Uganda coffee exports projects to enter 500,000 bags mark in June 2021 rise from May’s 494,050 bags

UGANDA – Uganda Coffee exports for the 12 months to end May 2021 amounted to 5,881,905 60-kilo bags worth US$ 540.72 million.

This, according to the Uganda Coffee Development Authority (UCDA), was a 17.02% rise in quantity compared to 5,026,612 bags sold in the previous year and 10.76% increase in earnings from US$ 488.19 million earned in 2019/2020.

Meanwhile, a look into the final month’s performance, Uganda fetched US$ 47.16 million from the export of 494,050 bags, an increase of 11.01% and 12.90% in value and quantity respectively compared to May 2020.

From the total bags sold, Robusta accounted for 429,374 bags valued at US$ 37.52 million and 64,676 bags of Arabica valued at US$ 9.63 million.

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Robusta exhibited an increase in both quantity and value at 25.98% and 27.02% respectively, while Arabica exports decreased in both quantity and value by 33.16% and 25.55% 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.

“This was also compounded by a positive trend in global coffee prices which prompted exporters to release their stocks on top of increased procurement,” noted UCDA.

Global coffee production for 2020/21 is estimated to increase by 0.4% to 169.61 million bags while the consumption is estimated to increase by 1.9% to 167.59 million bags

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The authority further highlighted that the decrease in value of Arabica coffee was due to low volumes exported.

Also, Arabica monthly exports continued to reduce compared to the previous year attributed to the off-year biennial cycle characteristic its production.

Europe still the lucrative coffee market

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The nation with the highest appetite for Uganda’s coffee during the period under review was Italy, maintaining the highest market share with 37.02% compared with 28.74% last month.

It was followed by Germany 14.36%, United States 9.36%, Belgium 6.74% and Algeria 5.80%.

Coffee exports to Africa amounted to 69,349 bags, a market share of 14% compared to 81,308 bags (15%) the previous month.

African buyers included Sudan, Morocco, Kenya, Algeria, Egypt and South Africa. Europe remained the main destination for Uganda’s coffees with a 66% imports share.

Some of the leading traders who dominated the export market in the country include Olam Uganda Ltd who had the highest market share with 14.42% compared to 15.14% in April 2021.

The commodity trader was followed by Ugacof, Louis Dreyfus Company, Touton Uganda Limited, Kyagalanyi Coffee Ltd, Kawacom Ltd, Ideal Quality Commodities, Export Trading Company, Ibero and Bakhsons Trading Co.

Rise in global coffee prices to fuel Uganda coffee exports

Uganda is projecting to enter the 500,000 bags – export mark in June 2021 fuelled by increasing global coffee prices which will enthuse exporters to release their stocks.

World coffee exports amounted to 11.41 million bags in April 2021 compared with 11.29 million in March 2021.

Exports for the first 7 months of coffee year 2020/21 (October 2020- April 2021) increased by 4.1% to 77.52 million bags from 74.49 million bags the previous period (October 2019-April 2020).

According to the report, global coffee production for 2020/21 is estimated to increase by 0.4% to 169.61 million bags while the consumption is estimated to increase by 1.9% to 167.59 million bags.

This will as a result of increased demand of the commodity as the Covid 19 pandemic related lockdown measures are being removed in major consuming markets after intensifying the vaccine programmes.

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