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Optimism as October coffee exports fetch $80 million

mediagepr.com 30th Nov, 2023 Agriculture PPU
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.

Robusta continues to form the bulk of our coffee exports, with about 410,000 bags valued at USD67 million. This was an increase of 3% and 18% in quantity and value respectively, compared to the same period last year.

The report shows that the monthly coffee exports performance was higher than that of the previous year on account of a good crop harvest in the South-Western region and the prevailing good prices on the global scene, which prompted exporters to release their stocks.

  • Cumulatively, coffee exports for the 12 months from November 2022 - October 2023 totaled 6.16 million bags worth USD952 million compared to 5.83 million bags worth USD883 million in the previous year (November 2021-October 2022).

This represents an increase of 6% and 8% in quantity and value respectively. Among the coffee exporting companies, Kyagalanyi Coffee had the highest market share, doubling to 16% up from 7% in September 2023. It was followed by Louis Dreyfus Company 14%, Ugacof (10%); Ideal Quality Commodities (9%), and Olam Uganda Ltd (7%) to complete the list of the top five exporters.

The top ten coffee exporters held a market share of 82%, up from 80% the previous month. This reflects increasing concentration, according to UCDA, adding that changes in exporter positions compared to last month show competition at this level.

  • UCDA projects that coffee exports would reach 500,000 bags in November with the main harvesting season already underway in Central and Eastern regions. Out of the 50 exporters, 22 exported Robusta Coffee only while nine exported Arabica coffee only.

In regard to the destinations of Uganda’s coffee exports, Italy maintained the highest market share with almost 30%, slightly lower than to 35% the previous month. It was followed by Germany 17% down from 22%, Spain 9% down from 4%), India 7% and Algeria 6%.

Coffee exports to fellow African countries saw a slight increase to 90,000 bags and a market share of 19% compared to 105,000 bags (18% market share) the previous month. The top African importers of Ugandan coffee included Sudan, Morocco, Algeria, Tunisia, South Africa, Egypt, and Kenya. Europe remained the main destination for Uganda’s coffees with a 68% imports share, but slightly lower than the 70% the previous month.

At the global level, the report shows that total world coffee production for 2023/2024 is forecast to top 174 million bags, some 4.3 million bags higher than the previous year.

Exports to the global market are expected to increase by six million bags to a record 122.2 million bags, higher than 116.4 million bags the previous year, primarily on strong shipments from Brazil.

  • Global coffee consumption is forecast at 170.2 million bags, with the largest increase happening in the European Union, the US and Brazil.
  • Record figures: Since the 1960s, the coffee year 2016/2017 was Uganda’s best year for coffee exports when some 4.6 million bags were exported. This enabled Uganda to scale the half a billion dollar mark for the first time, with a value of $545 million.

Uganda’s national record for coffee exports to date stands at 5.4 million bags, which was set in the 2020/2021 coffee year.

However, 2021/2022 was our best year for foreign exchange earnings from coffee when a national record of about $877 million worth of exports was set.

Uganda remains Africa’s second largest producer of coffee behind Ethiopia. South American giant Brazil ($5.7 billion value of exports) has maintained its place as the world’s leading coffee producer, followed by Vietnam ($1.8 billion).

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