Uganda has recorded the highest coffee exports ever with 743,517 60-kilo bags worth US$ 121.64 million, in August 2023, according to the Uganda Coffee Development Authority.
“A total of 743,517 60-kilo bags of coffee valued at US$ 121.64 million were exported in August 2023 at an average price of US$ 2.73/kilo US cent 2 higher compared to July 2023 (US $ 2.71/kilo), and US cents 36 higher than US$ 2.41/kilo in August 2022.,” UCDA noted.
This comprised 689,261 bags of Robusta valued at US $ 111.41 million and 54,256 bags of Arabica valued at US 10.22 million, This was an increase of 48.19% and 70.73% 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 the last Coffee Year (August 2022), Robusta increased by 50.95% and 84.76% in quantity and value respectively, while Arabica exports increased by 20.29% in quantity but a 6.61% reduction in value.
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 (September 2022-August 2023) totalled 6.08 million bags worth US$ 918.76 million compared to 5.94 million bags worth US$ 872.00 million the previous year (September 2021-August 2023).
This represents an increase of 5% and 2% increase in quantity and value respectively.
Exports by Type and Grade
The average export price was US$ 2.73 per kilo, 2 US cents higher than in July 2023 (US $ 2.71/kilo). It was 36 US cents higher than in August 2022 (US $ 2.37/kilo).
Robusta exports accounted for 93% of total exports higher than 91% in July 2023. The average Robusta price was US$ 2.69 per kilo, 6 cents higher than US$ 2.63 per kilo the previous month.
The highest price was for Screen 14 sold at US $ 2.96 per kilo, and it was followed by Organic Robusta sold at US$ 2.95 per kilo. Washed Robusta was sold at US$ 2.84 per dollar, 3 cents higher than conventional Screen.
The share of Sustainable/washed coffee to total Robusta exports was 0.54% compared to 0.63% in July 2023. Arabica fetched an average price of US$ 3.14 per kilo compared to 3.50 per kilo last month, US cents 25 lower than US$ 3.75 per kilo realized in July 2023.
The highest price was Bugisu A+ sold at US$ 5.37 per kilo. It was followed by Bugisu CPB sold at US$ 4.74 per kilo. Drugar was sold at US$ 3.35 per kilo, 14 cents lower than 3.49 per kilo last month.
This price was US cents 46 from Bugisu AA. Drugar exports were 48% of total Arabica exports compared to 58% the previous month. The share of sustainable Arabica exports to total Arabica exports was 6.64% compared to only 1.24% in July 2023:
Destination of Uganda’s Coffee
Italy maintained the highest market share with 30.27% compared to 37.68% last month. It was followed by Sudan at 22.11% (18.37%), Germany at 11.00% (10.96%), India at 9.59% (7.51%) and Algeria at 4.86% (1.42%).
The first 10 major destinations of Uganda coffee took a market share of 90.35% compared to 90.64% last month. Coffee exports to Africa amounted to 225,141 bags, a market share of 30% compared to 157,752 bags (24%) the previous month.
African countries that imported Uganda coffee included Sudan, Morocco, Algeria, South Africa, Egypt, and Kenya. Europe remained the main destination for Uganda’s coffees with a 53% import share, lower than 61% in July 2023.
Global Market
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).
Local Market
During the month of August 2023, farm gate prices ranged from Sh.3,800-4,500/= per kilo of Kiboko (Robusta dry cherries); Shs. 7,700-8,300/= for FAQ (Fair Average Quality); Sh. 9,000- 10,000/= for Arabica parchment; and Sh. 8,000- 8,500/= per kilo for Drugar from Kasese.
Robusta Kiboko averaged UGX 4,150 per kilo; FAQ UGX 8,000 per kilo same as the previous month, Arabica parchment UGX 9,500 per kilo lower than 10,250 per kilo last month and Drugar UGX 8,250/= per kilo lower than 9,250/= per kilo last month.
