Africa’s exports fell 11.9 percent in August 2022, Uganda is the reason why

KAMPALA-Exports of all forms of coffee from Africa dropped by 11.9 percent to 1.24 million bags in August 2022 from 1.4mln bags sold in August 2021, according to International Coffee Organisation [ICO], which attributes the decline to Uganda.

For the first 11 months of the current coffee year, Africa’s coffee exports totalled 12.48mln bags as compared with 15.44mln bags in coffee year 2020/21.

ICO in its latest Coffee Market Report for September attributed the downturn for the region in August to Uganda, with its exports falling by 28.5 percent to 0.5mln bags as compared to 0.7mln bags in August 2021.

The cumulative total for coffee year 2021/22 to August 2022 is also down, decreasing by 23 percent to 5.35mln bags from 6.94mln bags in the same period a year ago.

The ICO report adds:  “The decrease in exports was mainly due to the impact of drought in most of the coffee growing regions, which led to a lower and shorter main harvest season in central and eastern parts of Uganda, and hence lower output.”

Uganda is the largest export of coffee in Africa. Ethiopia, the continent’s biggest producer of the crop consumes it domestically.

Global curve

Global exports of green beans in August 2022 totalled 8.83mln bags, compared with 9.17mln bags in the same month of the previous year, down 3.7 percent.

“The downturn was spread across all groups of coffee, with the exception of the Brazilian Naturals, which saw a 7.1 percent increase in August 2022 as compared with the same month a year ago,” says ICO.

Soluble coffee exports

Meanwhile, total exports of soluble coffee increased by 13.2 percent in August 2022 to 0.98mln bags from 0.87mln bags in August 2021.

In the first 11 months of coffee year 2021/22, a total of 11.06mln bags of soluble coffee were exported, representing an increase of 6.3 percent from the 10.4mln bags exported in the same period during the previous coffee year.

“The share of soluble coffee of the total exports of all forms of coffee was 9.3 percent [measured on a moving 12- month average] in August 2022.”

ICO notes that Brazil is the largest exporter of soluble coffee, shipping 3.58mln bags in the first 11 months of coffee year 2021/22, followed by India with 2.0mln bags, with Indonesia in third place at 1.53mln bags exported over the same period.

South America

In October 2021 to August 2022, South America’s exports of all forms of coffee decreased by 23.3 to 50.46mln bags.

Brazil and Colombia are the reasons for the large drop in exports. During this period, shipments from Brazil declined by 27.2 percent to 34.74mln bags from 47.4mln bags in October-August 2020/21.

Exports from Colombia were down 18.7 percent in the first 11 months of coffee year 2021/22 at 11.17mln bags, from 13.74mln bags in the same period a year ago

Asia and Oceania

Exports of all forms of coffee from Asia and Oceania increased by 2.7 percent to 3.25mln bags in August 2022, but were down 1.5 percent to 40.86mln bags in the first 11 months of coffee year 2021/22.

“Indonesia was the origin behind the uptick for August, with its exports growing by 20.1% to 0.65 million bags from 0.54 million bags in August 2021. However, the country is also the main reason behind the negative cumulative growth of the region for the season so far,” says ICO.

 Mexico and Central America

In August 2022, exports of all forms of coffee from Mexico & Central America were down 7.4 percent to 1.19mln bags as compared with 1.29mln in August 2021.

The region’s sharp downturn in August was due Guatemala and Honduras, down 27.8 percent and 41.3 percent, respectively, says ICO.

Global production and consumption

The provisional outlook for total production in coffee year 2021/22 remains unchanged at 167.2mln bags, a 2.1 percent decrease as compared to 170.83mln bags in the previous coffee year. World coffee consumption is projected to grow by 3.3 percent to 170.3mln 60-kg bags in 2021/22 as compared to 164.9mln for coffee year 2020/21. In 2021/22, consumption is expected to exceed production by 3.1mln bags.

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