Earnings from coffee exports in Uganda dropped sharply in May, reflecting the country's sensitivity to global market changes. The decline in both revenue and export volumes highlights the challenges faced by Uganda, Africa's largest coffee exporter. The situation emphasizes the need for strategies to stabilize the coffee sector and enhance its resilience against international price fluctuations.
• Uganda earned $151.7 million from coffee exports in May, down 38% from $244 million last year.
• Export volumes decreased to 617,491 bags, a drop of over 22% compared to 793,445 bags in May 2022.
• Global coffee prices fell due to expectations of a larger harvest in Brazil, easing previous supply concerns.
• The government is focusing on local processing and value addition to boost earnings and reduce dependency on raw exports.
The decline in coffee export earnings is a critical issue for Uganda, as coffee is a key economic driver for millions of farmers. Strengthening the coffee sector through local processing and value addition can help mitigate risks from global price volatility, ensuring better livelihoods for farmers and a more stable economy.
Enjoying the read? Subscribe for free to one of the fastest-growing newsletters and get weekly coffee news (TL;DR updates) delivered right to your inbox.