Women at Heritage Kanaani Farms sorting and drying coffee. Uganda is increasingly earning big from coffee/Business Focus photo
The Uganda Coffee Development Authority (UCDA) has revealed that Uganda’s Coffee exports in July 2023 amounted to 645,832 60-kilo bags, worth US$ 104.99 million (Shs408.118Bn), compared to 563,832 60-kilo bags, worth US$ 90.56 million (Shs338.803Bn) recorded in June 2023.
According to UCDA, the coffee exports in July comprised of 586,871 bags of Robusta valued at US $ 92.59 million 346.461 and 58,961 bags of Arabica valued at US$ 12.40 million.
“This was an increase of 12.16% and 25.85% 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 Coffee Year (July 2022), Robusta increased by 11.40% and 29.79% in quantity and value respectively, while Arabica exports increased by 20.33% and 2.59% in quantity and value respectively. The monthly coffee exports performance was higher than the previous year which was seen in Robusta exports and was partly on account of a good crop harvest in South-Western region and the prevailing good prices on the global scene which prompted exporters to release their stocks,” the report says.
It adds that coffee exports for 12 months (August 2022-July 2023) totaled 5.83 million bags worth US$ 867.50 million compared to 6.13 million bags worth US$ 862.28 million the previous year (August 2021-July 2022).
“This represents a decrease of 5% in quantity and 0.6% increase in value. The decrease was pegged on a drought and increasing incidence of pests and diseases in Robusta growing areas,” the report says.
Exports by Type and Grade
The average export price was US$ 2.71 per kilo, US cent higher lower than in June 2023 (US $ 2.68/kilo). It was 30 US cents higher than in July 2022 (US $ 2.41/kilo).
According to the report, Robusta exports accounted for 91% of total exports higher than 87% in June 2023. The average Robusta price was US$ 2.63 per kilo, 12 cents higher than US$ 2.51 per kilo the previous month.
The highest price was for Washed Robusta sold at US $ 2.99 per kilo, a premium of 19 cents above Screen 18. This was followed by Organic Robusta sold at US$ 2.93 per kilo.
The share of Sustainable/washed coffee to total Robusta exports was 0.63% lower than 1.15% in June 2023.
“Arabica fetched an average price of US$ 3.50 per kilo, US cents 25 lower than US$ 3.75 per kilo realized in June 2023. The highest price was for Mt. Elgon AA sold at US$ 6.15 per kilo. It was followed by Mt. Elgon A+ sold at US$ 5.52 per kilo. Drugar was sold at US$ 3.49 per kilo, a discount of US cents 84 from Bugisu AA. Drugar exports were 58% of total Arabica exports compared to 60% the previous month,” the report says, adding that the share of sustainable Arabica exports to total Arabica exports was 1.24% lower than 7% in June 2023.
Individual Exporter Performance
Ugacof (U) Ltd had the highest market share of 14.35% compared to 15.77% in July 2023. It was followed by Olam Uganda Ltd 9.33% (9.54%); Ideal Quality Commodities Ltd 7.78% (10.30%); Louis Dreyfus Company (U) Ltd 7.55% (8.22%); Kyagalanyi Coffee Ltd 7.11% (6.12%), Touton Uganda Limited 6.90% (5.96%); Kawacom (U)Ltd 6.33% (5.17%); JBER Coffee Ltd 4.34% (5.03%); Ibero (U)Ltd 4.27% (3.88%); and Besmark Coffee Company Limited 3.60% (2.59%).
Importantly, the figures in brackets represent percentage market share held in June 2023.
The top 10 exporters held a market share of 72% higher that 71% the previous month reflecting increasing competition.
“Changes in exporter positions compared to last month show competition at this level. Out of the 53 exporters that performed, 32 exported Robusta Coffee only while 6 exported Arabica coffee only,” the report says.
Coffee Exports By Destination
Italy maintained the highest market share with 37.80% compared to 37.68% last month. It was followed by Sudan 18.37% (15.77%), Germany 10.96% (12.13%), India 7.51% (7.85%) and Morocco 4.21% (1.67%).
Note: The figures in brackets represent percentage market share held in June 2023.
The first 10 major destinations of Uganda coffee took a market share of 90.64% compared to 90.13% last month.
According to the report, Coffee exports to Africa amounted to 157,752 bags, a market share of 24% compared to 1,03,285 bags (18%) the previous month.
African countries that imported Uganda coffee included Sudan, Morocco, Algeria, South Africa, Egypt, and Kenya.
Europe remained the main destination for Uganda’s coffees with a 61% imports share, lower than 64% in June 2023.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 62% of total exports, lower than 64% the previous month. Sucafina led with a market share of 14.51% compared to 13.95% in June 2023. It was followed by Olam International 9.69% (10.28%); Louis Dreyfus 7.43% (8.16%); Touton SA 7.05% (5.96%); Ecom Agro Industrialist 6.80% (5.40%); Bernhard Rothfos 4.22% (3.88%); Hafco Trading 3.36%; Volcafe 3.09% (3.12%); Altasheal Import and Export Enterprises 3.03% (4.40%); Icona Cafe 2.50% (2.26%).
Note: The figures in brackets represent percentage performance in the previous month –June 2023.
There were changes in the relative positions of the first 10 major buyers reflecting continued demand for Uganda coffee abroad.
Global Situation
World coffee production for 2023/24 is forecast to increase by 4.3 million bags from the previous year to 174.3 million due primarily to higher output from Brazil and Vietnam. Global consumption is forecast at 170.2 million, with the largest gains in the European Union, the United States of America and Brazil. World coffee bean exports are forecast to increase by 5.8 million bags to reach 122.2 million bags higher than 116.4 million, fueled by strong shipments from Brazil. Ending stocks are expected to be 31.8 million. (United States Department of Agriculture, Coffee: World Markets and Trade report-June 2023).
Local Situation
According to UCDA, during the month of July 2023, farm gate prices ranged from Sh.3,800-4,200/= per kilo of Kiboko (Robusta dry cherries); Shs. 7,800-8,200/= for FAQ (Fair Average Quality); Sh. 10,000- 10,500/= for Arabica parchment; and Sh. 9,000- 9,500/= per kilo for Drugar from Kasese. Robusta Kiboko averaged UGX 4,000 per kilo; FAQ UGX 8,000 per kilo, Arabica parchment UGX 10,250 per kilo and Drugar UGX 9,250/= per kilo
