Uganda’s February 2023 coffee exports up 6.3 percent

KAMPALA – Uganda increased its coffee exports by about 6.3 percent to 478,646 60-kilo bags in February 2023, Uganda Coffee Development Authority [UCDA] says in its latest report.

According to UCDA, coffee exports during the month under review earned the country US$66 million, though this was a decline of about 8.8 percent when compared to the same month last year.

“Despite most regions experiencing drought in most regions, monthly coffee exports performance was higher than the previous year,” says UCDA.

UCDA adds the increase in the February 2022 coffee exports was mainly driven by exporters who offloaded coffee from their warehouses as the global Robusta market started correcting upwards on account of reduced global supplies from major origins, Vietnam and Brazil.

“Arabica exports were higher compared to the same month last year in spite of being an off-year of the biennial cycle characteristic of Arabica coffee.”

Outlook for March 2023

UCDA projects coffee exports to be 458,000 bags in March 2023 when the main harvesting season in central and eastern regions, which started in October, will be at its tail end. “Exporters are likely to continue to draw down on their stocks to fulfil contractual obligations with buyers abroad.”

Meanwhile, Uganda’s coffee exports for 12 months [March 2022-February 2023] totaled 5.75mln bags worth US$ 858.98mln compared to 6.61mln bags worth US$ 762.75mln the previous year [March 2021-February 2022]. “This represents a decrease of 13 percent in quantity but an increase of 13 percent in value.”

Global Situation

World coffee production for 2022/23 is forecast to rebound 6.6mln bags from the previous year to 172.8mln due primarily to Brazil’s Arabica crop entering the on-year of the biennial production cycle, says International Coffee Organisation [ICO].

Global consumption is expected to rise by 800,000 bags to 167.9mln, with the largest gains in the European Union, the United States of America, and Brazil.

World coffee bean exports are forecast 3mln bags lower to 116.1mln as losses in Brazil, Vietnam, and India more than offset gains in Honduras and Colombia. Ending stocks are expected 1.5mln bags higher to 34.1mln, according to United States Department of Agriculture, and Coffee: World Markets and Trade report.

https://thecooperator.news/global-coffee-exports-down-15-percent-in-january-2023/

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