Uganda’s coffee export earnings jump by 43% despite decline in volume on back of improved prices

UGANDA – Uganda’s coffee exports for the 12 months ended June 2022 amounted to 6,258,334 60-kilo bags worth US$ 862.28 million compared to 6,077,951 60-kilo bags valued at US$ 559.16 million the previous year.

According to a monthly report by the Uganda Coffee Development Authority, this was a 2.97% and 54.21% increase in both quantity and value respectively.

Meanwhile, export of the green gold in the month of June 2022 amounted to 530,365 60-kilo bags worth US$ 83.79 million, reflecting a 14.23% decline in quantity but an increase of 43.11% in value compared to the same month last year as the country benefitted from the rising coffee prices across the globe.

The total exported coffee volumes during the month under review comprised 444,197 bags of Robusta valued at US$60.98 million and 86,168 bags of Arabica valued at US$ 22.82 million.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (June 2021), Robusta decreased by 21.44% in quantity but increased by 21.37% in value. Arabica exports increased by 62.77% and 174.46% in quantity and value respectively.

The decrease in Robusta 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 reduced harvests from Greater Masaka and South-Western regions whose peak is expected in July 2022.

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

Looking at the destinations of Uganda’s coffee exports during the month of June 2022, Italy maintained the highest market share of 40.25% compared with 39.06% last month.

It was followed by Germany 113.34% (12.64), Sudan 10.35% (10.74%) India 7.42% (7.27%) and Morocco 4.82% (1.95%).

Europe remained the main destination for Uganda’s coffees with a 65% imports share, slightly lower than 66% in May 2022.

Meanwhile, coffee exports to Africa registered a boom as the volumes traded amounted to 109,506 bags, a market share of 21% compared to 70,782 bags (16%) the previous month.

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

At the global front, world coffee production for 2022/23 is forecast to be 175.0 million, up by 7.8 million bags from the previous year, primarily due to Brazil’s Arabica crop entering the on year of the biennial production cycle.

Global consumption is expected to rise by 1.81 million bags to 167 million with the largest increase in European Union, United States, Japan and Brazil.

World exports are forecast to be modestly higher on gains in Brazil and Indonesia.

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