Uganda’s espresso manufacturing is anticipated to broaden within the 2025/26 advertising and marketing yr, with a forecast of the equal of 6.88 million 60-kilogram baggage, up 2.6% from the earlier yr, in line with the newest USDA estimates.

The rise is attributed to favorable climate, the maturing of improved seedlings, and a nationwide program providing low-interest loans to farmers.

Exports are projected to succeed in 6.53 million baggage, a rise of two.8% from the earlier season. The European Union continues to dominate as Uganda’s main espresso market, adopted by the USA, Morocco, India and China.

Whereas home consumption is anticipated to rise modestly to 330,000 baggage, the export market stays the important thing driver of sector progress, particularly amid this era of comparatively excessive commodity costs.

On the identical time, Uganda is present process important structural modifications, together with the dissolution of the Uganda Espresso Growth Authority (UCDA), elevating questions on how future assist providers for farmers and exporters will probably be delivered.

[Note: This is part of a series of DCN stories that will explore USDA FAS annual coffee reports. The information agency typically delivers more than a dozen country-level reports on the coffee sector, each coming from different authors and field offices, with predictions for the upcoming market year.]

📉 Export Outlook

• Whole exports are forecast at 6.53 million 60-kilo baggage, up from a revised estimate of 6.35 million the earlier yr. The rise displays not simply increased manufacturing, but additionally stronger demand from key international markets and comparatively low inventory ranges encouraging quick turnover.

• Nearly all exports are within the type of uncooked inexperienced beans, with restricted home processing. Uganda is focusing on value-addition in future years by means of industrial growth, however for now, the majority of exports are unprocessed.

• High export locations in 2024 (by quantity in metric tons):

  • European Union: 193,169 metric tones (MT). Regardless of a slight year-over-year decline, the EU stays by far Uganda’s largest market.

  • United States: 19,142 MT. U.S. imports rebounded after earlier years’ declines.

  • Morocco: 16,502 MT, with regular progress as a North African hub.

  • India and China: each proceed to develop as key Asian markets for Ugandan espresso, aided by evolving commerce relationships.

• The EU accounted for 72% of Uganda’s complete espresso exports in 2024, underscoring Europe’s position because the sector’s major market anchor.

• Direct commerce contracts are more and more frequent, notably between medium and enormous farms and patrons in Europe and North America. These preparations can enhance traceability and will improve high quality premiums, in line with the report.

🌱 Manufacturing and Rising Circumstances

• Whole manufacturing is forecast at 6.88 million baggage, up from 6.7 million in 2024/25. The rise is pushed by improved farm administration and widespread use of high-yielding espresso seedlings distributed in recent times.

• Robusta manufacturing is anticipated to succeed in 5.82 million baggage, accounting for roughly 85% of complete output.

• Arabica manufacturing is forecast at 1.06 million baggage, or about 15% of the whole. Most arabica is grown in high-altitude areas and is usually bought as specialty-grade espresso.

• Manufacturing progress is supported by the Parish Growth Mannequin, a government-backed financing initiative providing low-interest loans (6% yearly) with a grace interval. These funds assist farmers put money into important inputs like fertilizers and irrigation instruments, in line with the report.

• Uganda’s coffee-growing zones span 4 key areas, every with distinct ecological profiles:

  • Central Area (Mukono, Luwero): Primarily robusta farms on smallholder plots.

  • Jap Area (Mount Elgon, Kapchorwa, Mbale): Excessive-quality arabica, usually cultivated below shade.

  • Western Area (Kasese, Rwenzori, Bushenyi): Mixture of arabica and robusta, with rising specialty arabica output.

  • Northern Area (Zombo): An rising arabica zone gaining recognition for its high-altitude terrain and newly established farms.

☕ Home Consumption

• Home consumption is projected to succeed in 330,000 baggage, a modest enhance from 325,000 the prior yr. The rise displays rising curiosity in espresso amongst city populations.

• Espresso consumption is rising quickest in Kampala and different main cities, the place extra cafés, roasteries and specialty espresso retailers are opening.

• Regardless of the rise, Uganda’s per capita espresso consumption stays low, as producers proceed to concentrate on exports on account of increased worth incentives overseas.

• Soluble and roasted espresso merchandise are nonetheless comparatively restricted, although rising industrial investments might enhance home availability sooner or later.

🏷️ Costs and Shares

• Home espresso costs have surged, rising from $2.63 per kilogram in 2023/24 to $4.64 in 2024/25, a 7.4% year-over-year enhance.

• The worth development displays international dynamics, together with drought-reduced output in Brazil and Vietnam, which has tightened international provide and pushed costs increased.

• Ending shares for 2024/25 are estimated at 269,000 baggage, up barely from the earlier yr however nonetheless thought-about low. The restricted carryover is a results of robust export demand and favorable pricing.

• Shares are primarily held by exporters and merchants, with smallholder farmers usually promoting most of their crop instantly on account of money wants.

🏛️ Coverage and Worth Addition

• In November 2024, Uganda handed the Nationwide Espresso Invoice, dissolving the Uganda Espresso Growth Authority (UCDA). Its obligations have been absorbed by the Ministry of Agriculture.

• Business stakeholders have expressed concern that the dissolution might weaken specialised assist providers, together with technical help, high quality management and export promotion.

• A significant value-addition initiative is underway, as Encourage Africa Espresso is constructing Uganda’s first coffee-specific industrial park in Ntungamo District. The processing and manufacturing facility is anticipated to open this month. 

For extra particulars and full knowledge tables, see the USDA Espresso Annual Report for Uganda (Could 2025).

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