Uganda coffee sector closes 2021 with bullish performance reporting triple digit rise in earnings
UGANDA – Uganda’s coffee sector closed the year 2021 on a high as its December export earnings were double compared to the previous year’s corresponding period.
According to the Uganda Coffee Board, the country fetched US$75.25 million in the export of 536,889 60-kilo bags, registering a 100.64% rise in value compared to December 2020.
The exported amount, which is 28.03% more compared to the same month last year, comprised of 452,55 bags of Robusta valued at US$ 55.26 million and 84,301 bags of Arabica valued at US$ 19.99 million.
The higher income is attributed to improved global coffee prices which were 85 cents higher than US$ 1.49/kilo in December 2020.
The positive trend in global coffee prices is credited to weather related issues in Brazil and shortage of shipping containers which prompted exporters to release their stocks.
Meanwhile, increasing coffee exports during the month compared to the previous year was due to newly planted coffee which started yielding supported by favourable weather.
The year 2021 was a promising period for the East African nation as its coffee exports for the 12 months (January 2021-December 2021) amounted to 6,765,428 bags worth US$ 718.57 million.
This was 23.26% and 38.18% higher in both quantity and value respectively, compared to 5,488,927 60-kilo bags valued at US$ 520.01 million sold the previous year 2020.
To facilitate trade, the top 10 export companies in the month of December 2021 included Ugacof, Ideal Quality Commodities, Kawacom, Olam Uganda, Touton Uganda, Ibero, Louis Dreyfus Company, Kyagalanyi Coffee, Besmark Coffee Company, and Export Trading Company.
Meanwhile, the top 10 buying entities included: Sucafina, Ecom Agro Industrialist, Olam International, Touton Geneve, Bernhard Rothfos, Louis Dreyfus, Altasheel Import and Export Enterprises, Hamburg Coffee, Volcafe, and Aldwami Company.
According to the authority, Uganda coffee sector closed the year with registration and licensing of 81 Coffee Exporters, 626 buying stores, 278 buyers, 30 Roasters, 606 huller factories & 14 wet mills across 10 coffee growing regions.
The report also detailed destinations of Uganda’s coffee exports during the period under review, with Italy maintaining its top slot as the leading buyer of Uganda Coffee accounting of 37.11%.
It was followed by Germany 17.38%, Sudan 5.99%, USA 4.68% and Spain 4.62%.
Europe remained the main destination for Uganda’s coffees with a 70% imports share.
Meanwhile, coffee exports to Africa amounted to 88,546 bags, a market share of 16% compared to 83,803 bags (16%) the previous month.
African destinations included Algeria, Sudan, Morocco, Egypt, South Africa, and Kenya.
Looking at the global overview, coffee production for 2020/21 coffee year is estimated to increase by 0.4% to 169.66 million bags a 0.4% up from 169.00 million bags in Coffee Year 2019/20.
Global consumption is estimated to increase by 1.9% % to 167.24 million bags in 2020/21 coffee year compared to 164.08 million bags in 2019/20 coffee year.
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