Uganda coffee exports attains highest volumes, earnings in 3 decades fetching US$58.5m

UGANDA – Uganda’s Coffee exports in June 2021 amounted to 618,388 60-kilo bags worth US$ 58.56 million, the highest exported volumes and amount earned in a single month since 1991.

According to the Uganda Coffee Development Authority (UCDA), this is an increase of 47.04% and 46.63 % in quantity and value respectively compared to the same month last year.

Also, it is a huge rise from the previous month’s exports which amounted to 543,251 bags, fetching US$49.78 million.

The authority has further revealed that from the total bags sold, Robusta comprised of 565,449 bags valued at US$ 50.25 million and 52,939 bags of Arabica valued at US$ 8.31 million.

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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.

Increasing Robusta exports during the month compared to the previous year were due to newly planted coffee which started yielding supported by favourable weather.

Global coffee production for 2020/21 is estimated to increase by 0.3% to 169.5 million bags while the consumption is estimated to increase by 1.9% to 167.24 million bags

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 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,” UCDA stated.

Meanwhile, coffee exports for the 12 months (Financial year 2020/21) amounted to 6,078,638 60-kilo bags worth US$ 559.26 million compared to 5,105,881-kilo bags valued at US$ 496.28 million the previous year (Financial Year 2019/20).

This represents 19.05% and 12.69% increase in both quantity and value respectively. The total quantity of exports in the 12 months was the highest in 30 years.

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Italy continues leading the foreign buyers’ pack

The nation with the highest appetite for Uganda’s coffee during the period under review was Italy, maintaining the highest market share with 34.57% compared with 37.02% last month.

It was followed by Germany 13.11%, India 9.52%, Sudan 7.81%, and Algeria 6.28%.

Coffee exports to Africa amounted to 112,416 bags, a market share of 18% compared to 69,349 bags (14%) the previous month.

The African buyers included Sudan, Morocco, Kenya, Algeria, Egypt, Ethiopia and South Africa. Europe remained the main destination for Uganda’s coffees with 61% imports share.

Global coffee production and consumption to marginally rise

Looking at the global situation of the coffee exports, the report has highlighted that the export volumes amounted to 9.79 million bags in June 2021 compared to 10.89 million in May 2020.

Exports for the first 8 months of coffee year 2020/21 (October 2020-May 2021) increased by 2.2% to 87.3 million bags from 85.38 million bags the previous period (October 2019-May 2020).

Global coffee production for 2020/21 is estimated to increase by 0.3% to 169.5 million bags while the consumption is estimated to increase by 1.9% to 167.24 million bags.

In Uganda, coffee exports are projected to be 650,000 bags in July, as the main harvesting period in Greater Masaka and South Western regions reaches its peak during the month.

Dry weather coupled with some rains will speed up ripening and procurement of the coffee from the countryside.

Increased exports are also likely to be driven by increasing global coffee prices exhibited in the last two weeks of the previous month on account of reduced harvest from Brazil and Vietnam which will stimulate exporters to also release their stocks.

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