[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [QUIET] · [BUSINESS]

3 clusters · 9 sources · 29 days · First seen · Last updated

Uganda coffee industry growth and market volatility

Overview

Uganda’s coffee sector is experiencing significant structural shifts. While the industry has seen massive growth, with annual exports reaching approximately 8.8 million 60kg bags valued between US$2.3 billion and US$2.4 billion, recent data indicates increased market volatility.

To capitalize on its position as Africa’s largest coffee exporter by volume, the government is pursuing a coffee tourism strategy. This agro-tourism initiative aims to link the export industry with visitor experiences at farms, processing parks, and rural lodges, aligning with the national Tenfold Growth Strategy. However, regional tourism ambitions are currently hindered by high travel costs, specifically expensive flights between Uganda and Kenya.

Recent market fluctuations have introduced new challenges. In July 2026, coffee exports fell by 15 percent, and export earnings dropped by approximately 18.6 percent compared to the previous year. Agriculture Minister Frank K. Tumwebaze has sought to reassure farmers, stating that price drops reflect shifting global supply expectations—driven by increased availability from Brazil and Vietnam—rather than a decline in demand.

Price trends vary by variety: the price of commercial-quality Robusta FAQ declined by roughly 14.5 percent year-on-year, falling to a range of UGX 11,500–12,000 per kilogramme by early September 2026. Conversely, Arabica coffee has remained resilient, with parchment prices rising from approximately UGX 14,500 per kilogramme in 2025 to roughly UGX 15,750 in 2026.

Entities

Uganda · Brazil · Frank K. Tumwebaze · Private Sector Foundation Uganda · Vietnam

Timeline

  1. [BUSINESS] 4 sources
    Uganda reassures farmers amid coffee and cocoa price volatility

    Ugandan officials are reassuring coffee and cocoa farmers as Robusta prices fall by 14.5 percent due to global supply shifts, drought, and a 15 percent drop in coffee exports.

  2. [BUSINESS] 3 sources
    Uganda coffee exports surge to US$2.3bn amid new tourism push

    Uganda's coffee exports have surged to approximately US$2.3 billion, driving new agritourism initiatives despite regional challenges regarding high flight costs between East African neighbors.

  3. [BUSINESS] 3 sources
    Uganda coffee stakeholders urge higher quality standards for global markets

    Ugandan coffee stakeholders are pushing for higher quality standards to boost global competitiveness, while farmers in Greater Masaka face challenges with old coffee clones and disease resistance.

Sources

256businessnews.com · businessfocus.co.ug · coffeetalk.com · furtherafrica.com · gcrmag.com · hillsfm.co.ug · ugbulletin.co.ug · ugmirror.com · ugstandard.com

This summary has been updated 1 time: see revision history