FAO, Nigeria seek increased participation in coffee industry
By Daniel Essiet The Food and Agriculture Organisation (FAO) and Nigerian stakeholders are pushing for stronger African participation in the global coffee market, a sector now valued at more than
By Daniel Essiet
The Food and Agriculture Organisation (FAO) and Nigerian stakeholders are pushing for stronger African participation in the global coffee market, a sector now valued at more than $200 billion annually, as the United Nations formally designates October 1 as International Coffee Day.
The resolution, adopted by the UN General Assembly on March 10, underscored the growing economic importance of coffee as both a global commodity and a development tool for rural economies. FAO Director-General Qu Dongyu described coffee as central to livelihoods and global trade.
“Coffee is more than a beverage, it is a globally traded commodity… that sustains the livelihoods of millions of farming households, and connects rural communities to markets across the world,” he said, noting that the international day would help “strengthen its contribution to eradicating poverty.”
Global demand for coffee continues to rise steadily, with consumption expanding across traditional markets in Europe and the United States, as well as in emerging regions such as Asia and the Middle East. Over the past decade, per capita consumption has grown by about 1.2 per cent annually, reinforcing the sector’s rapid expansion and pushing total market revenues to an estimated $485 billion.
Production has kept pace with demand, reaching a record 178.7 million 60-kilogram bags in the 2025/26 season, while consumption slightly exceeded supply at 180.2 million bags. The industry, which supports about 25 million farmers worldwide, remains one of the most traded agricultural commodities globally.
Africa, which contributes roughly 12 per cent of global output, is increasingly positioning itself to capture more value from the sector. Leading producers such as Ethiopia and Uganda continue to dominate the continent’s exports, with coffee playing a critical role in their economies.
In 2024, coffee accounted for 27.9 per cent of Ethiopia’s exports, 20.1 per cent of Uganda’s, and 19.5 per cent of Burundi’s, in some cases exceeding national food import bills.
At the 2026 African Fine Coffees Conference and Exhibition in Addis Ababa, industry leaders highlighted a shift from exporting raw beans to developing higher-value products and building stronger brands within the continent. The move is aimed at increasing revenue, improving competitiveness and ensuring sustainable growth.
“We have moved beyond selling raw beans to offering higher-value products, strengthening our brand visibility, improving revenue potential, and positioning our coffee more competitively in international markets,” said Aisha Imran of Moplaco Trading.
Experts also stressed that unlocking Africa’s full potential in the coffee value chain requires investments in skills, infrastructure and market access. Sara Yirga, a specialty coffee trainer, pointed to persistent gaps in technical knowledge and capacity.
“The biggest gap is access—access to technical knowledge, to labs, and to professional curricula… When producers can cup their own coffee and understand global standards, they gain confidence, leverage, and market power,” she said.
Sustainability and innovation are also emerging as key drivers of growth. Producers are increasingly adopting circular economy practices that convert coffee by-products into additional revenue streams. “By transforming coffee by-products into cascara, tea and biochar, we generate additional income while reducing environmental impact. Circularity is not only sustainable—it makes our business more competitive and resilient,”General Manager of Diamond Enterprise, Dehab Mesfin, said.
Despite these continental gains, Nigeria remains a marginal player in the global coffee market, contributing just 0.018 per cent of total output. The country produced about 1,844 metric tons of coffee in 2023, far below leading African producers, and continues to rely heavily on imports to meet domestic demand.
Production is projected to decline slightly from 40,800 bags in 2023 to 39,900 bags by 2028, reflecting longstanding structural challenges within the sector, including low yields, poor processing methods and limited investment.
Stakeholders, however, believe Nigeria can reverse this trend and play a more significant role in the global coffee economy, particularly as international prices remain strong, ranging between $3,000 and $3,500 per metric ton.
The Chairman, Cocoa Association of Nigeria, Dr. Victor Iyama, said the country has “a significant opportunity” to scale up production and boost foreign exchange earnings if supported by the right policies and investments.
He called for a coordinated strategy focusing on inputs, rural financing, post-harvest processing and market development to revitalise the industry.
Echoing this position, Dr. Kayode Oluyole of the Cocoa Research Institute of Nigeria said farmers are currently unable to benefit from rising global prices due to inefficiencies in production and processing.
“The lack of effective pricing has made it challenging for farmers to increase their production… inadequate processing techniques… have resulted in low-quality beans, further lowering their market value,” he said, adding that Nigeria still imports a significant portion of the coffee it consumes.
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He stressed the need to improve quality and traceability at the farm level. “Farmers have been cutting down their trees because they are unhappy with the poor prices they receive… If the beans are properly cleaned, processors would not need to remove the coat, and farmers would earn better prices.”
With projections suggesting Nigeria could generate up to $2 billion in coffee revenue in the coming years, stakeholders say the country must act quickly to align with global trends that increasingly reward quality, sustainability and value addition.
As the world prepares to celebrate the newly designated International Coffee Day, the push by the FAO and Nigerian stakeholders signals a broader effort to ensure Africa not only remains a key producer but also captures a larger share of the value in a rapidly expanding global industry.
