Uganda coffee exports hit by weaker prices
En Fr Business Join us News Business Sport Culture Science & Technology No Comment Programmes Podcast Live weather Close Watch Live News Business Sport Culture Science & Technology No Comment Programmes Podcast Weather Breaking News Close Just In Copy/paste the script below Uganda's coffee export earnings dropped sharply in May as falling global prices and lower export volumes weighed on the country's top agricultural export. The decline highlights the vulnerability of Africa's largest coffee exporter to swings in international commodity markets. Uganda earned US$151.7 million from coffee exports in May, a decline of about 38 percent from the US$244 million recorded in the same month last year, according to an Agriculture Ministry report released on Friday. Export volumes also fell significantly, with the country shipping 617,491 60-kilogram bags compared with 793,445 bags in May 2025, a drop of more than 22 percent. The fall in earnings was driven not only by reduced shipments but also by lower international coffee prices after months of elevated levels. According to the ministry, prices eased in May as expectations grew for a larger harvest in Brazil, the world's biggest coffee producer, easing concerns over tight global supplies that had previously pushed prices to multi-year highs. Coffee remains Uganda's largest agricultural export and its leading source of foreign exchange, supporting millions of smallholder farmers across the country. Uganda is Africa's biggest coffee exporter and has expanded production in recent years through government programmes promoting improved seedlings and higher farm productivity. The country mainly exports robusta coffee, while arabica production has also grown steadily. The government continues to encourage local roasting and processing to increase export earnings and reduce reliance on raw bean exports. Officials say expanding domestic value addition will strengthen Uganda's position in international markets while generating higher returns for the economy. Analysts say global coffee prices will continue to depend on weather conditions in major producing countries such as Brazil and Vietnam, as well as shipping costs, currency movements and global demand. Despite the weaker performance in May, Uganda's coffee sector remains one of the country's strongest export industries, although the latest figures underscore how vulnerable export earnings remain to fluctuations in international commodity markets.
Original Source: Africa News
No comments