MBUGO (acronym for Mpigi, Butambala, Gomba) is a secondary cooperative dealing in Agricultural enterprises promotion with an aim of “improving the earnings and livelihoods of the farmers through facilitating and promoting value chain development”. MBUGO ACE is registered by the Ministry of Trade, Industry and Cooperatives; Registration number 10736/RCS, operating in three districts of Mpigi, Butambala and Gomba.
Since its inception, MBUGO has focused on exploiting the potential within the Robusta coffee value chain in the target area as a means to increased incomes and improved livelihoods of the smallholder farmers. In this endeavor MBUGO was assisted by funding from the Lutheran World Relief (LWR), between 2013 and 2016, which enabled her to construct a 100-ton capacity warehouse and offices. The funding also facilitated the mobilization of farmers in the three districts as well as training them on proper coffee farming, harvesting and post-harvest practices.
LATEST ENGAGEMENTS
MBUGO ACE Partners with Kampala Domestic Stores LTD to Empower Youth in the Coffee Value Chain
Progress And The Road Ahead
While the ACE envisaged a marketing strategy whereby farmers would bulk their coffee at the primary societies for onward bulking and selling to exporters by MBUGO, this did not happen. The main reason was that MBUGO’s competitors were paying cash to the farmers. Between 2016 and 2018, with capital from Kibinge Coffee Farmers’ Cooperative Society and some bank loans, MBUGO embarked on marketing farmers’ coffee.
In 2018, MBUGO was able to qualify for a Matching Grant Facility under the Agricultural Cluster Development Project (ACDP), through the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF). Through this facility, in 2021, the ACE acquired a coffee factory at its headquarters, including a huller, de-stoner and grader, with a capacity to process 10 to 30 tons a day. Some business has been going on, but it is still limited due to financial constraints and inconsistency in farmers’ delivery of coffee to the factory, since many buyers approach them at their homes. Beating this kind of competition, requires MBUGO to have a solid financial base that can cater for support to the member primary societies, so that their members can be attracted to bulk coffee at that level, through cash payments or even advances.
Currently, MBUGO ACE is projecting utilizing the coffee factory to produce an average of 288 tons of FAQ coffee per month in 2024.
( 2013-2016)
( 2016-2019)
( 2013 TO DATE)