Uganda is expecting an increase in global coffee price following harsh weather in Brazil that may affect the North American country’s next harvest.
Brazil is the world’s biggest supplier of coffee.
The Uganda Coffee Development Authority (UCDA), the state-owned regulator of the industry, said in a tweet on Tuesday that the prices may get a boost from La Nina as the weather phenomenon threatens Brazil’s next crop.
“After a bumper 2020 harvest, La Nina is escalating the risk of a decline in output next year as most crops endure scorching temperatures,” UCDA said.
According to the International Coffee Organisation on Global Coffee Exports, Uganda is among the world’s top 10 producers and exporters of coffee.
“The country is currently implementing a coffee roadmap to increase coffee exports from 3.5 million 60 kg bags in 2016/17 to 20 million 60 kg bags in 2025.
“Which is partly based on favorable weather and an increased supply of seedlings to farmers,’’ UCDA noted.
According to the finance ministry, the country’s coffee export earnings reached a record 494 million dollars in the fiscal year ending on June 30.
Coffee is one of the 14 commodities identified by President Yoweri Museveni as critical to Uganda’s economic transformation in the wake of COVID-19.
“About 1.7 million households in Uganda depend on coffee production,’’ UCDA said.
Meanwhile, while the COVID-19 pandemic negatively impacted every country’s economy, Uganda’s coffee sub sector grew with exports hitting the highest level since 1994.
The Minister of Agriculture, Animal Industry and Fisheries (MAAIF), Vincent Sempijja, on Tuesday, announced the International Coffee Day which will be commemorated on October 1, 2020.
“Despite the challenges posed by the pandemic, the coffee sub sector in Uganda has remained buoyant with coffee exports at the end of the Financial Year 2019/20 hitting the highest level since liberalisation of the economy in 1994 at 5.1 million 60kg bags from only 4.2 million bags worth USD 415 million in Financial Year 2018/19,” he said.