UGANDA – Uganda’s coffee industry has continued to show resilience, with the latest report from the Uganda Coffee Development Authority (UCDA) indicating significant growth in coffee exports for April 2024.
The data shows that Uganda exported 390,977 60-kilo bags of coffee, valued at Shs 321.9 billion (US$ 84.80 million), marking a notable increase in both quantity and value compared to the same month last year.
Emmanuel Iyamulemye, Executive Director of UCDA noted: “This comprised of 290,037 bags of Robusta valued at US$ 61.49 million and 100,940 bags of Arabica valued at US$ 23.31 million. This was an increase of 4.84 percent and 41.71 percent in quantity and value respectively compared to April 2023.”
The report highlighted a robust performance in Robusta coffee, which saw a 21.72 percent increase in quantity and a 95.85 percent increase in value year-on-year.
Conversely, Arabica coffee exports experienced a decline, with quantities falling by 25.02 percent and value decreasing by 18.05 percent. The surge in Robusta exports is attributed to the newly harvested main crop from the Masaka and Southwestern regions, while the decrease in Arabica exports is due to a smaller harvest in the Elgon region.
For the twelve months from May 2023 to April 2024, Uganda’s coffee exports totalled 5.92 million bags worth US$ 1.02 billion, compared to 5.73 million bags worth US$ 838.81 million in the previous year. This represents an increase of 3.38 percent in quantity and a substantial 21.45 percent rise in value.
Italy remained the largest market for Ugandan coffee, accounting for 43.87 percent of exports, followed by India (8.08%), the U.S.A (7.00%), Germany (6.89%), and Belgium (6.76%).
Earlier this month, President Yoweri Museveni emphasized the importance of value addition in Uganda’s coffee sector.
During a visit to Rweshamaire in Ntungamo District, Museveni inspected the construction of Uganda’s first modern coffee facility, which began in October 2023 and is scheduled for completion in December 2024.
The facility aims to produce various coffee products, including instant coffee, drip coffee, malt coffee, coffee energy drinks, and coffee-based beauty cosmetics.
Museveni highlighted the economic disparity in exporting raw versus processed coffee. He noted that Uganda earns only US$2.5 per kilogram from unprocessed coffee, while processed coffee can fetch up to US$40 per kilogram in markets like Japan.
Uganda aims to increase its coffee exports to 20 million bags by 2030, targeting nearly US$5 billion in revenue, a significant increase from the current US$1 billion from green bean exports.
To achieve this ambitious goal, Museveni has initiated investments in value addition, with the modern coffee facility in Ntungamo being a key component of this strategy.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. HERE
