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2024 coffee year earnings hit $1.4 bn record

Peter 29th Oct, 2024 Agriculture Pedson Mumbere
2024 coffee year earnings hit $1.4 bn record

Coffee enthusiasts savour the various flavours of Ugandan coffee at the UCDA stall at the World of Coffee 2024 Expo held in Copenhagen, Denmark, recently. UCDA ably promoted Uganda’s specialty Arabica and fine Robusta coffees.


Uganda’s coffee sector has achieved a historic milestone, with export earnings reaching an unprecedented US$1.4 billion from 6.35 million 60-kg bags in the 2023/24 coffee year, which concluded on September 30.

This figure reflects a significant increase from the previous year’s US$940.1 million from 6.14 million bags, according to the report, which was compiled by the Uganda Coffee Development Authority (UCDA).

While this growth signals a promising trajectory for Uganda's coffee sector, it is also marred by a contentious debate over the proposed dissolution of the UCDA), the regulatory body that has superintend the growth of the country’s coffee industry for over three decades.

  • Even more disturbing is the fact that no concrete action plan has been shared about how the booming coffee industry would be developed and regulated after UCDA is disbanded. Not surprisingly, the proposed move has been met with vehement opposition, particularly from stakeholders and lawmakers representing coffee-growing regions.

Coffee remains Uganda’s top export product, contributing significantly to the country’s economy and providing a livelihood for millions of Ugandans. Members of Parliament from coffee-growing regions argue that dissolving UCDA would undermine the progress achieved through decades of targeted regulation, quality assurance, and farmer support.

According to data from UCDA, nearly 75% of Uganda’s coffee exports were destined for European markets in the coffee year, with Italy, Germany, and Belgium as the primary importers.

  • In the 2023/24 coffee year, Italy imported over 1.5 million 60-kg bags of Ugandan coffee, valued at approximately UGX 1.4 trillion, followed by Germany with about 1 million bags worth UGX 950 billion, and Belgium with 800,000 bags valued at around UGX 760 billion.

This reliance on Europe speaks volumes about the need to ensure strict compliance with EU quality standards, a responsibility expertly managed by UCDA’s rigorous quality protocols.

Regional African markets, including Morocco, Sudan, and Kenya, also rely on Ugandan coffee. Morocco imported around 400,000 bags valued at UGX 360 billion, while Sudan and Kenya collectively imported nearly 300,000 bags, worth approximately UGX 270 billion.

Also among the reasons for the record export earnings, were UCDA’s monitoring and evaluation visits that were also carried out in the coffee growing regions, targeting farmers and other stakeholders. Additionally, numerous radio talk shows were aired across various regions for purposes of sensitisation particularly in regard to the European Union Deforestation Regulations (EUDR), which are due to take effect in January 2025.

Global coffee production is expected to increase by around 7.1 million bags in the 2024/25 coffee year, driven by output recoveries in Brazil and Indonesia. With intensifying competition, stakeholders are worried that Uganda risks losing its competitive edge if UCDA is scrapped.

  • “Our coffee sector’s premium reputation is tightly linked to UCDA’s consistent enforcement of quality and export standards,” notes Ismail Kivumbi, a coffee farmer and analyst. “Any compromise in quality could damage Uganda’s reputation and affect revenues in this competitive global market.”
  • “The UCDA has been instrumental in establishing Uganda’s coffee on the global market. Dismantling it could erase years of development and jeopardize smallholder farmers' incomes,” says Asinasi Nyakato, the Woman MP for Hoima City.

The coffee sector’s advocates emphasize the need for specialized regulation, as seen in other successful coffee-producing nations.

Florence Kabugho, the Woman MP for Kasese, says; “In successful coffee-producing nations, coffee is regulated by specialized agencies. Uganda must adopt this model to avoid regulatory risks.”

Analysts say that, Uganda’s coffee industry has grown to contribute over 15% of the country’s export earnings, largely due to UCDA’s efforts in quality assurance, training, and market promotion. As the contention around the proposed rationalization continue, stakeholders and policymakers must consider the potential risks to Uganda’s hard-won global reputation as one of the world’s leading producers of premium coffee.

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