Coffee Prices Bounce Back: A Boost for Uganda’s Exports and Foreign Earnings

After several challenging months, Uganda’s coffee sector, its chief source of foreign exchange, is showing signs of renewed vigor as coffee prices stage a welcome recovery.

According to Agriculture Minister Frank Tumwebaze, farm-gate prices have stabilized, delivering much-needed optimism to both exporters and investors. Robusta (FAQ) is now fetching between 13,000 and 14,000 Ugandan shillings per kilogram, while Arabica parchment is priced at approximately 13,500 to 14,000 shillings per kilogram.

This upturn closely follows gains in global commodity markets. Last week, futures for both robusta and arabica climbed significantly: London’s November robusta contract reached US $4,067 per ton (roughly 16,579 UGX/kg), and New York’s December arabica contract rose to US¢334.20 per pound (around 26,156 UGX/kg). Key drivers behind the rally include frost-induced damage in Brazil, fewer supplies reaching the market, and dwindling inventory levels on the ICE warehouse .

The bounce in prices comes as a welcome turnaround. Earlier in 2025, a glut from major producers like Brazil, Vietnam, and India had dragged prices down, squeezing smallholder farmers and weakening Uganda’s foreign exchange earnings .

Coffee remains a cornerstone of Uganda’s exports, contributing over US $800 million annually—around 20 to 30 percent of total export earnings. The recent price stabilization is anticipated to strengthen the country’s trade balance, reduce pressure on the Ugandan shilling, and bolster buyer confidence ahead of the peak export season .

Looking ahead, analysts stress that long-term growth will hinge on the sector’s ability to move into higher-value markets. “Value addition and branding remain Uganda’s untapped opportunity if the country is to move beyond price-taker status in global markets,” noted a Kampala-based commodity analyst .

In response, the government has outlined four key priorities:

1. Enhancing production standards
2. Promoting good agricultural practices
3. Strengthening farmer cooperatives to increase bargaining power
4. Developing local value-addition industries

“Uganda’s coffee sector must be positioned as both a volume and value player in global trade,” Tumwebaze emphasized, highlighting ongoing efforts to shield farmers from future market volatility through stronger institutional support .

With global coffee consumption projected to rise steadily over the next decade, Uganda’s coffee industry appears well-positioned to rebound — provided crucial reforms in quality assurance, farmer organization, and value-addition are fully implemented .