Uganda registers 6% rise in earnings from coffee exports in September despite decline in production

UGANDA – Uganda continues to realize more value from one of its most prized exports, coffee, as it earned up to US$ 71.22 million from the export of 503,695 60- kilo bags in September 2022, a slight rise from the 501,054 bags exported in August worth US$71.15 million.

Compared to the previous corresponding period last year, this was a 14.13% decline in quantity but a 6.73% jump in value compared to the same month last year.

From the total exported amount during the period under review, Robusta coffee totalled 464,118 bags valued at US$62.19 million and 39,577 bags of Arabica worth US$ 9.03 million.

By comparing quantity of coffee exported by type in the same month of last Coffee Year, Robusta decreased by 14.72% in quantity but an increase of 3.57% in value. Arabica exports also decreased by 6.43% in quantity but increased by 35.09% in value.

The decrease in exports was mainly attributed to lower yields this year that were characterized by drought in most regions.

This led to a shorter main harvest season in Central and Eastern regions and also reduced harvests from Greater Masaka and South-Western regions,” the report says.

Meanwhile, the rise in earnings is attributed to the favourable prices in the international market influenced by a global supply shortage caused by frost in Brazil and bad weather in Colombia that impacted the crop negatively.

Overall, coffee exports for the Coffee Year 2021/22, totaled 5.85 million bags worth US$ 876.43 million compared to 6.50 million bags worth US$ 630.01 million the previous year (Coffee year 2020/21). This represents a decrease of 9.90% in quantity but an increase of 39.11 % in value.

During the period under review Ugacof led the pack of the main exporters, commanding a market share of 15.91% compared to 17.28% in August 2022.

It was followed by Louis Dreyfus Company, Kyagalanyi Coffee, Ideal Quality Commodities, Kawacom, Olam Uganda, Touton Uganda, Ibero, Grainpulse, and Export Trading Company.

Italy maintained its leading position as the top destination for Uganda’s coffee with a share of 39.15%.

It was followed by Sudan, Germany, India and Morocco. Coffee exports to Africa amounted to 120,295 bags, a market share of 24% compared to 93,988 bags of the previous month.

From the data, it is evident that Europe was the top coffee importer with a 61% market share. Meanwhile, African countries that imported Uganda coffee included Algeria, Sudan, Morocco, Tunisia, South Africa, Somalia, Egypt, Libya and Kenya.

The total traded amount in the respective countries is accredited to a number of coffee buyers spread across the world.

During the period under review, the top 10 buyers held a market share of 65% of total exports lower than 67% the previous month.

Sucafina led with a market share of 13.72% compared to 16.41% in August 2022. It was followed by Louis Dreyfus, Olam International, Ecom Agro Industrial, Volcafe, Altasheel Import & Export Enterprises,Touton Geneve, Bernhard Rothfos, Hamburg Coffee, and Cofftea.

The report also gave insight on the World coffee production for 2022/23, which is forecasted to reach 175 million bags, an increase of 7.8 million bags from the previous year as Brazil’s Arabica crop enters the on year of the biennial production cycle.

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