National Coffee Act

Section Purpose of Act Section The purpose of this Act is to— provide for the regulation, promotion and overseeing of the coffee subsector by the Uganda Coffee Development Authority ; facilitate the development of a competitive, participatory and sustainable coffee subsector in accordance with the National Coffee Policy, 2013; and regulate all on-farm and off-farm activities in the coffee value chain .

Section Interpretation Section In this Act, unless the context otherwise requires— " adulterated coffee " means different types of coffee mixed together or coffee mixed with non-coffee material or immature coffee mixed with mature red ripe cherry; “ Authority ” means the Uganda Coffee Development Authority referred to in section 3 ; “ bare ground ” means the open soil surface; “ Board ” means the Board of the Authority established by section 7 ; “ cess ” means a levy on export of coffee on Free on Rail or Free on Truck or any other form of acceptable contract price; “ coffee extension officer ” means an officer of the Authority or other person authorised in writing by the Authority to carry out functions of the Authority ; “ coffee farmer ” means a person who grows coffee; “ coffee inspector ” means any officer of the Authority or other person authorised in writing by the Authority to carry out inspection under this Act; “ coffee subsector ” means a division or part of the agricultural sector relating to the coffee value chain ; “ coffee value chain ” means the activities or processes relating to coffee and includes research, planting and growing coffee, harvesting, dicing, storage...

Section Filling of vacancies of Board Section Where a member of the Board resigns, dies, is removed from office or is for any other reason unable to act as a member of the Board , the Chairperson shall notify the Minister of the vacancy within one month of the occurrence of the vacancy. The Minister shall, on being notified of a vacancy under subsection (1) , appoint another person to hold office in accordance with section 7 . Where the member of the Board referred to in subsection (1) is the Chairperson of the Board, the Managing Director shall notify the Minister of the vacancy and the Minister shall, with the prior approval of Parliament, appoint another person to serve as chairperson.

Section Functions of Board Section The functions of the Board are— to formulate and review the policy of the Authority ; to set targets for the annual performance of the Authority ; to appraise and evaluate the performance of the management of the Authority ; to determine the organisational structure and staffing of the Authority ; to oversee the management of the finances and assets of the Authority ; to appoint and discipline members of staff of the Authority ; and to perform any other function assigned to it under this Act.

Section Remuneration of members of Board Section The Chairperson and members of the Board shall be paid such remuneration as may be determined by the Minister.

Section Meetings of Board Section The meetings of the Board and related matters shall be conducted in accordance with Schedule 2 to this Act.

Section Committees of Board Section The Board may appoint committees— to inquire into and advise the Board on any matter concerning the functions of the Authority as the Board may refer to the committee; to exercise such powers or perform such functions of the Authority as the Board may delegate or refer to the committee. A committee appointed under subsection (1) shall consist of a chairperson and other persons, whether members of the Board or not, as the Board may determine. The Board may require a committee appointed under this section to act jointly or in cooperation with any other committee. Subject to any direction given by the Board , a committee appointed under this section may regulate its own procedure, but shall in any event, be guided by the procedure in Schedule 2 to this Act.

Section Uganda Coffee Development Authority Section The Authority shall be a body corporate with perpetual succession and a seal and may, for the discharge of its functions under this Act— The Uganda Coffee Development Authority existing immediately before the commencement of this Act, shall continue to exist subject to the provisions of this Act. acquire, hold and dispose of movable and immovable property; sue and be sued in its corporate name; and do all acts and things as a body corporate may lawfully do. The seal of the Authority shall be determined by the Board and shall be kept in the custody of the Managing Director. The seal shall, when affixed to any document, be authenticated by the signatures of the Chairperson and the Managing Director. In the absence of the Chairperson or where the Chairperson is not able to sign a document, the Board shall appoint from among themselves a member to sign in the place of the Chairperson. In the absence of the Managing Director, a person performing the functions of Managing Director shall sign. Every document purporting to be an instrument issued by the Authority and sealed with the seal of the Authority and authenticated in the manner pr...

Section Objectives of Authority Section The objectives of the Authority are— to promote good practices in all activities in the coffee value chain ; to regulate on-farm and off-farm activities in the coffee value chain ; to promote research along the coffee value chain ; to promote value addition to coffee including primary processing and establishing soluble coffee plants; to promote access to easy and cheap credit for coffee value chain actors; to promote and monitor the marketing of coffee in order to optimise foreign exchange earnings and payments to farmers; to control the quality of coffee at all stages of the value chain in order to ensure that the coffee meets the Standards prescribed under this Act; to monitor the international price of coffee in order to disseminate indicative prices at which coffee may be traded; to conduct market research for the development of the coffee subsector ; to promote industries related to coffee; to develop and promote coffee specific extension services; to coordinate with key stakeholders, to organise the farmers in the coffee subsector ; to promote the production and marketing of final products of coffee; to promote domestic consumption of...

Section Functions of Authority Section The functions of the Authority are— to regulate all activities of the coffee value chain including on-farm and off-farm coffee activities, coffee roasting and brewing, sales and marketing and the quality of coffee and coffee by­products, including activities of related industries in accordance with this Act; to promote, strengthen and register coffee farmers, farmers groups, associations and cooperatives, processors, roasters, brewers, traders, middlemen and persons or bodies involved in the coffee value chain ; to register all coffee exports and assess cess ; to promote the formation and development of value chain organisations at the various levels of the coffee value chain ; to promote and support research into the coffee industry or processes along the coffee value chain and determine and prescribe through research, the types and varieties of coffee to be cultivated in Uganda, and their management systems; to promote and support joint ventures, investments and concessions in the coffee value chain ; to prescribe quality control standards for the sale and marketing of coffee, issue indicative prices at which coffee may be traded and protect...

Section Powers of Authority Section The Authority may, in the exercise of its functions, arbitrate disputes between coffee farmers, coffee exporters, coffee processors, coffee roasters, coffee buyers including other persons and bodies in the coffee value chain . Where there is a dispute between the Authority and any person or body in the coffee value chain , the parties shall agree to an arbitrator in accordance with the applicable laws of Uganda.

Section Board of Directors Section The Board shall consist of— The Authority shall have a Board of Directors, which shall be the governing body of the Authority . a chairperson; a representative of the Ministry responsible for finance; a representative of the Ministry responsible for agriculture; a representative of the Ministry responsible for trade; a representative of the coffee farmers; a representative of the coffee processors; a representative of the coffee exporters; a representative of the coffee roasters; a representative of the National Agricultural Research Organisation; and the Managing Director, who shall be an ex-officio member . At least one-third of the members of the Board shall be women, one of whom shall be a member referred to in subsection (2)(e) , (f) , (g) and (h) . The members of the Board , except the Managing Director, shall be appointed by the Minister. The Minister shall in appointing the members of the Board , other than the chairperson, invite nominations from the respective Ministries, institutions or organisations from whom the appointments shall be made.

Section Disqualification from appointment Section A person shall not be appointed to the Board if he or she— has been convicted of an offence involving dishonesty or fraud by a competent court in Uganda or elsewhere; has been declared bankrupt and has not been discharged; has been convicted of an offence and sentenced to imprisonment for six months or more without the option of a fine by a competent court in Uganda or elsewhere; or is a member of Parliament, a Minister or a member of a local government council.

Section Tenure of office of members of Board Section The Minister may, at any time remove a member of the Board — A member of the Board other than the Managing Director shall hold office for three years and is eligible for re-appointment for one further term. The Chairperson and the members of the Board shall hold office on terms and conditions specified in the instruments of appointment. A member of the Board may, at any time, resign from office by giving written notice of not less than one month to the Minister. for inability to perform the functions of his or her office arising from infirmity of body or mind; for misbehaviour or misconduct; for incompetence; for failure to disclose, at a Board meeting, a matter in which he or she has a personal interest; for absence without prior notice to the Chairperson of the Board , or without reasonable cause, for more than four consecutive scheduled meetings of the Board ; for having been declared bankrupt; on the written recommendation of the body represented by that member stating reasons for disqualification; for conviction for a criminal offence, in Uganda or elsewhere, in respect of which the maximum penalty exceeds six months impriso...

Section Managing Director Section The Managing Director shall cease to hold office if he or she— is removed from office by the Board — There shall be a managing director of the Authority who shall be appointed by the Board , on such terms and conditions as the Board may determine. The Managing Director shall be a person of high moral character and proven integrity, with the relevant professional qualifications, skills and experience in coffee related matters. The Managing Director shall hold office for five years and is eligible for re-appointment for one more term. resigns; is declared insolvent or has made an arrangement with his or her creditors; is convicted of a criminal offence, in Uganda or elsewhere, in respect of which the maximum penalty exceeds six months imprisonment without the option of a fine; for inability to perform the functions of his or her office arising from infirmity of body or mind; or for misbehaviour, misconduct or incompetence.

Section Functions of Managing Director Section Subject to this Act and to the general supervision and control of the Board , the Managing Director shall be responsible for— The Managing Director is responsible for the day-to-day operations and administration of the Authority . The Managing Director shall be the chief executive and accounting officer of the Authority . the implementation of the policies and programmes of the Authority and reporting on them to the Board ; the proper management of the funds and property of the Authority ; the organisation and control of the staff of the Authority ; cooperation with other Ministries, departments and agencies of Government and organisations to achieve the objectives of the Authority ; developing an economic, efficient and cost-effective internal management structure; developing and implementing the strategic plan, business plan and annual plan of the Authority ; ensuring that the policies of the Authority are implemented and that the agreed objectives, targets and service standards are met; providing advice as may be required on all matters within the functions of the Authority ; and performing any other function necessary for the imple...

Section Secretary to Board Section The Secretary to the Board shall be responsible for— There shall be a secretary to the Board who shall be appointed by the Board in accordance with section 186 of the Companies Act. arranging the business of the meetings of the Board ; taking the minutes of the meetings of the Board ; keeping the records of the decisions and other policy records of the Board ; providing legal advice on all activities of the Authority ; and performing any other function assigned by the Managing Director. In the performance of his or her functions, the Secretary is answerable to the Managing Director.

Section Other staff of Authority Section The Board shall appoint other staff of the Authority as may be necessary for the proper and efficient performance of the functions of the Authority . The staff appointed under subsection (1) shall hold office on such terms and conditions determined by the Board and specified in the instruments of appointment. The Board shall regulate the manner of appointment, terms and conditions of service and the discipline of the staff appointed under this section.

Section Appointment of coffee inspectors Section The Authority may, by notice in the Gazette , appoint a qualified person to be a coffee inspector , for the purposes of ensuring compliance with this Act. A person appointed under subsection (1) shall hold office for a period of five years, subject to re-appointment by the Authority.

Section Qualifications of coffee inspectors Section A person shall qualify to be a coffee inspector if he or she possesses a minimum of a diploma in agriculture or related sciences and has extensive knowledge and experience in coffee related matters.

Section Powers of coffee inspectors Section A coffee inspector may, at any reasonable hour, enter any place where coffee is grown, pulped, processed, packed, roasted, stored, warehoused or sold to inspect and examine it for the purpose of ensuring that the provisions of this Act are complied with. A coffee inspector may, for purposes of securing compliance with this Act, take samples of coffee found in a store, plant or other place or premises including any land, and subject the samples to such tests as he or she may deem necessary. A coffee inspector shall, when exercising powers under this Act, produce the instrument of appointment and identification as a coffee inspector when required to do so by any person.

Section Appointment of coffee extension officers Section The Authority may, by Notice in the Gazette , designate qualified persons to be coffee extension officers for purposes of ensuring compliance with this Act. A person designated under subsection (1) shall be a coffee extension officer for five years or such period as the Authority may determine.

Section Qualifications of coffee extension officers Section A person shall qualify to be a coffee extension officer if he or she possesses a minimum of a Bachelor of Science in agriculture, agribusiness management or agriculture extension or a related field from a recognised university.

Section Functions of coffee extension officer Section A coffee extension officer shall carry out the following functions— implement and supervise coffee nursery development programmes; oversee compliance with established standard procedures and operating guidelines; implement coffee extension programmes developed by the Authority ; promote and disseminate to farmers new technologies developed as a result of research in coffee; maintain surveillance on coffee diseases and pests; advise farmers on the control of coffee disease and pest control measures; liaise with and ensure effective collaboration with local authorities and other bodies with an interest in matters of coffee development; participate in the development of work plans and budgets; provide technical support in the collection of data for coffee production and marketing; monitor the quality of coffee and enforce coffee regulations; compile monthly reports on coffee activities; and carry out any other function as the Authority may assign.

Section Funds of Authority Section The funds of the Authority shall consist of money appropriated by Parliament for the purposes of the Authority in accordance with the Public Finance Management Act.

Section Levy on coffee exports Section The Authority shall levy a charge not exceeding two percent on the Free on Rail or Free on Truck or other form of acceptable contract price for the export of coffee.

Section Authority to operate on sound financial principles Section In the performance of its functions under this Act, the Authority shall operate on sound financial principles.

Section Power to open and operate bank accounts Section The Board shall, with the authority of the Accountant General, open and maintain such bank accounts as are necessary for the performance of the functions of the Authority .

Section Estimates of income and expenditure Section The Authority shall, in accordance with the Public Finance Management Act, prepare and submit to the Minister responsible for finance for approvals budget containing the estimates of income and expenditure of the Authority for the next financial year. The Authority shall not incur any expenditure exceeding its budget without the approval of the Minister responsible for finance.

Section Accounts Section The Authority shall— keep proper books of accounts and all records relating to the transactions and affairs of the Authority ; within two months after the end of each financial year, prepare and submit annual financial statements and annual accounts for the preceding financial year to the Auditor General.

Section Audit Section The Auditor General or an auditor appointed by the Auditor General shall, in each financial year, audit the accounts of the Authority . The Auditor General or an auditor appointed by the Auditor General shall, within three months after receipt of the accounts, submit to the Minister and Parliament a report on the audited accounts of the Authority .

Section Coffee research Section The Authority shall, in coordination with the National Agricultural Research Organisation, oversee the formulation of a National Coffee Research and Development Agenda to guide coffee research. The National Coffee Research and Development Agenda formulated under subsection (1) shall be approved by the National Agricultural Research Organisation and validated by the Board and industry stakeholders. The National Coffee Research Institute shall be responsible for undertaking coffee research related to its mandate and competence. The Authority shall engage other research services to undertake research in areas in which they have a comparative advantage and competence.

Section Coffee auction system Section The Authority shall establish a coffee auction system. The coffee auction system established under subsection (1) shall be used as an alternative method to the day-to-day method of selling coffee.

Section Registration of coffee farmers Section The Authority shall register all coffee farmers in the coffee subsector . A person shall be registered as a coffee farmer if he or she is growing coffee at the time of registration.

Section National register of coffee farmers Section The register shall contain the particulars of every coffee farmer , including— The Authority shall establish and maintain a national register of coffee farmers. The register shall be maintained as an electronic database or in any other form determined by the Board . the name and address of the farmer, and if the farmer is a member of a coffee farmers group or association, the name and address of the group or association; where the person who owns the land is different from the coffee farmer , the name and address of the owner of the land on which the coffee farm is located; the district, subcounty, parish and village in which the coffee farm is located; the acreage of land on which the coffee is grown on the date of its registration; the variety and type of coffee grown; the age and number of coffee trees; and any other information which may be deemed necessary for the purpose of registration. The Authority shall, on registering a coffee farmer , issue the coffee farmer a registration number. The Authority shall not charge fees for the registration of a coffee farmer . The Authority shall use the information compiled in the regist...

Section Application to operate coffee nursery or coffee seed garden Section A person who wishes to operate a coffee nursery or a coffee seed garden shall apply to the Authority in writing. The Authority shall assess the soil type to determine the type and variety of coffee to be planted by a coffee nursery operator or a coffee seed garden operator. The Authority shall assess the coffee nursery or coffee seed garden and, if satisfied, issue the coffee nursery operator or coffee seed garden operator with a certificate to operate a coffee nursery or a coffee seed garden. A certificate issued under this section shall be renewed annually. A person who wishes to plant coffee shall obtain planting materials from a coffee nursery or a coffee seed garden of a certificated operator.

Section Registration of coffee nursery operators and coffee seed garden operators Section The register shall contain the particulars of every coffee nursery operator and coffee seed garden operator including— The Authority shall register every coffee nursery operator and coffee seed garden operator. the full name and address of the coffee nursery operator or coffee seed garden operator; where the person who owns the land is different from the coffee nursery operator or coffee seed garden operator, the name and address of the owner of the land; the district, subcounty, parish and village in which the coffee nursery or coffee seed garden is located; the type and variety of coffee grown in the coffee nursery or coffee seed garden; and any other information which may be deemed necessary for the purpose of registration.

Section Registration of coffee farmer organisations and cooperatives Section The register of coffee farmer organisations and cooperatives shall contain the particulars of every coffee farmer organisation and cooperative including— The Authority shall register all coffee farmer organisations and cooperatives. The Authority shall keep a register of coffee farmer organisations and cooperatives. the name and address of the coffee farmer organisation or cooperative; the number of the members, their names and addresses; the type and variety of coffee grown in the coffee farm; and any other information which may be deemed necessary for the purpose of registration. The Authority shall, on registering a coffee farmer organisation or cooperative, issue the coffee farmer organisation or cooperative with a registration number. The Authority shall promote the formation of an apex body to represent all coffee farmers’ organisations and cooperatives.

Section Registration of persons and bodies in coffee value chain Section The Authority shall register and regulate persons and bodies in the coffee value chain at the various levels of the coffee value chain throughout Uganda. The Authority shall promote the formation of apex bodies to represent and advocate for the interests of each category of the activities and processes of the coffee value chain .

Section National registers of coffee value chain actors Section The Authority shall keep and maintain the following national registers of coffee value chain actors— a register of pulpers; a register of coffee buyers; a register of coffee graders; a register of coffee exporters; a register of operators of coffee stores or warehouses; a register of processors of coffee of any variety and grade; a register of coffee roasters, coffee shop operators and brewers; a register of coffee hullers; and a register of coffee processing factories for instant, granulated, soluble and roasted coffee.

Section Particulars of national registers of coffee value chain actors Section The national registers of coffee value chain actors shall contain for each category the particulars of each coffee value chain actor including— the name and address of the value chain actor; the name and address of each director or partner and the shareholding of each shareholder; the activity undertaken by the value chain actor; the capacity of the value chain actor; the location of the value chain actor; and any other information which may be deemed necessary for the purpose of registration.

Section Registration of coffee processing factories Section The Authority shall keep a register of coffee processing factories which shall contain for each, particulars of every coffee factory including— The Authority shall register every coffee processing factory. the name and address of the coffee processing factory; the name and address of each director or partner and the shares held by each shareholder; the processing capacity of the factory; the planned production capacity of the factory; the capacity, number and location of the warehouse; and the number and quality of skilled, semi-skilled and unskilled personnel employed or to be employed. The Authority shall, on ascertaining the particulars submitted under subsection (2) , issue a certificate of registration in the name of the coffee processing factory on payment of the registration fees as may be prescribed by the Authority. A certificate issued under this section is not transferrable and shall be renewed annually on payment of a fee prescribed by the Authority .

Section Power to issue licences Section The Authority shall on application issue the following licences upon such terms and conditions as the Authority may determine— A licence issued under subsection (1) shall be— pulpery operator’s licence; coffee buyer’s licence; coffee grading licence; coffee processor’s licence; coffee exporter’s licence; coffee roaster’s licence; coffee brewer’s licence and a coffee shop operator’s licence; coffee store or warehouse operator’s licence; coffee huller operator’s licence; and coffee extractor’s licence. in the form prescribed by regulations; valid for a specified period; for a specific location; and issued subject to payment of an application fee prescribed by the Authority . A person shall not operate a pulpery, buy coffee, grade coffee, roast coffee, brew coffee, operate a coffee shop or coffee store, a warehouse or coffee huller or process or export coffee on a commercial basis without a licence issued by the Authority . Where the Authority refuses to issue a licence to an applicant, the applicant shall, within thirty days of the refusal, be informed in writing stating the reasons for the refusal.

Section Right of appeal Section Any person aggrieved by the decision of the Authority under section 41(4) may, within thirty days after being notified of the decision, appeal to the Minister. The Minister shall respond to the appeal within thirty days from the date of receipt of the appeal. A person aggrieved by the decision of the Minister may, within thirty days apply to a court of law for judicial review. The procedure of appeal shall be in accordance with regulations made by the Minister.

Section Power to vary, suspend or cancel licences Section The Authority may if the terms and conditions of the licence have not been complied with, vary, suspend or cancel a licence issued under this Act.

Section Types and varieties of coffee Section In determining the type and variety of coffee to be grown in a particular part of Uganda, the Authority shall— The Authority shall determine and regulate the types and varieties of coffee to be grown in the different parts of Uganda. be guided by the results of coffee research conducted by the National Coffee Research Institute on the conditions suitable for growing each recommended variety of coffee; and promote the use of high yielding, disease resistant, drought tolerant and cup quality varieties of coffee.

Section Promotion of recommended types and varieties of coffee Section The promotion strategy developed by the Authority under subsection (2) shall include— The Authority shall inform and sensitise coffee farmers on the types and varieties of coffee recommended for cultivation in the different parts of Uganda. For the purposes of this section, the Authority shall, in cooperation with the Ministry and other stakeholders, develop a strategy for promoting the cultivation of the recommended coffee varieties in Uganda. the use of coffee extension services to train and build the capacity of coffee farmers to grow the recommended types and varieties of coffee; information on how to access the recommended types and varieties of coffee; good agricultural practices in respect of each type and variety of coffee; and the means of controlling pests and diseases associated with each type and variety of coffee.

Section Profiling, grading and certification of coffee Section The Authority shall, in collaboration with the Uganda National Bureau of Standards, develop coffee Standards. The Authority shall profile, grade and certify all coffee grown or marketed in Uganda. For the purposes of this section, the Authority shall take into account international coffee profiling, grading and certification standards issued by the International Coffee Organisation, or by any other international coffee standards organisation. The Authority shall use a universal standard for out-turn tests for locally traded pre-export coffee.

Section Promotion of value addition Section For the purposes of this section, the Authority shall— The Authority shall promote and support value addition at all stages of the coffee value chain . promote and support primary processing of coffee at coffee farms; promote and support bulking and marketing of coffee at coffee farms or through farmers’ associations; facilitate increased export of value-added coffee products; promote and support roasting and packaging of coffee; build the capacity of coffee brewers and coffee roasters; promote and support coffee certification schemes; promote and support branding of coffee produced in Uganda; promote and support the establishment of instant, granulated, soluble and roasted coffee processing factories; and facilitate access to affordable financing to stakeholders along the coffee value chain .

Section Domestic consumption of coffee Section For the purposes of this section, the Authority shall— The Authority shall promote and support the domestic consumption of coffee. create awareness on the consumption of coffee; conduct communication on behavioural change for the public to encourage the drinking of coffee; and build the capacity of local coffee roasters, coffee baristas, coffee brewers and any other stakeholders.