Uganda’s coffee exports hit Shs 1 billion mark in one year

KAMPALA, May 15, 2024 - Uganda’s coffee exports for the twelve months [May 2023-April 2024] rose by 3.38 percent to 5.92 million bags, earning the country the much-needed revenue of US$ 1.02 billion compared to US$ 838.81mln earned from 5.73mln bags exported in the previous year [May 2022-April 2023], according to the latest report released by the Uganda Coffee Development Authority [UCDA].

The UCDA Monthly Report- April 2024, says: “The monthly coffee exports volume was higher than the previous year and this was in Robusta as the newly harvested main crop from Masaka and South Western regions begins to reach the market. Arabica exports were however lower than last year due to a smaller harvest in Elgon region.”

Meanwhile, coffee exports in April 2024, totalled 390,977 60-kilo bags, worth US$ 84.80mln. This comprised 290,037 bags of Robusta valued at US$ 61.49mln and 100,940 bags of Arabica valued at US$ 23.31mln. According to UCDA, “This was an increase of 4.84 percent and 41.71 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 [April 2023], Robusta increased by 21.72 percent and 95.85 percent in quantity and value respectively, while Arabica exports decreased by 25.02 percent and 18.05 percent in quantity and value respectively.

Individual exporter performance

The top 10 export companies’ performance in the month of April 2024 shows Olam Uganda Ltd had the highest market share of 9.67 percent compared to 8.64 percent in March 2024. It was followed by Ugacof [U] Ltd 7.86 percent [5.57 percent]; Kyagalanyi Coffee Ltd 7.77 percent [10.21 percent], Ideal Quality Commodities Ltd 7.27 percent [5.69 percent], and Kawacom [U] Ltd 6.95 percent [7.86 percent],

Others are Ibero [U] Ltd 6.09 percent [7.33 percent], Export Trading Company [U] Ltd 6.07 percent [6.45 percent], Louis Dreyfus Company [U] Ltd 5.57 percent [6.81 percent], JKCC General Supplies Ltd 5.47 percent [2.93 percent], and Besmark Coffee Company Limited 5.44 percent [4.01 percent]. UCDA says the figures in brackets represent percentage market share held in March 2024.

The report says the top 10 exporters held a market share of 68 percent lower than 69 percent the previous month reflecting competition at exporter level. Out of the 54 exporters who performed, 16 exported Robusta Coffee only while 12 exported Arabica coffee only.

Uganda’s coffee exports by destination

Regarding the destinations of Uganda’s coffee exports during the month of April 2024, Italy maintained the highest market share with 43.87 percent compared to 38.08 percent last month. It was followed by India 8.08 percent [12.29 percent], U.S.A 7.00 percent [4.08 percent], Germany 6.89 percent [10.50 percent], and Belgium 6.76 percent [7.42 percent].

The first 10 major destinations of Uganda coffee took a market share of 86.93 percent compared to 89.27 percent last month. Coffee exports to Africa amounted to 24,583 bags, a market share of 6 percent compared to 33,328 bags [10 percent] the previous month.

African countries that imported Uganda coffee included Morocco, Sudan South Africa, Kenya, and Egypt. Europe remained the main destination for Uganda’s coffees with a 69 percent import share, higher than 66 percent in March 2024.

Outlook for May 2024

Uganda’s coffee exports are projected to be 450,000 60-kilobags. Harvesting of the main crop south of the equator [Masaka and South Western regions] has started. Meanwhile, harvest of the fly crop North of the equator has also started.

Global situation

World coffee production for 2023/24 is forecast to reach 171.4mln bags, 6.9mln bags higher than the previous year's 164.5mln bags, with higher output in Brazil, Colombia, and Ethiopia expected to more than offset reduced production in Indonesia.

Global exports are expected to increase by 8.4mln bags to 119.92mln bags, mainly due to strong shipments from Brazil.

Global consumption is forecast at 169.5mln bags, with the largest increase in the European Union, the United States of America, and Brazil. Ending inventories are expected to continue to tighten to a 12-year low of 26.5mln bags, according to United States Department of Agriculture, Coffee: World Markets and Trade report December 2023.

https://thecooperator.news/ugandas-coffee-exports-drop-in-february-2024/

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