Effective 20th January 2021, the farm gate price for coffee ripened cherries will be sold at FRW248 per Kilogramme, up from FRW216 that was set in January 2020. For floating coffee will be sold at FRW100 minimum per Kilogramme.
The farm gate price is set after the National Agricultural Export Development Board (NAEB) considers market price fluctuation and other factors that would influence the coffee business at large. Like, in this year, the new price was referred to production costs and other attendant costs and prices at international market. US Dollar inflation and coffee pricing at New York Commodities Market are other major factors.
For instance, the unit price of one Kilogramme in Rwanda has increased by 12%, the internation coffee price by 14% (beside Covid19 pandemic) while the US $ inflation made an increase of 5.3%, all in comparison to the previous season.
This new price is expected to boost farmers’ morale, help improve production and attract more people into coffee growing. “The new price will increase household income for farmers.” Said one of the local coffee producing companies’ owner.
Rwandan coffee main buyers include Switzerland, United Kingdom, United States, South Africa, Nigeria, China, Germany and South Korea among others.