Factors affecting the price of coffee in Uganda

Abstract

The study aimed at determining the main factors affecting coffee prices in Uganda. Data was collected from the monthly reports released by the Uganda coffee development authority on the various prices of different coffee qualities/type that to say Arabica, Drugar, FAQ, Kiboko and the various quantities of coffee produced in Uganda at a monthly basis. The collected data was analyzed using Stata through the univariate analysis, bivariate analysis and multiple linear regression carried out on the various variables to ably conclude on the research objectives. It was found out that the quality of coffee significantly affects the coffee prices while variables like quantities of coffee have a weak positive effect on the coffee prices and the weather also has a weak but negative effect on coffee prices. Though with the multiple linear regression quantities of coffee and weather were found to be jointly insignificant in affecting the coffee prices.

The study was able to give farmers of coffee information on what to focus on as they aim to fetch a high price for their coffee locally in Uganda even globally on the world coffee market. In conclusion, farmers should mainly aim at ensuring the production of the best quality coffee as this will help them get a good price for their coffee which will improve their general welfare and standards of living