Arabica coffee surges to record sh18,500 per kg in Ibanda

IBANDA - Coffee farmers in Ibanda district are laughing all the way to the bank after the cost of the beans quickened to record highs this week. 

Arabica coffee rose by over shillings 3,000 to trade at 18,500 per kilogramme, indicating an increase from shillings 14,500 on January 20 or about three weeks ago. 

This is the highest price for the beans (clean) in the district, and traders project this to even rise further in the coming weeks. Low-quality beans are at shillings 17,500 per kilo.

Meanwhile, Robusta coffee goes for shillings 15,000 per kilo in Ibanda town, higher than shillings 14,000 over the reporting period. The season for robusta coffee has largely ended with only the last beans of the season coming onto the market. 

The harvest season for the Arabica coffee variety started this month and is expected to continue up to April.

Deogratias Tihwayo, of Nyakatookye Coffee Farmers Co-operative, attributed the hike in the prices to good quality beans coming onto the market coupled with growing demand.

Arabica coffee is mainly grown in the highland areas of Rukiri and Kicuzi. However, dealers say the crop on the market is currently from Nyakatookye and Kitontooma in Bisheshe division, Mabonwa (Rukiri sub-county) and Ishongororo sub-county. 

Buhweju farmers also ferry the beverage to Ibanda attracted by good pay.

The local farmers could also be cashing in on coffee supply fears on the global market following long dry spells in top coffee-producing countries, Brazil, Colombia and Vietnam (Robusta) which have hurt production.

Brazil is the world’s biggest arabica coffee-growing country followed by Colombia.

According to global market data provider, Barchart, coffee prices were moderately higher on Wednesday, with robusta posting a 1-1/2 week high and Arabica just below Tuesday’s all-time nearest-futures high. 

On Wednesday, March Arabica coffee (KCH25) was up +11.80 or +2.85%, while March ICE robusta coffee (RMH25) rose +100 (+1.77%), it indicated.

Brazil’s January green coffee exports fell -1.6% y/y to 3.98 million bags. It projects a fall in the 2025/26 coffee crop to a three-year low of 51.81 million bags.

Vietnam’s (Robusta) coffee production in the 2023/24 crop year dropped by -20% to 1.472 MMT, the smallest crop in four years.