Uganda’s coffee export value jumps by 55% in May 2022 despite decline in quantity

UGANDA – Uganda coffee exports in May 2022 amounted to 455,166 60-kilo bags worth US$ 73.01 million, reflecting a decrease of 7.75% in quantity but an increase of 55.15% in value compared to the same month last year.

According to the monthly report for May 2022 by Uganda Coffee Development Authority (UCDA), the exported amount comprised of 350,312 bags of Robusta valued at US$47.31 million and 104,854 bags of Arabica valued at US$ 25.71 million.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (May 2021), Robusta decreased by 18.35% in quantity but increased by 26.21% in value.

Meanwhile, Arabica exports increased by 62.86% and 168.41% in quantity and value respectively.

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“The decrease in Robusta exports was mainly attributed to lower yields this year that were characterized by drought in some regions. This led to a shorter main harvest season in Central and Eastern regions. The increase in Arabica coffee exports is due to an on-year cycle characteristic of Arabica coffee production,” the report reads in part.

It added that coffee exports for the 12 months (June 2021-May 2022) amounted to 6,346,594 60-kilo bags worth US$ 837.14 million compared to 5,880,179 60-kilo bags valued at US$ 540.54 million the previous year (June 2020- May 2021).

This represents 7.93% and 54.87% increase in both quantity and value respectively.

The report further highlighted the leading exporters of the commodity from the country with Ugacof holding the highest market share of 15.65% compared to 11.11% in April 2022.

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Other companies that featured on the top-ten coffee exporters list include, Touton Uganda Limited, Ideal Quality Commodities Ltd, Olam Uganda Limited, Kyagalanyi Coffee, Kawacon, Ibero, Louis Dreyfus Company (U) Ltd 3.82% (5.27%); Export Trading Company, and Besmark Coffee Company Limited

Meanwhile the top 10 buyers of the commodity were Sucafina, Touton Geneve, Olam International, Ecom Agro Industrial, Volcafe, Bernhard Rothfos, Altasheel Import & Export Enterprises, Hamburg Coffee, Louis Dreyfus and Jacobs Douwe Egberts.

Region wise, Europe remained the main destination for Uganda’s coffees with 66% imports share higher than 58% in April 2022.

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Italy had the highest appetite for Uganda’s coffee with a market share of 39.06% compared with 33.12% last month. It was followed by Germany 12.64%, Sudan 10.74%, India 7.27% and Belgium 6.78%.

Coffee exports to Africa amounted to 70,782 bags, a market share of 16%, destined to Algeria, Sudan, Morocco, Tunisia, South Africa, South Sudan, and Kenya.

The report further forecasted that the world coffee production for 2021/22 is set to be 167.5 million, down 8.5 million bags from the previous year.

This will mainly be due to Brazil’s lower production as Arabica trees enter the off‐year biennial production cycle and dry weather.

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