Uganda’s annual coffee exports hit Shs 5 trillion

KAMPALA, September 23, 2024 — Coffee exports for twelve months [September 2023- August 2024] were 6.39 million bags worth US$ 1.35 billion [ about Shs 5 trillion] compared to 6.08mln bags worth US$ 918.41mln in the previous year [September 2022- August 2023], according to Uganda Coffee Development Authority [UCDA].

The UCDA in its latest monthly report says the annual figures represent an increase of 5.25 percent and 46.96 percent in quantity and value respectively. “75 percent of the total volume was exported by 10 exporters, out of 66 companies which performed during the month compared to 69 percent in June 2024,” says UCDA. “Sustainable Arabica fetched the highest price at US $ 5.58 per kilo.”

Meanwhile, the country’s coffee exports in August 2024, amounted to 837,915 60-kilo bags, worth US$ 221.63mln. “This comprised of 785,667 bags of Robusta valued at US$ 208.14mln and 52,248 bags of Arabica valued at US$ 13.49mln,” says UCDA. “This was an increase of 13.15 percent and 82.98 percent in quantity and value respectively compared to the same month last year.”

By comparing quantity of coffee exported by type in the same month of last year [August 2023], Robusta increased by 14.33 percent and 87.38 percent in quantity and value respectively, while Arabica exports decreased by 2.01 percent in quantity and increased by 34.33 percent in value, says UCDA.

“Robusta exports were higher as exporters continue to release the stocks. Arabica exports were lower than the previous year due to a smaller harvest in Elgon region due to the bi-annual off-year cycle coupled with poor flowering in the region,” says UCDA.

UCDA says the value of coffee exports was higher as global coffee prices continue to rise as dry conditions in Brazil and Vietnam are seen to affect coffee crop yields and, therefore, a likelihood of supply deficit in 2024/25.

The destination curve of Uganda’s coffee exports during August 2024 shows Italy maintaining the highest market share with 35.37 percent compared to 40.68 percent last month. It was followed by Germany at 20.83 percent compared to 15.75 percent in July.

India followed with 7.08 in August compared to 5.26 percent in July, Sudan’s imports were 5.43 percent in August compared to 5.41 percent in July while the Netherlands had 4.94 percent of the imports in August compared to 4.14 percent in July.

The first 10 major destinations of Uganda coffee exported in August took a market share of 89.17 percent compared to 88.97 percent last month. Coffee exports to African countries totaled 101,562 bags, a market share of 12 percent compared to 112,713 bags [14 percent] the previous month.

African countries that imported Uganda coffee included Sudan, Morocco, Algeria, Egypt, Tunisia, Senegal Kenya, and South Africa. Europe remained the main destination for Uganda’s coffees with a 73 percent import share, higher than 72 percent in July 2024.

The UCDA projects coffee exports for September 2024 to be 700,000 60-kilobags as exporters continue to release stocks.

https://thecooperator.news/lango-farmers-advised-to-transition-to-coffee-growing/

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