Uganda benefits from rising coffee prices registering 41.7% rise in value despite decline in volume

UGANDA – Shortage of shipping containers in Asia and weather-related concerns in Brazil have continued to fuel increase in coffee global prices for the past several months, enabling Uganda to fetch higher income from export of the cash crop.

According to reports by the Uganda Coffee Developmental Board, exports of the green gold in April 2022 amounted to 407,762 60-kilo bags worth US$ 70.85 million.

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This was a decrease of 24.13% in quantity but an increase of 41.78% in value compared to the same month last year.

The total exported volumes during the period under review comprised 277,244 bags of Robusta valued at US$ 37.24 million and 130,518 bags of Arabica valued at US$ 33.61 million.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (April 2021), Robusta decreased by 40.31% and 4.65% in quantity and value respectively, while Arabica exports increased by 78.93% and 207.87% in quantity and value respectively.

The decrease in Robusta exports was mainly attributed to lower yields this year that were characterized by drought in some regions. This led to a shorter main harvest season in Central and Eastern regions.

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The increase in Arabica coffee exports is due to an on-year cycle characteristic of Arabica coffee production.

Italy, Europe’s third largest coffee consuming country, maintained its top position as the leading importer of Uganda’s coffee in April 2022 purchasing 33.12% of the total exported volumes.

It was followed by Sudan 14.59%, Germany 13.41%, India 7.71% and United States of America 7.30%.

African countries also have a large appetite for Uganda’s coffee with the month’s export volume totalling 90,076 bags, a market share of 23% compared to 143,231 bags (30%) of the previous month.

The African coffee destinations included Algeria, Sudan, Morocco, Tunisia, Tanzania, South Africa, South Sudan, Somalia and Kenya. Europe remained the main destination for Uganda’s coffees with a 58% imports share.

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In the global arena, world coffee production for 2021/22 is forecast down 8.5 million bags from the previous year to 167.5 million.

This is primarily due to Brazil’s combined effect of Arabica trees entering the off‐year of the biennial production cycle and a weather‐related shortfall.

As a result of lower output, global ending inventories are expected to drop 6.3 million bags to 30.0 million.

Meanwhile, world coffee bean exports are expected down 3.8 million bags to 117.2 million as lower exports from Brazil more than offset higher shipments from Vietnam.

Global coffee consumption rises 1.5 million bags to 164.9 million, with the largest gains in the European Union, the United States, and Brazil.

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