Uganda’s Coffee Exports reached US$ 198 million in March

A farmer tends to her coffee on a farm. Photo/internet.

Uganda’s coffee sector experienced a significant boom in March 2025, with exports reaching 642,981 60-kilo bags, valued at a substantial US$ 198.62 million. This represents a remarkable increase of 92.19% in quantity and 202.52% in value compared to the same period last year, according to the latest report from the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF).

The average price per kilo of Ugandan coffee stood at US$ 5.15 in March, a notable rise from US$ 5.03 in February 2025 and a significant jump from the US$ 3.27 recorded in March 2024. This surge in value is largely attributed to high global coffee prices, fueled by dry weather conditions in major producing regions like Brazil and Vietnam.

A breakdown of the exports reveals that Robusta varieties dominated, accounting for 525,220 bags worth U$155.53 million. Arabica exports also saw considerable growth, reaching 117,761 bags with a value of US$ 43.09 million. Year-on-year, Robusta exports increased by an impressive 111.39% in quantity and 233.40% in value, while Arabica exports rose by 36.79% and 126.73% respectively.

Looking at the broader performance of the coffee year 2024/25 (April 2024 – March 2025), Uganda’s total coffee exports amounted to 6.87 million bags, generating a significant US$ 1.84 billion in revenue. This is a substantial increase compared to the 5.99 million bags worth US$ 999.48 million exported in the preceding twelve-month period.

Farm-gate prices also reflected the positive trend. In March 2025, Robusta Kiboko averaged UGX 7,600 per kilo, Fair Average Quality (FAQ) fetched an average of UGX 15,250 per kilo, Arabica parchment averaged UGX 15,000 per kilo, and Drugar traded at an average of UGX 14,500 per kilo.

The top ten exporters controlled a significant 68% of the market share, with Ugacof (U) Ltd leading the pack at 12.35%. Italy emerged as the top destination for Ugandan coffee, receiving 38.43% of the exports.

MAAIF projects coffee exports for April 2025 to reach approximately 600,000 60-kilo bags, indicating continued strong performance in the sector. The robust growth in Uganda’s coffee exports underscores the country’s increasing prominence in the global coffee market and the positive impact of favourable international prices on the local economy.

The progress in the coffee market can be attributed to global coffee prices reaching a multi-year high in 2024, marking a significant 38.8 percent increase compared to the average price of the previous year.

According to a study on Global Market Trends conducted by the Food and Agriculture Organization of the United Nations (FAO), this surge was primarily driven by unfavorable weather conditions affecting key coffee-producing nations. The study highlights that the price of coffee increased by nearly 40 percent in 2024 due to disruptions in supply resulting from these weather conditions.

By December 2024, Arabica coffee prices had risen by 58 percent year-on-year, while Robusta coffee experienced an even sharper increase of 70 percent in real terms. This led to an unusual narrowing of the price gap between the two coffee varieties.

FAO has projected that coffee export prices could further escalate in 2025, depending on the potential for continued significant supply reductions in major growing regions.

Factors contributing to the recent price hikes include constrained export volumes from Vietnam, decreased output in Indonesia, and adverse weather affecting Brazilian coffee production. If these challenges persist or worsen, the global coffee market may see another year of price increases, providing an opportunity for Uganda’s coffee to expand its market share.

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