Uganda Coffee shipments Up 2.9%, revenues fall 13.6% on global prices
The strategic significance of Uganda surpassing Ethiopia in exports is notable.
UGANDA – Uganda’s coffee export volumes rose in March, supported by improved domestic harvests, though declining global prices weighed on overall earnings.
The country shipped 671,152 60-kilogram bags in the month, a 2.9% increase on the same period a year earlier.
Despite rising shipments, export revenues declined. Earnings from March exports fell 13.6% year on year, as softer global prices offset gains in output. This contrast highlights a sector characterized by rising productivity yet inherently vulnerable to international price fluctuations.
On a rolling annual basis, however, the sector has delivered stronger performance. Uganda generated US$2.4 billion in coffee export revenues over the 12 months to March, up from US$1.8 billion in the previous period.
Rising volumes reflect stronger domestic production, reinforcing coffee’s role as one of Uganda’s key foreign-exchange earners. However, the 13.6% drop in monthly earnings shows how global price movements can quickly erode revenue gains from increased output.
Key trends driving Uganda’s coffee sector include improved harvests from expanded cultivation, better farming practices, and investment in processing infrastructure. These factors have enabled Uganda to surpass Ethiopia as Africa’s top coffee exporter, a significant strategic achievement.
The strategic significance of Uganda surpassing Ethiopia in exports is notable. Ethiopia has long been associated with premium coffee origins, yet Uganda’s consistent volume growth shows that scale and efficiency can compete with heritage and branding.
For Middle Eastern coffee traders, this opens new sourcing options, offering reliable supply and competitive pricing.
Therefore, to navigate Uganda’s volatile coffee prices, Middle Eastern businesses can adopt long-term supply contracts to lock in prices and provide stability for buyers and producers alike.
For instance, investment in local processing and roasting facilities would enable Ugandan exporters to capture value beyond green coffee beans, thereby reducing exposure to raw commodity price swings.
The data highlights the sector’s sensitivity to global price movements, even as production gains continue to support export volumes and foreign exchange inflows.
For investors, the long-term growth trajectory remains positive, with annual earnings exceeding US$2 billion and demonstrating financial resilience despite monthly volatility.
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