The Bugisu Cooperative Union Ltd (BCU) is an agricultural cooperative union, owned by coffee farmers who are organised in

primary societies across the rural areas of Bugisu sub-region.

BCU Ltd is situated on Plot 46 Pallisa Road in Mbale town in Bugisu sub-region [Bugisu sub-region comprises Mbale, Sironko, Manafwa, Bududa, Bulambuli and Namisindwa districts] found on the slopes of Mt. Elgon and the union was established in July 1954.

According to the Ag. General Manager Mr. Vincent Buyi, the Union was started by a group of coffee farmers led by the late Samson Kitutu. Mr John Musira, the LCV chairman for Manafwa and a director at BCU said before the ordinance, the Bagisu then had what was called Bugisu coffee board. “And after the new Coffee ordinance was enacted by the colonial government in 1955, all powers where then given to BCU to take over all the assets of Bugisu coffee board to become BCU,” said Mr Musira.

Mr Buyi says the new Bugisu Coffee ordinance enacted in 1955 provided for BCU ltd to take over all the marketing functions from the Bugisu coffee scheme as well as all the scheme’s assets except the reserve funds which were still held by Bugisu coffee board.

He explained that BCU has 277 primary cooperative societies in the sub-region but that out of these only about 240 are active in the activities of the Union. He said each primary society keeps a register of its fully paid-up members who elect a committee, which manages society’s affairs.

“Each Primary society is represented by two delegates at an Annual General Meeting (AGM) which later elects Board members who in turn recruit and supervise the management team,” said Mr. Buyi. He revealed that BCU then educated children, built houses, paid good prices and therefore improved incomes of farmers.

Mr. Buyi said that the financial statements for the year end are tabled at the AGM. Where the planning, management and execution of the BCU activities is done by management.

“During Auditing, we encourage provision of advice to BCU on technical accounting and financial matters including those relating to taxation and any other. We ask for critics to help us to shape the organisation and our processes whilst retaining an external viewpoint,” added Mr. Buyi.

Records at BCU indicate that by 2008, the once powerful Arabica Coffee exporter union had been plunged into heavy debts to a tune of US $ 1,578,822 by a Swedish company, jeopardizing Union properties. Colossal sums of money had been allegedly siphoned by the management and directors.

Mr. Musira said the union was set for burial and the human hawks were hovering into the sky urging that BCU remains should quickly be buried (read sold off). He says the Union was in court for failure to pay workers and it was equally in court for Umeme and water bills. He explained that Elgon elders pained that their region was turning into a dwelling of poverty, skeptical of the education received by their grand daughters and sons, bothered by the loss of the glorious days of their once renowned clean town Mbale, put their political and religious differences aside and set out to restore the pride of their region.

“They actually asked Mr. Nandala Mafabi to take over and he has since then has paid all the debts leaving the union with about 1.78 billion working capital which the union did not have,” said Mr. Musira. Mr. Buyi explained that besides renovating the union’s buildings, reclaiming about 300 acres of land that had been taken by some economic hawks, paying Shs1.4 billion water and electricity bills and settling tax obligations, elders say that the union was able sponsor about 153 students at various universities. The chairman BCU Mr Nathan Nandala Mafabi says BCU operates according to national and International Co-operatives Principles.

He explained that BCU is a Registered Co-operative Union with the Registrar of Co-operatives in 1954, Reg. No 963 operating in 6 districts of Elgon Zone dealing in coffee growing, buying, processing and marketing. “The annual general meeting

provides an opinion on Financial Statements, understanding the entity and its environment, obtaining sufficient evidence to form an opinion and having an independent attitude,” said Mr. Nandala Mafabi. Mr. Nandala, also a farmer under Bugusege Primary Cooperative Society said they grow Arabica Coffee on the rich volcanic soils at Mt Elgon slopes between 3800ft and 14700ft above sea level. He explained that Arabica Coffee beans are harvested, roasted and ground into flour which has a mild sweet aroma and good taste.

“Arabica coffee is grown on small gardens owned by individual farmers and our Coffee is mostly organically grown but in some cases fertilizers are applied,” said Mr. Nandala.

PROCESSING COFFEE Primary Processing involves the pulping of ripe

coffee cherries, then fermenting, the washing thoroughly with clean water and drying it on wire mesh placed two meters above the ground to avoid contamination. Mr. Buyi said BCU owns central pulperies also where coffee berries are pulped on large scale and sun dried. “After the coffee has dried the farmer sells it to the primary society, which in turn delivers it to BCU mill. At BCU curing works, coffee is inspected, tasted for moisture content and weighed before it is stored in the silos for export or ground in Coffee flour for drinking just to add value,” said Mr. Buyi.

WHAT IS HAPPENING Mr. Nandala says that this year the union has

trained secretary managers of primary Cooperative Societies in simple book keeping and supplied seeds and in puts on loan to primary cooperative societies for planting. “And our next target is to revive all primary cooperative societies, diversify what we are dealing in by bring maize, beans and Sorghum on board because we have the stores,” said M. rNandala. He revealed that the union has 3393 acres of land in Bunambutye and over 100 acres of land in Khamoto, 20 acres in Buyaga and 15 acres in Nampanga and that they have applied for in-puts from ministry of agriculture and intend to start farming Sorghum, Cassava, Maize and beans to boost business at the union.

FUTURE PLANS Mr. Musira said although they lost the international

market for coffee between the 1990 and 2013 because the management then used to sell poor quality coffee mixed with stones, they have

managed to sensitise farmers on quality Coffee and that the union is now selling quality Arabica Coffee. He revealed that leadership under Mr. Nathan Nandala Mafabi, has been able to get back the international Import and Export license and that they have started selling directly to Portugal and Kenya.

“Our target is to get back all the international buyers because we now have quality organic Coffee at BCU, we want to get China, Britain, German and the United States of America,” said Mr. Musira.

He explained that they are also targeting reviving the education fund to cater for poor but bright children of the farmers in the villages to access education in any University or college.

BCU staff weighing Elgon pride in designated packs.

Casual workers st BCU Factory sorting out coffee parchment.

BCU ware house of Bugisu Co-operative Union Ltd

Casual staff pulping coffee beeries.

A farmer sun drying coffee parchment at the BCU coffee factory.

Packets of Elgon pride ready for disparchment to market.

Coffee husks collection point.

OFFICE: 46 Pallisa Rd & Coffe MillP.O.Box Private BagMbale, Uganda.Tel: +256 454 33565Website: www.bugisucoopunionltd.comA

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BUGISU CO-OPERATIVE UNION LIMITED