Coffee remains Uganda’s leading cash crop and a top foreign exchange earner
Uganda’s coffee exports for the twelve months (Calendar year 2023) totaled 6.12 million bags worth US$ 965.14 million (UShs3.67 Trillion) compared to 5.63 million bags worth US$ 860.45 million in the previous period (Calendar year 2022).
The revelation is contained in the Uganda Coffee Development Authority (UCDA) Monthly Report for December 2023.
This represents an increase of 12.17% and 8.58% in quantity and value respectively.
According to UCDA, Uganda’s coffee exports in December 2023, amounted to 401,336 60-kilo bags, worth US$ 65.94 (Shs251.1bn) million.
This comprised 337,026 bags of Robusta valued at US $ 52.84 million and 64,310 bags of Arabica valued at US$ 13.10 million. This was a decrease of 4.17% in quantity and an increase of 10.76% in value compared to the same month last year.
By comparing quantity of coffee exported by type in the same month of last Coffee Year (December 2022), Robusta increased by 1.68% and 30.32 in quantity and value respectively, while Arabica exports decreased by 26.38% and 31.02 in quantity in quantity and value respectively.
UCDA says the monthly coffee exports performance was lower than the previous year and this was partly on account of the harvest season that has delayed due to the rains that also delayed drying of the newly harvested coffee and a small harvest in Elgon region.
Exports by Type and Grade
The average export price was US$ 2.74 per kilo, US cents 3 lower than in November 2023 (US$ 2.80). It was 37 US cents higher than in December 2022 (US $ 2.37/kilo). Robusta exports accounted for 84% of total exports, lower than 80% in November 2023. The average Robusta price was US$ 2.61 per kilo, 1 cent lower than US$ 2.62 per kilo the previous month.
The highest price was Washed Robusta sold at US$ 2.86 per kilo and it was followed by Screen 18 sold at US$ 2.83 per kilo.
The share of Sustainable/washed coffee to total Robusta exports was 1.15% compared to 3.51% in November 2023.
Arabica fetched an average price of US$ 3.39 per kilo US cents 3 higher than the previous month.
The highest price was Sustainable Arabica sold at US$ 4.66 per kilo. It was followed by Bugisu C sold at US$ 4.23 per kilo. Drugar was sold at US$ 3.23 per kilo, 8 cents lower than 3.31 per kilo last month, which was US cents 33 lower than Bugisu AA.
Drugar exports were 43% of total Arabica exports lower than 52% the previous month.
The share of sustainable Arabica exports to total Arabica exports was 11.73% compared to 7.05 in November 2023.
Individual Exporter Performance
Louis Dreyfus Company (U) Ltd had the highest market share of 11.56% compared to 10.49 % in November 2023. It was followed by Ugacof (U)Ltd 9.01% (7.09%); Olam Uganda Ltd 8.97% (8.11%); Ideal Quality Commodities Ltd 7.92% (9.25%), Ibero (U) Ltd 7.08% (8.92%); Kyagalanyi Coffee Ltd 6.56% (14.22%); Kawacom (U) Ltd 6.25% (4.24%); JKCC General Suppliies Ltd 5.57% (2.90%), Export Trading Company (U) Ltd 4.58% (4.06%); and Besmark Coffee Company Limited 4.19% (5.28%).
It’s important to note that the figures in brackets represent percentage market share held in November 2023.
The top 10 exporters held a market share of 72% lower than 76% the previous month reflecting reducing concentration at exporter level. Changes in positions compared to last month show competition at this level. Out of the 49 exporters who performed, 24 exported Robusta Coffee only while 7 exported Arabica coffee only.
Coffee Exports By Destination
Italy maintained the highest market share with 39.45% compared to 27.68 % last month. It was followed by India 12.05% (7.59%), Germany 11.47% (20.50%), Morocco 6.12% (2.86%) and Spain 5.96% (5.53%).
Note: The figures in brackets represent percentage market share held in November 2023.
The first 10 major destinations of Uganda coffee took a market share of 92.25% compared to 86.72% last month.
Coffee exports to Africa amounted to 56,253 bags, a market share of 14% compared to 69,2882 bags (16%) 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 67% imports share, slightly lower than 68% in November 2023.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 65% of total exports,
lower than 62% the previous month. Louis Dreyfus led with a market share of 11.80% compared to 10.49% in November 2023. It was followed by Sucafina 9.47% (7.98%); Olam International 8.97% (8.11%); Eurocaf srl 7.05% (1.02%); Bernhard Rothfos 7.00% (9.62%); Ecom Agro Industrialist 5.35% (2.16%); Touton SA 4.53%; (1.92%); Volcafe 3.94% (5.24%); Hamburg Coffee 3.40% (17.76%); and Koninklijke Douwe 3.05% (1.17%).
Note: The figures in brackets represent percentage performance in the previous month –November 2023.
Just like in previous months, there were changes in the relative
positions of the first 10 major buyers reflecting continued demand for Uganda coffee abroad.
Local Situation
During the month of December 2023, farm gate prices ranged from Sh.3,800-4,300/= per kilo of Kiboko (Robusta dry cherries); Shs. 8,500-9,000/= 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.
Compared to the previous month, Robusta Kiboko averaged UGX 4,050 per kilo, higher than UGX 3,750 per kilo , FAQ UGX 8,750 per kilo higher than UGX 8,000, Arabica parchment UGX 10,250 per kilo higher than 9,250 per kilo and Drugar UGX 9,250/= per kilo higher than 8,500/= per kilo.
Global Situation
World coffee production for 2023/24 is forecast to reach 171.4 million bags, 6.9 million bags higher than the previous Year of 164.5 million bags, with higher output in Brazil, Colombia and Ethiopia expected to more than offset reduced production in Indonesia.
Global exports are expected to increase by 8.4 million bags to 119.92 million bags, mainly due to strong shipments from Brazil. Global consumption is forecast at 169.5 million bags, with the largest increase in the European Union, the United States of America and Brazil.
Ending inventories are expected to continue to tighten to a 12-year low of 26.5 million bags.. (United States Department of Agriculture, Coffee: World Markets and Trade report December 2023).
Outlook for January 2024
According to UCDA, coffee exports are projected to be 450,000 bags. “Harvesting of the main crop north of the equator and the fly crop in South western and Greater Masaka is tailing off,” says the report.
