The coffee market in Ibanda, Uganda, is experiencing a drop in prices as the harvest season for robusta coffee comes to an end. Traders have quoted lower prices for “clean” coffee beans, attributing the decline to the influx of inferior quality and low outturn beans currently entering the market. This blog post will explore the factors behind the price drop, its impact on farmers and traders, and the prevailing coffee prices in Ibanda.
Coffee Prices in Ibanda:
Traders in Ibanda town and Rushango town council have observed a decline in coffee prices as the harvest season nears its completion. The cost of “clean” coffee beans was quoted at shillings 7,800 per kilogramme in Ibanda town, while it stood at shillings 7,500 in Rushango town council, Ibanda North County. This decrease follows a previous month’s peak of shillings 8,600/8,700 per kilogramme for robusta coffee.
Reasons for the Price Drop:
Vincent Kanane, a representative from Rushango town council, suggests that the drop in coffee prices can be attributed to the entry of inferior quality and low outturn beans into the market. As the harvest season for robusta coffee concludes in Ibanda district, the quality of the beans decreases, leading to a decline in their market value. Additionally, middlemen and farmers who had stored their coffee in anticipation of better prices are now releasing their stocks, contributing to the increased supply and subsequent price drop.
Impact on Farmers and Traders:
The price drop in coffee has had mixed implications for farmers and traders in Ibanda. While the high prices witnessed in mid-June boosted farmers’ morale, the current decline dampens their expectations. Some farmers may even consider abandoning coffee cultivation due to the prolonged period of low prices. On the other hand, coffee traders face challenges as they encounter lower profit margins due to the reduced market value of the beans.
Current Coffee Prices in Ibanda:
Apart from robusta coffee, the prices of arabica coffee have also experienced a decrease. The cost of “clean” arabica beans now ranges from shillings 7,000 to 7,500 per kilogramme, down from shillings 9,000 observed on June 5. The Uganda Coffee Development Authority’s indicative prices for July 12 show the following ranges: Kiboko coffee ranges from shillings 3,800 to 4,400, FAQ (fair average quality) from shillings 7,800 to 8,200, Arabica Parchment between shillings 10,000 and 11,000, and drugar coffee (clean) priced at shillings 9,000 to 10,000.
As the harvest season for robusta coffee comes to a close in Ibanda, Uganda, the market is witnessing a decline in coffee prices. Traders attribute this drop to the influx of inferior quality and low outturn beans. The decrease in prices has both positive and negative consequences for farmers and traders, impacting their morale and profit margins. It remains to be seen how the coffee market in Ibanda will evolve in the coming months and its long-term implications for the local coffee industry.
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