Uganda coffee exports hit 30-year record

Kampala, Uganda | THE INDEPENDENT | Uganda exported a record 6.08 million coffee bags in the financial year 2020-2021, the highest total for 12 months in 30 years. Exports for FY20/21 were also worth $559m compared to 5.11m bags worth $496m in FY19/20.

The figures were boosted by June’s 618,388 bags worth US$ 58.56m, which is also the highest in a single month. June exports had an increase of 47% in quantity and value compared to the previous month, with Robusta figures shooting up, while Arabica slowing.

According to a monthly statement from the Uganda Coffee Development Authority (UCDA), increasing Robusta exports during the month compared to the previous year were due to newly planted coffee which started yielding supported by favourable weather.

UCDA says this was also compounded by a positive trend in global coffee prices in the last two weeks of the month which prompted exporters to release their stocks on top of increased procurement.

The biggest consumer of Ugandan coffee in June was Italy that maintained the highest market share with 34.57% compared with 37.02% last month.

It was followed by Germany 13.11% (14.36%), India 9.52% (5.00%) Sudan 7.81% (4.04%) and Algeria 6.28% (5.80%).

Coffee exports to Africa amounted to 112,416 bags, a market share of 18% compared to 69,349 bags (14%) the previous month. African countries included Sudan, Morocco, Kenya, Algeria, Egypt, Ethiopia and South Africa. Europe remained the main destination for Uganda’s coffees with a 61% imports share.

Arabica coffee declines

The decrease in value of Arabica coffee was due to low volumes exported. Arabica monthly exports continued to reduce compared to the previous year attributed to the off-year biennial cycle characteristic of Arabica production.

June’s 618,388 60-kilo bags exports comprised 565,449 bags of Robusta valued at US $ 50.25 million and 52,939 bags of Arabica valued at US$ 8.31 million. This was an increase of 47.04% and 46.63 % in quantity and value respectively compared to the same month last yea.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (June 2020), Robusta increased by 63.89% and 72.56% in quantity and value respectively, while Arabica exports decreased in both quantity and value by 29.93% and 23.16% respectively.

Farm-gate prices for Robusta Kiboko averaged UGX 2,250 per kilo; FAQ UGX 4,350 per kilo, Arabica parchment UGX 6,650 per kilo and Drugar UGX 5,750 per kilo

Sustainable Arabica fully Washed Sipi Falls fetched the highest price at $5.37 per kilo.

In terms of leading coffee exporters, Ugacof (U) Ltd led the highest market share with 19.86%, followed by Ideal Quality 10.81%, Olam Uganda 10.15, Touron 7.44, Kawacom 6.24, Louis Drefyus 5.90 and Kyagalanyi Coffee Ltd 5.6%

READ FULL REPORT >>>>June 2021 coffee