With export revenues from 6.35 million 60-kg bags reaching an all-time high of $1.4 billion in the 2023–2024 coffee year, which ended on September 30, Uganda’s coffee sector has reached a historic milestone.
According to data BrandSpur digital news brand accessed from the Uganda Coffee Development Authority (UCDA), a 5.25 percent increase in export volume from 6.14 million bags led to a 46.96 percent gain in revenue from the US$940.1 million earned the year before. Due to dry weather in key coffee-producing countries like Brazil and Vietnam, which has affected yields and is predicted to cause a supply shortage for the 2024–2025 season, the UCDA ascribed the increased value of exports to the rise in global coffee prices.
Ten major exporters out of 66 active companies handled 75% of the entire volume in Uganda’s export market. The most expensive coffee was sustainable Arabica, which sold for US$5.58 per kilogram.
Continuing, Uganda’s coffee industry is presently embroiled in a heated dispute over a government proposal to disband the UCDA and hand over its duties to the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF), despite the record-breaking profits. Legislators and other stakeholders, particularly those from coffee-growing regions, have opposed this idea, which is part of a larger attempt to streamline government operations and save administrative costs.
Dissolving the UCDA, according to critics, may jeopardize Uganda’s notable advancements in smallholder farmer support, international marketing, and quality assurance.
Hoima City’s woman MP, Asinasi Nyakato, disclosed: “UCDA has been instrumental in establishing Uganda’s coffee on the global market. Dismantling it could erase years of development and jeopardize smallholder farmers’ incomes.”
Other top coffee-producing countries that use specialized organizations to run their coffee industries are also cited by proponents of the UCDA’s preservation.
Kasese’s Woman MP, Florence Kabugho, underlined the necessity of specific legislation to prevent hazards that can cause the industry to collapse.
Italy, Germany, and Belgium are the main consumers of Uganda’s coffee, which currently accounts for around 75% of its exports to European markets. Strong demand in regional African markets is another advantage for the industry; together, Morocco, Sudan, and Kenya buy over 700,000 bags for UGsh630 billion (US$172.2M).
The ambitious Coffee Roadmap goal of generating 20 million bags by 2030 is still a priority for the UCDA. Launched in 2017 and approved by President Yoweri Museveni, the roadmap seeks to increase Uganda’s coffee production, which is estimated to generate US$1.5 billion in foreign exchange earnings annually.
