Uganda’s coffee exports in September fetch Shs 535.4 billion

KAMPALA, October 15, 2024 – Coffee exports in September 2024 amounted to 532,212 60-kilo bags, valued at US$ 144.7 million [approximately Shs 535.4 billion], according to the latest report from the Uganda Coffee Development Authority [UCDA].

“This represents a 7.67 percent decrease in quantity but a 53.79 percent increase in value compared to the same month last year,” states the UCDA Coffee Market Report for September 2024.

The exports consisted of 504,576 bags of Robusta, valued at US$ 137.19 million, and 27,636 bags of Arabica, valued at US$ 7.51 million.

When comparing the quantity of coffee exported by type to the same month last year, the report indicates that Robusta exports decreased by 17.02 percent in quantity but increased by 56.26 percent in value. In contrast, Arabica exports fell by 18.02 percent in quantity while rising by 19.36 percent in value.

“The monthly coffee export volume was lower than the previous year, particularly in Arabica, due to its biannual off-year cycle and poor flowering in the Mt. Elgon region,” the report notes.

The increased value of coffee exports is attributed to rising global coffee prices, driven by dry conditions in Brazil and Vietnam—two of the world’s largest producers of Arabica and Robusta coffee, respectively—which are expected to affect crop yields and lead to a potential supply deficit in 2024/2025.

For the twelve months of the coffee year 2023/2024, Uganda’s coffee exports totaled 6.35 million bags worth US$ 1.4 billion (approximately Shs 5.1 trillion), compared to 6.14 million bags valued at US$ 940.1 million in the previous year (2022/2023). This reflects an increase of 3.42 percent in quantity and 48.97 percent in value.

Outlook for October 2024

Coffee exports are projected to reach 500,000 60-kilo bags. With the main harvesting season in the Greater Masaka and South-Western regions having ended, exporters will begin drawing down on their stocks to meet contractual obligations with buyers. The primary harvest season north of the equator is about to start.

World coffee production for 2024/25 is forecast to increase by 7.1 million bags from the previous year, reaching 176.2 million, primarily due to continued recovery in Brazil and a rebound in output from Indonesia. Global exports are expected to rise by 3.6 million bags to 123.1 million, driven by strong shipments from Indonesia and Brazil.

Consumption is projected to increase by 3.1 million bags to 170.6 million, while ending stocks are anticipated to rise by 1.9 million bags to 25.8 million after three years of decline.

https://thecooperator.news/new-entity-to-oversee-ugandas-coffee-and-dairy-sectors/

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