UGANDA – Uganda Coffee Development Authority (UCDA) has announced that the country’s coffee exports in June 2024 reached an unprecedented 667,037 60-kilo bags, generating UGSH600.87 billion (US$162.36 million).
This milestone marks the highest monthly earnings ever recorded for Uganda’s coffee sector.
According to UCDA’s monthly report for June, the exports included 614,486 bags of Robusta valued at US$149.95 million and 52,551 bags of Arabica valued at US$12.42 million.
This signifies an 18.24 percent increase in quantity and a 79.14 percent rise in value compared to June of the previous year.
Specifically, Robusta exports saw a 25.51 percent increase in quantity and a 102.97 percent rise in value, while Arabica exports decreased by 29.51 percent in quantity and 25.90 percent in value.
The report highlights that the increase in Robusta exports is attributed to the newly harvested larger crop from the Greater Masaka and Southwestern regions reaching the market. In contrast, Arabica exports were lower due to a smaller harvest in the Elgon region.
Over the past twelve months (FY 2023/24), Uganda’s coffee exports totaled 6.13 million bags worth US$1.14 billion, up from 5.76 million bags (US$846.02M) in the previous fiscal year.
The average export price per kilo rose to US$4.06 from US$3.27 in May 2024. The Arabica variety fetched an average price of US$3.94 per kilo, slightly down from US$4.05 in May.
Italy maintained the highest market share with 41.96 percent, followed by Germany at 10.55 percent, India at 7.41 percent, Sudan at 6.87 percent, and Spain at 5.40 percent.
Earlier this month, UCDA held a meeting with coffee industry stakeholders to address challenges faced by farmers, especially those cultivating lands cleared after December 2020.
EU deforestation regulations
This comes in response to new European Union regulations on deforestation, set to take effect on January 1, 2025, which require all coffee entering the EU to be deforestation-free.
Gerald Kyaalo, Director of Development Services at UCDA, emphasized the need for a traceability system to track coffee from the garden to the market.
“We need a traceability system that tracks our coffee from the garden to the market,” Kyaalo stated. “This requires us to know who is producing the coffee, where they are located, and what type of coffee they are growing.”
UCDA is focusing on establishing a comprehensive traceability system involving the mapping and registration of all coffee farmers nationwide.
This system will require detailed documentation, including GPS coordinates for all coffee farms. Farms larger than 10 acres must provide polygon maps, while smaller farms need to submit specific GPS points.
To meet the December 30, 2024, deadline for mapping and registration, UCDA is collaborating with government agencies, private sector exporters, and international partners.
A task force comprising various stakeholders has been established to drive this initiative forward.
Liked this article? Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World. HERE