Uganda earned Shs531.45bn from September coffee exports
Uganda’s coffee exports in September 2024, amounted to 532,212 60-kilo bags, worth US$ 144.7 million (Shs531.45bn), Uganda Coffee Development Authority (UCDA) has revealed in its monthly report for September 2024.
This comprised of 504,576 bags of Robusta valued at US $ 137.19 million and 27,636 bags of Arabica valued at US$ 7.51 million.
This was a decrease of 7.67% in quantity and an increase of 53.79% 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 Year (September 2023), Robusta decreased by 17.02% in quantity and increased 56.26% in value, while Arabica exports decreased by 18.02% in quantity and increased by 19.36% in value.
“The monthly coffee exports volume was lower than the previous
year. And was more pronounced in Arabica due to it’s bi annual off year cycle coupled with poor flowering in Mt. Elgon region,” UCDA’s report says, adding: “The value of coffee exports was higher as global coffee prices continue to rise as dry conditions in Brazil and Vietnam, the world’s largest producers of Arabica coffee and Robusta coffee respectively are seen to affect coffee crop yields and, therefore, a likelihood of supply deficit in 2024/25.”
According to the report, coffee exports for twelve months (Coffee year 2023/2024) totaled 6.35 million bags worth US$ 1.4 billion compared to 6.14million bags worth US$ 940.1 million in the previous year (Coffee year 2022/2023).
This represents an increase of 3.42% and 48.97% in quantity and value respectively.
Exports by Type and Grade
The average export price was US$ 4.53 per kilo, US cents 12 higher than in August 2024 (US$ 4.41).
It was US$ 1.80 higher than in September 2023 (US $ 2.73/kilo). Robusta exports accounted for 94.8% of total exports, slightly higher than 93.7% in August 2024.
The average Robusta price was US$ 4.53 per kilo, 11 cents higher than US$ 4.42 per kilo the previous month.
The highest price was for Sustainable Robusta and sold at US$ 5.69 per kilo, followed by Organic Robusta sold at US$ 5.40 per kilo.
The share of Sustainable/washed coffee to total Robusta exports was 4.2% higher than 2.2% in August 2024.
Arabica fetched an average price of US$ 4.53 per kilo US cents 23 higher than the previous month (US$ 4.30).
The highest price was for sustainable Arabica sold at US$ 5.69 per kilo. It was followed by Mt. Elgon sold at US$ 5.76 per kilo.
Drugar was sold at US$ 4.72 per kilo, 2 cents higher than 4.52 per kilo last month, and was US cents 25 lower than Bugisu AA. Drugar exports were 31% of total Arabica exports lower than 35% the previous month.
The share of sustainable Arabica exports to total Arabica exports was 16%, higher than 7% in August 2024.
Individual Exporter Performance
The report reveals that Olam Uganda Ltd had the highest market share of 16.73% compared to 11.34% in August 2024. It was followed by Ugacof (U) Ltd11.62% (12.6%); Kyagalanyi Coffee Ltd 11.43% (7.1%), Touton Uganda Ltd 7.95% (5.58%), Louis Dreyfus Company (U) Ltd 5.36% (7.31%), Ibero (U) Ltd 5.26% (4.79%), Ideal Quality Commodities Ltd 4.95% (6.00%), Export Trading Company (U) Ltd 4.6% (7.13%), Kawacom (U) Ltd 4.52% (9.88%), and DRK General Merchants Ltd 3.44% (1.64 %).
Note: The figures in brackets represent percentage market share held in August 2024.
“The top 10 exporters held a market share of 76% higher than 75% the previous month reflecting competition at exporter level.
“Out of the 65 exporters who performed, 44 exported Robusta Coffee only while 5 exported Arabica coffee only,” the report says.
Coffee exports by destination
Italy maintained the highest market share with 36.2% compared to 35.3% last month.
It was followed by Germany 15.36% (20.83%), India 8.6% (7.08%), Belgium 6.73% (4.08%) and Morocco 5.11% (3.47%). Note: The figures in brackets represent percentage market share held in August 2024.
The first 10 major destinations of Uganda coffee took a market share of 88.57% compared to 89.17% last month.
Coffee exports to African countries totaled 62,837 bags, a market share of 12% compared to 101,562 bags (12%) the previous month. African countries that imported Uganda coffee included Morocco, Sudan, Algeria, Kenya, Egypt, Tunisia, and South Africa.
“Europe remained the main destination for Uganda’s coffees with a 71% imports share, lower than 73% in August 2024,” the report says.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 64.66% lower than 67% the previous month. Olam International led with a market share of 16.32% compared to 11.49% in August 2024. It was followed by Sucafina 11.93% (14.25%); Touton SA 8.26% (5.66%); Volcafe 6.28% (3.66%); Louis Dreyfus 5.48% (7.42%); Bernahard Rothfos 5.29% (4.82%); Ecom Agro Industrialist 4.54%; (9.01%); Koninklijke Douwe 4.33% (4.94%); GRB 2.23% (2.23%) and Euro Cafe SRL 1.88%(0.88%)
Note: The figures in brackets represent percentage performance in the previous month –August 2024.
Global Situation
World coffee production for 2024/25 is forecast to increase by 7.1 million bags from the previous year to 176.2 million due primarily to continued recovery in Brazil and rebounding output in Indonesia. With additional supplies, global exports are expected to increase by 3.6 million bags to 123.1 million primarily on strong shipments from Indonesia and Brazil.
Consumption is seen to be 3.1 million bags higher to 170.6 million. Ending stocks are expected to rise by 1.9 million bags to 25.8 million following 3 years of decline.
(United States Department of Agriculture, Coffee: World Markets and Trade report-June 2024).
Local situation
During the month of September 2024, farm gate prices ranged from
Shs6,500-7,000/= per kilo of Kiboko (Robusta dry cherries); Shs.12,500-13,000/= for FAQ (Fair Average Quality); Sh. 12,500-13,000/= for Arabica Parchment; and Sh. 11,000-12,000/= per kilo for Drugar.
“Compared to the previous month, Robusta Kiboko averaged UGX 6,750/= higher than 6,250/= Robusta FAQ averaged UGX 12,750/= higher than UGX 12,500, Arabica parchment UGX 12,500 per kilo, Drugar UGX 11,500/= per kilo remaining the same in September 2024.
Outlook for October 2024
According to UCDA, coffee exports are projected to be 500,000 60-kilobags. The main harvesting season in Greater Masaka and South-Western regions ended and exporters will drawdown on their stocks to fulfil contractual obligations with buyers.
“The main harvest season north of the equator is about to start,” UCDA says.
