Uganda Brews Growth: Coffee Production, Exports, and Prices Reach New Heights

Uganda’s coffee industry is on an upward trajectory, fueled by rising production, export volumes, and surging global prices. As one of Africa’s top coffee producers, Uganda is now set to consolidate its position in the global coffee trade, with new government initiatives, expanded cultivation, and a maturing coffee culture driving the momentum.

According to the latest USDA Coffee Annual Report, Uganda’s total coffee production for the 2025/2026 marketing year is forecast to rise to 6,875,000 60-kg bags, a 2.61% increase from the previous season. The majority of this output will come from Robusta, which continues to dominate with an 85% share, while Arabica accounts for the remaining 15%.

The 2024/2025 season already showed a healthy jump to 6,700,000 bags, up 4.69% from the previous year, thanks to improved agricultural practices, favorable weather, and the maturing of high-yielding coffee seedlings planted in recent years.

Uganda’s coffee-growing regions — including Central, Eastern, Western, and now increasingly Northern Uganda — are benefitting from favorable climates for both Robusta and Arabica varieties. Districts like Mukono, Luwero, Mount Elgon, Mbale, Kasese, and Zombo are leading production zones, with the latter rapidly emerging as a promising hub for high-altitude Arabica.

The growth in production is also backed by financial support under the Parish Development Model, which offers farmers access to low-interest loans at 6% annually with a two-year grace period. This policy has enabled smallholder farmers — who account for 85–90% of Uganda’s total coffee output — to invest in fertilizers, spraying equipment, and better crop management. In 2024, increased government funding allowed agronomists to conduct nationwide visits to offer direct field support.

Coffee farming in Uganda remains predominantly a smallholder activity, with farms ranging between 0.5 and 2.5 hectares. Intercropping coffee with bananas, beans, and shade trees helps preserve soil fertility, retain moisture, and diversify farmers’ income streams. Medium-sized estates contribute about 8–10% of national output, while large estates, mostly in central Uganda, account for 2–5%, focusing on export-grade beans.

On the trade front, Uganda’s green coffee exports are projected to rise from 6,350,000 bags in 2024/2025 to 6,530,000 bags in 2025/2026, as demand continues to grow in Europe, the United States, and new Asian markets. Europe remains Uganda’s top destination, accounting for 72% of exports in 2024, followed by the United States (7%), Morocco (6%), and growing importers like China, India, and Japan.

A significant development boosting Uganda’s coffee sector is the construction of the Inspire Africa Coffee Industrial Park in Ntungamo District. Slated to become fully operational by May 2025, the facility will process up to 10,000 metric tons of coffee annually. It aims to add value to Ugandan coffee by producing instant, drip, malt, and even coffee-based cosmetics, creating jobs and supporting the national strategy to increase coffee export revenues from 1 billion USD to 4 billion USD.

Domestic coffee consumption, while still modest compared to exports, is slowly growing. It is expected to rise from 325,000 bags in 2024/2025 to 330,000 bags in 2025/2026, driven by increasing disposable incomes, urbanization, and the spread of coffee shops in cities like Kampala. Nevertheless, producers continue to favor exports due to high international prices and stronger returns.

Uganda’s domestic coffee prices have experienced sharp increases in recent years. In 2020/2021, the average farmgate price was $1.61 per kilogram, rising steadily to $2.63 in 2023/2024. In 2024/2025, prices jumped further to $4.64 per kilogram, representing a 7.4% year-on-year increase and a 63% jump since 2020. This surge is attributed to global demand growth and supply constraints caused by droughts in Brazil and Vietnam.

However, not all developments have been smooth. In November 2024, the Ugandan government dissolved the Uganda Coffee Development Authority (UCDA) through the National Coffee Bill, transferring its responsibilities to the Ministry of Agriculture. While the restructuring is intended to improve efficiency and reduce costs, many stakeholders fear the loss of UCDA’s specialized support for farmers and exporters could affect quality control and market access. The long-term effects of this move are still unfolding.

Export dynamics are also shifting. In 2024, shipments to the United States rebounded to 19,142 metric tons, after a previous dip, while exports to China more than doubled, reaching 6,900 metric tons. These figures underscore Uganda’s expanding footprint in non-traditional markets and reflect the global appeal of its coffee, particularly in the specialty segment.

Meanwhile, ending stocks for 2024/2025 are estimated at just 269,000 bags, a relatively low level due to attractive prices that have encouraged more sales and reduced storage. Most of these stocks are held by traders and exporters rather than farmers.

As global markets continue to favor sustainably sourced, traceable coffee — and prices remain high — Uganda stands at a strategic crossroads. With a growing domestic culture, robust government backing, and emerging industrial-scale value addition, the country is poised to not only grow more coffee, but to earn more from it, too.