How African farmers can benefit more from rising global coffee prices

The global demand for coffee has surged over the past year, leading to a significant increase in coffee prices worldwide. However, the benefits of this boom in prices have not been evenly distributed among African coffee farmers, as discussed in a recent interview with Jacqueline Arrinda, CEO of Jada Coffee. Despite the doubling of coffee prices, Jacqueline highlighted that the impact on African companies and farmers has been limited. The primary reason for this disconnect lies in the complex supply chain structure prevalent in most African countries. The majority of coffee farmers and middlemen in Africa are not directly connected to international markets, leading to a situation where only exporters are reaping the rewards of the price surge. Jacqueline pointed out that in countries like Uganda, local farmers are often at the mercy of middlemen who offer them low prices for their produce. These middlemen act as intermediaries between farmers and exporters, further widening the gap and depriving farmers of fair compensation for their efforts. While global coffee prices soar, the Nairobi Coffee Exchange saw a surprising 3% drop in pricing, illustrating the challenges faced by African coffee producers in accessing fair market value for their products. Jacqueline also highlighted the bureaucratic hurdles faced by coffee farmers in Uganda due to stringent licensing regulations. The recently introduced coffee act in Uganda, which mandates the registration of every coffee farmer and entity involved in the sector, has raised concerns about the practicality and efficiency of the registration process. Jacqueline expressed reservations about the time-consuming nature of the registration process and questioned whether the government's intentions behind the act were transparent. Despite acknowledging the potential benefits of the coffee act in enhancing traceability and quality control, Jacqueline emphasized the need for a streamlined and transparent registration system that prioritizes the welfare of coffee farmers. The implementation of such measures could lead to a more equitable distribution of profits within the African coffee sector, ensuring that farmers receive fair compensation for their hard work.