Uganda's coffee export earnings fell sharply in May as lower international prices and declining shipment volumes combined to reduce revenues from the country's leading foreign exchange earner, highlighting the sector's continued exposure to global market swings.
According to data released by the Ministry of Agriculture, Animal Industry and Fisheries, Uganda earned US$151.7 million (about Shs551 billion) from coffee exports in May, down 38 percent from US$244 million (about Shs886 billion) recorded in the same month last year.
The country exported 617,491 60-kilogram bags of coffee during the month, compared to 793,445 bags in May 2025, representing a decline of more than 22 percent. The ministry did not provide a detailed explanation for the lower export volumes.
The decline in export earnings was compounded by a softening of global coffee prices after months of sustained gains. The ministry attributed the price decline to expectations of a larger harvest in Brazil, the world's largest coffee producer. Improved production forecasts eased concerns over tight global supplies that had previously pushed coffee prices to some of their highest levels in recent years.
International coffee markets remain highly sensitive to weather conditions in major producing countries such as Brazil and Vietnam, which together account for a significant share of global output. Analysts say prices in the coming months will continue to be influenced by crop forecasts, shipping costs, exchange rate movements and global demand, particularly from Europe and North America, Uganda's key export destinations.
Despite the decline recorded in May, coffee remains the backbone of Uganda's agricultural export sector and the country's largest source of foreign exchange earnings. The crop directly supports the livelihoods of more than 1.8 million farming households and provides income for millions more involved in processing, transportation, trading and other activities along the value chain.
Government initiatives aimed at improving productivity through the distribution of improved seedlings, farmer training and better crop management practices have helped raise production over recent years. Uganda has also strengthened its position as Africa's leading coffee exporter through expanded cultivation and improved yields.
Robusta coffee continues to account for the largest share of Uganda's exports, with production concentrated in the central, eastern and western regions. Arabica coffee, which commands higher prices on international markets, has also recorded steady growth, particularly in the Mount Elgon and Rwenzori highlands, where favorable climatic conditions support high-quality production.
The government is also stepping up efforts to promote value addition by encouraging more local roasting, processing and packaging before export. Officials argue that exporting finished or semi-processed coffee instead of raw beans would enable Uganda to earn more from every kilogram produced while creating jobs and strengthening the country's competitiveness in global coffee markets.
Although the May performance represents a significant setback, industry observers note that monthly export figures often fluctuate depending on harvest cycles and international market conditions. They say sustaining production growth, improving quality, expanding value addition and diversifying export markets will be critical to shielding Uganda's coffee sector from future price shocks while maintaining its contribution to economic growth and foreign exchange earnings.
