Required Report: Required - Public Distribution Date: May 07, 2025
Report Number: UG2025-0001
Report Name: Coffee Annual
Country: Uganda
Post: Nairobi
Report Category: Coffee
Prepared By: Martin Miriti
Approved By: Damian Ferrese
Report Highlights:
FAS/Nairobi forecasts Uganda’s coffee production for the marketing year (MY) 2025/26 to increase by
2.61 percent, reaching 6.88 million 60-kilogram bags (green bean equivalent). This growth is attributed
to farmers improved crop management practices and favorable weather conditions. Exports during MY
2025/26 are projected to rise by 2.76 percent year-on-year to 6.53 million bags driven by increased
production and sustained high global prices which continue to incentivize farmers. Domestic
consumption is expected to increase slightly to 330,000 bags as coffee culture grows, particularly in
Kampala and other cities.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY
STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
Production
Figure 1: Production, Supply and Demand (PSD)
Coffee, Green 2023/2024 2024/2025 2025/2026
Market Year Begins Oct 2023 Oct 2024 Oct 2025
USDA USDA USDA
Uganda New Post New Post New Post
Official Official Official
Area Planted (1000 HA) 0 580 0 580 590
Area Harvested (1000 HA) 0 570 0 570 575
Bearing Trees (MILLION TREES) 0 0 0 0 0
Non-Bearing Trees (MILLION TREES) 0 0 0 0 0
Total Tree Population (MILLION TREES) 0 0 0 0 0
Beginning Stocks (1000 60 KG BAGS) 469 469 244 244 269
Arabica Production (1000 60 KG BAGS) 1000 1000 1000 1030 1060
Robusta Production (1000 60 KG BAGS) 5400 5400 5400 5670 5815
Other Production (1000 60 KG BAGS) 0 0 0 0 0
Total Production (1000 60 KG BAGS) 6400 6400 6400 6700 6875
Bean Imports (1000 60 KG BAGS) 0 0 0 0 0
Roast & Ground Imports (1000 60 KG 0 0 0 0 0
BAGS)
Soluble Imports (1000 60 KG BAGS) 0 0 0 0 0
Total Imports (1000 60 KG BAGS) 0 0 0 0 0
Total Supply (1000 60 KG BAGS) 6869 6869 6644 6944 7144
Bean Exports (1000 60 KG BAGS) 6300 6300 6300 6350 6515
Rst-Grnd Exp. (1000 60 KG BAGS) 0 0 0 0 0
Soluble Exports (1000 60 KG BAGS) 0 0 0 0 0
Total Exports (1000 60 KG BAGS) 6300 6300 6300 6350 6515
Rst,Ground Dom. Consum (1000 60 KG 325 325 325 325 330
BAGS)
Soluble Dom. Cons. (1000 60 KG BAGS) 0 0 0 0 0
Domestic Consumption (1000 60 KG 325 325 325 325 330
BAGS)
Ending Stocks (1000 60 KG BAGS) 244 244 19 269 299
Total Distribution (1000 60 KG BAGS) 6869 6869 6644 6944 7144
(1000 HA) ,(MILLION TREES) ,(1000 60 KG BAGS)
OFFICIAL DATA CAN BE ACCESSED AT: PSD Online Advanced Query
Source: Post Estimates
For the 2024/2025 marketing year, Uganda's coffee production is estimated to reach 6.7 million 60-
kilogram bags, marking a 4.69 percent increase from the previous year. Robusta coffee is estimated to
account for approximately 85 percent of the total production, while Arabica will account for 15 percent.
The growth is driven by the adoption of good agricultural practices, and the maturation of new high-
yielding seedlings planted in recent years. Good weather has also contributed to the marginal increase.
Post forecasts that coffee production will continue its upward trend in MY 2025/2026, driven by
ongoing government initiatives and a favorable market. Through the Parish Development Model, the
Ugandan government has introduced financial support mechanisms, offering coffee farmers low interest
loans at six percent annually with a three-year repayment period, including a two-year grace period. This
has made credit more affordable than commercial bank loans, enabling farmers to invest in essential
inputs such as manure and spray pumps to enhance productivity. In 2024, the government increased
funding for the coffee sector, enabling agronomists to carry out nationwide field visits and provide direct
support to coffee farmers.
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Uganda has several coffee-growing zones, supported by favorable climatic conditions for both Robusta
and Arabica coffee production. These zones are concentrated in several key regions with distinct
climates. The main growing areas are the Central, Eastern, Western, and Northern regions. In the Central
region, districts such as Mukono and Luwero primarily cultivate Robusta coffee. The Eastern region,
including Mount Elgon, Kapchorwa, and Mbale, is renowned for high-quality Arabica coffee.
The Western region, encompassing districts like Kasese, Bushenyi, and Bundibugyo, produces both
Arabica and Robusta coffee, with the Rwenzori Mountains providing ideal conditions for specialty
Arabica varieties. Northern Uganda, historically a non-coffee-producing region, is now emerging as a
coffee hub, particularly in Zombo, where high-altitude Arabica coffee is now is growing an abundance.
Figure 2: Map of Major Coffee Growing Areas in Uganda
Source: Coffee Bean Africa
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Figure 3: Typical Coffee Farm in Uganda
Source: FAS Nairobi
Coffee production in Uganda is largely practiced by smallholder farmers, with most farm sizes ranging
from 0.5 to 2.5 hectares. Farmers intercrop coffee with bananas, beans, and shade trees to enhance soil
fertility, conserve moisture, and diversify income sources. Smallholder farmers contribute about 85 - 90
percent of Uganda’s total coffee production. There are also medium and large-scale coffee estates,
particularly in central Uganda. The medium scale estates contribute between 8 - 10 percent, while large
estates contribute 2 - 5 percent of the total production focusing mainly on export grade coffee.
Changes to MY 2024/2025
FAS/Nairobi revised the MY 2024/25 Robusta production estimate upwards from 5.67 to 5.82 million
bags, while the Arabica estimate is revised by 30,000 bags to 1.03 million bags. This adjustment reflects
improved yields in Robusta growing regions due to timely and ample rainfall.
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Marketing
Figure 4: Coffee Tree with Flowers and Berries
Source: FAS
Uganda’s coffee is a key agricultural export and a vital income source for smallholder farmers. Most sell
their produce to intermediaries, cooperatives, or exporters, with the majority exported as raw green
beans to Europe and the United States for processing where there is high concentration of coffee roaster
who make the market. Efforts to enhance marketing, value addition, and direct trade aim to boost farmer
earnings.
Inspire Africa Coffee is establishing a multi-million-dollar modern industrial park in Ntungamo District
to add value to Ugandan coffee through large-scale processing and product diversification. The facility
will produce a wide range of ready-to-use products, including instant coffee, drip coffee, malt coffee,
and coffee-based beauty cosmetics. The facility will have an annual processing capacity of 10,000
metric tons and is expected to be fully operational by May 2025. This investment aligns with Uganda’s
national strategy to increase coffee export revenue from USD 1 billion to USD 4 billion, and it
represents the only coffee-specific industrial park in the country. It is expected to create employment
opportunities, promote value addition in the coffee sector, and contribute significantly to economic
growth and rural development.
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Figure 5: Uganda’s Domestic Coffee Prices (USD/Kg)
$5.00 $4.64
$4.50
$4.00
$3.50
$3.00 $2.50 $2.58 $2.63
$2.50
$2.00 $1.61
$1.50
$1.00
$0.50
$-
2020/21 2021/22 2022/23 2023/24 2024/25
Source: UCDA/ Ministry of Agriculture, Animal Industry and Fisheries (MAAIF)
Uganda's domestic coffee prices have steadily increased due to favorable international markets and
government interventions. Prices rose from $1.61 per kilogram in 2020/21 to $2.63 in 2023/24, a 63
percent increase. In 2024/25, the price surged to $4.64 per kilogram, which is a 7.4 percent increase.
This is driven by strong international demand and supply constraints resulting from drought in Brazil
and Vietnam.
Policy
In November 2024, the government of Uganda announced plans to merge several agencies to increase
efficiency and reduce costs. Consequently, the National Coffee Bill 2024 dissolved the Uganda Coffee
Development Authority (UCDA). The functions previously managed by UCDA for both on-farm and
off-farm activities have been transferred to the Ministry of Agriculture. The industry is concerned that
the dissolution might disrupt the specialized support that UCDA provided to coffee farmers and
exporters, potentially affecting the quality and marketability of Ugandan coffee. The full impact of this
structural change on Uganda's coffee sector is yet to be fully realized, as stakeholders continue to adapt
to the new administrative framework.
Domestic Consumption
Domestic coffee consumption in Uganda has been steadily increasing, driven by a growing coffee
culture, rising disposable incomes, and the expansion of coffee outlets in urban centers. However,
despite this growth, consumption in MY 2024/25 is projected to remain unchanged at 325,000 bags.
A modest increase to 330,000 bags is forecast for MY2025/2026, as producers continue to prioritize
exports in response to higher domestic and international prices.
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Trade
In the 2024/2025 marketing year, Uganda's green bean coffee exports are expected to rise slightly from
6.30 to 6.35 million bags, driven by higher production and high prices. Exports in MY 2025/2026 are
forecast to continue this upward trend to reach 6.53 million bags, reflecting sustained production growth
and strong international demand.
Figure 6: Key Export Destinations for Uganda’s Coffee in Metric Tons
Rank Countries 2020 2021 2022 2023 2024
1 EU 27 165,860 212,289 214,868 206,209 193,169
2 United States 19,983 22,329 17,310 14,735 19,142
3 Morocco 10,772 16,644 15,185 11,919 16,502
4 India 5,255 12,224 9,348 8,315 8,854
5 China 2,606 3,911 3,545 3,389 6,900
6 Japan 1,321 1,421 1,900 3,828 4,121
7 Switzerland 2,576 3,742 3,626 2,551 3,018
8 Serbia 2,950 4,013 3,831 3,670 2,784
9 Ukraine 1,070 2,066 2,045 1,785 2,051
10 South Korea 1,947 1,403 2,721 1,822 1,595
Source: Tade Data Monitor LLC
Uganda’s top export destinations include the European Union (EU), United States, Morocco, India and
China. The EU has consistently remained the leading export market over the years, although exports
declined slightly in 2024 from 206,209 MT to 193,169 MT. Exports to the United States increased to
19,142 MT in 2024 after a dip in previous years. These export trends highlight shifting demand and
trade dynamics in key international markets. Many of the large and medium farms have direct contracts
with international buyers in the EU, U.K and U.S.
Figure 7: 2024 Uganda’s Global Coffee Export Destination
Switzerland, Others, 6%
Japan, 2% 1%
China, 3%
India, 3%
Morocco, 6%
United States ,
7%
EU Brexit, 72%
Source: TDM, LLC
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The EU dominates Uganda's coffee exports, accounting for 72 percent of total exports. The United
States follows with 7 percent, while Morocco and other countries each hold smaller shares. Switzerland,
Japan, India and China are also notable importers, with a combined contribution of less than nine
percent. The remaining six percent represents exports to other countries worldwide.
Uganda does not import a substantial amount of coffee.
Stocks
Post estimates that MY 2024/25 ending stocks remain relatively low at 269,000 bags due to high prices,
which have incentivized market players to sell more coffee. Lower stock levels indicate that exporters
are capitalizing on record high prices in the international market. Most stocks are held by traders and
exporters, while farmers maintain minimal reserves.
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