Business
Arabica coffee prices increase
Publish Date: Feb 14, 2014
Arabica coffee prices increase
A farmer picks Arabica coffee beans. A kilogramme of Arabica now goes for sh4,200 from sh3,000
  • mail
  • img
newvision

By Daniel Edyegu

Prices of Arabica coffee parchment have rebounded to sh4,200 per kilogramme, up from sh3,000 after nearly six months of price stagnation.

The increment came at the right time, the back-to-school period, when most coffee farmers need to pay school fees for their children. Students and pupils reported back to school for the first term on February 3.

Joseph Sodo, a coffee farmer from Katongo parish, Kapchorwa district, explained that the rise had offered a lease of hope to the coffee business.

Sodo, who has a child in secondary school and two at primary level, last week sold off 32 bags to get fees for them.

“With the price increment, it means each 65-kg bag of premium Arabica coffee parchment rose to sh273,000 up from sh195,000. I got sh8.7m which enabled me to pay my children’s fees,” Sodo said.

“The huge gain I made from this increment, however, is the fact that I had 2,400kg of stocked parchment that I had purchased when prices were still low.”

Prices of Arabica coffee parchment in Bugisu region are mainly dependent on the price at the New York Stock Exchange (NYSE) where its green beans trade under the name Bugisu Arabica.

For over six months, Bugisu Arabica had been trading at $2.4 per kilogramme of green beans. The price, however, rose to $2.7 per kilogramme towards the close of January, prompting a rise in local prices.

Since prices of premium parchment peaked at sh11,000 per kilogramme in 2011, prices had kept a steady drop settling at sh3,000.

Godfrey Woniala, a coffee farmer from Sisiyi subcounty, Bulambuli district, explained that the increase would motivate farmers to put in more effort in tending their plantations during the coming season.

“We had lost hope. Coffee is so costly to maintain because it requires fertilisers, pruning, weeding and spraying before even the actual processing of red cherries into parchment. When prices are low, it doesn’t make business sense to invest more and reap less”.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
UNBS
The $100,000 (sh300m) e-portal is a database for all import- and export-related data in Uganda and will be managed by UNBS officers and other stakeholders....
Russia to send delegation for trade fair
Visiting Russian deputy minister for telecommunication and mass communication, Alexey Volin, has revealed that a Russian business mission will participate in the International Trade Fair at Lugogo in the first week of October, 2015....
Security, infrastructure boosted in revised budget
In the latest revised draft budget, security, energy and the transport sector have been allocated more resources in the 2015/2016 budget....
War pushes S. Sudan
Soaring inflation and a likely currency collapse are adding to South Sudan''s woes after 17 months of civil war....
Struggling BlackBerry announces new round of layoffs
BlackBerry is laying off workers around the world as the struggling smartphone manufacturer tries to make its device business profitable....
Women empowered financially through steel
Lydia Mwesigwa is a marketer by profession who at first didn't have any interest in owning a steel manufacturing plant apart from earning a salary from it....
Should politicians be banned from addressing religious gatherings?
Yes
No
Can't Say
follow us
subscribe to our news letter