Buyers must pay farmers at least Rwf600 per kilo of well-ripened coffee cherries in the 2025 season, which is 25 per cent (or Rwf120) higher than the Rwf480 that was set in 2024. The new farm gate coffee price was announced by the National Agricultural Export Development Board (NAEB), on January 25. It is the minimum price at which coffee cherries must be purchased from farmers. ALSO READ: New coffee price offers more income to farmers Fulgence Sebazungu, the president of the Rwanda Coffee Cooperatives Federation, told The New Times “farmers are happy with the increase in farm gate coffee price.” He said that factors influencing farm gate price include farmers’ investments in inputs such as fertilisers and pesticides, performance of Rwanda’s coffee on the international markets, investments by factory owners in coffee processing, currency exchange rates, and the declining value of the Rwandan franc. Though farm gate coffee price was Rwf480 last year, Sebazungu said, it was exceeded as it reached Rwf600, Rwf700, and in some cases Rwf800 a kilo, as a result of competition among factories or other buyers. “There is a high likelihood that the new set farm gate coffee price will be exceeded as well,” he said. ALSO READ: Why govt set a fixed coffee farm gate price Odette Murekatete, a coffee farmer from Gakenke District told The New Times that the increase in the price is welcome as it is an appreciation of farmers’ efforts in producing the crop. “This is an encouragement to farmers to better take care of their coffee trees, and expand plantations for more income,” she said, underscoring the need for producing quality cherries in higher quantities. When properly taken care of, a coffee tree can produce as much as five kilos, which is higher than between one and two kilos in case of poor management, she said. ALSO READ: How high prices buoyed Rwanda coffee exports In the fiscal year 2023/2024, Rwanda’s coffee exports fell a by 17.9 per cent to more than 16,400 tonnes – from over 20,000 tonnes – in terms of quantity, while its revenues registered substantial revenue decline 32.1 per cent to $78.7 million, down from more than $115.9 million in 2022/2023, according to data from the 2023/2024 report by the Ministry of Agriculture and Animal Resources. Rwanda’s Fifth Strategic Plan for Agriculture Transformation (PSTA 5) for 2024-2029 aims to generate coffee income of $160 million by 2029 through increased production, driven by rejuvenation of aging coffee trees – through replacing them with new ones, according to NAEB. ALSO READ: Govt to provide over 25 million seedlings for coffee rejuvenation About 30 per cent of Rwanda’s coffee trees are old as they were planted over 30 years ago, leading to decreased productivity, it indicated. In August, 2024, NAEB pointed out that the average production is two kilos per tree, while the target is to achieve at least four kilos per tree. As per NAEB coffee plays a major role in Rwanda’s economy, significantly contributing to foreign exchange earnings and the monetization of the rural economy. Approximately 400,000 smallholder farm families produce coffee and depend on it for their livelihoods, according to NAEB figures.
