National Coffee (Amendment) Bill 2024 into
law, according to an announcement from
State House.
A brief statement from the Presidential Press
Unit (PPU) confirmed that on December 20,
2024, President Yoweri Kaguta Museveni
assented to the Bill.
The Bill, which was approved by Parliament on
November 6, 2024, led to the dissolution of the
Uganda Coffee Development Authority
(UCDA) and the transfer of its responsibilities
to the Ministry of Agriculture, despite
significant opposition from lawmakers and
prominent coffee farmers.
Critics of the Bill argued that UCDA had been pivotal to the successes in Uganda’s coffee industry. However, President Museveni rejected this claim, emphasizing that the key contributions were made by scientists. On November 7, Museveni reaffirmed his position, criticizing UCDA staff for receiving high salaries without substantial contributions, while scientists, who were responsible for most of the critical work, remained underpaid. After the Bill was passed, the Minister of Agriculture, Animal Industry, and Fisheries, Frank Tumwebaze, met with UCDA employees and reassured them that the majority would keep their positions.
The dissolution of the Uganda Coffee Development Authority (UCDA) was a key element of the government’s Rationalization of Government Agencies and Public Expenditure (RAPEX) policy. This policy seeks to streamline and consolidate various government agencies, commissions, and authorities to reduce redundancy, eliminate duplication, and enhance the efficiency of public spending. Minister of Agriculture, Animal Industry, and Fisheries Frank Tumwebaze reassured UCDA staff that the
rationalization process was not intended as a “punishment,” but rather a broader government initiative
affecting several agencies. He further assured the staff that most of them would be absorbed into the new “Department of Coffee Production and Development” within the Ministry of Agriculture. Tumwebaze emphasized that all regulatory systems for quality assurance and coffee export facilitation, previously established under UCDA, would be maintained and transferred to the Ministry, along with the relevant technical staff.
UCDA’s contributions to Uganda’s coffee sector, including the growth in coffee exports and improvements in quality, were significant. These achievements were driven by efforts such as inspections, enforcement, farmer registration, export certification, and public sensitization.
Coffee prices are expected to rise even more in 2025.
Both arabica and robusta (canephora) coffee varieties
are facing price increases.
Arabica coffee prices have already surged by over
80% in the past year, reaching their highest levels in
nearly 50 years. The last time prices were this high
was in the 1970s, when a frost in Brazil destroyed
millions of coffee plants. Weather conditions are to
blame again, with droughts and heavy rain in Brazil,
the world’s largest coffee producer, leading to poor
harvests.
Vietnam, the second-largest coffee producer, has seen prices for robusta coffee rise by over 50% this year. Robusta, commonly used in instant coffee, is considered a cheaper option. However, robusta prices are expected to be only 20% to 30% cheaper than arabica, compared to previous years when they were about 50% cheaper
Vietnam, the second-largest coffee producer, has seen prices for robusta coffee rise by over 50% this year. Robusta, commonly used in instant coffee, isconsidered a cheaper option. However, robusta pricesare expected to be only 20% to 30% cheaper than arabica, compared to previous years when they were about 50% cheaper. The situation is worsened by climate change, which is causing more extreme weather events. Coffee plants need stable, mild conditions, and when it’s too dry or too wet, they produce less coffee. With climate change likely causing more of these events, prices could continue to rise.
For consumers, the price of coffee at cafes or stores isn’t just set by farmers but includes costs added by roasters and wholesalers. Experts predict that coffee companies, which have been absorbing price hikes to keep customers satisfied, will likely pass on further price increases to consumers in 2025. Prices could rise by at least 50 cents per pound, possibly even $1. Coffee remains one of the most widely consumed beverages worldwide A key trend in the coffee market is the growing demand for specialty coffee, with consumers increasingly seeking unique, high-quality coffee experiences and exploring a wide range of flavor profiles.
Additionally, coffee brewing methods are continually evolving, providing consumers with diverse and personalized experiences. Alternative brewing techniques such as capsule coffee, AeroPress, and cold brew are becoming more popular. These methods allow coffee enthusiasts to experiment with different brewing styles, extraction times, and flavor nuances, enhancing their overall enjoyment of the
beverage.
WHAT MAY
DRIVE COFFEE
PRICES UP IN
2025?
Another notable trend in the coffee industry is the growing focus on sustainability and ethical
sourcing. Consumers are becoming more aware of the environmental and social impacts of coffee production and are gravitating toward brands that prioritize fair trade practices, promotesustainable farming, and support the livelihoods of coffee farmers. This shift has led to the rise of certifications like Rainforest Alliance and Fairtrade, which assure buyers that the coffee
they purchase meets specific environmental and social standards.
As coffee consumption continues to rise, especially in emerging markets, the demand for premium, organic, and fairly traded products is expected to fuel further growth in the market.
