Falling prices lead to drop in East Africa’s coffee earnings

Falling prices lead to drop in East Africa’s coffee earnings

A supply glut and lower production have seen depressed earnings from tea and coffee in Uganda and Burundi.

In results for the 2014 season, Uganda reported coffee exports of 3.5 million 60kg bags worth $394 million, representing a 2.3 per cent drop in volume and nine per cent decrease in value from the previous year. Uganda sold its coffee at an average of $1.87 per kg, down from $2 per kg the previous year.

Norman Mutekanga, strategy and business development manager at Uganda Coffee Development Authority, said Uganda’s coffee export volumes are projected to remain flat this year as maturing trees planted over the past five years counter an anticipated decline in production after the sector was hit by the coffee twig borer pest.

In contrast, Uganda’s tea exports are projected to surge five per cent, peaking at 62,000 tonnes, although earnings are likely to remain flat due to a supply glut on the international market. Earnings from cocoa also increased from $46 million in 2013 to $58 million last year, as a result of higher prices and […]

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