Uganda's Coffee Exports Surge, Driven by Rising Global Demand

Uganda's coffee industry is experiencing a significant boost, driven by increased demand from Europe, Africa, and Asia. The country's coffee exports accounted for more than 12% of its total export earnings, making it a crucial sector in East Africa's agricultural trade balance. Europe remained Uganda's largest market, with Italy leading the way, followed by Germany, Morocco, Sudan, and Algeria.

Key Takeaways:

  • Uganda's coffee exports accounted for 12.3% of its total export earnings in 2024/25, making it a key pillar of East Africa's agricultural trade balance.
  • Europe remained Uganda's biggest market, absorbing 61% of total exports, with Italy leading at 25.6% market share, followed by Germany (13%), Morocco (7.5%), Sudan (6.8%), and Algeria (6%).
  • African markets absorbed 22% of Uganda's coffee, with notable volumes shipped to Morocco, Sudan, Egypt, Algeria, Kenya, and South Africa.
  • Asian buyers, including India, Vietnam, and China, accounted for 14% of Uganda's coffee exports, reflecting the country's diversification into emerging markets.
  • Among local exporters, Ugacof (U) Ltd led the rankings with a 10.6% market share, followed by Kyagalanyi Coffee Ltd (10.4%), Olam Uganda Ltd (9.3%), and Touton Uganda Ltd (7.5%).
  • The top 10 exporters collectively shipped 69% of Uganda's coffee, signaling growing competition and consolidation in the sector.
  • Sucafina SA was the leading buyer at the international level, with 11.4% of total imports, followed by Olam International (10.3%), Touton SA (7.9%), and Louis Dreyfus (6.3%).
  • Farm-gate prices rose sharply, with Robusta Kiboko averaging Shs 6,500 per kilogram, FAQ Shs 13,500, Arabica parchment Shs 14,500, and Drugar Shs 13,500.
  • Compliance efforts by the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) included training 4,343 farmers in pest management, soil fertility, and climate-smart agriculture, and inspecting 241 factories and stores for compliance with the Coffee Act 2025 (amended).

Statistics:

  • Uganda exported 8.2 million bags of coffee worth US$2.3 billion (Shs 8.1 trillion) in the 2024/25 coffee year.
  • This represents a 29.6% increase in volume and a 64% rise in value compared to the previous year.
  • The Ministry projects exports to reach 850,000 bags in October 2025 as harvests peak in several regions.
  • The U.S. Department of Agriculture forecasts world coffee production for 2025/26 to rise to 178.7 million bags, driven by recoveries in Vietnam, Indonesia, and Ethiopia.
  • Global consumption is expected to reach 169.4 million bags, keeping inventories tight and prices elevated.

Sources:

  • Uganda's Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF)
  • U.S. Department of Agriculture
  • Uganda's coffee industry reports (exact dates not specified)
  • The Coffee Act 2025 (amended)
  • Various coffee industry publications (exact dates not specified)