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Home»Business»Can a Shs 1.3m per kilo Coffee Sale Change What Ugandan Farmers Earn?
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Can a Shs 1.3m per kilo Coffee Sale Change What Ugandan Farmers Earn?

By ROBERT SPIN MUKASAJuly 16, 2026No Comments5 Mins Read
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KAMPALA – A single kilogram of Ugandan coffee has sold for more than some small farmers earn in a month.

At a specialty coffee auction held from July 6 to 8, a Natural Geisha lot from Rwenzori Estate Farm in western Uganda attracted the highest bid of $350.02 or Shs 1.3 million per kilogram. The auction, organised by Ugandan producer Mountain Harvest and online auction house M-Cultivo, drew more than 1,000 bids from international buyers.

Uganda, long known as one of Africa’s largest coffee producers but not always rewarded with premium prices, the result carries significance beyond one unusually expensive lot. It suggests that some buyers are willing to pay far more for Ugandan coffee when quality, traceability and competition come together.

The auction achieved a weighted average price of $24.32 or Shs 90,000 per kilogram across all lots. In simple terms, that means the average price, adjusted for the quantity of each coffee sold, was far above what ordinary bulk coffee typically earns. The highest-priced lot went to CHG, a buyer from China.

The organisers described the auction as a “paradigm shift” because it challenged the traditional way coffee prices are set. For decades, most Ugandan producers have sold into commodity markets where prices are largely determined outside the country. Farmers and processors usually have little control over the final value of their crop.

“For decades, the coffee industry has largely asked producers to fit within a price determined elsewhere,” said Kenneth Barigye of Mountain Harvest.

“The results of this auction point to a different future, one where value is created and recognized at origin. A highest bid of US$350.02 per kilogram, a weighted average price of US$24.32 per kilogram, and more than 1,000 bids are not just commercial milestones; they are evidence that innovation, quality, transparency, and producer leadership can reshape how coffee is valued. This is more than a successful auction. It is proof that the paradigm has shifted, and that when producers are empowered to innovate, the entire coffee industry benefits.”

The auction was partly enabled by Mountain Harvest’s first-place finish in the 2025 African Taste of Harvest competition. That win drew attention from buyers, but the company said traditional negotiations still failed to reflect the value of its best coffees.

Specialty coffee accounts for about 15 per cent of Uganda’s coffee market, according to the press release. Unlike ordinary bulk coffee, specialty coffee is judged on quality, flavour, processing and origin. Buyers often pay more when they can identify the farm, production method and people behind the crop.

That is where auctions can change the balance of power. Instead of one buyer negotiating privately with one seller, several buyers compete openly for the same lot. The process can reveal what the market is truly willing to pay.

“Auctions have the ability to change the market’s perspective of the potential and value of coffee from origins like Uganda,” said David Paparelli of M-Cultivo.

“What is so surprising about this record-breaking price is that it took this long to reach this height. Uganda has all of the potential to grow incredible arabica coffee and Mountain Harvest definitively proved that today.”

CHG, which bought the top lot, said it was “proud to be a part of this historic moment for Ugandan coffee.”

For ordinary Ugandan farmers, however, the bigger question is whether such prices can move beyond a small number of elite lots.

A $350-per-kilogram sale makes a powerful headline, but it does not mean all farmers will suddenly earn that amount. Specialty coffee requires careful harvesting, processing, quality control and access to buyers who understand its value. Many growers still sell coffee in bulk, often through long chains of middlemen, and receive only a fraction of the final retail price.

The real opportunity lies in whether this auction can help expand Uganda’s premium coffee segment. If more farmers receive technical support, better processing facilities and direct links to international buyers, they may be able to earn more from the same land. That would matter in rural communities where coffee income pays school fees, medical bills and household expenses.

Mountain Harvest says its model is built around improving the entire chain, from farmer support and processing to data, logistics and market access. Founded in 2017, the company presents the auction as proof that local leadership and technical precision can produce coffee that competes at the highest end of the global market.

M-Cultivo, meanwhile, uses online auctions, financing and quality-management tools to connect producers with buyers.

The next test will be scale. One auction can create excitement. A sustained shift would require more farmers, processors and exporters to meet the same standards, and more buyers to keep paying premium prices.

The lesson is clear for Uganda: coffee does not have to leave the country as an anonymous commodity. When quality is visible, and producers have greater control over how their crop reaches the market, the value can change dramatically.

The auction may not transform the industry overnight. But it has shown what is possible when Ugandan coffee is sold not merely as a raw product, but as a carefully produced, traceable and highly valued origin.

 

@Rwenzori Estate Farm
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ROBERT SPIN MUKASA

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    Can a Shs 1.3m per kilo Coffee Sale Change What Ugandan Farmers Earn?

    By ROBERT SPIN MUKASAJuly 16, 20260

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