Uganda has recorded a 12.6% and 25.85% increase in coffee quantity and value, respectively.
According to the Uganda Coffee Development Authority (UCDA), Coffee exports in July 2023 amounted to 645,832 60-kilo bags, worth US$ 104.99 million.
This comprised 586,871 bags of Robusta valued at US $ 92.59 million and 58,961 bags of Arabica valued at US$ 12.40 million
This was an increase of 12.16% and 25.85% in quantity and value, respectively compared to the same month last year.
By comparing the quantity of coffee exported by type in the same month of last year (July 2022), Robusta increased by 11.40% and 29.79% in quantity and value respectively, while Arabica exports increased by 20.33% and 2.59% in quantity and value respectively.
The monthly coffee export performance was higher than the previous year which was seen in Robusta exports and was partly on account of a good crop harvest in the South-Western region and the prevailing good prices on the global scene which prompted exporters to release their stocks.
Coffee exports for 12 months (August 2022-July 2023) totaled 5.83 million bags worth US$ 867.50 million compared to 6.13 million bags worth US$ 862.28 million the previous year (August 2021-July 2022).
This represents a decrease of 5% in quantity and a 0.6% increase in value. The decrease was pegged to drought and increasing incidence of pests and diseases in robusta growing areas.
The average export price was US$ 2.71 per kilo, a US cent lower than in June 2023 (US $ 2.68/kilo). It was 30 US cents higher than in July 2022 (US $ 2.41/kilo).
Robusta exports accounted for 91% of total exports higher than 87% in June 2023. The average Robusta price was US$ 2.63 per kilo, 12 cents higher than US$ 2.51 per kilo the previous month.
The highest price was for Washed Robusta sold at US $ 2.99 per kilo, a premium of 19 cents above Screen 18. This was followed by Organic Robusta sold at US$ 2.93 per kilo.
Worth noting are lower fair trade prices offered compared to the Conventional grades.
Furthermore, the share of sustainable/washed coffee to total Robusta exports was 0.63% lower than 1.15% in June 2023.
Arabica fetched an average price of US$ 3.50 per kilo, US cents 25 lower than US$ 3.75 per kilo realized in June 2023.
The highest price was for Mt. Elgon AA sold at US$ 6.15 per kilo. It was followed by Mt. Elgon A+ sold at US$ 5.52 per kilo. Drugar was sold at US$ 3.49 per kilo, a discount of US cents 84 from Bugisu AA.
Drugar exports were 58% of total Arabica exports compared to 60% the previous month.
The share of sustainable Arabica exports to total Arabica exports was 1.24% lower than 7% in June 2023.
Coffee Exports By Destination
Italy maintained the highest market share with 37.80% compared to 37.68% last month. It was followed by Sudan at 18.37% (15.77%), Germany at 10.96% (12.13%), India at 7.51% (7.8,5%), and Morocco at 4.21% (1.67%). (The figures in brackets represent t percentage market share held in June 2023)
The first 10 major destinations of Uganda coffee took a market share of 90.64% compared to 90.13% last month.
Coffee exports to Africa amounted to 157,752 bags, a market share of 24% compared to 1,03,285 bags (18%) the previous month.
African countries that imported Ugandan coffee included; Sudan, Morocco, Algeria, South Africa, Egypt, and Kenya.
Europe remained the main destination for Uganda’s coffees with a 61% import share, lower than 64% in June 2023.
Global Outlook
World coffee production for 2023/24 is forecast to increase by 4.3 million bags from the previous year to 174.3 million due primarily to higher output from Brazil and Vietnam.
Global consumption is forecast at 170.2 million, with the largest gains in the European Union, the United States of America, and Brazil.
World coffee bean exports are forecast to increase by 5.8 million bags to reach 122.2 million bags higher than 116.4 million, fueled by strong shipments from Brazil.
Ending stocks are expected to be 31.8 million. (United States Department of Agriculture, Coffee: World Markets and Trade report-June 2023).
Coffee exports are projected to be 600,000 bags.
