Global coffee exports decline, as Uganda takes blame for Africa’s low figures

KAMPALA – Global exports of green beans of coffee in February 2022 declined, totaling 9.88 million (mln) bags, compared with 10.24 mln bags exported in the same month of the previous year, the International Coffee Organization (ICO) says in its latest report for March 2022.

ICO, which globally tracks the coffee business, says exports reached 47.18 mln bags in the first five months of coffee year 2021/22, a decrease of 3 percent as compared with 48.65 mln bags for the same period in coffee year 2020/21.

“A decrease in shipments of Brazilian Naturals is the main reason behind the drop in global exports of green beans, with that country’s shipments falling by 7 percent in February 2022 to 3.35 mln bags, from 3.60 mln bags in February 2021, and by 15.7 percent over the first five months of coffee year 2021/22, which were 16.20 mln bags, compared to 19.21 mln bags in the same period a year ago.”

Specifically, the underlying reason for the fall lies with Brazil, which is still dealing container and shipping problems along with a smaller crop harvested during its Arabica “off-season”. Colombian Milds also contributed towards the fall in the global exports of green beans, decreasing by 19.6 percent to 1.06 mln bags from 1.32 mln bags over February 2022 to February 2021, and by 12.7 percent to 5.41 mln bags in October-February 2022/21 from 6.20 mln bags in October-February 2020/21.

Africa

ICO says exports from Africa decreased by 11.9 percent to 975,000 bags in February 2022 from 1.11 mln bags in February 2021. “For the first five months of the current coffee year, exports totalled 5.01 mln bags as compared with 5.05 mln bags in coffee year 2020/21.”

Uganda was the reason why Africa’s exports dropped in the period under review. “Uganda is the main reason for the region’s sharp drop in the February exports, which is attributed to lower production stemming from droughts in some parts of the coffee-growing regions of the country,” says ICO in its report.

In February, ICO says, Uganda, Africa’s biggest exporter of coffee, had its exports fell by 20.2 percent to 449,000 bags as compared with 563,000 bags in February 2021.

However, for the five months of coffee year 2021/22, exports are still growing, increasing to 2.4 mln bags as compared with 2.29 mln bags over the same period a year ago, ICO says of Uganda which left ICO membership not long ago.

Africa’s biggest producer of coffee, Ethiopia had exports fell marginally in February 2022, down to 160,000 bags from 163,000 bags in February 2021. “However, for the first five months of coffee year 2021/22, its exports are up 24.6 percent: 1.12 mln bags versus 0.96 mln bags.”

In contrast, exports of Tanzania increased by 26.3 percent in February 2021 to 127,000 bags from 100,000 bags in February 2021, while falling for the first five months of the current coffee year, down 5.1% to 530,000 bags from 558,000 bags in October February 2020/21.

The latest provisional outlook for total production in coffee year 2021/22 remains unchanged at 167.2 million bags, a 2.1 percent decrease as compared to 170.83 mln bags of the previous coffee year. Meanwhile, ICO projects world coffee consumption to grow by 3.3 percent, to 170.3 mln 60-kg bags in 2021/22 as compared to 164.9 mln for coffee year 2020/21.

“In 2021/22, consumption is expected to exceed production by 3.1 mln bags. Supply and demand trends may be affected by variations due to the downturn in the world economy, increased cost of inputs and production as well import and consumption due to the conflict in Ukraine.”

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