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Uganda’s coffee sector has recorded a much-anticipated recovery, with farm-gate prices stabilising and picking up again after months of global market volatility.
Agriculture Minister Tumwebaze announced Monday that the farm-gate prices for coffee have recovered significantly, bringing welcome relief to farmers who have endured a period of market downturn.
“I am pleased to confirm to you today that this prediction has come true. Coffee prices have indeed rebounded to the expected levels," he said
The ministry’s announcement comes months after a slump in global prices, which the minister had attributed to an oversupply from major producers and a subsequent imbalance in the global coffee market.
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Coffee farmers are being urged to go back to good farming practices
A Prophecy Fulfilled
According to the latest report from the ministry’s Department of Coffee Development, a kilogramme of Fair Average Quality (FAQ) coffee is now trading at between Ugx.13,000 and Ugx.14,000.
Arabica parchment coffee, a premium variety, is fetching between Ugx.13,500 and Ugx.14,000 per kilo.
This is up from the lows experienced earlier in the year, when prices had been depressed by global supply chain disruptions and overproduction from nations like Brazil and Vietnam.
Miniter Tumwebaze had made a prediction in June, assuring farmers that prices would steadily rise towards September, a forecast that has now been validated by the market’s positive turn.
Navigating Global Market Forces
The recent downturn was a direct result of improved weather conditions in competing coffee-producing nations, which led to a projected increase in global coffee production.
Brazil’s output, for instance, was expected to rise to 65 million bags, while Vietnam anticipated an increase to 31 million bags. This oversupply, coupled with market speculation, had driven prices down globally.
However, Minister Tumwebaze had maintained that Uganda’s coffee sector was more resilient, a belief he attributed to divine favour and fewer natural disasters compared to competitor nations.
He had also clarified that the price slump primarily affected Robusta coffee, which accounts for 90% of Uganda’s exports, while Arabica coffee prices remained stable.
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A coffee farmer from western Uganda
Upholding Quality and Productivity
As the coffee sector enjoys this positive development, the Minister has issued a strong call to action for all stakeholders.
He urged farmers to continue focusing on four key areas to safeguard the industry’s future.
These include maintaining high quality standards throughout the harvesting, drying, and processing stages to preserve Uganda's reputation for premium coffee.
He also stressed the importance of adopting good agricultural practices to boost productivity and enhance the overall quality of the crop. Tumwebaze further called for the strengthening of farmer organisations and cooperatives, which he said are essential for enhancing farmers' collective bargaining power in the market.
Minister Tumwebaze further urged stakeholders to explore value addition opportunities to reduce their vulnerability to the volatility of international prices.
He encouraged farmers to "maintain the momentum and most importantly to continue adhering to correct practices in production, harvesting and post-harvest."