Uganda coffee exports fetch US$496m in financial year 2019/2020

UGANDA – Uganda earned US$496 million from coffee exports in the Financial Year 2019/20, a 19% rise from US$415m earned the previous year, reports Uganda Coffee Development Authority.

During the year under review, the volume exported increased by 22% from 4,168,408 bags each weighing 60kg to 5,103,771 bags.

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The report has further highlighted that in June 2020 the country earned US$39.99 million from exports of its top earning crop with the total exported volume being 420,373 bags

This was an increase of 23.17% and 25.47% in quantity and value respectively from the same month last year.

In May the country earned US$ 42.48 million with the total exported amount being 437,597 bags of 60kg.

The quantities exported in June comprised of 344,438 bags of Robusta worth US$29.13 million and 75,935 bags of Arabica worth US$10.86 million.

By comparing quantity of coffee exported by type in the same month of last Coffee Year June 2019, Robusta increased both in quantity and value i.e. 34.39% and of 32.14% respectively. Arabica exports registered a 10.67% decrease in quantity and 9.39% increase in value.

The increase in exports has been attributed to the increased production on account of fruition of the newly planted coffee, and favourable weather, the lower global prices due to COVID-19 related lower demand from consuming countries notwithstanding.

Exports were to some extent constrained by delays especially at Malaba border post whereby drivers undergo thorough testing for COVID-19 pandemic.

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The destinations of Uganda’s coffee exports during the month included Italy, who maintained the highest market share with 31.08% compared with 31.18% last month.  It was followed by Sudan 22.90% (18.16%), Germany 11.29% (11.06%) and Belgium 6.60% (5.07%).

Coffee exports to Africa amounted to 106,715 bags, a market share of 25.39% compared to 86,854 bags (19.85%) the previous month. Africa countries included Sudan, Morocco, South Africa, Kenya and Egypt.

Europe remains the main destination for Uganda’s coffees with a 58% imports share.

The country’s coffee exports in July 2020 are projected to be 450,000 bags as the main season in Masaka and South-western regions peaks. The season has been supported by favourable rains

World coffee exports amounted to 10.49 million bags in May 2020, compared with 12.29 million in May 2019.

Exports in the first 8 months of Coffee Year 2019/20 (Oct 2019 to May 2020) have decreased by 4.7% to 83.81 million bags compared with 87.96 million bags in the same period in 2018/19.

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