FAO urges stronger African participation in US$200B global coffee market

NIGERIA – The Food and Agriculture Organisation (FAO) and Nigerian stakeholders are calling for stronger African participation in the global coffee market, now valued at more than US$200 billion annually, following the United Nations’ formal designation of October 1 as International Coffee Day.

The resolution, adopted by the UN General Assembly on March 10, underscores the growing economic importance of coffee as both a globally traded commodity and a driver of rural development.

FAO Director-General Qu Dongyu highlighted the sector’s significance to livelihoods and trade.

“Coffee is more than a beverage, it is a globally traded commodity… that sustains the livelihoods of millions of farming households, and connects rural communities to markets across the world,” he said, adding that the international day would help “strengthen its contribution to eradicating poverty.”

Global coffee demand continues to rise steadily, with consumption expanding in traditional markets such as Europe and the United States, as well as in emerging regions including Asia and the Middle East.

Over the past decade, per capita consumption has grown by about 1.2 per cent annually, contributing to an estimated $485 billion in total market revenues.

Africa currently contributes around 12 per cent of global coffee output and is increasingly seeking to capture more value from the sector.

Leading producers such as Ethiopia and Uganda dominate exports, with coffee playing a central role in their economies. In 2024, coffee accounted for 27.9 per cent of Ethiopia’s exports, 20.1 per cent of Uganda’s, and 19.5 per cent of Burundi’s.

Despite these gains, Nigeria remains a marginal player, contributing just 0.018 per cent of global output. The country produced approximately 1,844 metric tons of coffee in 2023 and continues to rely heavily on imports to meet domestic demand.

Production is projected to decline slightly from 40,800 bags in 2023 to 39,900 bags by 2028, reflecting structural challenges including low yields, limited investment and inefficient processing systems.

Stakeholders believe Nigeria has the potential to reverse this trend, particularly as global coffee prices remain strong, ranging between $3,000 and $3,500 per metric ton.

Chairman of the Cocoa Association of Nigeria, Victor Iyama, said the country has an opportunity to boost production and foreign exchange earnings with the right policies and investments.

He called for a coordinated strategy focusing on improved inputs, rural financing, post-harvest processing and market development.

Kayode Oluyole of the Cocoa Research Institute of Nigeria said inefficiencies continue to limit farmers’ ability to benefit from rising global prices.

“The lack of effective pricing has made it challenging for farmers to increase their production, inadequate processing techniques… have resulted in low-quality beans, further lowering their market value,” he said, noting that Nigeria still imports a significant portion of its coffee consumption.

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