Gov’t Clarifies Drop in Coffee Prices, Urges Farmers to Remain Calm

The Minister of Agriculture, Animal Industry and Fisheries, Hon. Frank Tumwebaze, has addressed the recent decline in coffee prices across Uganda, attributing the trend to global market dynamics and not government policy or local disruptions.

Speaking during a press briefing on Friday, Tumwebaze confirmed that current farm gate prices for Robusta FAQ have fallen to between UGX 10,000–11,000, while Robusta Kiboko is trading at UGX 5,000–5,500. Arabica parchment is selling at UGX 14,000–15,000, with Drugar coffee (clean) priced at around UGX 14,000.

He explained that the drop is largely influenced by improved weather conditions in Brazil—one of the world’s largest coffee producers—leading to higher expected yields. Brazil’s 2025/26 coffee harvest is projected to increase by 0.5% to 65 million bags, while Vietnam’s is expected to rise to 31 million bags from 29 million.

“This rise in global production, especially of Robusta coffee, has created an oversupply in the market, which is pushing prices down,” Tumwebaze said. “Currency fluctuations and speculative trading on international futures markets are also playing a part in driving volatility.”

Coffee, he emphasised, is a globally traded commodity whose price is determined at international exchanges, not by domestic policies. Robusta is primarily traded on the London International Financial Futures and Options Exchange (LIFFE), while Arabica is traded on the Intercontinental Exchange (ICE) in New York.

According to the USDA’s June 2025 World Markets and Trade Report, global coffee production is forecast to reach a record 178.7 million bags in the 2025/26 cycle—4.3 million bags higher than the previous year. Consumption is also expected to reach a record high of 169.4 million bags.

Despite the current market dip, Uganda’s coffee industry remains strong. From June 2024 to May 2025, Uganda exported 7.43 million bags worth US$2.09 billion, compared to 6.08 million bags valued at US$1.08 billion the previous year, representing a 22% increase in volume and a staggering 93.6% increase in value.

“I call upon all coffee farmers across the country to remain calm,” said Tumwebaze. “Plant more coffee, ensure good quality, and add value to maximise earnings. We must remain competitive with global producers like Brazil and Vietnam.”

He also underscored that while coffee price fluctuations are normal, Uganda’s long-term prospects remain promising, driven by rising exports and growing international demand for its high-quality beans. In closing, the minister urged farmers to focus on quality and sustainability as key drivers for long-term resilience in the global coffee trade.