Uganda coffee prices climb to UGX 14,000, restoring optimism in the sector

August 18, 2025 in Business, Companies, Land & Agriculture, Trade & Industry by Editor

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Uganda’s coffee sector is breathing a sigh of relief after farm-gate prices rebounded sharply, reversing months of decline that had worried farmers and exporters alike.

According to the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), average prices for FAQ (Fair Average Quality) coffee have risen to between UGX 13,000–14,000 per kilogram, while Arabica parchment is trading in the range of UGX 13,500–14,000. This marks a notable recovery from June when prices had sunk to around UGX 9,000 per kilogram, largely due to oversupply from Brazil, Vietnam, and India and subdued global demand.

Frank Tumwebaze, the Minister of Agriculture, attributed the rebound to a combination of international market correction and Uganda’s own interventions. He noted that the Ministry’s coffee development department has stepped up quality assurance enforcement, ensuring that Ugandan beans meet the premium standards sought by buyers.

“At the end of the day, quality is the key driver for price,” explained Charlotte Kemigyisha, the Communications Specialist at MAAIF. “By maintaining consistency in quality from farm to export, Uganda inspires buyer-seller confidence, which is critical for price stability.”

Beyond enforcing standards, the government has urged farmers to double down on good agricultural practices, proper harvesting, drying, and processing. The Ministry also encouraged stronger farmer cooperatives to improve bargaining power, and continued exploration of value addition as a hedge against volatile global markets.

The rebound, which comes almost exactly on the timeline projected by the Ministry in June, has offered renewed optimism for the sector that employs millions of Ugandans and remains one of the country’s top foreign exchange earners.

Still, the recovery underscores the structural vulnerability of Uganda’s coffee industry to global supply shocks and price cycles. Analysts warn that unless more value is retained locally, farmers will remain at the mercy of global fluctuations.

“As we embrace this positive development, I urge all farmers and actors in the coffee value chain to remain focused on maintaining high quality standards in harvesting, drying and processing, so that Uganda retains its reputation as a producer of premium coffee. We must also adopt good agricultural practices to boost productivity, strengthen farmer organisations and cooperatives to enhance bargaining power, and explore value addition opportunities to reduce our vulnerability to international price fluctuations,” said Frank Tumwebaze, Minister of Agriculture, Animal Industry and Fisheries.

For now, farmers and exporters are cautiously upbeat, hoping that international buyers’ renewed confidence in Ugandan coffee signals not just a temporary reprieve but a longer-term opportunity to consolidate Uganda’s reputation as a premium coffee producer.