1. Home
  2. Stories
  3. Agriculture
  4. Coffee Exports

August coffee exports set new 838,000 bags record

Peter 23rd Sep, 2024 Agriculture Pedson Mumbere
August coffee exports set new 838,000 bags record

Dried coffee beans ready for export.


Uganda’s coffee industry soared to new heights in August 2024, earning UGX820 billion from exports, a testament to the country’s increasing prominence in the global coffee market.

According to the Uganda Coffee Development Authority (UCDA), Uganda exported 837,915 bags of coffee worth US$ 221.63 million (about UGX 831 billion), marking the highest number of bags and earnings recorded in a single month.

Emanuel Iyamulyeme, the UCDA Executive Director, emphasized the significance of this milestone: “This is the highest number of bags to be exported in a single month, and it’s also the highest earnings recorded. If exporters continue to release stocks, I project these figures will continue increasing,” he said.

  • The August export volume also surpassed the previous year’s figures, reinforcing Uganda’s position as a leading coffee exporter in Africa.

However, for exporters like Harbert Magyezi, these impressive figures come alongside substantial obstacles. As one of Uganda’s prominent coffee exporters, Magyezi is navigating fluctuating global coffee prices, high production costs, and limited access to financing, while contributing to the country's remarkable growth in coffee exports.

The coffee market is notoriously unstable, with prices shifting due to unpredictable factors such as weather changes, economic conditions, and market demand. Magyezi points out that this volatility makes long-term planning a challenge.

  • “Global prices can change overnight, making it difficult for us to guarantee stable incomes,” he explains. The unpredictability of international coffee prices forces exporters to tread carefully, balancing the risks of holding onto stock or releasing it quickly to take advantage of favorable prices.

Magyezi explains that the prices of fertilizers, labor, and transportation are climbing, squeezing profit margins for both farmers and exporters. “When production costs increase, our profits shrink. We’ve tried to support farmers by sourcing affordable inputs, but the costs are still prohibitive,” Magyezi notes.

Like many other exporters, Magyezi struggles with securing affordable financing. The agriculture sector, especially coffee, is viewed as risky by financial institutions, leaving exporters with limited options for credit. “We need affordable loans to grow our businesses, but many banks are reluctant to lend to us. Without proper financing, expanding operations to meet growing demand becomes extremely difficult,” Magyezi explains.

This financing gap stifles growth potential for many exporters, even as the global demand for Ugandan coffee continues to rise.

Despite these challenges, Uganda’s coffee sector is showing resilience and growth. From September 2023 to August 2024, Uganda exported a total of about 6.4 million bags, generating US$ 1.35 billion in revenue. This marked a 5.25% increase in volume and an impressive 46.96% rise in value compared to the previous year.

  • Iyamulyeme attributes this growth to higher global demand for quality coffee, improved market access, and exporters like Magyezi continuing to contribute to the export volumes.
  • The UCDA report of August 2024 indicates that Europe remains the top destination for Uganda’s coffee, accounting for 73% of exports in August 2024, while the African market share slightly decreased to 12%.

This puts the ongoing establishment of a coffee traceability system as per the European Union Deforestation-free Regulations (EUDR) into sharp focus in order to protect Uganda’s coffee exports to the European Union, ahead of the the January 1, 2025 deadline.

Aimed at protecting forests in coffee-growing countries, the system must register all the coffee value chain players including nursery bed operators, farmers, processors and exporters and farmers to ensure that Uganda is compliant with the EU regulations or risk a ban on Ugandan coffee.

Stakeholders are desperate to ensure compliance as a decline in coffee exports would severely affect the country's economy.

Similar Posts You May Like 

  • Hundreds Tipped on Financial Management

    Hundreds Tipped on Financial Management..

    Hundreds of young people who turned up for season eight of the Men's Business Convention initiative, were tipped on the importance of financial management and record keeping. The three-day training, which was held at Victory Church Ndeeba on Saturday, sought to promote a culture of mentorship among..

  • Younger dairy farmers and increased consumption of UHT milk to spur sector growth

    Younger dairy farmers and increased consumption of UHT milk to spur sector g..

    Uganda's potential and fortunes in the dairy sector can grow significantly if strategies are put in place to attract a younger crop of dairy farmers and with increased investment in long life milk processing and other value added products. Jackline Kittony, the Marketing Director Tetra Pak East A..

  • Optimism as October coffee exports fetch $80 million

    Optimism as October coffee exports fetch $80 million..

    Ugandan coffee exports have continued to show a positive trend with the volume of coffee exported in October amounting to 470,000 sixty-kilogram bags, worth USD 79 million, according to the Uganda Coffee Development Authority...

  • Gov't signs $400m hydrogen fertilizer plant

    Gov't signs $400m hydrogen fertilizer plant ..

    The Government of Uganda has signed a joint agreement with the Aga Khan’s Industrial Promotion Services (IPS) and Westgass International to set up a green hydrogen fertiliser plant in Kiryandongo District. Speaking at the signing ceremony, Energy and Mineral Resources Minister Ruth Nankabirwa, said..

  • Livelihoods at stake as poor regulation threatens Silverfish, Nile Perch

    Livelihoods at stake as poor regulation threatens Silverfish, Nile Perch..

    Amidst the luminous waters of Uganda lies a precious resource that has sustained thousands of livelihoods over the years-silverfish (Rastrineobola argentea), locally known as Mukene. The small pelagic fish is deeply interwoven with the fabric of the nation's fisheries sub-sector...

  • Coffee exports anxiety after UGX32 bn budget cut

    Coffee exports anxiety after UGX32 bn budget cut..

    The Uganda Coffee Development Authority wants Parliament to intervene following the Government's decision not to provide the UGX32.5 billion required for the establishment of a coffee traceability system in order to protect Uganda's coffee exports to the European Union...

  • Coffee export volumes show slump in March

    Coffee export volumes show slump in March..

    In comparison to the previous month, Uganda's coffee exports recorded a significant decrease in March 2024, according to the Uganda Coffee Development Authority report...

  • EU, Denmark offer UGX66 bn to Ugandan farmers

    EU, Denmark offer UGX66 bn to Ugandan farmers..

    The European Union (EU) and Denmark have announced funding amounting to more than UGX66 billion in a bid to boost agricultural productivity and help Ugandan farmers to withstand the challenges associated with climate change...

  • Activists applaud UGX 516 Bn climate allocation

    Activists applaud UGX 516 Bn climate allocation..

    In a decisive move to address the escalating climate crisis, the Government has earmarked UGX 516 billion for climate change mitigation efforts in the next financial year...

  • Optimism amidst Turkey coffee exports surge

    Optimism amidst Turkey coffee exports surge..

    Ugandan coffee exporters have found a new market in Turkey as coffee producers worldwide brace themselves for new European Union regulations that bar coffee products that are sourced from countries that degrade the environment. ..

  • Optimism as July coffee exports top 800,000 bags

    Optimism as July coffee exports top 800,000 bags ..

    Uganda's coffee exports have surged to new heights, signaling a robust boost to the nation’s economy and a promising future for farmers. ..

  • Ranches Finest commended on quality meat exports

    Ranches Finest commended on quality meat exports..

    State Minister for Investment, Evelyne Anite, has commended Ranches Finest for its sustained production and export of high- quality beef products from Uganda to the global market...

  • aBi Trust gives UCDA UGX16 bn boost

    aBi Trust gives UCDA UGX16 bn boost ..

    As Uganda races to comply with the European Union's new sustainability regulations, a major financial commitment, the Agricultural Business Initiative (aBi) has pledged $4.3 million (about UGX16 billion) to support the registration of coffee farmers, a crucial step in meeting the European Union's Re..

  • Gov't bans purchase of uncertified grain products

    Gov't bans purchase of uncertified grain products..

    Government Ministries, Departments, Agencies and institutions will not be permitted to purchase grain from uncertified suppliers, Evelyn Anite, the state minister for Investment and Privatization, has said...

  • Support beef value addition for export market

    Support beef value addition for export market ..

    Uganda’s agricultural sector is experiencing an intense transformation, with the beef industry emerging as a pivotal force in this evolution. ..

  • Local suppliers protest new grain policy

    Local suppliers protest new grain policy..

    The government's decision to tighten grain procurement rules is stirring mixed reactions among suppliers. While the government says the new regulations aim to improve grain quality, some suppliers are concerned that the costs of meeting these new standards could put them out of business...

  • Museveni commissions Royal Milk factory

    Museveni commissions Royal Milk factory ..

    Speaking at the commissioning of Royal Milk factory at Nalukolongo Industrial Park in Kampala recently, the President urged the proprietors to ensure value addition into powder milk for the lucrative export market...

  • Government announces tough export rules to China

    Government announces tough export rules to China..

    The government has introduced stringent regulations that prospective Ugandan exporters must follow if their agricultural products are to be accepted in the lucrative Chinese market...

  • Uganda, South Sudan moot joint dam projects

    Uganda, South Sudan moot joint dam projects..

    Pal Mai Deng, the South Sudanese minister of Water Resources and Irrigation, has submitted a memo to the Council of Ministers, aimed at implementing the Nyimur multi-purpose water and resource development project, a joint trans-boundary initiative aimed at providing water for irrigation and a power ..

  • 2024 coffee year earnings hit $1.4 bn record

    2024 coffee year earnings hit $1.4 bn record..

    Uganda’s coffee sector has achieved a historic milestone, with export earnings reaching an unprecedented US$1.4 billion from 6.35 million 60-kg bags in the 2023/24 coffee year, which concluded on September 30. ..

Most Recent

Popular Links