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Uganda coffee exports improve

October 20, 2020
in Business
2 min read
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Uganda coffee exports improve
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The Uganda Coffee Development Authority (UCDA) indicates an increase in Uganda’s Coffee exports for the 12 months (Coffee yr 2019/20) amounted to 5,360,859 60-kilo bags worth US$512.23m approximately Shs1.915Trillion.

The details contained in the September 2020 coffee exports reports highlighted that the 2019 coffee exports rose from 4,439,808 60-kilo bags worth US$433.95m (Shs1.6Trn) recorded in 2018, representing 20.75% &18.04% increase in both quantity & value respectively.

Relatedly, Coffee exports in September 2020 amounted to 506,470 60-
kilo bags worth US$ 44.64 million (Shs166Bn).

This comprised 445,465 bags (US $ 37.25 million) of Robusta and
61,009 bags (US$ 7.39 million) of Arabica, an increase of 39.82% and 28.78% in quantity and value respectively compared to the same month last year.

UCDA attributed the increase in exports to the increased production on account of fruition of the newly planted coffee,
and favorable weather, however, Uganda’s coffee exports performance is being hampered with Logistical issues
such as lack of containers and delays of truck drivers a border posts somewhat affected movement of cargo.

The report further indicated that Kyagalanyi Coffee Ltd maintained the
highest market share with 14.2 % compared to 11.20% last
month.

It was followed by Ugacof (U)Ltd 14.07% (12.39%); Ideal Quality Commodities Ltd 12.00%(12.06%); Olam Uganda Ltd 9.23% (6.77%) Louis Dreyfus Company (U) Ltd 7.29% (7.98%) Touton Uganda Limited 6.46% (5.58%%); and Kawacom (U) Ltd 4.51% (6.76%).

The top 10 exporters held a market share of 78.01% compared to 76.35% the previous month. There were minor changes in positions compared to last month reflecting efficiency of
exporters. Out of the 37 exporters that performed, 20 exported Robusta Coffee only while 4 exported Arabica coffee
only.

Italy maintained the highest market share with 29.49% compared with 29.38% last month. It was followed by Sudan 22.54%, Germany 12.37% Belgium 8.15% and India 7.39%.

Further, Coffee exports to Africa
amounted to 138,196 bags, a market share of 27.29% compared to 156,591 bags (27.23%) the previous month.

African countries with high appetite for Uganda’s coffee included: Sudan, Morocco, Kenya, Algeria, Egypt and South Sudan. Europe remains the main destination for Uganda’s coffees with a 55% imports share.

During the month of September 2020, farm gate prices ranged from Sh.1,800 -2,200 per kilo of Kiboko (Robusta dry
cherries); Shs. 3,900-4,400/= for FAQ; Sh. 5,200-5,700/= for Arabica parchment; and Sh. 5,000-5,500/= per kilo for Drugar from Kasese.

Yet farm prices of Robusta Kiboko averaged Shs 2,000 per kilo;
FAQ Shs 4,150 per kilo, Arabica parchment Shs 5,450/= per
kilo and Drugar Shs 5,250 per kilo.

In the October forecast, UCDA noted that coffee exports are projected to be 400,000 bags as exporters await the main crop from Central and Eastern regions since the main harvesting season south of the Equator ended in
September 2020..

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