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Uganda was a leader in the area of liberalisation in the global coffee industry. The government policy of liberalisation has progressively led to all areas of production, processing and marketing being placed in the control of the private sector, with increasing investments. When liberalisation commenced in 1991 with the passing of UCDA Statute, only CMB Limited and the co-operatives were in the export business. The first private coffee exporters were licensed at the end of 1991, and commenced operations in 1992.

Realising that they were pitted against a formidable challenge, the newly licensed coffee exporters resolved to form an association that would help them to share experiences and also lobby for further reforms in the sector. This marked the beginning of the Uganda Coffee Exporters Association (UCEA). The association initially comprised only the private exporters until when it was joined by the co-operatives and the CMBL in 1994. At the end of 1994, a secretariat was set up, and a system started to be put in place to effectively co-ordinate the interests of the members. In 1996, the association's mandate was expanded to include all other players in the industry and leading to the formation of the Uganda Coffee Trade Federation (UCTF), encompassing farmers, processors, traders, exporters, haulage companies, insurance companies and banks. Given that liberalisation placed immense responsibility in the hands of the private sector, there was need for the industry to take full charge of the affairs that impinged on their efficiency, profitability and future investments. It is against this background that UCTF was formed, and played a key role in giving direction in the modus operandi, in all the aspects of the coffee trade.

There are several benefits that accrued to the industry during the time of UCTF's 'strong' existence. The cardinal one was guiding the transition of the coffee sub-sector from a system of ad-hoc trade operations, to a serious business-oriented industry efficiently responding to market forces in both the local and global economies. The Federation developed various systems and instruments aimed at assisting the coffee traders to act in a professional manner in their transactions. UCTF made a landmark in the policy arena through advocacy that removed many constraints in the coffee business and contributed to capacity building and helped to build a critical mass in the industry.

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