Coffee remains a strategic crop for Uganda
The Uganda Coffee Development Authority (UCDA) has revealed that Uganda coffee exporters earned Shs237bn in September 2021, further cementing the cash crop’s position as one of the leading foreign exchange earners for Uganda.
In the report released last week, the Authority revealed that a total of 585,576 each 60-kilo bags of coffee valued at US$ 66.62 million approximately Shs237.286Bn were exported in September 2021.
This comprised 543,279 bags of Robusta valued at US $59.93 million and 42,297 bags of Arabica valued at US$ 6.69 million with Robusta exports increased by 22.16% and 61.16% in quantity and value respectively while Arabica exports decreased by 30.48% and 9.07% in quantity and value respectively.
The increase in Robusta exports were due to newly planted coffee which started yielding supported by favorable weather and the growth was further boosted by a positive trend in global coffee prices in the month since July 2021 as Brazil faced the threat of frost and drought, which prompted exporters to release their stocks. On the other hand, the decrease in Arabica coffee exports was because of the off-year biennial cycle.
The Coffee Authority also revealed that the destinations of Uganda’s coffee exports in September 2021 included Italy that maintained the highest market share with 27.75%, followed by Germany 12.28%, Algeria 11.03%, India 10.09% and Sudan 9.50%.
Coffee exports to Africa amounted to 164,024 bags, accounting for a market share of 29% compared to 169,383 bags the previous month. African countries that imported Uganda’s coffee included Algeria, Sudan, Morocco, Kenya, Egypt, and South Africa.
However, Europe remained the main destination for Uganda’s coffees with a 50% imports share although lower than 61% in August 2021.
Farm-gate prices for Robusta Kiboko averaged Shs2,650 per kilo; FAQ Shs 5,150 per kilo, Arabica parchment Shs8,250 per kilo and Drugar Shs7,250 per kilo.