Atuhaire Pia - Coffee Project Proposal 1

ATUHAIRE PIA Business Plan Document
1.0 INTRODUCTION/PROJECT BRIEF
This project aspires to be a privately-held high-input/high-output clonal

Robusta coffee farming agri-business located at Kibingo Village in Kiyaga
Parish in Bumbaire Sub-County of Igara County in Bushenyi District.
The Kibingo-based mixed farm enterprise that is the subject of this Business
Plan is owned and managed by Ms. PIA ATUHAIRE. The output clonal
Robusta coffee farm will be run as a high-input/high-output technology
modern agri-business enterprise. The project concept was conceived in line
with the Government policy of maximizing the potential of Uganda's crop
sub-sector by providing investment incentives to improve cash crop agri-
business; supporting the development of efficient cash crop production
systems for increased productivity to meet the export market targets; and
integrating production into the mainstream monetary economy. This is
outlined in the crop and livestock production and marketing strategy and the
sectoral development framework the Development Strategy and
Investment Plan which is the successor to the Plan for Modernization of
Agriculture.
This Business Plan by Ms. PIA ATUHAIRE envisages to apply the UShs 30
million financial facility being sought in this Business Plan towards the
scaling up and modernization of its Robusta coffee production enterprise on
its 4 Acre farm in Bumbaire Sub-County of Bushenyi District using better
Robusta coffee planting material (seedlings), better farm tools and
equipment, high-input/high-output technology techniques to maximize
productivity and output and take full advantage of the fast-growing domestic
and regional export market for Ugandan Robusta coffee. Ms. PIA ATUHAIRE
is seeking the UShs 30 million loan from MBARARA MICROFINANCE
SUPPORT for a 5-Year loan-application and recovery period. Being a
small-scale farmer, Ms. PIA ATUHAIRE is working under the auspices of a
local farmers coffee collective group known as ABAHINGI BARUNGI
BOMWANI ABA GREATER BUSHENYI whose principal objective is to bulk,
process and market the coffee of the individual members in large quantities
in order to get better prices and enable its members to overcome the
challenge of losing out on the potential profitability of coffee growing.
The ABAHINGI BARUNGI BOMWANI ABA GREATER BUSHENYI farmers

collective group in turn bulks the coffee produced and delivered by its small-
holder farmer members, processes it and sells it to the larger coffee
processors and exporting companies that are mostly based in Kampala as
FAQ (Fair Average Quality) Robusta Coffee.
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The farm will generate its own internal revenues to facilitate the operational
costs and boost the farm growth through re-investment. The project
promoter Ms. PIA ATUHAIRE will always have a head-start advantage in
selling her Robusta coffee produce directly to ABAHINGI BARUNGI
BOMWANI ABA GREATER BUSHENYI farmers collective group given its
proximity and will therefore always enjoy premium prices guaranteed
through this cooperative bulking, processing and marketing system.
Ms. PIA ATUHAIRE is a young, outgoing, dynamic and energetic

agricultural-oriented entrepreneur who draws inspiration from her strong
farming family roots. Allens main advantage is that she has had a previous
3 years background exposure in the same coffee-growing and local
marketing business at her farm at Kibingo Village in Bushenyi District
though at a much smaller scale/scope than what she proposes to do. PIA
strongly feels that the present farm can do even much better than the
present in raising its yield output if she can access additional financial capital
to acquire quality clonal Robusta coffee planting material, high-output/high-
output technology to boost its productivity which will inevitably lead to much
higher financial returns and income profitability.
Our Mission
To be a year-round local source of high quality Robusta coffee that is grown
using organic principles that also result in safe Food and a healthy
environment.
Our Goals
To create an organic agricultural product-based farming enterprise

whose goal is to exceed customer expectations.
Reach the point of sustainable profitability.
Enjoy farm work while making a good living.
Enrich society with proper and hands on agricultural practices.
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2.0 STATEMENT OF THE PROBLEM
Briefly stated, the majority of farmers in Bushenyi district are not practicing
Sustainable Commercial Agriculture and hence often face food insecurity
and poverty leading to environmental degradation while in search for food.
This is largely due to the following factors:
Lack of skills and knowledge e.g. what, when and how to grow.
Lack of information on sharing and use.
Lack of research back up.
Gender inequity.
Little advocacy in Sustainable Commercial Agriculture.
Few marketing opportunities (information, skills and outlets).
Lack of access to credit facilities.
Lack of input supply and poor availability resources.
In more precise terms, there are still however a number of outstanding

productivity-related constraints that are common to all small-scale farmers in
Bushenyi district and elsewhere in Uganda that need to urgently addressed
first and foremost before there can be a holistic transformation from
subsistence agriculture into a market-oriented sustainable commercial
agriculture practice. These are outlined as follows: -
1. Limited access to credit for production/inadequate capital the

majority of the actors in the Bushenyi District coffee value chain have
got limited sources of financing for investment which hinders the
sectors growth. The banking sector is emerging from comfort zone of
monopoly, but even still are largely urban clientele focused with
limited financial products. This scenario bars the small holder farmers
and small & medium scale processors to access appropriate and
affordable financial services. Consequently, they resort to rely on own
savings that often times are insufficient;
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2. Limited market information that reduces farmers bargaining

power lack of market information on prices, markets, input supply
stockists has constrained farmers from achieving market oriented
production. Throughout the coffee value chain in Bushenyi District, the
demand for these primary agricultural commodities far exceeds the
supply. The skewed demand versus supply attracts speculators and
opportunists who take advantage of limited information between the
respective actors. This situation hence breeds low business ethics, lack
of trust and reliability among actors in the chain. Even where some
farmers are engaged in contract farming with processors, this doesnt
provide a guarantee of actual delivery of yields by farmers to the
processor; which makes it hard to predict if investments in the oilseed
sector eventually turn out to be profitable;
3. Use of rudimentary farm equipment the bulk of smallholder

farmers still use the hoe as the main farm tool intensive and which is
labour limits the land that is cultivated;
4. Inadequate extension services the performance of enterprises on

smallholder farms is poor because of lack of technical guidance on
improved agronomic practices. Thus, most farmers have not changed
their farming methods and continue to realize low yields;
5. Weak producer groups - producers groups that exist in Bushenyi

District are still relatively weak and not able to effectively engage and
dialogue with other actors on issues that affect them. This limited
capacity hinges on two levels one on civic expression while the other
lies on the knowledge and skills in agronomy and post-harvest
handling. Both factors imply that limited skills will compound in poor
quality and low yields which translates into low incomes and low
productivity
6. Low application of modern technologies smallholder agriculture

in Bushenyi District, irrespective of the gender of the farmer, is
characterized by low yields, partly due to the low application of
modern technologies like fertilizers and improved seeds. Women
farmers use less improved inputs than male farmers. Currently, it is
estimated that up to about 90 percent of the farmers in Bumbaire Sub-
County still use traditional farming methods and techniques;
7. High cost of production commercially supplied inputs such as

improved seed, inorganic fertilizers and pesticides are prohibitively
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costly for many smallholders. Many small holder farmers cannot also
afford the high cost of farm labour. This means that farmers have
continued to practice subsistence production which limits production
capacity. This also means that farmers cannot produce sufficient
quantities of produce to meet household needs and a marketable
surplus;
8. Price fluctuations caused by seasonal gluts and scarcity have the

potential of jeopardizing preparation of realistic business plans for
commercial production;
9. Significant losses due to post-harvest handling and storage

facilities have forced farmers to sell their produce quickly
irrespective of the price. This has resulted in dumping of produce on
the market causing drastic price depression. Post-harvest losses can be
substantially reduced with improved storage and processing methods;
10. Lack of transport for farm produce female small holder

farmers are unable to sell their produce at good prices due to lack of
transport means to the market centres;
11. Limited access to and control of land female-headed

households, the majority of them being small holder farmers, have
limited access to productive assets the most important being land;
12. Climate change unpredictable/harsh weather conditions that

adversely affects production levels. Climate change, resulting mostly
from global warming and environmental degradation, is among the
major causes of reduced agricultural production and productivity in
East Africa, including Uganda. Changing weather patterns have made
planting seasons unpredictable. This has made it difficult for farmers to
plan their operations;
13. Environmental degradation population increase continues to

apply pressure on natural resources such as overgrazing, soil erosion,
low soil fertility, deforestation, and drainage of swamps. Soils in many
parts of Uganda especially in western Uganda have undergone
degradation due to over use. Continuous farming on the soils without
replenishing of nutrients has led to depletion of essential nutrients and
low fertility of the soils;
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14. Institutional deficits including unpredictable local
government taxation, inadequate over-sight in the operations of
farmers and cooperative groups;
15. Pests and diseases incidences of pests and diseases and the
lack of prevention and control measures has in some cases caused
devastation of crops making the food security situation worse;
3.0 STATEMENT OF THE SOLUTION
Ms. PIA ATUHAIRE will use the following strategies to address these
constraints and achieve its desired targets:
Capacity building for Sustainable Agriculture

Capacity building for Production Techniques
Development of Ms. PIA ATUHAIREs Robusta coffee farm to a level
whereby it can later be used as Demo Farm
Souring and inputting improved Robusta seeds/planting materials and
enhanced farm productivity inputs into the farm to raise its
productivity and output to a commercially viable and sustainable level
Doing commercial and sustainable agriculture instead of subsistence
farming.
3.1 Capacity Building for Sustainable Agriculture
The capacity need for peasant farmers and Ms. PIA ATUHAIREs Robusta
coffee far are in particular:
Production techniques
Marketing (farm planning and agribusiness)
Organization development
Advocacy skills
3.2 Capacity Building for Production Techniques
Ms. PIA ATUHAIREs Robusta coffee far will seek to build its coffee
productivity and farm output capacity by getting actively involved in
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government-led farmer capacity-building initiatives that consist of
participatory, demand driven and objective-oriented training programmes.
In doing so, Ms. PIA ATUHAIREs Robusta coffee far will be able to enrich
its knowledge in areas such as environmental sustainability, water
conservation, making and application of organic manure, food security, post-
harvest handling, as well as livestock management, market orientation and
optimal available resource use that will henceforth build is capacity to scale
up its farm productivity and take full advantage of available agricultural
product market opportunities in Uganda.
3.3 Adoption of New Production Techniques
Ms. PIA ATUHAIREs Robusta coffee farm will have to adopt new production
techniques to enable the improvement of its Robusta coffee productivity.
However, these new production techniques should be underscored by the
following new approaches to the way it will be doing its farming activities: -
1. Transport Facilities: Aspire to acquire its own means of

transportation (preferably a pick-up vehicle) that will facilitate the
coffee farm to access new farming inputs and enable it to sell its
product in markets. This will help Ms. PIA ATUHAIREs Robusta coffee
farm to raise its income which in turn will stimulate PIAs (owners)
interest to adopt better farm technology with sufficient and sustained
income. It also means that PIA can invest more for the improvement of
the farm (land).
2. Irrigation Facilities: Crop productivity depends not only on the

quality of input but also on the irrigation facilities. Therefore, water
channels & piping, tube wells should be constructed at the farm using
the UShs. 30 million financial facilities to provide better irrigation
facilities for the security of crops.
3. Access to Markets: Ms. PIA ATUHAIREs Robusta coffee farm

should work to access the strong market opportunity presented by the
established large coffee processors and exporters in Uganda through
its umbrella farmers group - ABAHINGI BARUNGI BOMWANI ABA
GREATER BUSHENYI so that it can earn better and guaranteed
prices. Besides, price support policy must be adopted by Government
and minimum prices should be guaranteed to the peasants.
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4. Access to Quality Inputs: Ms. PIA ATUHAIREs Robusta coffee farm

should strive to access quality inputs at proper times and at controlled
prices. To protect the farmers exploitation, effective steps are needed
to be taken by the Government to check the sale of adulterated
fertilizers.
5. Agricultural Education: In a bid to guide and advise the farmers

(including Ms. PIA ATUHAIREs Robusta coffee farm) regarding the
adoption of new technology, arrangements should be made by
Government (through the UCDA) for agricultural education and
extension services. It would assist the farmers to take proper crop-care
leading to increase in crop productivity,
4.0 PROJECT BRIEF AND OPPORTUNITY RATIONALE
The project is related to the scaling up and expansion of a Robusta coffee

farm enterprise on 4 acres (1.6 Ha) in a promising agricultural production
farmland of Bushenyi District of western Uganda. The document highlights all
the production, marketing, management, and financial aspects required for
the successful scale-up and running of the project.
4.1 Opportunity Rationale
Coffee continues to play a leading role in the economy of Uganda,

contributing 18% of the export earnings between 2000 and 2015,
despite the vigorous efforts by Government to diversify the economy.
Though large scale coffee producers are gradually emerging, the coffee
sub-sector is almost entirely dependent on about 500,000 smallholder
farmers.
Domestic consumption of the commodity in Uganda is relatively small
ranging from 4-10% of production. As such, coffee is primarily an
export crop.
Between 2005 and 2015, producer prices of coffee in Uganda follow
export price trends very closely. Producers received 64 88 percent of
the export price for FAQ beans.
Uganda liberalized its domestic Robusta coffee market in 1992 and
since then farmers have been free to decide how and to whom to sell
their coffee.
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The coffee industry in Uganda has undergone major reforms since the early
1990s. Coffee market is completely liberalized. Producers share of export
prices increased significantly. The reforms have been successful at least at
the export market where the export market appears to operate optimally.
Given that coffee is relatively high value crop, the observed and adjusted
nominal rate of protection, although negative in some years, do not seem to
be excessive. As coffee markets are completely liberalized, these deviations
cannot be attributed to policy but rather to a market development gap
resulting from relatively excessive profit margins at export level and
imperfect price transmission.
4.2 Farm Enterprise Objectives
The objectives of Ms. PIA ATUHAIREs Robusta coffee farm for the first five
years of operation include:
1. To create a product-based agricultural enterprise whose goal is to

exceed customers' expectations.
2. To provide high quality and reliable supply of primary Robusta coffee
products for both the export-oriented and value-added agricultural
product consumer markets in Uganda.
3. To utilize the existing land and natural resource base to the best
commercial advantage of the enterprise by using good farm and
environmental management practices for sustainable productivity and
growth of the farm.
4. To increase the efficiency of our production by 10% a year.
5. To develop a sustainable farm, surviving off its own cash flow.
6. Tap the fast-growing market opportunities presented by the popularity

and strong demand of Ugandas coffee on the international market.
7. Generate strong farm-based income that will lead to fast growth of

cash flow and exponentially improve on the enterprises rate of return
and profitability.
8. To fulfill all the customer orders and quality standards within the first
year of business operation.
9. Provide employment opportunities for locals within the area (Bushenyi

District).
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10. Make the farm a model small-scale Robusta coffee farming
project that will grow to inspire other up-and-coming farming
enterprises (out-grower farmers) within the area by serving as a self-
sustaining demonstration unit for agricultural inspiration and on-farm
training.
4.3 Mission
Ms. PIA ATUHAIREs Robusta coffee farm plans to develop strong

relationships with its umbrella organization - ABAHINGI BARUNGI
BOMWANI ABA GREATER BUSHENYI farmers collective group so
such that the enterprise can be viewed as an indispensable partner,
rather than just another ordinary countryside mixed farm enterprise.
Ms. PIA ATUHAIRE will seek out and work in active collaboration with
the other coffee farmers in the Greater Bushenyi area as the enterprise
will represent to introduce the highest coffee quality product and offer
timely payments and seek most improved methods to increase
production. The Farm will not only be selling high quality coffee crop, it
will also be selling service and improving the livelihoods of the small-
holder farmers and agricultural product consumers in Bushenyi District
who have had limited options.
4.4 Project Location & Facilities
Ms. PIA ATUHAIREs Robusta coffee farm is located at Kibingo Village in

Kiyaga Parish in Bumbaire Sub-County of Igara County in Bushenyi
District. The farm has been in existence for the last three (3) years running
now with several on-farm structures and developments that include a 4-acre
plot of land valued at UG Shs. 20 million.
4.5 Total Project Cost (Investment Structure of Required

Capital)
The total capital investment of the proposed WISDOM FARM is UShs
57,500,000 and is comprised of the project promoters equity input
(including existing land and coffee plantation), water harvest and storage
systems, investment in on-farm infrastructure, coffee farm production inputs,
and pre-production and working capital requirements. The value of the
exiting land and coffee plantation is UShs 40.0 million (or 57.14% of the
Total Project Investment Cost). The required project finance of UShs 30
10
million will be applied to financing the acquisition and installation of water
harvest and storage technologies at a cost of UShs 11.5 million (or
16.43% of the Total Project Investment Cost); and also finance key on-
farm infrastructure at a cost of UShs 10 million (or 14.29% of the Total
Project Investment Cost); procure Robusta coffee farming inputs and also
finance working capital at a total cost of UShs. 8.5 million (or 12.14% of
the Total Project Investment Cost). Table 1 below provides a break-down
composition of the initial project investment cost.
Table 1: Total Project Investment Cost (UShs)

S. Project Investment Equity Project Total
No. Component Share Capital Finance (Ushs)
A. Land & Existing Assets
1 Land (4 Acres) 28.57% 20,000,000 0 20,000,000
2 Existing Coffee Plantation 28.57% 20,000,000 0 20,000,000
Sub-Total Land & 57.14 40,000,00 40,000,00
3 Plantation % 0 0 0
Planned Investment Assets (Water Harvest & Storage
B. System)
4 Drip Irrigation System 5.71% 0 4,000,000 4,000,000
5 Crestank (10,000 litres) 3.57% 0 2,500,000 2,500,000
6 Water piping system 2.86% 0 2,000,000 2,000,000
7 Water Pump 2.86% 0 2,000,000 2,000,000
Improvements on Water
8 Spring 1.43% 0 1,000,000 1,000,000
16.43 11,500,00 11,500,00
9 Sub-Total % 0 0 0
C. Planned Investment Assets (On-Farm Infrastructure)
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10 Coffee Drying Sheds 4.29% 0 3,000,000 3,000,000
11 Dried Coffee Storehouse 10.00% 0 7,000,000 7,000,000
14.29 10,000,00 10,000,00
12 Sub-Total % 0 0 00
D. Planned Investment Assets (Production Inputs)
13 Clonal Robusta seedlings 1.29% 0 900,000 900,000
Small Farm Tools and
450,000
14 Equipment 0.64% 0 450,000
15 Coffee Farm Inputs 3.57% 0 2,500,000 2,500,000
16 Working Capital 6.64% 0 4,650,000 4,650,000
12.14
17 Sub-Total % 0 8,500,000 8,500,000
100.00 30,000,00 30,000,00 70,000,00
18 TOTAL PROJECT FUNDING % 0 0 0
%age of Total Project
19 Funding 57.14% 42.86% 100.00%
5.0 PRODUCTS & SERVICES
Primary Robusta coffee is the agricultural product that will be produced and
delivered by Ms. PIA ATUHAIREs Robusta coffee farm. Given below is a
brief description about coffee farming in Uganda.
5.1 Uganda Coffee Growing Zones
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100% ROBUSTA
100% ARABICA
50/50
MOSTLY ROBUSTA
MOSTLY ARABICA
Table 2: Conditions for Coffee Growing in Uganda

Ideal Robusta coffee Arabica coffee
condition
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Altitude Sea level 800-1500 masl 1300-2300 masl
Terrain Flat or gently sloping Flat or gently sloping
Temperature 18 27o C 15 24o C
Soil type Deep, well drained fertile Deep, well drained fertile
loamy soils (rich in organic and slightly acidic loamy
matter and exchangeable soils (of pH 4.5 to 5)
bases, particularly
potassium)
Rainfall 1200-1500 mm/year and 1200-1500 mm/year and
well distributed for a period well distributed over a
of about 9 months period of about 9 months
In Uganda, Robusta coffee grows and yields better when grown at altitudes
less than 1,500m above sea level. A temperature range of 18 27C is ideal
for its production.
An average rainfall of 1,200 1,500mm/year which is well-distributed for a

period of about 9 months is desirable. It is better when grown on a flat or
gently sloping terrain.
Robusta grows and yields better when grown on deep, well-drained, fertile
loamy soils (rich in organic matter and exchangeable bases, particularly
potassium).
Arabica grows and yields better when grown at altitudes between
1,300 2,300m above sea level. A temperature range of 15 24C is ideal

for production. An average rainfall of 1,200 1,500mm/ year which is well-
distributed over a period of about 9 months is desirable.
Flat or gently sloping terrain is preferable. It grows well on deep, well-

drained, fertile, slightly acidic loamy soils of pH range 4.5 to 5.
5.2 Robusta Coffee
Clonal Coffee:
Coffee has long been the leading export commodity of Uganda. Arabica and
Robusta coffee are the two most common types grown in Uganda. Arabica
coffee has better yield and is commonly found in the high-altitude areas of
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the eastern, western, and southern regions of the country in agricultural
production Zone 10 (USAID-APEP, 2008). Robusta coffee, on the other hand,
is a native Ugandan coffee type grown in almost all parts of Uganda. Robusta
coffee is grown in Zones 6, 7, and 9. For both coffee types, several varieties
are found. Robusta coffee can be produced as clonal coffee, a fast-maturing
and better yielding type (USAID-APEP, 2008). Most coffee on the local market
is Clonal Robusta and other Robusta coffee varieties.
Production of coffee under low-input technology generates around UShs

200,000 per hectare. Production of improved coffee with low-input
technology generates about UShs 300,000 per hectare. The use of high-input
technology for local and improved varieties improves gross margins by four-
fold or more. However, farmers must be able to bear substantial material
input costs if they are to use high input-technology.
Ms. PIA ATUHAIREs Robusta coffee farm will dedicate 4 Acres (1.6 Ha)
towards clonal coffee production and projects to harvest at least 1.8 metric
tons of clonal Robusta coffee per acre per season which translates to an
annual output of 14.2 metric tons and a sales volume of 13.68 metric tons of
clonal robusta coffee every year net of post-harvest losses.
Figure 1: Uganda coffee plantation and harvest periods

Oc Nov De Jan Fe Mar Apr Ma Jun Au Sep
REGIONS t. . c. . b. . . y . Jul. g. .
CENTRAL MAIN CROP (Robusta) FLY CROP (Robusta)
FLY CROP MAIN CROP
MASAKA (Robusta) (Robusta)
MAIN CROP
EASTERN (Robusta) FLY CROP (Robusta)
BUGISU/SEBE MAIN CROP FLY CROP
I (Robusta) (Robusta)
WESTERN FLY CROP (Robusta) MAIN CROP (Robusta)
FLY CROP
WEST NILE MAIN CROP (Robusta) (Robusta)
Source: Uganda Coffee Development Authority
5.3 Why Grow Coffee?
Coffee is grown by all types of farmers (men, women, and youth) who
have land.
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Coffee is profitable depending on the yield per acre/hectare, the
quality, the cost of farm inputs including tools, labour and
transportation and the price at which farmers sell the coffee.
To obtain high yields and better quality, the coffee farmer must know
and follow the proper methods for growing coffee, which are explained
in this training package.
6.0 FARM OPERATIONS PLAN
6.1 Establishment of a Coffee Farm
6.1.1 Preparing Site for a Coffee Farm
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Figure 1: Ideal Site Preparation for a Coffee Farm
Prepare the land during the dry season and remove any tree stumps and
roots to minimize fungal diseases.
Kill excess trees one year in advance by ring barking. Leave some mature
trees for shade. Aim for a spacing of 20m x 20m. This gives a good shade
cover, while not creating competition for water and nutrients.
Remove perennial weeds such as couch grass by using herbicides, or
digging and handpicking them from the ground.
Dont till the soil unless intercropping coffee with other annual crops.
For sloped terrain, apply soil and water conservation measures like
contour trenches, contour terraces, vegetative barriers, bands, grass
strips and cut-off drains to avoid soil and nutrient loss.
Plant banana trees for extra shade if required.
6.1.2 Plant Spacing
Marking field and digging holes for planting coffee

1. Plant Robusta coffee in lines at a spacing of 10ft x 10ft (450 trees per
acre).
2. Plant Arabica coffee in lines at a spacing of 8ft x 8ft (680 trees per
acre).
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6.1.3 Hole Preparation
Step Step
1 2
2
ft.
2
ft.
Step
3
Mark positions where the coffee will be planted with pegs, arranged in
regular patterns to facilitate management.
Dig circular holes of 60cm (2ft) in diameter and 60cm (2ft) in depth at
the marked points at least 3 months before planting. This allows for
better water and root penetration through the soil because it has had
time to loosen.
Preparing holes before the planting season helps you to be ready for
planting at the first rains.
When digging the holes, keep the fertile topsoil separate from the
subsoil.
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Refill the holes with topsoil about a month before planting. Where
possible, mix the top soil with a 20-litre basin of well-decomposed
manure before refilling each planting hole.
If available, also mix in one handful of TSP, SSP or DAP. Phosphorus
stimulates root growth.
Heap the soil above the ground level to allow for sinking when the soil
settles.
Mark positions where the coffee plants will be planted with pegs.
6.1.4 Selecting Planting Materials
Selecting planting materials

1. Obtain all planting materials from a UCDA-certified source.
2. Farmers may raise their own seedlings using seeds or cuttings from a
certified source.
3. Plant coffee seedlings with between 6-8 leaves.
Get coffee plants with between 6-8 leaves from UCDA-certified

nurseries one month before the onset of the rainy season.
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Seek guidance from UCDA or your DAO if you want to grow your own
seedlings.
Always use seeds or cuttings from a certified source.
Check all seedlings for signs of pests and diseases; especially root
mealy bugs, aphids and other sucking insects. This prevents
introducing pests and diseases into your garden.
Do not buy seedlings if the roots protrude far beyond the polythene
pots because the taproot may be damaged.
6.1.5 Planting Coffee
Plant coffee plants 2 to 4 weeks after the onset of the rainy season.
Roots protruding beyond the polythene pots should be trimmed before
planting.
Open-up the centre of the filled holes sufficiently to fit the size of the
potted plant.
Remove polythene pots.
Carefully loosen caked soil around the roots to ease water uptake and
root development.
Place the plant in the hole with the collar at level with the surrounding
soil or slightly higher to allow for some sinking when soil settles.
Water the seedling before and immediately after planting.
Regularly inspect the planted field to identify dead plants and replace
them as soon as possible.
Protect each seedling from sunshine by providing shade (tree branch).
6.2 Farm Agronomic Management
6.2.1 Training/Bending a Coffee Tree
Coffee is trained in a multiple system by bending and pegging down 6-

month-old plants at about 45 degrees to stimulate sucker production. To do
this, the farmer should:
Bend the coffee plants so that they all bend in the same direction
along the row.
Select 3 suckers to form the future bearing stems from the base of the
trained plant. The first selected sucker should be at about 20cm (6
inches - 1 foot) from ground level and the others at the next nodes.
Remove the peg when the selected suckers are about 30cm (1 foot)
tall.
This allows the bent stem to develop upwards.
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Alternatively, newly planted coffee plants of 4-6 months are capped at a

height of 15 40cm (6 16 inches) above the ground. This is done by
removing the stem tips to encourage development of multiple stems which
are then selected as described above.
Note: Capping is less effective than bending for inducing suckers.
6.2.2 Weed Control/Management
Weeds compete with plants for water and nutrients and can lead to reduced
crop growth, low yields and poor quality coffee beans if allowed to grow.
Weeds in young coffee gardens (up to a year old) should be controlled by
mechanical methods such as digging with a hand hoe and slashing with a
machete or slasher, or by cultural methods such as mulching.
Weeds in old coffee gardens are controlled by mulching or alternating

mechanical methods with chemical/herbicide spraying. When using
herbicides, follow the manufacturers instructions on the label or get help
from an extension officer or a more knowledgeable farmer colleague.
Ring weed below the canopy to avoid damage to the plant during slashing or
spraying.
Avoid spraying the coffee leaves as this may kill or cause retarded growth.
6.2.3 Managing Soil Fertility I

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Coffee requires fertile soils with high levels of nitrogen, phosphorus and
potassium. The fertilizer requirements are dependent on the inherent soil
fertility status, soil pH, level of production and usage of cultural farming
practices like mulching, using manure and irrigation.
One 20-litre basin of decomposed manure (cow dung, chicken litter,

household waste, compost) should be added to the soil when planting to
improve soil fertility.
For existing coffee trees, 3-5kg of manure should be added around each tree
once a year. Do not heap manure between the trees.
6.2.4 Managing Soil Fertility II
At the beginning of the rainy season, apply inorganic fertilizer around the
tree within the rooting zone but do not allow it to touch any part of the coffee
plant, especially the leaves.
For trees that are up to two years old, apply 75g of fertilizer per tree per
rainy season. Apply 250g per tree per rainy season for Robusta coffee trees
that are more than 2 years old and 200g per tree per rainy season for mature
Arabica coffee trees.
For Robusta, apply: NPK 25:5:5

For Arabica, apply: CAN N=26% or CAN N=27%
22
6.2.5 Pruning and De-suckering
Use secateurs (or a pruning saw) to remove dead, weak or unproductive

branches and small suckers.
Also remove tertiary branches, dead primary branches and the skirt of lower
primary branches that touch the soil surface to avoid infestation from the
soil.
Pruning encourages new growth and improves productivity.
6.2.6 Stumping
Stump coffee to renew the stem cycle either by clean or staggered stumping.
23
Staggered stumping involves cutting down non-productive stems at the
end of every season.
Clean stumping involves cutting down all coffee stems after 7-9 years,
starting by leaving one breather stem which should be removed after
about 6 months, soon after suckers have sprouted from the stumped
stems.
Clean stumping can be carried out at once in an entire coffee garden if
the farmer has alternative income. Stumped coffee fields can be
intercropped with cover crops like beans, groundnuts, and peas to earn
some income, to add nitrogen to the soil and to improve productivity.
Staggered stumping involves cutting down part of the coffee garden. If
a farmer needs to harvest a crop every year, part of the coffee garden
can be stumped every year. In this case, 1 in 3 coffee trees should be
stumped.
Stumping should be at least 45 and sloping away from the breather
stem.
6.2.7 Mulching
Mulch a coffee garden with maize straw, bean trash, banana leaves, coffee
pulp, grasses or any other dead plant material. Form a loose layer of mulch
on top of the soil that is no more than 6 inches deep.
Place the mulch 1 foot from the coffee stem to prevent infection with collar
rot or attack from ants and termites. Do not heap the mulch between the
trees.
The benefits of mulching are many. It conserves moisture, keeps the weeds
away, adds nutrients to the soil, controls soil erosion and improves the soil
structure and water retaining ability.
6.2.8 Soil and Water Conservation
Apply soil and water conservation practices to minimize loss of soil fertility
through erosion and retain moisture for the coffee, especially in the dry
periods. The following techniques can be very valuable to the coffee farmer:
Terracing along contours reduces soil erosion by minimizing rainwater

runoff.
Digging pits/troughs at some points of the terrace preserves rain water.
The water drips through slowly to the neighbouring coffee trees and
24
can preserve trees during the dry period. Add a small amount of oil to
the trapped water to prevent breeding of mosquitoes.
Planting cover crops such as mucuna, phaseolus beans, lablab and
groundnuts, as well as mulching, prevents soil erosion and retains soil
moisture.
Planting grass such as tithoria diversitalia at the edges of the gardens
and ridges of terraces/contour bunds reduces soil erosion.
Shade from shade trees also reduces soil erosion and leakage of
minerals/soil nutrients to a deeper ground level beyond the reach of
coffee roots.
6.3 Harvesting and Post-Harvest Handling of Coffee
6.3.1 Harvesting
Do not strip all cherries off the branch.

Harvest only fully ripe (brick red) cherries. Including unripe cherries
results in black coffee beans. Overripe cherries can result in
discoloured coffee beans and fermented flavours when the coffee is
brewed. Ripe cherries give better quality coffee and therefore more
money.
At the end of the season, harvest all remaining mature cherries and
process separately.
Keep harvested coffee cherries in containers such as baskets.
Do not dry the coffee on bare earth because this causes the coffee to
acquire an earthy smell and soil microbial contamination.
25
Sort out immature, diseased, pest infested or overripe cherries and
process them separately. Remove all extraneous materials such as
twigs, leaves, stems and stones.
6.3.2 Wet Processing
The ripe cherry is either wet processed or dry processed for both Arabica and
Robusta. Wet processing involves floating, washing and pulping the cherry to
separate the pulp from the parchment.
Float the freshly harvested cherries in water to remove unfilled fruits
and extraneous materials. Remove floats and pulp clean cherry only.
This must be done within 12 hours after harvesting.
Keep freshly pulped coffee beans in a container for 12-24 hours to
allow fermentation. Next, wash the fermented coffee thoroughly to
remove mucilage from the parchment and dry washed parchment on
wire trays or a tarpaulin.
Ripe cherries can be pulped using small manual or large power-driven
pulpers.
o Large scale pulpers are able to remove mucilage during pulping and
therefore the fermentation process may not be necessary.
o Most of the Arabica coffee in Uganda is wet processed using small
manual pulpers.
o Robusta coffee is wet processed by a few large coffee producers.
o Wet processed coffee is thought to have superior cup quality
compared to dry processed coffee.
26
6.3.3 Dry Processing
Dry processing involves drying the cherries without removing the pulp. It can
be used to process both Arabica and Robusta coffee. The cherry should be
dried immediately after harvesting. The bulk of Ugandan Robusta coffee and
small quantities of Arabica coffee are dry processed.
Dry cherries on tarpaulins or concrete floor at a thickness of 7-8cm but

not on bare ground. Turn the coffee regularly by raking. At night, stack
trays in a store or house. Do not leave wet coffee heaped or it will
develop mould.
Coffee must be dried to an acceptable moisture content of 11- 13%
6.3.4 Storage
27
Make sure you only store dry coffee in bags which are free from any
bad smells. Do not use fertilizer or fish bags for storage.
Place the coffee bags on pallets raised to at least 15cm and at least
30cm away from the walls and ceiling so as to avoid any moisture
entering the bags.
Coffee should preferably not be stored in the same store with other
farm produce.
Parchment and kiboko coffee should be stored separately.
Never store coffee in the same store with agro-chemicals and oil
products.
Storage rooms should be well-ventilated and leak-proof.
7.0 EXECUTION OF ACTION PLAN: FARM REQUIREMENTS
28
7.1 Objectives of Commercial Coffee Farming
The objectives of commercial farming in a general context can be summed

up as follows:
To equip Ms. PIA ATUHAIREs Robusta coffee farm with new and
marketable production know-how, and modern farm management
techniques;
Small and medium-size producers are proficient in better agricultural
production and marketing practices;
Enhanced producer incomes from better production and marketing
techniques, and market plans and livestock production budgets; and
Creation of new seasonal, part-time and full-time jobs.
Improved homestead/family income and food security for the
commercial farmer.
Better land, soil, and environmental resource management techniques.
Constant availability and supply of vital production inputs.
Improved livestock and crop pest and disease management
techniques.
Better and quicker access to production capital and credit.
Enhanced crop product market access and better product pricing
incentives for commercial farmers.
Better post-harvest crop product storage and processing facilities.
7.2 Project Inputs
General Farm Inputs

Coffee Drying Sheds & Dried Coffee Storehouse
Land 4 Acres (1.6 Ha.)
Electric power connection
Water connection and water supply system
10,000 litre capacity water tank
Motorized Water Pump-Set (1 HP)
Simple Irrigation System
Electric Generator Set
Farm Labour
Market
Agricultural Finance
Basic Farming Skills and Experience
Production Inputs
Fertilizers and Crop Protection Products
Improved Seeds (Clonal Coffee Seedlings)/Planting Material
29
Small Farm Tools and Equipment
7.3 Inventory Management
Ms. PIA ATUHAIRE shall keep records of all field operations, expenditures
and income in order to assess the profitability of the farm and help plan for
the future. Field activity records shall be separated from farm sale records
and both shall have up-to-date information.
Farm Activity Record

Ms. PIA ATUHAIRE will also record information about the field/plot, the field
activity done (land preparation, planting, weeding, mulching, fertilizing, crop
protection, pruning, harvesting, etc.), the date of activity, the method of
implementation, the number of workers and cost of labour, and the cost of
materials.
Farm Sales/Income Record

Ms. PIA ATUHAIRE will also record information about the item sold (coffee,
other crops, animals, etc.), the date of sale, the service rendered, the
quantity sold, the unit price, the overall income from the transaction, the
name and number of the buyer, and any other comments.
7.4 Farm Business Management
A. Data Management
We would like to obtain or develop profit-tracking software which will help
monitor all specialty crop profit data.
B. Risk Management
We will look at the availability of crop insurance and as a primary small-
holder commodity producer we would also need to purchase marketing
related liability coverage as well as property and facility liability coverage.
C. Insurance
As a primary small-holder commodity producer we would also need to
purchase marketing related liability coverage as well as property and facility
liability coverage.
D. Taxes
30
Given that the company is a legal corporation in the Republic of Uganda, it is
subject to standard corporate other business income taxes that are payable
once annually to the Uganda Revenue Authority (URA).
E. Licenses & Permits

Ms. PIA ATUHAIREs Robusta coffee farm plans to apply the Good
Agriculture Practices (GAP) training and third party audits.
7.5 Expected Outputs/Results
Robusta coffee berries (Kiboko) and parchment (FAQ)
7.5.1 Intangible Outputs
Increased and sustained efficiency in farm-based livestock production

of at least 10% p.a.;
Strong, efficient and reliable commercial livestock farmers/producers of
primary Robusta coffee in Bushenyi District;
Employment opportunities for youth in Bushenyi District created
among the various commercial farmers/producers;
The market and popularity of coffee farming as viable agri-business
venture accordingly promoted and expanded in Western Uganda;
Ms. PIA ATUHAIREs Robusta coffee farm becomes a sustainable
Robusta coffee farming unit with a strong farm-based income (cash
flow) and a high rate of return and profitability;
The existing land and natural resources are utilized to the best
commercial advantage of the enterprise using good farm and
environmental management practices for sustainable productivity and
growth of the farm;
Ms. PIA ATUHAIREs Robusta coffee farm becomes a nucleus
model mixed farming project that serves as a training/inspirational
nucleus for training and support of other up-coming small-holder coffee
farmers in Bushenyi District;
Organized farmers groups accessing and sustainably using improved
production and post-harvest technologies established;
Capacity of farmers developed for production of good quality coffee
and marketable volumes for marketing;
Farmers organizational skills, market-oriented decision making, and
business management developed for organized marketing of poultry
and piggery products, and
31
Sustainable cohesive partnership that ensures timely coffee farmers
access to services as well as marketing of poultry/piggery products
established.
7.6 Data Collection & Book Keeping
7.6.1 Data Collection Methods
Ms. PIA ATUHAIREs Robusta coffee farm keeps appropriate and relevant
inventory, cash books, ledgers, and journals that are used as a veritable
source of information and data on the periodical Farm Return. The periodical
Farm Return is organized in tabulated format with its entry headings
described in Table 3 below:
Table 3: Description of the Farm Return

Heading Heading Description
Heading A Labour.
All labour, paid and unpaid (but excluding labour used on work under
contract), which has contributed to work on the farm during the
accounting year.
Heading B Number and value of coffee trees.
Opening and closing valuations (in number and value) and average
number of coffee trees.
Heading C Coffee purchases and sales.
The total [periodical/seasonal value of such transactions.
Heading D Costs.
Value of all non-capital inputs used in the production of non-capital
products during the accounting year.
Heading E Land and buildings, dead-stock and circulating capital.
Includes production, replacement or major repair of any fixed assets by
the farms own resources valued on a cost basis.
Heading F Debts.
Opening and closing valuations of short-, medium- and long-term
loans.
Heading G Value Added Tax.
The VAT system applying and in certain cases VAT payments and
receipts.
Heading H Grants and Subsidies.
Defined as specific payments made directly to the farm business from
public funds, excluding those for investment in land, plant, machinery
and equipment.
Heading I Production (crops and animal products, livestock excluded).
The area, quantity and value of all crops, animal products and other
activities.
Heading J Details of purchases and sales of livestock.
32
Purchases and sales per different grades of parchment (FAQ) coffee.
The sub-totals of purchases and sales per grade of FAQ coffee (Screen
12, Screen 15, Screen 18...) are registered in Heading E.
7.6.2 Farm Book Keeping
As commercial farming takes shape and gains momentum in Uganda, it is

becoming more complex and capital intensive thus creating the need for
detailed analysis to make financial and production decisions using computer
hardware and software technology. It henceforth becomes imperative for
Ms. PIA ATUHAIREs Robusta coffee farm to its stock of business tools
(which it has already done).
Computerized Bookkeeping and Financial Analysis
The operator of any farm business needs to keep accurate, detailed records
for such purposes as applying for a bank loan, filing a tax return, and
assessing the firms financial condition. Computer software is also important
for use in production decision-making on the farm.
33
8.0 PROJECT NEEDS FOR IMPLEMENTATION OF ACTIVITIES
Coffee farming needs to be handled tactically, right from the selection of the
site to the final stage when the birds are sold. That being the case, the
selection of the Ms. PIA ATUHAIREs Robusta coffee farm at Kibingo
Village was done in such a way to ensure that the transportation of farming
inputs can be always be easily handled.
The entrepreneur is still trying her level best to ensure that the following
things are available at the farm site before gearing up to full production
parameters:
Availability of permanent water sources at the farm
Road access
Availability of power supply at the farm through the purchase and
installation of a stand-by electricity generator
Table 4 below provides a general outline summary of the infrastructure,

equipment, material, and coffee farm requirements of Ms. PIA ATUHAIREs
Robusta coffee farm. For a more precise presentation, farm investment
input costs have been separated into existing and planned investments
such that an objective comparison/assessment can be made of what has
already been done relative to what is expected to be undertaken at the farm
to improve its performance.
34
Table 4: Project Investment Requirements
Account Head Total Cost

(UShs.)
A. Existing Assets
Land (4 Acres) 20,000,000
Banana Plantation 20,000,000
Sub-Total 40,000,000
B. Planned Investment Assets (Water Harvest & Storage System)

Drip Irrigation System 4,000,000
Crestank (10,000 litres) 2,500,000
Water piping system 2,000,000
Water Pump 2,000,000
Improvements on Water Spring 1,000,000
C. Planned Investment Assets (On-Farm Infrastructure)

Coffee Drying Sheds 3,000,000
Dried Coffee Storehouse 7,000,000
35
D. Planned Investment Assets (Farm Production Inputs)

Clonal Robusta seedlings 900,000
Small Farm Tools and Equipment 450,000
Coffee Farm Inputs 2,500,000
Sub-Total 3,850,000
Total Fixed Costs (A + B + C + D) 65,350,000
Working Capital 4,650,000
Total Working Capital 4,650,000
Total Project Investment Cost (UShs.) 70,000,000
9.0 SWOT ANALYSIS AND IMPLEMENTATION PLAN
9.1 SWOT Analysis
Internal Strengths: Internal Weaknesses:

Devotion to the coffee farming Do not have some of the
business. machinery/equipment.
Well known in the community and Lack of irrigation and water storage
reputation for quality. equipment.
Commitment to quality and success. Off-farm jobs take precedence over
Off-farm income is helpful for scaling farm.
up of the farm enterprise. Need to generate high income from
Land area and capacity with good a medium-sized area to be
soils. financially viable.
The use of high-input technology. Need income stability, but produce
Attend trainings and workshops for prices fluctuate.
management and production. Time and labour are an issue at
Ability to extend the growing season peak time.
and control disease. Transportation and delivery to
Better insight into consumer consumer markets have been an
36
preferences of the informal African issue of time and money.
sector. Capacity is limited due to capital
Farm has been in existence for quite equipment purchase and start-up
some time and has gained costs.
cumulative experience over the New growers entering the market.
years in gainful mixed farming Limited commercial bank credit for
enterprise. agricultural projects in Uganda.
Farm has skilled employees and a High interest rates on loans for
wide market base. agriculture in Uganda.
Membership of a coffee framers
collective group helps in bulking
coffee, primary processing of the
coffee and negotiation of better
prices for its small-holder member
farmers.
External Opportunities: External Threats:
Favourable and conducive political, Local Farms are Competitors.
economic, social and environmental Strong competitors like Brazil and
macro factors for agricultural Vietnam nay glut the market at
production in Uganda. certain times to depress prices.
Location of the farm in western Disposable income of coffee
Uganda and the existence of an processors and exporters and what
excellent all-weather road network they are willing to pay for primary
puts it in a strong position to exploit processed Robusta coffee.
the neighbouring regional Transportation and distribution
agricultural markets. costs.
If located near towns (e.g. peri- Additional supplies from new coffee
urban) concentrates on cash crops. farmers may lead to over-supply
Target products on the informal and falling of prices.
sector. Rising costs of inputs.
Exploit opportunities to supply strong
coffee export market.
Improve quality and quantity to
supply formal marketing channels.
Farmers and agri-business are under
political pressure to work with new,
small-scale farming sector.
Possibilities for range or other rurally
based enterprises to increase
income, e.g. added value, contract
labour services.
Strong demand for of quality Robusta
37
coffee produce among secondary
coffee processors and exporters.
Strong regulation by the UCDA.
9.2 Implementation Strategy
The Overall Farm Strategy:
Overall, Ms. PIA ATUHAIREs Robusta coffee farm will produce high
quality Robusat coffee crop that will it will consistently be able to market
through ABAHINGI BARUNGI BOMWANI ABA GREATER BUSHENYI. Ms.
PIA ATUHAIRE will keep with industry trends and grow the newest clonal
Robusta coffee crop for the identified market segments. Her farm will also
expand its Robusta coffee crop production to extend the market season
through the application of drip irrigation technology.
Ms. PIA ATUHAIREs Robusta coffee farm is committed to the Robusta

coffee farming business and quality products. Delivery schedules must be
well planned using the available vehicles and cost of fuel. Ms. PIA
ATUHAIRE will also do much of the marketing.
38
Production:
To implement this Business Plan Ms. PIA ATUHAIREs Robusta coffee
farm will follow a 5-year production plan which details production and
marketing details for each season. It will also need to purchase an
Agricultural Product Liability Insurance.
Coffee-Production Support Enterprises

Ms. PIA ATUHAIREs Robusta coffee farm shall not rely solely on coffee
for its income. This is because uncertainties like low yield and low prices can
affect its income unexpectedly.
Ms. PIA ATUHAIREs Robusta coffee farm shall therefore intercrop its
coffee farm with other crops like, bananas, beans, groundnuts and fruit trees
such as mangos, jackfruit, passion fruit and avocado to provide food security
and additional income.
Ms. PIA ATUHAIRE will also acquire an additional piece of land out of
cumulative business savings to plant crops like maize, soya beans, cassava
and sweet potato for food and cash.
Ms. PIA ATUHAIRE also engages in non-farm alternative enterprises such

as the door-to-door supply of LPG (liquefied petroleum gas) with her brother
Mr. ROBINS MUTUNGIRE in Kampala and surrounding metropolitan areas
that supplements and supports family income and business growth.
Management:
Management decisions will be made by Ms. PIA ATUHAIRE. She will bear
both primary responsibility for managing the marketing of the farms Robusta
coffee crop to ABAHINGI BARUNGI BOMWANI ABA GREATER BUSHENYI
while also focusing on the high-input agricultural production aspects
including the use of agricultural mechanization, irrigation systems, and
fertilizer and pesticide application.
Human Resources:
Primary labour will be provided by permanently hired farm hands. The farm
has access to neighborhood youth that we can recruit to help on a seasonal
basis. The farm may need to hire part-time labour as the agri-business
expands.
Finance/Accounting:
39
Projected cash flow and income statements have been completed. We will
meet with our bank and establish a separate farm account and line of credit
for input purchases. Ms. PIA ATUHAIREs Robusta coffee farm will
acquire and employ appropriate accounting software for keeping the mixed
farms books of accounts.
10.0 HUMAN RESOURCE & MANAGEMENT PLAN
10.1 Project Promoter
Ms. PIA ATUHAIRE, the founder and main project promoter of Ms. PIA
ATUHAIREs Robusta coffee farm, first became interested in coffee
farming the time she was growing up during her childhood through to her
early adulthood. She later gained a better perspective and informed insight
about agri-business and the pecuniary benefits of agricultural
entrepreneurship during her formal education process such that by the
time she had completed her formal education there was no other career
development path that appealed to her imagination of success, prosperity
and self-fulfillment better than the earnest pursuit of a full-scale farming
occupation. Ms. PIA ATUHAIRE has an instinctive disposition towards coffee
farming and a deep-rooted love for nature, domestic animals and plants to
the extent that nothing can ever divorce or separate her from dedicating her
time, energies, and whatever resources she can muster to make the most
40
out of crop and livestock husbandry practice. In addition to owning the most
important physical asset of production in agriculture in Uganda today which
is her 4-Ha plot of land at Kibingo Village in Bushenyi district plus her
profound passion for farming and agribusiness, Ms. PIA ATUHAIRE has of
recent added on an extra dimension in agribusiness management through
attendance of various short courses and seminars in Uganda about the
subject that have invariably enriched her knowledge-base and accorded her
a specialized skills set in agricultural project evaluation, financing and
management as some of the most mission-critical tools that she needs to
succeed in modern-day agricultural business management of the Robusta
coffee farm going forward. Having said that, Ms. PIA ATUHAIRE is now
more than primed and ready to roll out and pursue in earnest her lifelong
and cherished dream of running a highly successful and exemplary mixed
livestock and crop farming enterprise at Kibingo Village in Bushenyi district
of western Uganda.
10.2 Human Resource Plan
Ms. PIA ATUHAIREs Robusta coffee farm staff will be supervised and
directed by Ms. PIA ATUHAIRE herself working on full time basis at the
farm. She will spend the bulk of her time engaging in all the routine aspects
of Robusta coffee farm management, networking with fellow farmers under
the ABAHINGI BARUNGI BOMWANI ABA GREATER BUSHENYI coffee
farmers collective group, and also engaging in group advocacy to strengthen
the production and bargaining power of the group for sustained coffee
production inputs supply, payment of better market prices and adding more
value to their coffee crop through acquisition of better primary and
secondary coffee processing technologies.
Ms. PIA ATUHAIREs Robusta coffee farm plans to hire one full-time farm
manager and four (4) semi-skilled labourers who will be permanently
stationed at the farm at the Kibingo Village farm site. The Farm Manager
and the four farm hands will be primarily responsible for all aspects of coffee
farm management including coffee seedling planting and disease control and
harvest and post-harvest operations.
Permanent staff required for Ms. PIA ATUHAIREs Robusta coffee farm is
given in Table 5 below.
Table 5: Permanent Staff Requirement

Description Numb Monthly Total Annual
er Salary/Person (UShs.) Cost (UShs.)
41
Farm Manager 1 2,000,000 24,000,000
Permanent Farm 4 500,000 24,000,000
Hands
Totals 5 48,000,000
10.3 Overall Farm Management
The farm management function will be the direct responsibility of the farms
General Manager. Core functions include responsibility for the financial and
physical performance of the farm that involves implementation of the short
and long term business plans. The General Manager also drives the mixed
farm enterprise and works with the other departmental managers to ensure
success. Farm management also optimizes the performance of the farm as a
unit in accordance with company policy.
11.0 FINANCIAL ANALYSIS (QUANTITATIVE)
Table 6: Annual Clonal Robusta Coffee Production and Revenue

Projections
Crop Area Yield No. of Total Less: Post- Market To
(Acres) (kg/Acre) Crops/Yr Annual Harvest Price Rev
(5%)
Yield (kg) Loss (UGX/kg) (U
Robusta 4.00 1,800 2 14,400 13,680 2,400 32,8
Coffee
Total 4.00 32,8
42
Table 7: Clonal Robusta coffee farm enterprise budget (4 Acres) In

UShs
Input Costs Rate/Acre 1st 2nd Harvest
Harvest
Seedlings (Clonal) 450 Seedlings X 500 900,000
USH/each
Tools (Hoes) 2 x USH 7,000/Hoe 56,000
Tools (Pangas) 2 x USH 5,000/Panga 10,000
Tools (Pruning Saws) 2 x USH 8,000/Saw 64,000
Tools (Secateurs) 2 x USH 10,000/Secateur 80,000
Tools (Wheel barrow) 2 x USH 60,000/Wheel 120,000
Barrow
43
Tools (Slasher) 2 x USH 6,000/Slasher 48,000
Tools (Spades) 2 x USH 8,000/Spade 64,000
Mulch 3 x USH 35,000/Unit 420,000
Mulch 1 x USH 35,000/Unit 0 140,000
Herbicide 2 x USH 15,000/Litre 120,000 120,000
Sub-Total 1,882,000 260,000
Labour Costs
Ploughing (First) 20 days X 2500 USH/day 200,000
Ploughing (Second) 20 days X 2500 USH/day 200,000
Hole digging 45 days X 1000 USH/day 180,000
Planting 10 days X 1000 USH/day 40,000
Mulching 50 days X 1000 USH/day 200,000
Mulching 25 days X 1000 USH/day 60,000
Weeding 15 days X 1500 USH/day 90,000
Weeding 3 days X 1500 USH/day 18,000
Pruning 20 days X 1000 USH/day 80,000
Pruning 5 days X 1000 USH/day 20,000
Herbicide application 4 days X 1500 USH/day 24,000 24,000
Soil conservation 20 days X 1000 USH/day 80,000
Soil conservation 5 days X 1000 USH/day 20,000
Harvesting 20 days X 1500 USH/day 120,000
Harvesting 25 days X 1500 USH/day 150,000
Supervision 20 days X 3000 USH/day 240,000
Supervision 5 days X 3000 USH/day 60,000
Sub-Total 634,000 292,000
Post-Harvest Costs
Bags 114 bags X 1,500 171,000
USH/bag
Bags 114 bags X 1,500 171,000
USH/bag
Processing 114 bags X 3,000 342,000
USH/bag
Processing 114 bags X 3,000 342,000
USH/bag
Sub-Total 1,507,000 1,035,000
TOTAL COSTS 4,023,000 1,587,000
Table 8: 5-Year Projected Net Income Statement (In UShs)

ANNUAL SALES REVENUES Year 1 Year 2 Year 3 Year 4 Year 5
Robusta Coffee Sales 32,832,00 34,473,60 36,197,28
0 0 0 0 0
LPG Gas Distribution Income 56,430,00 131,670,0 138,253,5 145,166,1 152,424,4
0 00 00 75 84
Total Revenues 56,430,0 131,670, 171,085, 179,639, 188,621,
00 000 500 775 764
44
ANNUAL PRODUCTION COSTS
Variable Costs
Seedlings 900,000 0 0 0 0
Coffee Farm small tools &
equipment 442,000 0 0 0 0
Other Inputs (Fertilizers +
Chemicals) 288,000 302,400 317,520 333,396 350,066
Land preparation 580,000 420,000 441,000 463,050 486,203
Labour 1,738,000 1,824,900 1,916,145 2,011,952 2,112,550
Post-Harvest Costs 2,542,000 2,669,100 2,802,555 2,942,683 3,089,817
LPG Gas Distribution Opex 35,650,00 81,090,00 85,144,50 89,401,72 93,871,81
0 0 0 5 1
Total Variable Costs 42,140,0 86,306,4 90,621,7 95,152,8 99,910,4
00 00 20 06 46
Fixed Costs
Crop Equipment Maintenance
(5%) 22,100 22,100 22,100 22,100 22,100
Crop Insurance (1% of market
value) 0 0 3,421,710 3,592,796 3,772,435
Business Administration Costs 3,000,000 3,150,000 3,307,500 3,472,875 3,646,519
Transportation Costs 0 0 1,140,000 1,140,000 1,140,000
Total Fixed Costs 3,022,10 3,172,10 7,891,31 8,227,77 8,581,05
0 0 0 1 4
Total Production Costs 45,162,1 89,478,5 98,513,0 103,380, 108,491,
00 00 30 577 500
Less: Financial Costs
Loan Interest 3,600,000 3,600,000 3,600,000 2,400,000 1,200,000
Loan Repayment 10,000,00 10,000,00 10,000,00
0 0 0 0 0
Total Financial Costs 3,600,00 3,600,00 13,600,0 12,400,0 11,200,0
0 0 00 00 00
NET MARGIN 7,667,90 38,591,5 58,972,4 63,859,1 68,930,2
0 00 70 99 63
as %age of SALES REVENUES 13.59% 29.31% 34.47% 35.55% 36.54%
45
12.0 ENVIRONMENT MANAGEMENT AND CLIMATE CHANGE
MITIGATION
12.1 Prevention of Water Pollution
To prevent pollution of local area water sources, Ms. PIA ATUHAIREs

Robusta coffee farm will implement the following environment
management measures:
Wash the coffee in a container away from the water source and dispose
of the waste water carefully so it doesnt run back into the water
source.
Use chemical sprays away from water sources, not to wash sprayers or
chemical containers in any of the shared water resources within the
locality.
12.2 Waste Management
Waste management measures will include:
Separation of organic and inorganic waste and using it to make

compost from the organic waste to improve your soil.
Puncturing all chemical containers to prevent re-use and selling
whatever plastic and metal available after use. Keeping the rest in a pit
away from the main house.
12.3 Avoiding the Use of Banned Agro-Chemicals
Ms. PIA ATUHAIREs Robusta coffee farm will strictly avoid the usage of
banned chemicals, which have been proven to be dangerous for humans,
animals, birds and the environment in general.
Here is a table of chemicals which are banned. Ms. PIA ATUHAIREs

Robusta coffee farm shall not use any of these. The table also contains
alternatives that should be used.
46
Table 9: Banned Chemicals

No. Product Active Used to Alternative control
Name Ingredient control
1 Furadan Carbofuran Banana Dursban (powder)
weevils, white
grubs, root
mealy bugs,
Nematodes Crop rotation; soil
sterilisation - solar
heating of nursery beds
Neem-based products
Animals & Do not poison animals
birds
(poisoning)
2 Endosulfan Endosulfan Coffee berry Crop hygiene: Harvest
borer and bury all remaining
cherries after final
harvest
Acaricide Biotic spot-on; Milbitraz;

pye-grease
3 Paraquat Paraquat Herbicide Slashing or uprooting

Glyphosate-based
products
4 Actellic Permethrin Grain storage Ash or Neem extracts
Super insects Clean stores + proper
drying
Ambush Field insects Cypermethrin (or
chlorpyrifos) based
products
NB: FOR THOSE IN CERTIFICATION SCHEMES, YOU SHOULD CONTACT THE

STANDARDS BODY, E.G. UTZ CERTIFIED, FOR A FULL LIST OF BANNED
CHEMICALS
12.4 Energy Conservation and Water Harvesting
Energy and water are precious resources and need to be used with care.
Plant multi-purpose trees for shade and fuel supply. Collect run-off
water in trenches or ponds for soil moisture retention.
47
Use energy saving stoves. Use solar energy where possible. Explore
the possibility of biogas production from livestock manure and other
sources.
12.5 Disposal of Annual Crop Residues
Annual food crops are often grown alongside the coffee. After harvest of the
food crops, clearing the land may be a challenge.
Avoid burning the crop residues in the field as the fire may spread to
the coffee plantation and cause a loss of nutrients and living
organisms.
Crop residues shall be used for mulching, composting or for livestock
feed.
12.6 Adaptation to Climate Change
There are several agronomic practices that Ms. PIA ATUHAIREs Robusta
coffee farm should be aware of that help to minimize the effect of climate
change. These include:
Planting shade trees in coffee gardens
Mulching
Irrigating to ensure a continuous water supply to plants
Using manure and inorganic fertilizers
Managing (biological, chemical, cultural control) pest and disease
infestation
Using soil erosion control measures: (trenches, terraces, bands, gulley
traps) to prevent soil erosion
Planting cover crops and trees
48
Table 10: Recommended Shade Trees

English Scientific Common names: What does the tree
name: name: bring besides
shade:
Silk oak Grevillea Grevillea Firewood, timber,
mulch, apiculture
Markhamia* Mrakhamia Nsambya, Lusola, Firewood, timber,
lutea Omushambya mulch, apiculture,
medicines
Umbrella Maesopsis Musizi Firewood, timber
tree* eminii
Bark cloth Ficus spp. Mutuba, Timber, fodder, bark
fig, Natal fig Mukokowe, cloth, medicines
Mukunyu,
Omutooma
Cordia Cordia africana Mukebu, Firewood, timber,
Chikichikiri, mulch, apiculture
Mujungangoma
Silk tree* Albizia Lusubyu Timber, fodder, rich
chinensis mulch, soil fertility
*These 3 trees are known to be hosts to Black Twig Borer so their use should
be carefully managed. Encourage farmers to consult their extension workers
for further advice.
49
13.0 SOCIAL RESPONSIBILITY
13.1 Safe Use of Agro-Chemicals
Agro-chemicals may be dangerous if not properly stored and used. Ms. PIA
ATUHAIREs Robusta coffee farm will therefore implement the following
measures to guarantee safety in agro-chemicals usage and handling:
Always wear full protective gear (cap, masks, overalls outside
gumboots, goggles, gloves, boots) when handling or spraying agro-
chemicals.
Not to spray near other people, livestock or water sources.
Not to spray when it is very windy. Never to spray against the direction
of the wind.
Make sure we warn other people before and after spraying.
13.2 Safe Storage of Agro-Chemicals
Chemicals shall be kept in a locked place, out of reach of children and away
from food and stored crops. Where possible, keep them in a separate store.
Not to store chemicals under the bed. Alternative safe storage is a locked tin
trunk or locked wooden box.
13.3 Good Treatment of Workers
All workers are important for the Ms. PIA ATUHAIREs Robusta coffee
farm and shall be treated with respect.
A fair rate for the job shall be agreed, and paid when the work is
completed or as agreed.
All payments shall be recorded.
Reasonable working conditions, such as access to clean drinking water,
toilets and protective gear should be provided.
13.4 Good Hygiene and Health
50
Good hygiene is important for the health of Ms. PIA ATUHAIRE and her family.
Keep the compound clean.
Have a clean and functional pit latrine/toilet.
Sleep under a treated mosquito net.
Have a safe water source.
Wash hands regularly.
14.0 PROJECT BENEFITS (QUALITATIVE)
The major outputs/benefits expected to flow out of upgrading/modernizing

Ms. PIA ATUHAIREs Robusta coffee farm include: -
i. Linkage to markets and infrastructure:

Ms. PIA ATUHAIREs Robusta coffee farm will be able to receive
good market prices because of producing and delivering a high-quality
coffee and other crops owing to the use of improved high-input high-
output farming technologies. Good agricultural markets will guarantee
higher prices, project sustainability and enhancement of household
income for the family of Ms. PIA ATUHAIRE.
ii. Establishment of quality standards:

Ms. PIA ATUHAIREs Robusta coffee farm will be able to access
agricultural training that will enhance its capacity to adhere to the
required quality standards for Ugandas coffee crop such that the farm
can then successful exploit the national, regional and international
markets that demand such coffee crop quality standard pre-requisites
as a criterion for successful market penetration.
iii. Capacity building (Increased farm crop and livestock output):

Ms. PIA ATUHAIREs Robusta coffee farm will effectively build its
own productive capacity in such a way that it will then be able to
address the constraints to production, processing and marketing of its
agricultural produce including Robusta coffee.
iv. Technology development and acquisition:

Ms. PIA ATUHAIREs Robusta coffee farm will in partnering with
the existing agricultural extension services in western Uganda will
identify and obtain modern/improved technology that is necessary for
improved farm production, output and efficiency in terms of both
quality and quantity and in the process, earn higher incomes that will
significantly raise the livelihood of the project promoter.
v. Less dependence on rain-fed agriculture and the associated vagaries

of climate change:
51
By installing and using water harvesting and storage technology on the farm,
Ms. PIA ATUHAIREs Robusta coffee farm will effectively be able to
insulate itself against the increasingly erratic and unreliable rain-fed
agriculture that makes it difficult to accurately plan farm agricultural
activities and may sometimes affect farm productivity leading to losses.
15.0 PROJECT SUSTAINABILITY
There are several factors that will conduce to Ms. PIA ATUHAIREs
Robusta coffee farm in having a firm and secure basis for sustaining its
activities and these are briefly mentioned below: -
Prudent use of the available land resource for profitable and

sustainable commercial farming;
Access to a growing and vibrant market for agricultural products in

Uganda (especially the Kampala, Bushenyi and Mbarara urban
markets) that will ensure commercial profitability of Ms. PIA
ATUHAIREs Robusta coffee farm crop enterprises;
The strong stake, energy, commitment and entrepreneurial enthusiasm

of the project promoter (Ms. PIA ATUHAIRE) in the success and
sustainability of the project;
Generation of strong internal revenues and their and re-investment to

sustain operational costs and grow the scale and scope of its farming
activities (boost farm growth).
52
16.0 KEY SUCCESS FACTORS
16.1 General Guidelines
High level quality control.

Another important aspect is the quality check at different stages of the
crop production and sales chain. This is very important because there
is a need to check and ensure that the enterprises composite crop
product distributors do not supply poor quality to compromise the
standards and quality of our products.
Individualized customer service providing our customers with what
they want, when and how they want it.
Fully integrated distribution channels to help customers increased
access to Ms. PIA ATUHAIREs Robusta coffee farm crop products
including Robusta coffee.
Smart crop products distribution networks will also play an important
role in the success of this business.
Integrating the changing market fundamentals into the business.
Long-term partnership and strong networking with both the farmers
and our ABAHINGI BARUNGI BOMWANI ABA GREATER BUSHENYI
coffee farmers collective group to acquire a guaranteed market and
sustain attractive market prices.
The commercial viability of this project depends upon the availability of
regular crop products raw material supply.
To establish a brand name, aggressive marketing efforts are
recommended.
The commercial viability of the project depends upon the regular and
consistent supply of good quality clonal Robusta coffee seeds and other high-
quality coffee farming inputs. The other important aspect is the need for
strong linkages with the local markets.
16.2 Guidelines for Successful Crop Cultivation
Following principles need to be pursued for the best productivity of

vegetables:
Proper soil analysis for determining soil nutritional level.
Use of high quality Clonal Robusta coffee seedlings.
53
Fertile land and its maintenance within the tunnel (green house/shade
nets) during the period of cultivation.
Selection of profitable coffee production supporting crop enterprises
based on best analysis of cost and revenues for a given season. Cost
efficiency through better management.
Timely control of pests, diseases and exercise of preventive measures.
Maintenance and control of internal temperature and humidity of the

tunnel.
Timely irrigation and fertilization.
Timely training and grading of plantation.
Fertilization should be done at the soil bed preparation stage. The

second fertilization, after 3 weeks interval, the third after 6 weeks and
finally during the harvesting period.
Post-harvest includes protection from direct sunlight and speedy
transport to the market.
54
17.0 RISK ASSESSMENT & CONTINGENCY PLAN
The following table summarizes the important challenges and our mitigation
approaches.
Table 11: Risk Assessment and Mitigation

RISK MITIGATING FACTORS
Organic crop Thoroughly tested organic methods and systems
production fails Expert technical assistance available
through pests, To anticipate losses, yield assumptions are conservative
natural causes,
Ongoing research experiments to ensure new learning
and or other
unforeseen
circumstances.
Market risks The high rate of population and the strong and consistent growth
caused by price in global food and cash crop markets mitigates and softens this
fluctuations due market risk
to low demand
Political and The political and economic conditions in Uganda are quite
economic risk conducive for business and trade both internally and outside.
Uganda enjoys security, peace and freedom for citizens and
property. It has close links with the East African Community,
COMESA, IGAD, EU and USA where goods and services can be
exported at competitive prices. This symbolizes the good
economic conditions Uganda is having with outside countries
which benefits agricultural producers
Fiscal risks of Liberalization of the Ugandan economy has eliminated the forex
foreign exchange availability and stability risk
and headline This is determined by market forces but controlled by government
inflation through use of fiscal and monitory policies. It is of an advantage
that UDB is offering project financing loans at 10% interest rate for
agricultural sector. Ugandas inflation is now standing at 5 to 6%
but keeps fluctuating depending on high and low yields of
production and fuel price fluctuations.
Force Majeure Lightning/thunder can be controlled by the terrain and lie of the
risks such as land where the crops are to be planted meaning that the farm
floods, buildings and other infrastructure should be protected against
earthquakes, lightning strikes using lightning arrestors.
lightning/thunder, Livestock to be ensured by pursuing rigorous and regular livestock
drought, and crop health and disease prevention and control programmes.
and livestock Apply constant and consistent crop protection methodologies
disease epidemics involving the use of herbicides and IPM (Integrated Pest
Management) techniques.
The use of drip-irrigation technology and conservation agriculture
to extend the seasonality of crop output and insure against the
vagaries of climate change.
Low Sales Regular customer feedback.
55
Diversified product mix.
Proven demand for products.
Diversity of markets.
Options to reduce expenses, if necessary.
High operating Diversity of markets increase direct sales and improve margins.
costs, low margins Source lower cost local supplies, e.g., animal manure.
Difficulty in Grow committed farm workers from within the Ms. PIA
attracting suitable ATUHAIREs Robusta coffee farm system and expose early to
staff other benefits trips to conferences, site visits.
Seen now as doing cutting edge work so we are in high demand.
Operational Thoroughly tested system.
problems, poor Technical assistance available to investigate unforeseen crop
food quality, failures.
delivery time Ms. PIA ATUHAIREs Robusta coffee farm system reinforces
importance of product quality, assessment and feedback given to
farm staff three days per week.
Marketing Diversity of end markets
problems, Certified organic status already achieved
regulatory Classes to teach safe food handling strategies
barriers and costs
Caf is a certified kitchen and their staff provide guidance
Departure of key Inherent to Ms. PIA ATUHAIREs Robusta coffee farm system
project employees is the training, empowerment and employment of farm staff.
Ms. PIA ATUHAIREs Robusta coffee farm will create a
succession plan.
56
18.0 CONCLUSION
It can be concluded from the foregoing business analysis and financial

modelling that the proposed Robusta coffee production enterprise by Ms.
PIA ATUHAIREs Robusta coffee farm that is located at Kibingo Village
in Kiyaga Parish in Bumbaire Sub-County of Igara County in Bushenyi
District is financially viable and technically feasible from an operational and
commercial standpoint; and it is further recommended that an early decision
to facilitate it with the requisite credit financing of UShs 30 million over a 5-
Year implementation and loan-recovery period be expedited such that
implementation of the project follows the fastest track possible for the
benefit of the project promoters, the agriculture sector, and the Ugandan
economy at large.
57

Atuhaire Pia - Coffee Project Proposal 1

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ATUHAIRE PIA Business Plan Document

1.0 INTRODUCTION/PROJECT BRIEF

This project aspires to be a privately-held high-input/high-output clonal

The ABAHINGI BARUNGI BOMWANI ABA GREATER BUSHENYI farmers

Ms. PIA ATUHAIRE is a young, outgoing, dynamic and energetic

To create an organic agricultural product-based farming enterprise

2.0 STATEMENT OF THE PROBLEM

Lack of information on sharing and use.

Lack of research back up.

Little advocacy in Sustainable Commercial Agriculture.

Few marketing opportunities (information, skills and outlets).

Lack of access to credit facilities.

Lack of input supply and poor availability resources.

In more precise terms, there are still however a number of outstanding

1. Limited access to credit for production/inadequate capital the

2. Limited market information that reduces farmers bargaining

3. Use of rudimentary farm equipment the bulk of smallholder

4. Inadequate extension services the performance of enterprises on

5. Weak producer groups - producers groups that exist in Bushenyi

6. Low application of modern technologies smallholder agriculture

7. High cost of production commercially supplied inputs such as

8. Price fluctuations caused by seasonal gluts and scarcity have the

9. Significant losses due to post-harvest handling and storage

10. Lack of transport for farm produce female small holder

11. Limited access to and control of land female-headed

12. Climate change unpredictable/harsh weather conditions that

13. Environmental degradation population increase continues to

3.0 STATEMENT OF THE SOLUTION

Capacity building for Sustainable Agriculture

3.1 Capacity Building for Sustainable Agriculture

3.2 Capacity Building for Production Techniques

3.3 Adoption of New Production Techniques

1. Transport Facilities: Aspire to acquire its own means of

2. Irrigation Facilities: Crop productivity depends not only on the

3. Access to Markets: Ms. PIA ATUHAIREs Robusta coffee farm

4. Access to Quality Inputs: Ms. PIA ATUHAIREs Robusta coffee farm

5. Agricultural Education: In a bid to guide and advise the farmers

4.0 PROJECT BRIEF AND OPPORTUNITY RATIONALE

The project is related to the scaling up and expansion of a Robusta coffee

4.1 Opportunity Rationale

Coffee continues to play a leading role in the economy of Uganda,

4.2 Farm Enterprise Objectives

1. To create a product-based agricultural enterprise whose goal is to

6. Tap the fast-growing market opportunities presented by the popularity

7. Generate strong farm-based income that will lead to fast growth of

9. Provide employment opportunities for locals within the area (Bushenyi

Ms. PIA ATUHAIREs Robusta coffee farm plans to develop strong

4.4 Project Location & Facilities

Ms. PIA ATUHAIREs Robusta coffee farm is located at Kibingo Village in

4.5 Total Project Cost (Investment Structure of Required

Table 1: Total Project Investment Cost (UShs)

5.0 PRODUCTS & SERVICES

5.1 Uganda Coffee Growing Zones

Table 2: Conditions for Coffee Growing in Uganda

An average rainfall of 1,200 1,500mm/year which is well-distributed for a

Arabica grows and yields better when grown at altitudes between

1,300 2,300m above sea level. A temperature range of 15 24C is ideal

Flat or gently sloping terrain is preferable. It grows well on deep, well-

5.2 Robusta Coffee

Production of coffee under low-input technology generates around UShs

Figure 1: Uganda coffee plantation and harvest periods

5.3 Why Grow Coffee?

6.0 FARM OPERATIONS PLAN

6.1 Establishment of a Coffee Farm