Lessons From Uganda's Current Surge In Coffee Prices – CoffeeTalk

Two months ago, Uganda experienced a nationwide outcry about declining coffee prices, with Robusta Coffee being as low as $2.53 USD and Arabica reaching around $3.37. Many politicians blamed the decline on the government’s lack of interest in the coffee sector, leading some farmers to despair. However, the prices have since risen, with Robusta FAQ currently selling at $3.99 a kilogram and Arabica at $4.78. The crop’s prices had skyrocketed most of last year and early this year, with a kilogram of Robusta FAQ reaching $4.21, while Arabica FAQ plateaued around $5.06.

The central government and the Buganda Kingdom have been promoting coffee farming as a major economic activity in the struggle to reduce poverty. The central government distributed free coffee seedlings to intending farmers, and some cash was lent out through programs such as Emyoga, Bonna Bagaggawale, and Parish Development Model (PDM). The Buganda Kingdom spearheaded the Mwanyi Terimba campaign, with Katikkiro Peter Mayiga personally visiting farmers and boosting their morale.

Joseph Nkandu, Executive Director of the National Union of Coffee Agribusinesses and Farm Enterprises (NUCAFE), clarifies that nobody in Uganda has any control over coffee prices. He emphasizes that coffee is an internationally traded crop governed by the law of supply and demand, and that the current surge in prices could be due to the US imposition of a 50% tariff on Brazil’s coffee exports and global crop scarcity.

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