Uganda’s Coffee Exports Increase by 3% Despite Drought

Uganda’s Coffee exports for the financial year 2021/22 rose to 6.26 million bags worth US$ 862.28 million compared to 6.08 million bags worth US$ 559.16 million the previous year (Financial year 2020/21).

This represents an increase of 3% and 54% in both quantity and value respectively, according to the Uganda Coffee Development Authority Report.

According to the report, Uganda’s coffee exports for the month of June amounted to 530,365 60-kilo bags valued at US$ 83.79 million.

This comprised 444,197 bags of Robusta valued at US $60.98 million and 86,168 bags of Arabica valued at US$22.82.

However, this was a decrease of 14% in quantity but an increase of 43% in value compared to the same month last year.

Farm-gate prices for Robusta Kiboko averaged UGX 2,600 per kilo; FAQ UGX 6,450 per kilo, Arabica parchment UGX 10,500 per kilo and Drugar UGX 9,500 per kilo.

Robusta exports accounted for 84% of total exports higher than 77% in May 2022.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (June 2021), Robusta decreased by 21.44% in quantity but increased by 21.37% in value.

The decrease in Robusta 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 reduced harvests from Greater Masaka and South- Western regions whose peak is expected in July 2022.

Arabica exports increased by 62.77% and 174.46% in quantity and value respectively, due to an on-year cycle characteristic of Arabica coffee production.

According to the report, Arabica fetched an average price of US$ 4.41 per kilo.

Okoro CP/B from West Nile sold at the highest price of US$ 7.23 per kilo.

Ten exporters out of 55 companies which performed during June exported 74% of the total volume.

Italy maintained the highest market share of 40.25% followed by Germany 11.34%, Sudan 10.35% (10.74%) India 7.42% (7.27%) and Morocco 4.82% (1.95%).

Coffee exports to Africa amounted to 109,506 bags, a market share of 21% compared to 70,782 bags (16%) the previous month.

According to UCDA, Coffee exports for July are projected to be 600,000 bags.