Uganda earns millions of dollars from exporting quality coffee
The Uganda Coffee Development Authority (UCDA) has released the coffee report for May showing that the coffee exports in May 2021 amounted to 494,050 60-kilo bags worth US$ 47.16 million (Shs165.8bn).
According to UCDA, the coffee exported in May comprised 429,374 bags of Robusta valued at USD37.52 million and 64,676 bags of Arabica valued at US$9.63 million.
The Authority attributed the increasing Robusta exports during the month compared to the previous year to newly planted coffee which started yielding supported by favourable weather.
“This was also compounded by a positive trend in global coffee prices which prompted exporters to release their stocks on top of increased procurement,” the report reads in part.
On an annual level, Coffee exports for the 12 months (June 2020-May 2021) amounted to 5,881,905 60-kilo bags worth US$ 540.72 million (about Shs1.9 trillion) compared to 5,026,612-kilo bags valued at US$ 488.19 million in 2020.
UCDA also revealed nations with high appetite for Uganda’s coffee during the
month of May 2021 and top on the list was Italy that maintained the highest market for Uganda’s coffee purchasing 37.02% of exported coffee.
It was followed by Germany with 14.36%, United States 9.36%, Belgium 6.74% and Algeria 5.80%.
At the continental level, Coffee exports to Africa dropped to 69,349 bags, compared to 81,308 bags in April 2021.
African countries that took up Uganda’s coffee included; Sudan, Morocco, Kenya, Algeria, Egypt and South Africa. Europe remained the main destination for Uganda’s coffees with 66% share while Africa took up 14% of exports.
During the month of May 2021, farm gate prices ranged from
Sh.2,000-2,500/= per kilo of Kiboko (Robusta dry cherries); Shs. 4,200-4,500/= for FAQ; Sh. 6,500-7,000/= for Arabica parchment; and Sh. 5,500-6,000/= per kilo for Drugar from Kasese.
However, the export price averaged US$ 1.59 per kilo (about Shs5,590) that export companied reaped from each kilo.
UCDA also named Olam Uganda Ltd as the top coffee exporter commanding the highest market share with 14.42%, followed by Ugacof (U) Ltd 13.73%, Louis Dreyfus Company (U) Ltd 10.33%; Touton Uganda Limited 8.71% Kyagalanyi Coffee Ltd 8.59%; Kawacom (U) Ltd 7.12% among others.
The Authority also revealed that Coffee exports are projected to reach 500,000 bags (each bag is 60Kgs) in June as the main harvesting period in Greater Masaka and South Western regions peaks.
“Increased exports would be fueled by increasing global coffee prices which will enthuse exporters to release their stocks. Dry weather will also accelerate procurement of the coffee from the countryside,” the report says.
