UGANDA – The Uganda Coffee Development Authority (UCDA) has revealed that coffee exports for the coffee year (2022/23) increased to 6.14 million bags valued at US$940.36 million (Shs 3.527 trillion).
The East African nation exported 5.86 million bags valued at US$877.66 million (Shs 3. 292 bn) in the previous coffee year (2021/22).
The new figures represent an increase of 5% in quantity and 7% in value, according to UCDA which is the government agency mandated with the development and regulation if the coffee industry in Uganda.
For the month of September 2023, UCDA noted that the country exported about 577,073 bags, worth US$ 94.39 million (UGX 354.3bn).
543,361 bags were Robusta valued at US$ 88.09 million (Shs 330.457 bn), and 33,712 bags of Arabica valued at US$ 6.29 million (Shs 23.596 bn).
This represented a 12.76% increase in quantity and a 30.38% increase in value compared to the same month the previous year.
In September 2022, Robusta exports increased by 14.93% in quantity and 38.71% in value, while Arabica exports decreased by 13.53% in quantity and 29.20% in value.
UCDA also observed that monthly Robusta export performance was higher due to a good harvest in the Southwestern region and favorable global prices, encouraging exporters to release their stocks.
Robusta’s price averaged US$2.70 (Shs 10,128) per kilo, while Arabica averaged US$3.11(Shs 11,667) per kilo.
Ugacof (U) Ltd maintained the highest market share at 16.62%, followed by Olam Uganda Ltd at 12.18% and Ideal Quality Commodities Ltd at 9.37%.
Out of the 52 exporters, 34 exported Robusta Coffee only while only 7 exported Arabica coffee only. The top 10 exporters held a market share of 80% from 76% the previous month, reflecting increased competition.
UCDA also revealed that Italy had the highest market share at 35.11%, followed by Germany at 22.48% and Sudan at 9.16%.
Coffee exports to Africa amounted to 104,844 bags, a market share of 18% compared to 225,141 bags (30%) the previous month with major importers of Uganda coffee being Sudan, Morocco, Algeria, South Africa, Egypt, and Kenya.
Europe on the other hand, remained the primary destination for Uganda’s coffee, with a 70% share of total exports.
The top 10 foreign buyers of Uganda coffee held a market share of 71% of total exports, higher than 66% of the previous month, with Sucafina possessing the largest market share of 16.56% compared to 15.00% in August 2023, followed by Olam International at 13.11% (11.63%) and Louis Dreyfus 8.93% (4.59%).
UCDA projects that world coffee production for 2023/24 will reach 174.3 million bags, 4.3 million bags higher than the previous year, with higher output in Brazil and Vietnam expected to offset reduced production in Indonesia.
Global exports are expected to increase to 122.2 million bags, primarily due to strong shipments from Brazil.
Worldwide coffee consumption is anticipated to reach 170.2 million bags, with the largest increase in the European Union, the United States of America, and Brazil.
Ending stocks are expected to be 31.8 million bags, according to the United States Department of Agriculture (USDA).
