Coffee farmers in Rwanda to earn more as government announces increased minimum price

RWANDA – Rwandan coffee farmers are set to receive a boost in income following the government’s announcement of new minimum prices for coffee cherries.  

The National Agricultural Export Development Board (NAEB) has set the new farm gate price at Rwf600 (US$0.42) per kilo, a 25 percent increase from the Rwf480 (US$0.33) of the previous year. 

This new minimum price, effective January 25, 2025, guarantees farmers a higher return for their produce.  

Fulgence Sebazungu, president of the Rwanda Coffee Cooperatives Federation, expressed farmers’ satisfaction with the price increase, noting that it offers them more income. 

Sebazungu indicated that while the farm gate price was Rwf480 (US$0.33) last year, actual prices often exceeded this due to competition among buyers, reaching Rwf600 (US$0.42), Rwf700 (US$O.49), and sometimes even Rwf800 (US$0.56) per kilo.  

He anticipates that the new minimum price will likely be surpassed as well, driven by similar market forces. 

Several factors influence the farm gate price, including farmers’ investments in inputs like fertilizers and pesticides, the performance of Rwandan coffee on the international market, investments in coffee processing by factory owners, currency exchange rates, and the Rwandan franc’s value. 

Despite the price increase, Rwanda’s coffee exports faced challenges in the 2023/2024 fiscal year.  

Exports dropped by 17.9 percent to over 16,400 tonnes, down from over 20,000 tonnes the previous year.  

Export revenues also declined sharply by 32.1 percent, falling to US$78.7 million from US$115.9 million in 2022/2023, according to the Ministry of Agriculture and Animal Resources. 

To address this decline and boost the sector, Rwanda’s Fifth Strategic Plan for Agriculture Transformation (PSTA 5) aims to increase coffee income to US$160 million by 2029. A key strategy involves increasing production by replacing aging coffee trees.  

Approximately 30 percent of Rwanda’s coffee trees are over 30 years old, impacting productivity. NAEB reported in August 2024 that the current average yield is two kilograms per tree, with a target of at least four kilograms per tree. 

Coffee is a crucial component of Rwanda’s economy, contributing significantly to foreign exchange earnings and rural development.  

NAEB estimates that around 400,000 smallholder farm families depend on coffee cultivation as their primary source of income. 

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