Uganda reassures coffee farmers as global supply pressures weigh on prices
MAAIF says stronger farmgate prices, continued demand and measures to address climate risks are supporting Uganda’s coffee sector despite recent market corrections.
UGANDA – Uganda’s Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) has reassured coffee farmers that the recent decline in coffee prices is temporary, attributing the correction to increased global supply rather than weaker demand.
In a statement shared by Agriculture Minister Frank Tumwebaze, MAAIF said increased supplies from major producers, including Brazil and Vietnam, have contributed to the recent decline in coffee prices. Cocoa prices have also weakened following higher production in Côte d’Ivoire.
The ministry said the completion of Brazil’s latest harvest, increased Vietnamese exports and a reported 30% rise in Côte d’Ivoire’s cocoa harvest had contributed to the downward adjustment in commodity prices.
MAAIF stressed that the price decline does not indicate a reduction in global demand for coffee or cocoa. The ministry said market conditions are expected to stabilise and prices could recover modestly over the next six months.
Uganda Coffee Exports Decline
Drought and high temperatures in major coffee-growing areas, including Greater Masaka, Kyotera, Sembabule and Luwero, have affected coffee quality and processing yields by about 10%, according to MAAIF.
Uganda’s coffee export volumes fell 15% year on year in July, while export earnings declined 18.6% to US$204.1 million from US$250.7 million.
Despite the decline, MAAIF said farmgate prices remained substantially above levels recorded a year earlier. Early September prices for Robusta FAQ stood at about UGX11,500 to UGX12,000 per kilogram, while Arabica parchment traded at UGX15,500 to UGX16,000 per kilogram.
Arabica prices were 8.5% higher than a year earlier, according to the ministry.
MAAIF said current prices also remained above the estimated Robusta break-even level of UGX7,000 per kilogram.
The ministry said buyers have become more selective, offering premiums for properly processed and dried coffee while discounting poor-quality or immature beans.
It urged farmers not to harvest coffee cherries prematurely in response to falling prices.
MAAIF is also continuing to distribute subsidised fertilisers and expand farmer-managed irrigation schemes through inter-ministerial partnerships to address climate-related production risks.
The ministry said Uganda’s long-term coffee prospects remain supported by global demand and the country’s reputation for quality coffee.
Maintaining high-quality standards at harvesting, drying and processing remains among the priorities identified by Minister Tumwebaze in the ministry’s coffee guidance.
MAAIF said the government remains committed to supporting farmers and strengthening the coffee value chain as international markets adjust to changing supply conditions.
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