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Uganda Exports 5.9 Million Coffee Bags Worth $993m in 12 Months

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Uganda Exports 5.9 Million Coffee Bags Worth $993m in 12 Months

by Our Reporter
April 22, 2024
Uganda Exports 5.9 Million Coffee Bags Worth $993m in 12 Months
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VIEWS

Uganda’s Coffee exports in March 2024, amounted to 329,686 60-kilo bags, worth US$ 64.74 million. This comprised of 244,975 bags of Robusta valued at US $ 46.01 million and 84,711 bags of Arabica valued at US$ 18.72 million.

However, this was a decrease of 32.40% and 9.45% in quantity and value respectively compared to the same month last year.

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By comparing the quantity of coffee exported by type in the same month of last year (March 2023), Robusta decreased by 33.03% and 0.24% in quantity and value respectively, and Arabica exports decreased by 30.53% and 26.19% in quantity and value.

According to the Uganda Coffee Development Authority, the monthly coffee export volume was lower than the previous year due to a smaller harvest in the Elgon region coupled with delays in the onset of the harvest season and a shortage of shipping containers.

The authority revealed that for the Coffee exports of a period of twelve months (April 2023-March 2024) totalled 5.90 million bags worth US$ 993.63 million compared to 5.76 million bags worth US$ 849.86 million in the previous year (April 2022-March 2023).

This represented an increase of 2.42% in 16.91% in quantity and value respectively.

For the exports by Type and Grade:

The average export price was US$ 3.27 per kilo, US cents 10 higher than in February 2024 (US$ 3.17). It was 83 US cents higher than in March 2023 (US $ 2.44/kilo).

Robusta exports accounted for 74% of total exports, higher than 68% in February 2024.

The average Robusta price was US$ 3.13 per kilo, 4 cents lower than US$ 3.17 per kilo the previous month. The highest price was for Washed Robusta sold at US$ 4.23 per kilo and it was followed by Screen 17 sold at US$ 3.42 per kilo.

The share of Sustainable/washed coffee to total Robusta exports was 0.46% compared to 2% in February 2024.

Arabica fetched an average price of US$ 3.67 per kilo US cents 8 lower than the previous month. The highest price was Sustainable Arabica Fully washed Sipi Falls at US$ 4.70 per kilo.

It was followed by Wugar sold at US$ 4.54 per kilo. Drugar was sold at US$ 3.54 per kilo, 21 cents lower than 3.75 per kilo last month, and was US cents 48 lower than Bugisu AA.

Drugar exports were 42% of total Arabica exports higher than 39% the previous month. The share of sustainable Arabica exports to total Arabica exports was 15.21% compared to 14.03% in February 2024.

On exporter performance, the top 10 exporters held a market share of 69.74% lower than 72% the previous month reflecting competition at the exporter level.

Out of the 61 exporters who performed, 22 exported Robusta Coffee only while 15 exported Arabica coffee only.

Coffee Exports by Destination

According to the report, Italy maintained the highest market share with 38.08% compared to 37.74% last month.

It was followed by India 12.29% (11.11%), Germany 10.50% (9.08%), Belgium 2.92% (4.31%) and Sudan 4.99% (9.50%). (The figures in brackets represent percentage market share held in February 2024).

The first 10 major destinations of Uganda coffee took a market share of 89.27% compared to 87.23% last month.

Coffee exports to Africa amounted to 33,328 bags, a market share of 10% compared to 60,948 bags (14%) the previous month.

African countries that imported Uganda coffee included Sudan, Morocco, South Africa, Egypt, and Kenya. Europe remained the main destination for Uganda’s coffees with a 66% import share, lower than 64% in February 2024.

Global Situation

World coffee production for 2023/24 is forecast to reach 171.4 million bags, 6.9 million bags higher than the previous year of 164.5 million bags, with higher output in Brazil, Colombia and Ethiopia expected to more than offset reduced production in Indonesia.

Global exports are expected to increase by 8.4 million bags to 119.92 million bags, mainly due to strong shipments from Brazil. Global consumption is forecast at 169.5 million bags, with the largest increase in the European Union, the United States of America and Brazil.

Ending inventories are expected to continue to tighten to a 12-year low of 26.5 million bags. (United States Department of Agriculture, Coffee: World Markets and Trade report- December 2023).

 Local Situation

During the month of March 2024, farm gate prices ranged from Shs 4,800-5,400/= per kilo of Kiboko (Robusta dry cherries); Shs.10,000-11,500/= for FAQ (Fair Average Quality); Sh. 11,000- 12,000/= for Arabica parchment; and Sh. 10,000-11,000/= per kilo for Drugar.

Compared to the previous month, Robusta Kiboko averaged UGX 5,100 per kilo, higher than UGX 4,250 per kilo, FAQ UGX 10,750 per kilo higher than UGX 10,500, Arabica parchment UGX 11,500 per kilo and Drugar UGX 10,500/= per kilo the same as the previous month.

Outlook for April 2024

Coffee exports are projected to be 400,000 60-kilobags. Harvesting of the main crop south of the equator (Masaka and South Western regions) has started. Harvest of the fly crop north of the equator has also started.

Tags: coffee exportsSoftPowerSoftPower NewsUgandaUganda Coffee Development AuthorityUganda News

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