Thursday 18 August 2011

Global coffee demand to hit 136m tonnes by 2012

Global coffee demand to hit 136m tonnes by 2012

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KAMPALA, UGANDA - The demand for coffee and coffee products worldwide is expected to reach 136 million tons this year from the 134 million it was in 2010, sector analysts have predicted.
This will show an increase of over 2 million tons over 2010, an increase of 2.1%.
According to a source in Uganda Coffee Development Authority (UCDA), the increased demand for coffee in Brazil, India, Indonesia, Mexico and Costa Rica is the main driver for the shooting up coffee demand.
In Uganda, Coffee production capacity is about 3 million bags per year. However, Uganda produced 2.7 million bags of coffee last year, indicating a drop in production. Market analysts predict this year's production will realize an increment of 100,000 bags to 2.8 million bags.
In June this year, a total of 370,924 60kg bags of coffee worth $57.95m from Uganda were shipped to various destinations of the world. It represented a 58% and 152% rise in the volume and value of coffee respectively.
The weighted price at export level stood at US260 cent per Kg, while the farm gate prices ranged at between Ush1800 ($0.72) and Ush2000 ($0.8) per Kgof Robusta Dry Cherries. Arabica Parchment traded at between Ush8000 ($3.2) and Ush9000 ($3.6) while FAQ was at between Ush4500 ($1.8) and Ush4800 ($1.92).
Coffee exports in nine months, between October 2010 and June 2011, stood at 2.12 million bags, earning over $300.9m consisting of Robusta (1.61 million bags) earning about $183.84 million and Arabica 0.51 million bags earning $117.05 million.
The coffee exports between July 2010 and June 2011 were recorded at 2.78 million bags, representing a growth in earnings of about $371m.

Uganda tourism hit hard by demos

Uganda tourism hit hard by demos

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KAMPALA - Uganda tour operators have asked the government and the opposition to work out measures that will peacefully resolve the economic crisis in the country rather than resorting to the violent demonstrations.
The operators noted that the violent ‘Walk to Work’ demonstrations scare away tourists, hence hurting their business.
"We're not in politics. This is purely business," said Mr. Boniface Byamukama, the president of the Association of Uganda Tour Operators. "The opposition and the government should sit and discuss how they can amicably solve the economic crisis in Uganda rather than resorting to walk to work."
A cross-section of tour operators at the meeting in Kampala last week. (Photo by Paul Tentena)A cross-section of tour operators at the meeting in Kampala last week. (Photo by Paul Tentena)

The operators' plea came  amidst the opposition led by a group, Activists 4 Change, warning they will soon resume the walk to work demonstration if the government doesn't address the soaring inflation, worsening exchange rate, rising prices of goods and services and the high cost of living.
Inflation for July was recorded at 18.7% the highest rate rise in 18 years while the Uganda Shilling traded at between Ush2815 and Ush2830 the weakest/lowest against the  dollar in many years.
The Uganda Shilling has dropped by at least 14% against the US dollar this year.
"We lost about 30% of our business in the May demos. This should the peak season for us. The politicians should not spell doom for us," added Mr. Amos Wekesa, the President of the Uganda Tourism Association.
The Uganda Tourism Association brings together all tourism stakeholders in Uganda. They include tour operators, hotel owners, safari guides, airliners, and heritage sites owners, Community Tourism Association, travel bureaus and tourist car hire companies.
The hotel owners alone lost about 70% of their business in the May demos.
 They sounded their concern during an annual meeting in Kampala last week.
Another scenario was echoed by Mr. Ben Ntare, the managing director of Pearl of Africa Safaris who recalls losing a safari of students from a US university.
"In May, during these demos I had a safari for 17 students from United States. They were supposed to stay for four days but only spent a day and went back.  I had to refund the money for the other days yet I had made bookings with different hotels, parks and lodges," Ntare stressed.
He added that on average 50% of the tours are cancelled during riots because insurance companies cannot pay insurance covers to the tourists if they travel and encounter problems after having prior knowledge of the situation of a country.
"Like for American and British tourists, they are always provided with travel advisory in respect to the countries they are going to," Ntare added.
Mr. Fred Bukenya of Travel Hemisphere Safaris, also recalls how his tourists who had gone for a Kampala tour in Makerere University were caught up in the fracas in May.
"They vowed never to come back to Uganda," Bukenya told the East African Business Week.
The tour operators also elected two new members, Mr. Mohit Advani of Global Interlink Travel Services and Mr. Felix Musinguzi of Kazinga Tours to their Executive Board.
Byamukama asked the government to increase on their tourism marketing funds as it emerged that the only $300,000 contribution cannot fully persuade tourists to come to Uganda.
“The government should also fully fund some of the tourism fairs we participate in," stressed Byamukama.
The Uganda Tourism Board has earmarked $49m for tourism marketing over a five year project.
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written by Herbert Byaruhanga, August 16, 2011
Thank you Paul. Iam in the forest birding but had a short break to check on my mails only to find a google aleart about tourism of Uganda.

Indeed the politicians are killing the incomes of Ugandans whom they claim to fight for. They have not understood that that the more tourists we get the less the exchange rate. The KASITA group are not any different. They should understand that business is for us all. We all have to live. Politcs are over. The opposition should start planning for 2016

China investments rise

China investments rise

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KAMPALA, UGANDA- The Federation of Uganda Employers (FUE), a union of all employers in Uganda has conducted a survey that shows a rise in the number of Chinese investors in Uganda.
The baseline survey of Chinese enterprises in Uganda was done in regard to the establishment of a data base for Chinese enterprises in Uganda in order to facilitate the formation and development of Company Cooperation Groups and promoting socially responsible business in East Africa.
It was done in partnership with the Chinese Enterprise Confederation and the Confederation of Norwegian Enterprises.
According to Ms. Rebecca Wamono Nalumu, special advisor Uganda Investment Authority and conducted the survey on behalf of the FUE, the growth of new Chinese enterprises has been rapid in the recent years and some of the new companies lack information on aspects such as labour laws, labour relations, giving an opportunity for the project to target such enterprises.
Nalumu noted that most of the Chinese Enterprises are small and medium enterprises employing less than 50 people.
They were recorded at 73% of the 150 Chinese Enterprises surveyed. The large companies were 41 registering a percentage of 27%.
It was discovered that a number of Chinese enterprises operate in Uganda but have no signposts and it is difficult to locate them.
"This challenge was also encountered during the distribution of invitations to the CCG meetings and dissemination of documents and activities of the project," explained Nalumu.
However she added that since, a number of the enterprises provided their telephone contacts and email addresses, which could assist in locating them.
Though most Chinese enterprises have been blamed for supplying substandard products to East Africa, Nalumu noted that some like Tian Tang and Nile Steel and Plastics are doing a tremendous job.
"Though the majorities are in wholesale and retail business," she stressed adding that others are in manufacturing, accommodation and food services, restaurant and catering services and construction services.
She was giving a presentation during the visit of Mr. John Bernander the Chief Executive Officer of the Confederation of Norwegian Enterprise at the Kampala Serena Hotel over the weekend.
Chinese investment in Africa at the state level is growing in Africa at astronomical speeds. Individual Chinese businesses are also following. In Uganda, some who are engaged in retail business have caused uneasiness.