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Monday, 30 April, 2001, 16:48 GMT 17:48 UK
Uganda hit by coffee price fall
Kenyan coffee makers
African coffee makers suffer from low world prices
Uganda, Africa's second largest coffee producer, has decided to remain a member of two coffee making organisations, even though a 40% fall in world prices has made it very difficult for the country to pay its membership fees.

The decision comes after the Association of Coffee Producing Countries and the Inter-Africa Coffee Organisation begged it to stay and allowed it to pay its dues in instalments.

"We have reconsidered our earlier decision after appeals from the two organisations," said William Nagagga, secretary of the state-run Uganda Coffee Development Authority.

Uganda's financial obligation to these two organisations, and to the International Coffee Organisation, amount to $400,000 per year.

Falling earnings

The world's coffee market has slumped in the past 12 months, with one kilo of coffee now fetching just 64 cents.

That's more than 40% down on last year's price of $1.12.

Uganda earned $54.3m from the sale of 1.45m 60-kilo bags of coffee during the last six months.

That is just over half what it earned during the preceding six months when the country's earnings reached $107m for 1.66 million bags.

The country exported only 12% less coffee, but its earnings fell 50%.

Uganda's coffee exports, which remain the country's single biggest earner of foreign exchange, have suffered because of bad weather and crop disease in addition to low world prices.

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See also:

08 Nov 00 | Africa
Coffee exports drop in Uganda
24 Jan 01 | Africa
Uganda 'almost' Ebola free
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