Ugandan coffee fetch lower earning in January stifled by prevailing low global prices

UGANDA – Uganda exceeded its projected coffee exports for the month of January 2021, which was set at 400, 000 bags each weighing 60 kgs, to selling 446,560 bags worth US$ 39.73 million.

This was an increase from previous month’s output which was 422,922 bags, but a 4.92% and 17.19% decline in quantity and value respectively compared to the same month last year.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (January 2020), Robusta comprising of 398,160 bags valued at US$ 32.71 million, increased by 5.65% in quantity and decreased by 4.60% in value.

While for Arabica exports amounting to 48,400 bags valued at US$ 7.02 million, is a decrease in both quantity and value by 47.84% and 48.72% respectively.

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The reduction in monthly exports compared to the previous year has been attributed mostly to the off-year biennial cycle characteristic of Arabica production.

Italy cemented its position as top buyer of Uganda’s coffee with a market share of 32.10%

Increasing Robusta exports during the month was on account of fruition of the newly planted coffee as well as favourable weather.

While a decrease in value of both types is attributed to the prevailing low global coffee prices as the Covid 19 restrictions in major consuming countries continue to be in place, limiting consumption.

According to the report by the Uganda Coffee Development Authority (UCDA), the world coffee exports for the first 3 months of coffee year 2020/21 (October-December 2020) increased by 6.1% to 31.59 million bags from 29.79 million bags the previous period in 2019.

Preliminary estimate for global coffee production for 2020/21 is 171.90 million bags while the consumption is 166.63 million bags, as social distancing measures remain in place, limiting out-of-home consumption and the slow recovery of the global economy.

During the period under review, Ugacof still retained its position as the leading exporter with a market share of 12.30% compared to 18.90% in December 2020.

It was followed by Kyagalanyi Coffee, Olam Uganda, Ideal Quality Commodities, Louis Dreyfus Company, Kawacom, Touton Uganda, and Grainpilse.

Shifting focus to importers, Olam International led with a market share of 11.82% compared to 8.30% in December 2020.

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It was followed by Sucafina, Volcafe, Altasheel Import & Export Enterprises, Ecom Agro Industrialist, Hamburg Coffee, Bernhard Rothfos, Aldwami Company, Icona Café and Luigi Lavazza.

The leading destinations of Uganda’s coffee exports during the month was Italy, cementing its top position with a market share of 32.10% compared with 24.07% last month.

It was followed by Germany 13.37%, Sudan 12.01%, Belgium 10.73% and India 7.09%.

Coffee exports to Africa amounted to 80,332 bags, a market share of 17.99% compared to 84,098 bags (19.88%) the previous month.

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

The report projects Coffee exports for February 2021 to marginally increase to 450,000 bags.

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