Commodity Revenue Management: Coffee and Cotton in Uganda

By Moses Masiga, Alice Ruhweza on June 20, 2007
The second in a series of seven case studies examining national responses to the commodity price problem, this comparative study focuses on how Uganda has addressed price volatility in its coffee and cotton sectors.

Coffee and cotton have been central components of Uganda's economy since the country's independence. However, the price volatility present in both sectors has repeatedly dampened economic growth and threatened producer livelihoods. Failed attempts to address this volatility through supply management have left producers and the government searching for new ways to ensure stable and predictable commodity incomes, incomes upon which economic diversification strategies can be built.

This paper begins with a discussion of the history of coffee and cotton marketing in Uganda. It then examines commodity revenue and price volatility risk for both commodities and some of the approaches taken to manage this risk. The final section of the report presents the authors' recommendations for coffee and cotton revenue management in Uganda.

Report details

IISD, 2007