Building Climate-resilient coffee value chain with diversification of production – NUCAFE

A blend of grant and lending is provided to increase smallholder coffee farmers’ incomes in Uganda through improved farming practices and resilience measures as well as an increased amount of processing of coffee beans before export to enhance value. Financing is sought for two aspects of coffee farming in Uganda. Firstly, to build smallholder farmers’ resiliency by facilitating access to climate change adaptation and mitigation techniques and technologies via training and access to equipment. Secondly, lending is required to upgrade facilities at the National Union of Coffee Agribusinesses and Farm Enterprises (NUCAFE; see below) coffee processing plant, along with a working capital facility for the purchase of further raw coffee from farmers for processing. The Project is intended to provide smallholders with means to sustainably improve their earnings in the face of climate change, by both improving their yields and increasing the value of their product through the NUCAFE co-operative. The Project will contribute to poverty reduction by creating green jobs in coffee production and processing and to environmental sustainability by, among others, effective land management.