Uganda’s Coffee exports in September 2022 amounted to 503,695 60- kilo bags worth US$ 71.22 million.
According to Uganda Coffee Development Authority (UCDA), this comprised 464,118 bags of Robusta valued at US $62.19 million and 39,577 bags of Arabica valued at US$ 9.03 million.
However, UCDA noted that this was a decrease of 14.13% in quantity but an increase of 6.73% in value compared to the same month last year.
“By comparing quantity of coffee exported by type in the same month of last Coffee Year (September 2021), Robusta decreased by 14.72% in quantity but an increase of 3.57% in value. Arabica exports decreased by 6.43% in quantity but increased by 30.5% in Value,” UCDA said.
The decrease in 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 also reduced harvests from Greater Masaka and South-Western regions.
Coffee exports for 12 months (Coffee Year 2021/22) totaled 5.85 million bags worth US$ 876.43 million compared to 6.50 million bags worth US$ 630.01 million the previous year (Coffee year 2020/21).
This represents a decrease of 9.90% in quantity but an increase of 39.11 % in value.
Exports by Type and Grade
According to the report, the average export price was US$ 2.36 per kilo, 1 U.S cent lower than US$ 2.37 per kilo realized in August 2022.
It was 46 US cents higher than in September 2021 (US $ 1.90/kilo).
Robusta exports accounted for 92% of total exports slightly higher than 91% in August 2022. The average Robusta price was US$ 2.23 per kilo, 3 cents higher than the previous month.
Washed Robusta fetched the highest price of US$ 2.48 per kilo. It was followed by Organic Robusta at US$ 2.46 per kilo.
The share of Sustainable/washed coffee to total Robusta exports was 2.48% slightly higher than 1.48% in August 2022.
Arabica fetched an average price of US$ 3.80 per kilo, 25 cents lower than US$ 4.05 per kilo in August 2022.
The highest price was Sustainable Arabica Fully Washed Sipi Falls sold at US$ 5.81 per kilo, a premium of US cents 80 over conventional Bugisu AA, followed by Bugisu A+ sold at US$ 5.12 per kilo, a premium of US cents 10 over Conventional Bugisu AA.
Organic Drugar was sold at US$ 4.46 per kilo, a premium of US cents 37 over conventional Drugar which, on the other hand, was sold at US$ 4.09 per kilo with a discount of US cents 92 from Bugisu AA.
Drugar exports were 55% of total Arabica exports compared to 43% the previous month. The share of sustainable Arabica exports to total Arabica exports was 7%.
Coffee Exports by Destination
The destinations of Uganda’s coffee exports during the month of September 2022 show that Italy maintained the highest market share of 39.15% compared with 39.67% last month. It was followed by Sudan 12.86% (10.20%), Germany 11.46% (13.83%), India 6.69% (7.75%) and Morocco 5.97% (3.37%).
Coffee exports to Africa amounted to 120,295 bags, a market share of 24% compared to 93,988 bags (19%) the previous month.
African countries that imported Uganda coffee included Algeria, Sudan, Morocco, Tunisia, South Africa, Somalia, Egypt, Libya and Kenya.
Europe remained the main destination for Uganda’s coffees with a 61% imports share the same as in August 2022.
Global Situation
According to World Markets and Trade report, World coffee production for 2022/23 is forecast to reach 175 million bags which is an increase of 7.8 million bags from the previous year as Brazil’s Arabica crop enters the one year of the biennial production cycle.
The after effect of the Brazilian drought and frost which occurred in the previous year on its 2022/23 harvest though has not been quantified yet.
If the damage is high, global production forecast might be revised downwards. Global consumption is expected to increase 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 higher on gains in Brazil and Indonesia. Ending stocks are expected to be 2.1 million bags higher than last year to be 34.7 million bags following last year’s sharp drawdown (United States Department of Agriculture).
Local Situation
During the month of September 2022, farm gate prices ranged from Shs2,400-3,000/= per kilo of Kiboko (Robusta dry cherries); Shs6,800-7,300/= for FAQ; Shs11,000- 12,000/= for Arabica parchment; and Shs 10,000-11,000/= per kilo for Drugar from Kasese.
Robusta Kiboko averaged UGX 2,700/= per kilo; FAQ UGX 7,050/= per kilo, Arabica parchment UGX 11,500/= per kilo and Drugar UGX 10,500/= per kilo.
Outlook for October
Coffee exports are projected to be 450,000 bags. The main harvesting period season in Greater Masaka and South western regions ended.
It was affected by a dry spell especially in Bukomansimbi and Sembabule districts. Exporters are likely to drawdown their stock levels to fulfil contractual obligations with the buyers as they prepare for the main harvest in Central and Eastern regions.