Uganda’s coffee exports fetch higher value in March despite 16.4% decline in volumes

UGANDA – Uganda’s coffee exports in March 2022 amounted to 478,023 60-kilo bags worth US$ 80.99 million, a decrease of 16.4% in quantity but an increase of 51.44% in value compared to the same month last year.

From the total exported volumes, Robusta coffee variety amounted to 360,229 bags valued at US $48.94 million and 117,798 bags of Arabica valued at US$ 32.05 million.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (March 2021), Robusta decreased by 26.96% in quantity but increased by 19.51% in value.

Meanwhile Arabica exports increased by 49.83% and 155.85% in quantity and value respectively.

According to the Uganda Coffee Development Authority, the decrease in Robusta export volumes was mainly attributed to lower yields this year that was characterized by drought in some regions.

This led to a shorter main harvest season in Central and Eastern regions as well as a short fly crop in Greater Masaka and South-Western regions.

The Increase in Arabica coffee exports is due to an on-year cycle characteristic of Arabica coffee production.

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Overall rise in the commodity’s value was triggered by shortage of shipping containers in Asia and weather-related concerns in Brazil.

During the period under review, Italy maintained the highest market share of Uganda’s coffee, buying 32.39% of the traded volumes.

It was followed by Sudan 24.98%, Germany 12.30%, Belgium 5.69% and United States of America 4.55%.

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Coffee exports to Africa amounted to 143,231 bags, a market share of 30% compared to 94,647 bags (21%) the previous month.

African countries included Algeria, Sudan, Morocco, Egypt, South Africa, South Sudan, Somalia and Kenya.

Europe remained the main destination for Uganda’s coffees with 57% imports share lower than 62% in February 2022.

Looking at the overall performance of Uganda’s coffee export, the country shipped out 6,515,642 60-kilo bags in the 12 months from April 2021-March 2022 worth US$ 790.33 million compared to 5,646,897 60-kilo bags valued at US$ 522.91 million the previous corresponding year.

This represents 15.38% and 51.14% increase in both quantity and value respectively.

According to the reports forecast, coffee exports in the country is expected to further decline with a projection of 430,000 bags in April.

At the global front, coffee production for 2021/222 coffee year is estimated to decrease by 2.1% to 167.2 million bags down from 170.83 million bags in Coffee Year 2020/21.

Global consumption is estimated to increase by 3.3% % to 170.3 million bags in 2021/22 coffee year compared to 164.9 million bags in 2020/21 coffee year.

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