Uganda is home to more smallholder coffee farmers than any other coffee-producing country. With 1,7 million family farms, each averaging about a quarter hectare, coffee farming here relies heavily on family work. Most of these farms grow Robusta, native to Uganda, while around 300,000 farmers grow Arabica. The Arabica farms are located at opposite ends of the country: Mount Rwenzori in the West and Mount Elgon in the East.
Smallholder farms in Uganda are mostly subsistence-based, intercropping coffee with bananas, maize, rice, and other staples. These farms often can't afford fertilisers or pesticides, making the crops passively organic. Mid-sized farms and commercial plantations also exist and have more resources for inputs and training. Medium-size farms are the ones that most contribute to the specialty Arabica segment.
An origin on the rise
Uganda ranks as the 8th largest coffee producer globally and the second largest in Africa, right behind Ethiopia. However, Uganda outperforms Ethiopia in exports, sending millions of bags of Robusta abroad, especially to Germany and Italy. Despite its global market share of just 3.3%, this coffee is gaining attention, especially after the COVID-19 pandemic and shipping crisis made Vietnamese Robusta less accessible. This newfound visibility is boosting Arabica production too.
Nearly all of Uganda’s 112 districts grow coffee, but only 20% of exports are Arabica. While Mount Rwenzori first caught roasters' eyes for its quality, Mount Elgon gets more extension services, input suppliers and development projects, making the region attractive to quality-focused processing facilities and helping it stand out in the specialty coffee market.
Local market snapshot
Uganda's coffee sector is unique, with a privatised market and no auction system. This setup has been in place since the collapse of the last International Coffee Agreement in 1989 and the subsequent deregulation in the 90s. The Uganda Coffee Development Authority (UCDA) oversees quality control, grading, cupping, and classifying of all lots before shipping.
Most coffee from Uganda ends up in regional blends on supermarket shelves with no traceability. That’s due to low futures prices on the NY exchange: commercial Arabica trades up to 40% below other milds. Yet, this is a vital crop for the country’s economy and generates 15% of all export earnings.
The sector is dominated by large multinational companies like ECOM and Volcafe. While these companies have driven the development of high-quality Arabica, local companies are striving to increase their presence and market share. Algrano partners with such local entities to bring more Ugandan Arabica and high-quality Robusta to roasters.
Unique flavours and opportunities
Referred to as the "pearl of Africa" by Winston Churchill, Uganda has the potential to become a staple origin for most roasters. Specialty Arabica from Uganda offers a spectrum of flavours, from delicate and tea-like with bright citric acidity to complex, winey profiles with a dry, boozy quality. Supporting Ugandan coffee means backing smallholders, many of whom produce coffee organically and face significant operational challenges.