Uganda attains 49.5% rise in value of coffee exports in September due to favourable global prices

UGANDA – Uganda has fetched US$66.62 million from the export of 585,576 60-kilo bags of coffee in September 2021, registering a 49.56% rise in value and 15.82% jump in quantity compared to the same month last year.

Despite the rise in both quantity and value obtained from the export of the green gold during the period under review, September’s production was much lower compared to the previous month’s traded volume which stood at 700,035 bags worth US$75.09 million.

The recently exported amount comprised of 543,279 bags of Robusta valued at US$59.93 million and 42,297 bags of Arabica valued at US$6.69 million.

According to the Uganda Coffee Development Authority (UCDA), Robusta exports increased by 22.16% and 61.16% in quantity and value respectively, while Arabica exports decreased by 30.48% and 9.07% in quantity and value respectively.

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The increase in Robusta exports is attributed to newly planted coffee which started yielding supported by favourable weather.

The growth was further boosted by a positive trend in global coffee prices in the month since July 2021 as Brazil faced the threat of frost and drought, which prompted exporters to release their stocks.

On the other hand, the decrease in Arabica coffee exports was because of the off-year biennial cycle.

The Coffee Authority also revealed that the destinations of Uganda’s coffee exports in September 2021 included Italy that maintained the highest market share with 27.75%, followed by Germany 12.28%, Algeria 11.03%, India 10.09% and Sudan 9.50%.

Coffee exports to Africa amounted to 164,024 bags, accounting for a market share of 29% compared to 169,383 bags the previous month.

African countries that imported Uganda’s coffee included Algeria, Sudan, Morocco, Kenya, Egypt, and South Africa.

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However, Europe remained the main destination for Uganda’s coffees with 50% imports share although lower than 61% in August 2021.

The board expects coffee exports to continue exhibiting a downward trend compared to the earlier months of the year, but projects the quantity to be traded to be within the 500,000 bags range.

Meanwhile, shifting focus to the global scene, world coffee exports for August totalled 10.12 million bags down by 0.1% from 10.13 million bags in August 2020.

Total exports for 11 months of Coffee year 2020/21 totalled 118.96 million bags a 1.9% increase compared to 116.77 million bags for the 11 months of coffee year 2019/20.

The report estimates the global coffee production for 2020/21 coffee year to increase by 0.4% to 169.64 million bags a 0.4% up from 168.98 million bags in Coffee Year 2019/20.

Meanwhile, global coffee consumption is estimated to increase by 1.9% % to 167.26 million bags in 2020/21 compared to 164.13 million bags in 2019/20.

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