Rwanda’s coffee exports are projected to recover following a rise in international coffee prices. This comes after a significant decline in the country’s coffee export revenues during the 2023/2024 fiscal year.
According to a report from the Ministry of Agriculture and Animal Resources (MINAGRI), Rwanda’s coffee export revenues fell by 32.1%, dropping from over $115.9 million in 2022/2023 to $78.7 million in 2023/2024. The decline in revenue was largely due to a 17.9% drop in coffee volume, which decreased from over 20,000 tonnes in 2022/2023 to around 16,400 tonnes last year.
The challenges in the coffee sector have been attributed to two main factors: the impact of climate change on production and fluctuations in global coffee prices. The average price of coffee at the international market fell by 17.3%, from $5.78 per kilogram in 2022/2023 to $4.78 per kilogram in 2023/2024, according to the National Agricultural Export Development Board (NAEB).
Oreste Baragahorana, Chairperson of the Coffee Exporters and Processors Association of Rwanda (CEPAR), explained that the decline in earnings was a result of both lower prices and reduced production.
Rising Prices and Optimism for the Future
Despite these setbacks, exporters are optimistic that rising coffee prices will help boost the sector. If prices remain stable or increase, Rwanda’s coffee export revenues are expected to rise. Baragahorana emphasized that higher prices would not only generate more revenue for the country but also provide farmers with higher income, motivating them to invest more in their coffee production.
He added that this could lead to a recovery of the revenue levels seen in 2022/2023, or even surpass them, provided the price increase is sustained and production improves.
Claudine Kalila Kantengwa, Managing Director of Kivubelt Coffee Ltd, also expressed optimism about the future of Rwanda’s coffee sector. She noted that if coffee prices continue to rise, the country could exceed its previous earnings. However, she cautioned that international coffee prices are volatile and influenced by factors such as global economic conditions, political developments, and supply levels in other coffee-producing countries.
Increase in Farm Gate Price for 2025
In January 2025, the NAEB set the coffee farm gate price (FGP) at Rwf600 per kilogram for high-quality coffee cherries, marking a 25% increase compared to the 2024 price of Rwf480 per kilogram. This increase is designed to support farmers and encourage greater coffee production.
Farmers have welcomed the new price, as it provides them with the opportunity for higher income. The FGP is determined based on several factors, including the cost of production, processing, transportation, international coffee prices, and the exchange rate between the US dollar and the Rwandan franc.
The increase in the farm gate price is partly attributed to the rise in international coffee prices, which surged from $4.28 per kilogram in February 2024 to $7.12 per kilogram by January 2025. Additionally, the exchange rate for the US dollar has also risen, from Rwf1,274 per dollar in February 2024 to Rwf1,387 per dollar in January 2025.
Efforts to Boost Coffee Production and Exports
Despite the challenges faced in 2023/2024, the Rwandan government remains committed to strengthening the coffee sector. According to MINAGRI’s annual report, the area cultivated for coffee production expanded slightly from 42,239 hectares in 2022/2023 to 42,429 hectares in 2023/2024. Additionally, over 11.9 million coffee seedlings were prepared and planted, signaling a long-term investment in boosting the country’s coffee production capacity.
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