Uganda says global coffee prices may increase as Brazil, the world’s biggest supplier, faces harsh weather.
The Uganda Coffee Development Authority (UCDA), the state-owned regulator of the industry, said in a tweet on Tuesday that the prices may get a boost from La Nina as the weather phenomenon threatens Brazil’s next crop.
“After a bumper 2020 harvest, La Nina is escalating the risk of a decline in output next year as most crops endure scorching temperatures,” UCDA said.
According to the International Coffee Organisation on Global Coffee Exports, Uganda is among the world’s top 10 producers and exporters of coffee.
“The country is currently implementing a coffee roadmap to increase exports from 3.5 million 60kg bags in 2016/17 to 20 million 6 kg bags in 2025, which is partly based on favorable weather and an increased supply of seedlings to farmers,’’ UCDA noted.
According to the finance ministry, the country’s coffee export earnings reached a record 494 million dollars in the fiscal year ending on June 30.
Coffee is one of the 14 commodities identified by President Yoweri Museveni as critical to Uganda’s economic transformation in the wake of COVID-19.
“About 1.7 million households in Uganda depend on coffee production,’’ UCDA said. Xinhua
