Business
Arabica coffee prices double
Publish Date: Jun 02, 2014
Arabica coffee prices double
A farmer spreads coffee parchment to dry in Mbale town. PHOTO/Daniel Edyegu
  • mail
  • img
newvision

By Daniel Edyegu

Prices of Arabica coffee parchment have kept a steady rise climbing to sh6200 per kilogram  from sh4200 per kilogram in March.

The current increment is twice the cost at the start of the year when it traded at sh3000 per kilogram.

Unlike the March increment  that excited Arabica coffee farmers in Mt. Elgon region after years of steady decline in coffee prices and subsequent stagnation, the current increment has got cold reception from the farmers.

This is due to the scarcity of coffee at the peak harvest season  in February. 

At present, farmers are picking fry crop (coffee remnants) in anticipation of the flowering stage.

Rev. Festo Makolo, a coffee farmer in Bubentsye village in Wanale sub county, Mbale district, explained that whereas the price increment is good, it would be better if it either continues upwards or stays until the next harvest season that peaks from October to December.


A woman winnows Arabica Coffee parchment in Mbale town. . PHOTO/Daniel Edyegu

“I harvested 35 bags of parchment this season. But I sold everything when prices were sh4200 per kilogram. I couldn’t hoard because I shoulder a lot of household responsibilities such as paying school fees for my children at university and secondary schools.  What I’m bringing to the market now is just coffee remnants from the main season.

People who will gain much from this price increment are those who hoarded parchment,”Makolo explained on Sunday.

The increment also coincides with the period major export firms are husking bulk parchment into green beans and packaging it in preparation for export.

Prices of Arabica coffee parchment are dependent on the price of Arabica coffee green beans at the New York Stock Exchange (NYSE), where it trades as Bugisu Arabica.

Towards the close of April, prices of greens beans rose from $2.7 (about sh6900) to $4.4 (about sh10900) per kilogram.

The rise at the NYSE has mainly been triggered by speculation of scarcity due to the destruction of vast acreage of Arabica coffee in Brazil by the leaf rust and tragic floods in Columbia, the lead producers of Arabica coffee in the world.


A farmer spreads coffee parchment to dry in Mbale town. PHOTO/Daniel Edyegu

The disasters are projected to reduce the Arabica coffee supply on the NYSE thus the price increment.

Mathias Nabutele, the proprietor of COFFEE ACUP, an Arabica coffee export firm, however, explains that it’s difficult to ascertain how long the price increment will last as some major export countries always keep bulk stock to reinforce future poor harvests.

“In the last two weeks, for instance, the price has stayed at just $3.7 per kilogram of green beans at the NYSE, down from $4.3 per kilogram.

Though it has not dropped severely, that tells you where the market is headed,” Nabutele observes.

  Related stories

Arabica coffee prices increase

Mbabazi woos Europe’s largest coffee roaster

Elgon farmers switch to growing cocoa due to unstable coffee prices


Uganda considers developing drought resistant coffee beans


Uganda coffee exports up 7 percent

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
ERA licenses 9 renewable energy projects
An additional 9 renewable electricity plants, some under the Global Energy Transfer for Feed-in-Tarrifs (GET-FiT) programme, have been licensed to generate 132.7MW to boost Uganda’s transformation into an upper middle class country....
Pump attendants tipped on safety standards in case of fire
Vivo Energy, the company that distributes and markets Shell branded fuels and lubricants has conducted a fire drill to test the response preparedness by staff at Shell Service Stations in case of a fire outbreak. The drill was conducted at Shell Kira Road located at the Bukoto white flats....
UAE Exchange customer wins Xpress Money ‘Win Big’ second weekly draw
Xpress Money recently announced the second weekly draw winner of its ongoing promotion – Win Big. Ms. Ann Minviluz Banquerigo, a customer of UAE Exchange, Lugogo Mall branch, won herself a prize money of UGX 250,000 by simply sending money using Xpress Money services....
Total CEO de Margerie killed in Moscow as jet hits snow plough
MOSCOW - The chief executive of French oil major Total, Christophe de Margerie, was killed when his private jet collided with a snow plough as it was taking off from Moscow's Vnukovo airport on Monday night....
Govt to identify key opportunities for growth
THE Government and World Bank are preparing a joint ‘Country Economic Memorandum’ report, which will identify key opportunities and challenges to accelerating socio-economic transformation...
Business guide in conflict resolution developed
A business guide for the business community to resolve conflicts without resorting to courts of law has been developed....
Was Oscar Pistorius' 5 year sentence fair and just?
Yes
No
Can't Say
follow us
subscribe to our news letter