Since exporting 372,407 60-kg bags of Robusta and 62,175 bags of Arabica in February, Uganda’s coffee sector has seen sharp changes.
The main developments since mid-March 2024 have included:
- Rise in coffee prices by 100% year-on-year in western, eastern and central Uganda.
- Lower exports in March than February of Robusta and Arabica beans.
- Impounding of immature coffee beans in various regions.
Farm-gate Prices of Uganda’s Coffee Beans Double
Beginning midway March 2024, farm-gate prices of coffee beans in Uganda have notched 100% above the 2023 average. Traders were offering farmers 12,500 shillings ($3.32) per kg in mid-April 2024, above the 6,500 shillings ($1.72) average of 2023.
On April 16, 2024, New Vision reported that Robusta beans in Ibanda, western Uganda, increased to 12,500 shillings ($3.32) a kg in mid-April. The mid-March rate had been 11,000 shillings ($2.92) per kg.
Arabica beans sold at 12,600 shillings ($3.34) a kilo in Ibanda in mid-April against 12,000 shillings ($3.18) in mid-March.
Regional farmers currently enjoying the price boon include those from Rwenzori, Elgon and Greater Masaka.
In March, Rwenzori residents had been receiving paltry 3000 shillings ($0.80) for Robusta and 6000 shillings ($1.59) a kg for Arabica.
March Exports Down
March 2024 saw the number of 60-kg bag shipments fall from February’s 434,582 to 329,686 as a result of logistical issues.
While February’s exports garnered 320 billion shillings ($82.56 million), the March exports only brought 243.75 billion shillings ($64.74 million).
The only improvement in March over February was a rise by 22,636 bags in Arabica bean shipments. Robusta beans helped the decline by garnering 244,975 bags in shipments, a slump of 127,432 bags.
Causes of the fall included a late harvest, low volumes in the Elgon region of eastern Uganda and insufficient shipping containers.
Immature Coffee Harvest
Even as Uganda deals with falling volumes, premature coffee harvesting has caught the media spotlight lately.
In Bukomansimbi in Central Uganda, coffee farmers resorted to picking immature beans to curb against theft early April. According to Uganda Radio Network on April 19, 2024, administrators here were trying to thwart early picking to safeguard bean quality.
A Kibaale court in central Uganda also ordered on May 3, 2024 for the destruction of multiple bags of premature beans.
On May 8, 2024, coffee farmers in Kiboga to the northwest of Kampala also received warnings against premature harvest.
Ultimately, as Uganda’s coffee production goes through its motions, it is keeping a weather eye on rising global production. High production in Brazil will help bring up world coffee production to 171.4 million bags in the 2023-24 season. This will be higher than the 164.5 million bags of the 2022-23 season.