The value of Uganda’s coffee exports remained largely unchanged in January compared with a year earlier, as lower global prices offset a modest increase in shipment volumes, according to a government report released Monday.
Coffee, one of Uganda’s most important agricultural exports and a key source of foreign exchange, generated about 161 million dollars in export earnings during the month, the report by the agriculture ministry showed.
The figure represents a slight increase of 1.5 percent compared with the same period last year.
Uganda is Africa’s largest exporter of coffee beans and the crop plays a crucial role in the country’s economy, supporting millions of smallholder farmers and contributing significantly to export revenues.
However, the modest growth in export earnings was largely constrained by a decline in global coffee prices.
According to the ministry, the drop in prices was driven by improved supply expectations in global markets, particularly following favourable weather conditions in Brazil, the world’s largest coffee producer.
Heavy rainfall in Brazil helped ease earlier concerns about potential supply shortages, boosting expectations for future production and putting downward pressure on international coffee prices.
“The small increase was mainly on account of lower global prices driven by an improved global supply outlook after Brazil received heavy rainfall,” the report said.
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Despite the weaker prices, export volumes showed moderate growth.
Uganda exported 569,454 bags of coffee in January, each weighing 60 kilograms, representing a two percent increase compared with shipments recorded in the same month last year.
Industry analysts say the rise in volumes reflects steady production and strong international demand for Ugandan coffee, particularly its robusta variety, which is widely used in instant coffee and espresso blends.
Uganda produces both arabica and robusta coffee, though robusta accounts for the majority of the country’s output.
The crop is grown in several regions, including the central and western parts of the country, where favourable climate conditions support year-round production.
Coffee exports remain a cornerstone of Uganda’s agricultural sector and a critical source of income for rural communities.
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Government officials have in recent years sought to expand production and improve value addition in the sector as part of broader efforts to boost export earnings.
Uganda has set ambitious targets to increase coffee production significantly over the coming years through programmes aimed at distributing improved seedlings, expanding cultivation areas and improving farming techniques.
Authorities are also encouraging domestic processing to increase the share of value retained within the country rather than exporting raw beans.
Global coffee markets have experienced considerable volatility in recent years due to weather disruptions, supply fluctuations and shifting demand patterns.
Extreme weather conditions in major producing countries such as Brazil and Vietnam have at times pushed prices higher, while improved harvest prospects have triggered declines.
For Uganda, changes in international prices can have a significant impact on export revenues even when shipment volumes increase.
Analysts say diversification and value addition within the coffee sector could help cushion the economy against such price fluctuations in the future.
The government continues to view coffee as a strategic commodity for economic growth and rural development, given its wide production base and strong demand in global markets.
With production gradually expanding and export volumes rising, Uganda hopes to strengthen its position in the global coffee trade while increasing earnings from one of its most valuable agricultural commodities.
