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Uganda Coffee Export Earnings Fall by 10% as Prices Weaken In April

Uganda’s coffee export earnings fell 10% in April from a year earlier as lower global prices offset higher shipment volumes.

Uganda Coffee Export Earnings Fall by 10% as Prices Weaken In April

This marks a growing impact of softer commodity markets on one of the country’s most important sources of foreign exchange.

The East African nation earned $209.5 million from coffee exports in April, down from $232.8 million in the same month last year, according to the Ministry of Agriculture, Animal Industry and Fisheries. Export volumes, however, rose as farmers and traders continued to benefit from strong production in key growing regions.

Uganda shipped 743,706 60-kilogram bags of coffee during the month, an increase from a year earlier, supported by favourable weather conditions and improved harvests in several producing areas. The country remains Africa’s largest coffee exporter and one of the continent’s leading agricultural commodity suppliers.

The decline in earnings marks a reversal from recent months, when Uganda benefited from elevated international coffee prices that helped drive record export revenues. In the 12 months through April, however, coffee exports still generated about $2.4 billion in revenue, underscoring the crop’s importance to the national economy.

Coffee has been one of Uganda’s strongest export performers over the past year, supported by increased production and robust demand from major importing markets in Europe, Asia and North Africa. The country exported about 8.8 million bags in the 12 months through April, up from 6.9 million bags in the previous corresponding period. Export earnings over the same period rose 36% year-on-year despite the recent decline in monthly revenue.

Italy remained Uganda’s largest coffee buyer, followed by Sudan, Germany, India and Morocco. Other significant destinations included China, Spain, the United States, Belgium and Portugal, reflecting the broad geographic reach of Ugandan coffee exports.

The latest figures suggest that while Uganda continues to expand export volumes, fluctuations in global coffee prices remain a key determinant of earnings. International coffee markets have become increasingly volatile following a period of supply shortages and weather-related disruptions in major producing countries, factors that previously pushed prices to multi-year highs.

For Uganda, coffee remains a cornerstone of export revenue alongside gold. Policymakers have identified the sector as a critical source of foreign exchange and rural employment, with ongoing efforts aimed at increasing production and improving value addition across the supply chain.

While April’s earnings decline signals a more challenging pricing environment, stronger harvests and rising export volumes continue to provide support for the sector as the country seeks to maintain its position as Africa’s leading coffee exporter.

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