6.
0 Coffee Farming as a
Business
Module Training Set
FACILITATOR’S GUIDE
This guide is developed to help the extension workers endorsed
by the Ugandan coffee sector, including UCDA, COREC, NAADS
and MAAIF, as they help farmers establish their coffee farms. It
provides basic technical information on how to turn a coffee farm
into a profitable business. As the facilitator, please read through
and familiarise yourself with the entire guide before facilitating a
discussion or a training session for the first time.
Using Visual Aids and Participatory Learning
We know that people learn better if they are actively engaged in the
learning process. Studies have shown that we remember only 20% of the
information we hear and 40% of the information we see and hear. However,
when we see ideas represented visually and also actively engage with the
information through discussion, debates, role-plays or other participatory
teaching methods, we retain 80% or more of the information that is
presented to us.
As instructors it is worth the time and effort to create participatory, multi-
sensory presentations. The Coffee Farming as a Business Chart Set
is a tool designed to assist you in this effort. There is no one way to use
it. We are always interested in improving our products, so if you have
suggestions, comments, or questions, please contact us.
This facilitator’s guide is written in English but depending on your
audience, you may need to make your presentation in the local language.
Read through the guide and consider how you could translate concepts
into the local language.
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PART 1. TRAINING CHECKLIST
Make sure you can answer YES to each question before beginning
the session.
q Did you gather background information about the group you are going
to train?
q Did you review the facilitator’s guide and charts?
q Do you understand the key issues to cover for each chart?
q Does the venue have enough seats and space?
q Do you have all the materials you need for the activities
and discussions?
q Do you have flipchart paper, markers, masking tape and a stand
(if necessary)?
Outline of a training session:
1. Welcome and introductions (10 minutes)
2. Review of the session objectives (5 minutes)
3. Ice breaker (10 minutes)
4. Large group presentation and discussion of the charts in the training
module (approximately 5 minutes per chart)
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5. Break into small groups and answer the following questions:
(20 minutes)
– What are three things I learned today?
– What is one action I will take as a result of this training?
– What questions do I still have about the topic?
6. Share small group discussions in the large group (20 minutes)
7. Award prizes and conclusion (15 minutes)
PART 2. OBJECTIVES
By the end of the training, participants should have acquired the
knowledge and skills necessary to:
• Identify the need for growing coffee
• Assess how profitable coffee farming can be
• Know the sustainable farming practices
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PART 3. THE DISCUSSION SESSION
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Chart 6.1: Why grow coffee?
Coffee is grown by all types of farmers (men, women, and youth) who
have land.
Coffee is profitable depending on a few factors such as the yield per
acre/hectare and the cost of farm inputs including tools, labour and
transportation. The price at which farmers sell the coffee also impacts
the overall profitability of the crop.
In order to attain high yields, the coffee farmer must know the proper
methods for growing coffee. This includes, using the right tools, planting
the best coffee plants at the right time, training the coffee how to grow,
weeding, pruning and managing any pests and diseases.
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Chart 6.2: Farm record keeping
Every farmer should keep records of all field operations, expenditures
and incomes in order to assess the profitability of the farm and help in
planning for the future. Field activity records should be separated from
farm sale records and both should have up to date information.
Farm Activity Record
Record information about the field/plot, the field activity done
(land preparation, planting, weeding, mulching, fertilising, 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
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.
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Chart 6.3: Marketing
Coffee is an important good in international trade. It plays an important
role in the livelihoods and economies of many people and countries.
Competition in the coffee market is between business men and women
of all kinds, from small scale dealers/brokers with small capital to those
like exporters with large capital. Each of them has a different specialty
and play a different role in the coffee business.
• Brokers buy crops in the garden at flowering or fruiting stage. They
buy coffee at a very low price compared to the prevailing market.
• Brokers sell the coffee to traders who dry, bulk and sell it to
processors or exporters.
• Non-exporting processors sell the coffee to graders or exporters
who take it to the external markets (USA, UK, Netherlands, Japan,
South Sudan, etc).
Because they are at the lowest level of the value chain, farmers lose
out on the great profitability of coffee growing. Small scale farmers can
overcome this challenge by processing their coffee and marketing it for
export.
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Chart 6.4: Sustainable farming practices
Sustainability has 3 main pillars:
• Social- this is giving appropriate respect and care to workers
involved in coffee production and the supply chain.
• Environmental- this ensures adequate consideration for and
protection of the natural environment.
• Economic- this aims to ensure proper access to market for
producers, market information and economically viable farming
for the farmer.
Farmers need to sustain productivity and quality at farm level as well as
keep good records. This helps them to evaluate the impact of different
good agricultural and post-harvest handling practices.
Sustainable farming practices include paying attention to the social and
environmental aspects of sustainability, so that both workers and the
natural environment are respected.
A farmer should think about the environment around his land and the
long-term impact of his farming methods.
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Chart 6.5: Certification / verification
Some markets require the coffee to be certified as sustainable. Access to
a larger market is an important reason to have a sustainable coffee farm.
Many coffee certifying bodies have a set of standards, code of conduct
and sustainability criteria designed to differentiate sources of
consistent quality.
Coffee sustainability standards have verification and audit requirements
so as to ensure all stakeholders conform to them. This includes a
certain level of organisation and record keeping as well as an internal
management system.
Certification is given accordingly only after passing an audit and
evidence is given that the farm conforms to the standards and meets
the requirements.
This process is costly for small holder farmers in many aspects, but they
can be encouraged to associate and work collaboratively with other
farmers to improve their yield and sustainable quality as they work
towards attaining certification standards.
Certification bodies include: Organic (IFOAM), Fair Trade Labeling
Organisation (FLO), Rainforest Alliance, UTZ and 4C (The Common Code
for the Coffee Community).
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Chart 6.6: Access to finance
Farmers need money to meet daily demands. This forces them to sell
their coffee prematurely at very low prices.
Farmers need sources they can borrow money from on fair terms (low
interest rates, and long gestation and loan recovery periods linked to the
agricultural season).
Currently in Uganda, only Centenary and Opportunity Banks lend money
to farmers for farm operations.
Farmers can overcome these challenges by forming village savings and
loans associations (VSLAs) or joining savings and credit co-operatives
(SACCOs). These can serve as savings and loan schemes or can link
farmers together to apply for farm loans from the larger banks.
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Chart 6.7: Enterprises supporting coffee production
Farmers should not rely solely on coffee for their income. Uncertainties
like low yield and low prices can affect their income unexpectedly.
Farmers should keep cattle, goats and poultry, as well as grow other
food and cash crops to protect them from food insecurity. Animals also
provide manure for the coffee farm.
Intercrop coffee with vanilla, bananas, beans, groundnuts and fruit trees
such as mangos, jackfruit, passion fruit and avocado to provide food and
additional income.
Plant crops like maize, soya beans, cassava and sweet potato on a
separate piece of land (not intercropped with coffee) for food and cash.
Farmers may also be engaged in non-farm alternative enterprises such
as owning retail or wholesale shops, making crafts and/or having formal
employment, etc.
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Chart 6.8: Family Decision making
Successful coffee farming has many stages such as planning, production,
processing, marketing and utilisation of profits to expand the business.
At all these stages, key decisions must be made. All decisions should be
equitable, encourage participation of all family members (women, men,
girls, boys) and ensure that the farm benefits everyone involved.
A farm enterprise should clearly communicate roles and responsibilities,
expectations, capabilities and entitlement for everyone involved. For
example, children of school-going age should not work in coffee farms
during school time, and all wages and working hours must comply with
national employment policies.
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Mango Tree
1479 Naalya Road, Kiwatule, P.O. Box 25312, Kampala, Uganda
Tel: 256-312-263-263, Email: [email protected]
www.mangotreeuganda.org
