Rising Coffee Prices and Market Pressures
Coffee prices are still elevated, with Arabica futures at $298.07 per pound on August 6, 2025, up 21.70% year-to-date. This rise is fueled by ongoing supply constraints, including droughts in major producers like Brazil, and new 50% tariffs on Brazilian coffee imports announced by President Trump. These tariffs, affecting about 30% of U.S. coffee imports, could squeeze margins for companies like Starbucks, potentially forcing supply chain adjustments.
- Sources: Trading Economics, Yahoo Finance
Uganda’s Export Boom
Uganda’s coffee sector is thriving, with export earnings nearly doubling to $2.22 billion in the year to June 2025, up from previous years, driven by high global prices and increased production. This milestone positions Uganda as Africa’s top coffee exporter, benefiting from favorable market conditions and robust export volumes.
- Sources: Semafor, Sputnik News
Ethiopia’s Ambitious Export Goals
Ethiopia is targeting a record 7.8 million bags of coffee exports for the 2025/26 fiscal year, an 11.4% increase from the previous year, aiming to generate significant trade revenues. With production projected at 694,000 tons, the country is leveraging reforms and improved logistics to boost its coffee sector, a cornerstone of its economy.
Kenya’s Coffee Revival Efforts
Kenya is actively working to revive its coffee industry through government-led initiatives, including sensitization meetings, training on Good Agricultural Practices (GAPs), and financial support like a Ksh.500 million allocation for seedling distribution and a Ksh.8 billion Cherry Fund. These efforts aim to boost yields, rehabilitate farms, and help farmers reclaim global market share amidst production challenges.
- Sources: Sacco Times, Citizen Digital