Coffee farmers in Rwanda must be a happy lot following the new rates announced by the government that will see them earn at least Rwf600 per kilo of cherries translating to 25 per cent higher than the Rwf480 of last year.
According to the National Agricultural Export Development Board (NAEB), the new farm gate coffee price it announced on 25th of January 2025 is the lowest price that buyers are required to pay farmers for their coffee cherries.
In the 2023/2024 fiscal year, Rwanda’s coffee exports dropped by 17.9% to over 16,400 tonnes, down from more than 20,000 tonnes the previous year. Export revenues also declined sharply by 32.1%, falling to $78.7 million from $115.9 million in 2022/2023, according to the Ministry of Agriculture and Animal Resources.
To counter this trend, Rwanda’s Fifth Strategic Plan for Agriculture Transformation (PSTA 5) aims to boost coffee income to $160 million by 2029, focusing on increasing production through the replacement of aging coffee trees.
Approximately 30% of Rwanda’s coffee trees are over 30 years old, resulting in reduced productivity. In August 2024, the National Agricultural Export Development Board (NAEB) highlighted that the current average yield is two kilograms per tree, while the target is to reach at least four kilograms per tree.
Coffee plays a vital role in Rwanda’s economy, contributing significantly to foreign exchange earnings and rural economic development.
According to NAEB, around 400,000 smallholder farm families rely on coffee cultivation as a primary source of income for their livelihoods.
