Uganda’s coffee industry remains a vital pillar of the country’s economy, with recent market trends showcasing both opportunities and challenges.
Experts in the sector have raised concerns about quality, pricing, and global demand as key factors shaping Uganda’s coffee trade.
Dr. Michael Mugabira, a seasoned coffee farmer and industry expert, highlights the crucial role of good agronomic practices in ensuring premium market prices.
According to Mugabira, well-harvested and processed beans, such as high-quality black beans, fetch between sh6,000 to sh9,000 per kilogram on the local market.
However, he warns that if the government relaxes its efforts in maintaining quality standards along the coffee value chain, Uganda risks losing access to key export markets.
“If farmers engage in premature harvesting or other poor practices, the result is an influx of undergrade beans that command lower prices,” Mugabira explains.
“For instance, premium beans currently fetch around sh18,000 per kilogram, while black beans go for only sh6,000. This means that it takes 3kg of black beans to match the value of 1kg of premium coffee.”
Mugabira cautions that failure to meet the stringent quality standards set by the European Union and other major buyers could jeopardize Uganda’s market position, affecting both export volumes and national earnings.
Favorable prices but low demand
Benard Sabiiti, the managing director of Besmark Coffee Company, acknowledges that farmers are currently benefiting from favorable prices.
However, he notes that traders and exporters are experiencing limited gains due to weak global demand.
“The prices are good, but the demand is low, and this affects traders,” Sabiiti says. “One reason could be that international roasters are holding back purchases to first exhaust their current stock. Coffee is bought through differentials, and these have been declining. Prices may seem high, but their impact on export earnings remains minimal.”
Global coffee market fluctuations
The international coffee market remains volatile, with mixed trends observed in recent trading sessions. On Monday, Robusta futures on the London International Financial Futures and Options Exchange (LIFFE) recorded gains, while Arabica futures on the International Commodity Exchange (ICE) faced declines.
Robusta prices recovered 54% of earlier session losses, with the May position gaining $62 (sh227,602) to close at $5,717 (sh20,982,707) per ton, while the July position rose by $60 (sh220,260) to settle at $5,670 (sh20,805,570) per ton.
On the other hand, Arabica futures fell to a two-week low, with the May position losing 0.65 US cents (sh23.86) to close at 389.25 US cents (sh14,287.52) per pound, while the July position declined to 378.90 US cents (sh13,913.42) per pound.
Uganda’s coffee market performance
Despite global uncertainties, Uganda’s coffee market remains robust, according to data from the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF).
On Monday, February 24, 2025, Robusta coffee prices saw increases, with Robusta Screen 18 selling for sh22,267, Screen 15 at sh21,863, and Screen 12 at sh21,621. Arabica varieties also performed well, with Bugisu AA trading at sh31,038, Bugisu A at sh30,958, and Bugisu PB at sh30,958.
Farm-gate prices also showed significant growth, with FAQ coffee selling for between sh15,500 and sh16,000, while Kiboko ranged from sh8,000 to sh8,500. Arabica Parchment sold for between sh13,500 and sh14,500, while Drugar Coffee (Clean) fetched between sh19,500 and sh21,000.
Uganda’s coffee exports surge
The strong domestic market performance is reflected in Uganda’s coffee export figures of the January 2025 market report.
In January 2025, the country exported 550,341 60-kilo bags of coffee valued at $156.50 million. This translates to an average price of $4.74 per kilo, an increase of US cents 10 from December 2024 and a sharp rise from $2.74 per kilo in January 2024.
Year-on-year comparisons show significant growth. Uganda exported 6.44 million bags of coffee worth $1.62 billion between February 2024 and January 2025, a 3.91% increase in quantity and a 64.47% rise in value compared to the previous year.
Organic Wugar coffee fetched the highest price at $6.85 per kilo, reinforcing the premium that high-quality coffee can command.
