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Market smells Rwandan coffee as global prices rise steadily

Thursday September 16 2021
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Rwanda is known for high quality coffee, and is one of the leading exporters in the world. PHOTO | FILE

By MOSES K. GAHIGI

The rise in coffee prices on the international market has brought optimism to coffee farmers and exporters in the wake of coronavirus.

The increase in coffee prices was largely driven by a bout of severe frost which has destroyed 10 percent of coffee plants in Brazil since July, driving up demand.

These green coffee beans soared to their highest price on the New York stock exchange in seven years.

Brazil supplies up to 40 percent of all coffee consumed globally.

For Rwandan coffee farmers, the misfortune in the world's largest coffee producer, and subsequent rise in prices meant they have a chance to recover from a stormy two years when the pandemic hurt the entire supply chain.

The prices have been increasing, a kilogramme now retailing at between $ 4.5 and $6, the demand is high now, we are all upbeat, this is the best the market has stood in a long time" "Last season the prices had fallen, a kilogramme went for $3 or slightly above that" said David Ngoboka a Rwandan coffee exporter with Twumba coffee.

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He said unfortunately the production was at its lowest in Rwanda this season because the measures to combat the spread of coronavirus and other pandemic-caused limitations affected production.

Farmers are a happier now, but again many didn't get the quantities they would have wanted, many couldn't participate in the season due to the restrictions on movement" he said.

The closure of coffee shops, hotels and restaurants in the European and American markets, as countries moved to control the spread of the virus, suppressed demand and affected prices, but this seems to be changing.

At the height of the pandemic, the US alone with a $47.5 billion coffee shop industry came close to a complete halt, as the country shut down cafes and restaurants.

Just like elsewhere, in Rwanda the pandemic also affected the flow of cargo to export markets.

Many coffee co-operatives and individual farmers could not access fertilizers and other inputs due to the pandemic disruptions, which also ended up affecting production.

Rwanda is known for high quality coffee, and is one of the leading exporters in the world, ranking number 30 globally in 2019, according to the World Atlas, a site that ranks top coffee exporters.

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