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Uganda Coffee Prices Dip Amidst Global Market Shifts, Farmers Urged to Focus on Quality and Value Addition

Agriculture

Uganda Coffee Prices Dip Amidst Global Market Shifts, Farmers Urged to Focus on Quality and Value Addition

Ugandan coffee farmers are currently experiencing a decline in farm gate prices, a development attributed to prevailing global market forces. The Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) released a market analysis report on June 27, 2025, detailing the price adjustments and urging farmers to remain resilient.

According to the Ministry’s report, current coffee prices are as follows:

  • Robusta (FAQ): UGX 10,000-11,000 per kilogram at farm gate level
  • Robusta (Kiboko): UGX 5,000-5,500 per kilogram
  • Arabica (parchment): UGX 14,000-15,000 per kilogram
  • Drugar coffee (clean): UGX 14,000 per kilogram

The Ministry attributes this decline to several international factors, including:

  • Improved weather conditions in Brazil, a major coffee producer, are leading to increased harvest expectations.
  • A global rise in coffee production, particularly for Robusta, with significant contributions from countries like Vietnam.
  • Currency volatility, especially the strengthening of the US dollar, is impacting export profitability.
  • Increased overall supply of coffee on the global market.
  • Market speculation and fluctuations in coffee futures contracts on international stock exchanges.

Minister Frank K. Tumwebaze acknowledged the concerns of coffee farmers but emphasized that coffee prices are a globally traded commodity, highly susceptible to external shocks. Despite the current downturn, the Minister remains optimistic about the long-term prospects of Uganda’s coffee industry.

The Ministry’s report highlights a strong performance in coffee exports over the past year. From June 2024 to May 2025, Uganda’s coffee exports saw a significant 22% increase in quantity and a remarkable 93.6% increase in value compared to the previous year. This robust export performance indicates the underlying strength and growing demand for Ugandan coffee globally. Indeed, in May 2025, Uganda emerged as Africa’s leading coffee exporter, surpassing Ethiopia with a record 47,606.7 tonnes.

Minister Tumwebaze has called upon coffee farmers to remain calm and steadfast. He urged them to plant more coffee and prioritize good quality to effectively compete with major international producers like Brazil and Vietnam. Furthermore, the Minister strongly encouraged farmers to add value to their coffee to maximize their earnings, a strategy crucial for sustainable growth in the face of market fluctuations.

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