilitators and an M&E officer, to integrate with the existing management. A comprehensive Training Needs Assessment, conducted by PRICON with 91 participants, informed the development of essential training manuals, receiving positive feedback from farmers who pledged their involvement. In terms of infrastructure, four coffee nursery beds have been established with the capacity to produce 70,000 seedlings for distribution to farmers from September 2025 at subsidised rates, with site selection based on crucial factors like water access and soil type. Furthermore, ten Farmer Field Schools have been set up across five communities to foster peer-to-peer learning and knowledge sharing.
During the reporting period, significant progress was made, including the mobilisation of 80% of cooperative members and stakeholders, and the successful completion of the training needs assessment. KAMCOS has effectively trained 56% of its farmers in critical areas such as harvest, post-harvest handling, and pest and disease management, alongside constructing a micro-washing station and 19 coffee drying racks. The cooperative has also meticulously profiled 500 coffee farmers to ensure compliance with Fairtrade and European Deforestation Regulation standards. Demonstrating strong collaborative efforts, the cooperative maintains positive relationships with both its members and the District Local Government, employing a participatory planning approach that actively involves women and youth in its capacity-building initiatives.
