Uganda attains 28% rise in September coffee export earnings fetching US$44m

UGANDA – Uganda coffee exports for the crop year October 2019 to September 2020 totaled to 5,360,859 bags of 60kg each, worth US$512.23 million compared to 4,439,808 bags worth US$433.95 million the previous year.

This, according to the Uganda Coffee Development Authority September report, represents 21% and 18% increase in quantity and value respectively.

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Exports from the country’s top earning crop in September amounted to 506,470 bags worth US$ 44.64 million, comprising of 445, 465 bags of Robusta fetching US$37.25 million and 61,009 bags of Arabica earning US$7.39 million.

This was an increase of 39.82% and 28.78% in total quantity and value respectively compared to the same month last year.

By comparing quantity of coffee exported by type in the same month of last Coffee Year, Robusta increased in quantity by 43.30% and 28.63% in quantity and value respectively.

Arabica exports on the other hand also increased by 18.8% in quantity and 29.56% in value by 18.80%.

The increase in exports has been attributed to the increased production on account of fruition of the newly planted coffee, and favourable weather.

That notwithstanding, logistical issues such as lack of containers and delays of truck drivers at border posts somewhat affected movement of cargo.

Last month the country earned US$ 46.06 million from exports of 519,683 bags.

Uganda coffee exports for the crop year October 2019 to September 2020 totaled to 5,360,859 bags of 60kg each, worth US$512.23 million

Coffee exports and imports

During the period under review, 78.01% of the total coffee volume was exported by 10 exporters, out of 37 companies which performed during the month compared to 76.35% in August 2020, reflecting increasing concentration.

Out of the 37 exporters that performed, 20 exported Robusta Coffee only while 4 exported Arabica coffee only.

The leading exporting companies for the period included Kyagalanyi Coffee Ltd maintained the highest market share with 14.2%, followed by Ugacof 14.07%; Ideal Quality Commodities Ltd 12%; Olam Uganda 9.23%; Louis Dreyfus Company Ltd 7.29%; Touton Uganda Limited 6.46% and Kawacom Ltd 4.51%.

On the other hand, the top 10 buyers of the commodity held a market share of 61.62% of total exports, lower than 68.93% the previous month.

Olam International which came in third the previous month led with a market share of 11.43%, reflecting competition among major buyers.

It was followed by Sucafina 11.31%; Altasheel Import & Export Enterprises 9.26%; Cofftea 6.86%; Volcafe 6.76%; Bernhard Rothfos 3.89% (4.26%).

The destinations of the commodity exports during the month included Italy maintaining the highest market share with 29.49%.

Sudan came in second with 22.54% followed by Germany 12.37%; Belgium 8.15% and India 7.39%.

Coffee exports to Africa which accounted to 27.29% of market share amounted to 138,196 bags, a drop from156,591 bags of the previous month.

African destinations included Sudan, Morocco, Kenya, Algeria, Egypt and South Sudan.

In term of imports, Uganda contributed 27% of import share signifying continued continental trade under AfCFTA.

Global coffee exports

World coffee exports in August amounted to 10.04 million bags, compared with 10.86 million of the previous year.

Exports in the first 11 months of Coffee Year 2019/20 (Oct 2019 to August 2020) have decreased by 5.6% to 116.54 million bags compared to 123.44 million bags in the same period in 2018/19.

Global coffee production for 2019/20 is estimated at 169.34 million bags versus consumption of 167.81 million bags.

The COVID-19 pandemic continues to put pressure on the global economy hence limiting out of home coffee consumption.

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