HC Deb 06 June 1951 vol 488 c1004
42. Mr. James Johnson

asked the Secretary of State for the Colonies what relation the controlled price paid to African coffee growers of Uganda bears to the world price of coffee sold at Nairobi by non-African coffee growers in Uganda.

Mr. J. Griffiths

As the reply is unavoidably long and contains figures, I will, with permission, circulate it in the OFFICIAL REPORT.

Following is the reply: Two kinds of coffee, Robusta and Arabica, are grown in Uganda. The Robusta crop is much the more important. With regard to Robusta coffee, the African crop is marketed as sun-dried cherry and the non-African crop as pulped, washed and cleaned coffee. No direct comparison is therefore possible. Prices paid to African growers by the Uganda Coffee Control are equivalent to the minimum price in their contract with the Ministry of Food, for 4,000 tons a year, namely, £132 3s. a ton f.o.b. Mombasa less export tax, freight charges, and expenses incurred in processing. The remainder of the African crop amounting to something over 20,000 tons a year, is sold at the Mombasa auctions, where prices are at present approximately £350 a ton. The difference between the auction price and the Ministry of Food's price is credited to the Coffee Price Assistance Fund. About 2,000 tons of non-African Robusta coffee are sold under a long-term contract between the Non-Native Coffee Marketing Board and the Ministry of Food at prices, f.o.b. Mombasa, of £164 13s. and £154 10s. a ton according to quality. The remainder of this crop, about 1,000 tons a year, is sold at the Mombasa auctions at prices comparable to those for African Robusta. With regard to Arabica Coffee, the greater part of the African crop is marketed by the Bugishu Coffee Scheme. About 1,000 tons, rather less than half the total crop, are sold to the Ministry of Food under long-term contract at a price of £262 5s. a ton f.o.b. The remainder is sold at the Nairobi Coffee Auctions where prices at present average rather more than £400 a ton. Only a negligible quantity of non-African Arabica is marketed in Nairobi in small individual parcels; details are not available.
43. Mr. J. Johnson

asked the Secretary of State for the Colonies what are the reserves of the Coffee Stabilisation and Betterment Fund in Uganda; and how is the Fund used.

Mr. J. Griffiths

I assume that my hon. Friend has in mind the Coffee Price Assistance Fund, which stands at approximately £6,735,000. The purpose of this Fund is to cushion prices to growers should they fall.