Arabfields, Sana Dib, Financial Correspondent, Johannesburg, South Africa — Uganda’s coffee industry faced a difficult month as export earnings declined sharply in May, reflecting weaker international prices and lower shipment volumes despite the country’s continued status as Africa’s largest coffee exporter. The downturn has renewed concerns among farmers, exporters, and policymakers who rely on coffee as one of the nation’s most important sources of foreign currency.

Official trade figures for 2026 show that coffee export revenues fell to approximately 151.7 million dollars in May, down nearly 38 percent from the same month a year earlier. Export volumes also declined by more than 22 percent, with about 617,000 sixty kilogram bags shipped compared with almost 793,000 bags during the previous year. Analysts say the combination of softer global prices and reduced exports significantly affected monthly earnings.

In coffee growing regions across the country, many producers say they remain optimistic despite the setback. Farmers have continued investing in improved seedlings and better cultivation techniques introduced through national agricultural programs. However, lower international prices have reduced profits, making it more difficult for smallholders to cover production costs and invest in future harvests.

Uganda’s coffee sector supports millions of people through farming, transportation, processing, and export activities. Robusta remains the country’s dominant variety, while arabica production has expanded steadily in higher altitude regions. Industry representatives believe maintaining quality standards and expanding value added processing will become increasingly important as global competition intensifies.

Market specialists note that coffee prices have eased after expectations of larger harvests in major producing countries improved global supply prospects. While this has benefited some importing nations, exporters such as Uganda have experienced lower revenues even when production remains relatively strong. Currency movements, shipping costs, and consumer demand are also expected to influence market performance during the remainder of the year.

Looking ahead, economists expect Uganda’s coffee industry to remain resilient as government programs continue encouraging higher productivity and greater domestic processing. If weather conditions remain favorable and international demand recovers, export volumes could strengthen over the next few seasons. Even so, analysts believe future earnings will depend largely on global coffee prices, making diversification and value addition essential for protecting the country’s leading agricultural export from future market volatility.