Despite losing global market share overthe last 20 years, Uganda remains a major coffee producer,accounting for approximately 2.5 percent of global coffeeproduction. In 2008-2009, coffee exports accounted foralmost a quarter of Uganda's formal export earnings andwere estimated to generate income and employment for up to1.3 million Ugandan households. As such, the coffee industryis extremely important to both the rural population and theUgandan economy. However, the sector exhibits significantlevels of production volatility, caused in part by unmanagedrisks. Despite the occurrence of numerous risks, the sectorhas always managed to produce significant, albeit variable,volumes of coffee for export, but the historic resilience ofthe sector does not automatically imply that the industrywill avoid longer-term decline if it fails to proactivelymanage potential risks going forward. The government ofUganda and the Uganda Coffee Development Authority (UCDA)has already implemented a number of initiatives and programsto mitigate some of the above-mentioned risks. However, manyof the existing initiatives need to be strengthened, andsome new activities added, to ensure insofar as possible thecomprehensive management of all key risks facing the coffeesupply chain. An in-depth evaluation of individual solutionswas beyond the scope of this exercise; an exhaustive listingof potential risk management solutions, and an assessment ofthe cost-benefit ratio of different risk management options,needs to be undertaken by the government of Uganda and UCDA.
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