Kyagalanyi Coffee: A Journey through Uganda’s Coffee Sector
World Business Journal talks to Jeremy Mpalampa, General Manager of Kyagalanyi Coffee, about what makes Ugandan coffee special, adapting to ever-changing global taste, market and regulatory requirements.
How did Kyagalanyi Coffee get started?
Kyagalanyi Coffee, a subsidiary of the Swiss-based Volcafe, was created in 1992 during Uganda’s coffee market liberalisation. Pioneers in the field, we secured an early coffee export licence, initially focusing on central Uganda. This endeavour led to the establishment of our facility in Bugolobi. During this period, Uganda began exporting 2.5 to 3 million coffee bags a year. The market’s opening allowed private entities like ours to participate in exports, marking the start of our pivotal role in Uganda’s ever-evolving coffee sector.
How many countries does the company export to and what is your current market share?
Our central facility at Kampala Industrial and Business Park, Namanve, became operational in 2015 and today we export to over 33 countries. Our export volumes have risen to approximately 500,000 to 800,000 bags annually, constituting about 10 to 12% of Uganda’s total coffee exports.
What key qualities and characteristics set Ugandan coffee apart in the global market?
Ugandan coffee’s distinction lies in the fact that both Arabica and Robusta bean varieties offer unique flavours when grown at our higher altitudes, varieties. For instance, Robusta from the central region has a softer, less harsh profile with prominent dark chocolate notes, while high-altitude Arabicas like those from the Bugisu region or the Eastern and Western parts of the country, showcase diverse flavour profiles from citric and fruity to distinct chocolate. The unusual coexistence of both Robusta and Arabica crops within the same origin provides a continuous coffee flow, making Ugandan coffee unique in consistency and diversity.
Are there any shifts in preferences and demands both locally and internationally?
Yes. Customers are demanding both higher quality and responsibly sourced coffee. They seek transparency regarding the origin and production of their coffee, with a particular focus on traceability and sustainability. These are central to our approach.
Additionally, the popularity of specialty-grade Ugandan coffee is growing, emphasising its unique traits. To meet these demands, we have enhanced processing techniques and farmer training. Traceability and sustainability are central to our approach, aligning with global coffee consumption trends.
How is Kyagalanyi Coffee addressing the EU deforestation regulation and ensuring competitiveness in the European market?
Compliance with the EU Deforestation Regulation is crucial for exporters like us. From December 2024, all coffee entering the EU must have enhanced traceability and documentation confirming that it does not come from areas deforested since 2020. Non-compliance can incur substantial fines. We are actively engaged in industry-wide efforts, seeking solutions and partnerships to ensure adherence to these stringent requirements.
How is the company strategically positioned to remain competitive in the international market?
To address this challenge, the coffee industry is collectively adapting its supply chain to comply. We are actively involved in seeking solutions, including expanding traceability and sustainability programs with cooperatives and forming partnerships with organisations. While we have Rainforest Alliance certification for some of our exports, this represents only a portion. It’s evident that the industry must swiftly align with compliance requirements.
Q7: As we conclude, could you provide insights into the company’s upcoming strategies for the next 12 months, including those geared towards enhancing value?
We’re targeting exports of 600,000 bags and investing to enhance drying and bagging efficiency in our production lines. In terms of value addition, we’re expanding our existing brand, Big Gorilla, and introducing a new brand for the domestic market, Volcanic Republic, a blend of Robusta and Arabica finely crafted to suit diverse local taste preferences.
Our unwavering commitment remains centred on delivering top-tier coffee quality while prioritising sustainability and traceability across our supply chain.