By Aggrey Baba
It’s known that a farmer’s sweat is never wasted, but in the world of coffee, the tides of fortune can shift like the morning mist.
Uganda’s coffee exports hit a record high in January 2025, with 550,341 60kg bags fetching $156.5 million. This marks a 14.43% increase in volume and a remarkable 83.38% rise in value compared to the same period last year. The price surge, now averaging $4.74 per kilogram, is largely driven by supply shortages in Brazil and Vietnam, the world’s top producers.
Despite this windfall, industry experts remain cautious, welcoming the high prices, but warning that fluctuating farm-gate rates and inconsistent quality threaten long-term gains. A well-harvested and properly processed beans can fetch premium prices, with high-quality black beans selling for up to UGX 9,000 per kilogram on the local market. However, without strict quality control, Uganda risks losing key export markets.
While farmers enjoy favorable prices, traders and exporters are feeling the pinch of weak global demand. Benard Sabiiti, managing director of Besmark Coffee Company, notes that while farm-gate prices for robusta and arabica varieties were strong in January, ranging from UGX 7,000 to UGX 13,000 per kilogram, exporters are struggling due to slow international consumption.
The export sector remains dominated by a few large players, with the top 10 companies controlling 70% of shipments. Ugacof (U) Ltd led with a 15.3% market share, followed by Kawacom (U) Ltd (10.65%) and Olam Uganda Ltd (7.32%). Meanwhile, small-scale traders face an uphill battle against these industry giants.
Uganda’s coffee exports to Africa also saw growth, with 73,324 bags destined for Sudan, Morocco, Egypt, Algeria, South Africa, and Tunisia.
On the global stage, coffee production is expected to rise to 174.9 million bags for the 2024/25 financial year, driven by recovery in Vietnam and Indonesia, while consumption is projected to reach 168.1 million bags.
As Uganda’s coffee sector celebrates its recent success, the road ahead remains uncertain. Without sustained quality improvements and stronger global demand, today’s boom could become tomorrow’s bust. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
