Uganda’s coffee exports volume rise by 28% in July 2021 earning US$69.93m

UGANDA – Uganda’s coffee exports in July 2021 amounted to 700,035 60-kilo bags worth US$ 69. 93 million.

This was an increase of 28.77% and 39.27 % in quantity and value respectively compared to the same month last year, indicates Uganda Coffee Development Authority (UCDA) on the monthly report.

The performance also exhibited the country’s continuous monthly growth in export volumes in the current year. In June, Uganda sold 618,388 60-kilo bags worth US$ 58.56 million.

The total exported volumes in July, comprised of 660,458 bags of Robusta valued at US$62.89 million and 52,939 bags of Arabica valued at US$ 8.31 million.

According to the report, Robusta increased by 41.27% and 56.32% in quantity and value respectively, while Arabica exports decreased in both quantity and value by 47.99% and 29.42% respectively.

Increasing Robusta exports during the month compared to the previous year were due to newly planted coffee which started yielding supported by favourable weather.

This was also compounded by a positive trend in global coffee prices in the month of July as Brazil faced the threat of frost, which prompted exporters to release their stocks on top of increased procurement.

The decrease in value of Arabica coffee was due to low volumes exported. Arabica monthly exports continued to reduce compared to the previous year which is attributed to the off-year biennial cycle characteristic of Arabica production and drought experienced in Mt. Elgon region.

Italy maintained the highest market share of the leading importer accounting for 36.25% of the market share. It was followed by Germany 12.12%, India 8.83%, Algeria 8.54%, and Sudan 8.18%.

Europe remained the main destination for Uganda’s coffees with 61% imports share, while coffee exports to Africa amounted to 147,652 bags, accounting for 21% of the market share.

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African export destination included Sudan, Morocco, Kenya, Algeria, Egypt and Somalia.

Looking at the global coffee exports for Coffee in Year 2020/21, USDA estimated that 142.4 million bags will be traded compared to 138.4 million bags in 2019/20.

The major drivers of this increase in exports are: Brazil (45.0 million bags), Vietnam 25.6 million bags), Colombia (13.8 million bags), Indonesia (7.8 million bags) and Uganda (5.9 million bags).

Global coffee production for 2020/21 is estimated to increase by 3.8% to 175.8 million bags up from 169.3 million bags in Coffee Year 2019/20. While consumption is estimated to increase by 0.6% % to 163.1 million bags.

Uganda projects coffee exports in August to be 600,000 bags as the main harvesting period in Greater Masaka and South Western regions tails off.

During the month, rains may affect the transportation of the little coffee remaining in the country side.

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