Uganda’s Coffee Prices Rebound as Global Market Strengthens

by Business Times writer
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Uganda’s coffee farmers have reason to celebrate as prices continue to rise steadily, marking a strong recovery for the country’s most valuable agricultural export.

After months of uncertainty caused by global market imbalances, farm-gate prices have now reached their highest levels this year, bringing relief to millions of households that depend on coffee production for their livelihoods.

The Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) confirmed the rebound in prices following an in-depth market analysis by its Department of Coffee Development.

According to the report, a kilogram of FAQ coffee is currently trading between UGX 13,000 and UGX 14,000, while Arabica parchment is fetching between UGX 13,500 and UGX 14,000 per kilo. This marks a significant improvement compared to earlier in the year when prices had fallen due to oversupply in the global market.

In his address to farmers, stakeholders, and the public, Hon. Frank K. Tumwebaze, the Minister of Agriculture, attributed the price recovery to a combination of global market changes and government-led interventions aimed at stabilizing the coffee sector.

“In my earlier brief of June 2025, I highlighted the challenges that had led to a decline in coffee prices, particularly global demand and supply imbalances and oversupply from major producers including Brazil, Vietnam, and India,” he said.

“At that time, I assured you that the Ministry of Agriculture was working diligently with all stakeholders to safeguard our coffee sector and stabilize farm-gate prices,” he added.

Tumwebaze noted that their earlier projections of a recovery by mid-August 2025 had now materialized, demonstrating renewed confidence in Uganda’s premium coffee among international buyers.

He also praised the resilience of local farmers, whose commitment to quality has helped the country maintain its competitive edge in global markets.

The MAAIF report shows that Uganda’s price gains are closely linked to developments in the international coffee market, where both Robusta and Arabica futures have posted significant increases.

On the London market, Robusta coffee futures closed strongly, with the November 2025 position rising to USD 4,067 per ton, representing a gain of USD 115 from the previous close, while the January 2026 contract climbed to USD 3,943 per ton, up USD 129. March 2026 contracts also recorded positive momentum, reaching USD 3,863 per ton, an increase of USD 139.

In New York, Arabica coffee futures performed equally well, with December 2025 contracts closing at 334.20 US cents per pound, up 15.50 cents, while March 2026 contracts ended at 322.95 US cents per pound, gaining 14.05 cents.

Analysts attribute the global rally to a combination of bullish factors, including a frost event in Brazil, reduced exports from Brazilian producers, and declining coffee warehouse inventories on the Intercontinental Exchange.

These developments have tightened global supply, creating opportunities for Uganda’s coffee to command higher prices due to its quality and growing demand among international buyers.

COFFEE
Hon. Frank K. Tumwebaze, the Minister of Agriculture.

Tumwebaze called upon farmers and all actors in the coffee value chain to take advantage of the price recovery by maintaining high-quality standards in harvesting, drying, and processing.

He also urged them to adopt good agricultural practices to boost productivity, strengthen farmer cooperatives to improve bargaining power, and explore value addition to cushion themselves from future price fluctuations in global markets.

“As we embrace this positive development, I call upon all farmers and actors in the coffee value chain to continue focusing on maintaining high-quality standards at harvesting, drying, and processing,” he said.

Adopting good agricultural practices, strengthening farmer organisations, and exploring value addition will ensure we remain competitive and less vulnerable to international price fluctuations,” the minister continued.

The minister reiterated the government’s commitment to supporting coffee farmers through strategic policies, research, and market development initiatives aimed at unlocking the sector’s full potential.

He stressed that Uganda’s coffee remains one of the country’s most valuable economic drivers and plays a central role in improving household incomes and creating employment opportunities.

“The Government of Uganda, through the Ministry of Agriculture, Animal Industry and Fisheries, remains committed to protecting the interests of coffee farmers and ensuring that Uganda’s coffee sector continues to thrive as a cornerstone of our economy and a source of livelihood for millions of households,” he concluded.

With international prices on a steady upward trend and Uganda’s reputation as a producer of premium coffee growing stronger, the outlook for the sector remains highly promising.

However, the government is encouraging farmers to stay vigilant, uphold quality, and invest in better practices to sustain the country’s competitive edge in the global market.

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