Uganda’s coffee exports surge despite global market slump

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Uganda’s coffee industry continues to post impressive growth in export volumes and earnings, despite turbulence in global commodity markets, which closed on a largely bearish trend.

According to market data, the London International Financial Futures and Options Exchange (LIFFE) closed with 93.10% of earlier daily losses intact.

The July position closed at $5,126 (sh18,758,508 per tonne), down by $243 (sh889,794), while the September position settled at $5,081 (sh18,592,198 per tonne), losing $235 (sh860,830) from the previous close.

Similarly, the New York coffee market mirrored this downward trend, closing with 87.74% of its earlier losses retained.

On the International Commodity Exchange (ICE), Arabica futures saw a drop triggered by anticipated increases in US import tariffs.

This follows warnings from global coffee buyers such as Starbucks, Hershey, and Mondelez International, who argue that the proposed baseline 10% tariff will push prices up and reduce demand.

At ICE, the July position closed at US cents 384.65 (sh14,087 per pound), a drop of US cents 16.10 (sh588), while the September position closed at US cents 377.50 (sh13,822 per pound), down by US cents 15.85 (sh579).

Robust local market prices

Despite international setbacks, the country’s local coffee prices remained firm. According to the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) market report, Robusta Screen 18 sold for sh21,118 per kilogram, Screen 15 at sh20,715, and Screen 12 at sh20,473.

Arabica coffee maintained high market rates, with Bugisu AA trading at sh32,665 per kilogram and Bugisu A slightly lower at sh32,584.

Farmgate prices also reflected relative stability. Fair Average Quality (FAQ) Robusta traded between sh15,000 and sh16,000 per kilogram, while Kiboko (unprocessed Robusta) ranged from sh6,500 to sh7,500.

Parchment Arabica fetched sh14,500 to sh15,000 per kilogram, and Drugar (Dry Uganda Arabica) traded between sh15,000 and sh16,000.

Exports hit record highs

Uganda exported a total of 642,981 60-kilogramme bags of coffee in March 2025, generating $198.62m (sh726.91b).

The average price per kilogramme stood at $5.15 (sh18,824), marking a steady rise from $5.03 (sh18,401) in February and a significant leap from $3.27 (sh11,956) in March 2024.

This represented a 92.19% increase in export quantity and a remarkable 202.52% rise in earnings compared to the same month last year.

Farmgate prices for March also remained competitive, with Robusta Kiboko averaging sh7,600 per kilogramme, FAQ Robusta at sh15,250, Arabica parchment at sh15,000, and Drugar at sh14,500.

Steady annual growth

For the year ending March 2025, Uganda exported 6.87 million bags of coffee worth $1.84b (sh6.73 trillion).

This was up from 5.99 million bags valued at $999.48m (sh3.66 trillion) in the previous 12-month period. This translates to a 14.86% growth in quantity and an 84.12% rise in export value.

Notably, 68% of Uganda’s coffee exports were handled by 10 leading exporters among 80 active companies in March, slightly down from 71% in February.

The highest price was fetched by Mt Elgon A+, which traded at $8.18 per kilogramme (sh29,921), setting a benchmark for premium quality coffee in international markets.

“The strong performance of Uganda’s coffee exports (both in terms of trade volumes and earnings) can largely be attributed to supply shortages in major producers like Brazil and Vietnam, coupled with a surge in global demand,” said Martin Maraka, chief executive officer of the Uganda Coffee Federation.

On his part, Bernad Sabiti, an expert from Besmark Coffee Company, explained that global forecasts of reduced coffee production, particularly in Brazil due to insufficient rainfall and a shortfall in robusta supplies from Vietnam, could trigger another spike in international prices.

“These developments present a real opportunity for Ugandan coffee farmers to earn better prices this season,” he noted.

Outlook

While global market volatility and impending tariff hikes may pose challenges, experts said Uganda’s coffee sector continues to demonstrate resilience and strong international competitiveness.

When asked whether US President Donald Trump’s 10% tariff on Ugandan goods, including coffee, would negatively impact Uganda’s coffee sector, Maraka responded, “Not significantly. If the tariffs were imposed by Europe, it would be a different story, that would cripple us.”

They noted that with export volumes on the rise and attractive local farmgate and market prices, farmers and exporters are still seeing positive returns amid a shifting global landscape.