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GENEVA, Switzerland – Coffee prices have swung wildly this year, from a high of $4.20 per pound to as low as $2.88 per pound in July. That’s left small producers in East Africa holding on to their seats, unsure how to budget or plan in world of volatile prices and unpredictable tariffs. Businesses and governments across the region are increasingly tackling those challenges together, through the new Coffee Advocacy Working Group (CAWG).
The group brings together representatives of national governments, business leaders, and regional partners.
CAWG gives them a platform to think through strategy and to put in into action. That includes navigating access to global markets, advocating for better policies, and engaging businesses.
As the UN small business agency, the International Trade Centre (ITC) brings decades of experience in fostering this kind of collaboration and strategic planning. Our MARKUP II project collaborated with the leadership of the African Fine Coffees Association (AFCA) to create the working group.
Initial discussions among within the working group took place in February, at the African Fine Coffees Conference & Exhibition in Dar es Salaam, Tanzania. The first formal meeting was held 16 April, with a follow-up on 16 July.
What emerged was the need to manage the risks caused by volatile prices, while also tapping into opportunities under the African Continental Free Trade Area (AfCFTA).
Smallholder farmers, cooperatives and small coffee businesses need tools to manage price risks, the working group agreed.
High prices may seem beneficial, but volatility exposes farmers to major financial losses, especially when they don’t have credit or tools to manage the risk.
Afreximbank and the Inter-African Coffee Organisation underscored the need for collaborative financial solutions, reliable data, and targeted training.
CAWG members are now researching existing tools and reviewing models from other countries on how to manage the prices swings.
Ultimately, the CAWG reflects a growing consensus in the coffee community on the importance of structured, regional coordination. Its work contributes to MARKUP II’s goal of making farm and food businesses more competitive and sustainability.
About MARKUP II
The European Union-East African Community (EAC) MARKUP II funded by the EU, aims to enhance economic development in the EAC through sustainable intra-African and EU-Africa trade.
Focused on improving livelihoods, employment, and export competitiveness for MSMEs, the programme supports the development of key export-oriented value chains as well institutional support in the six MARKUP II EAC recipient partner countries
