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Uganda Bags Shs183Bn From Coffee Exports In July

The just released report by Uganda Coffee Development Authority (UCDA) has revealed that farmers and traders in Coffee exports in July 2020 exported 543,251 bags of coffee each of 60-kilo bags worth US$ 49.78 million equivalent to Shs183.055Bn.

According to the breakdown from the Authority, the coffee exports comprised 467,160 bags (US $ 39.99 million) of Robusta and 76,091 bags (US$ 9.98 million) of Arabica. This was an increase of 17.15% and 13.67% in quantity and value respectively from the same month last year.

“This is the highest monthly export figure in terms of quantity since liberalisation,” the report read in part.

The increase in exports has been attributed to the increased
production on account of fruition of the newly planted coffee, and favourable weather.

UCDA also revealed that coffee exporters also drew down on their stocks after easing of the lockdown due to the COVID-19 pandemic. Exports have to some extent been affected by logistical issues such as lack of containers.

The report further highlighted that Coffee exports for the 12 months amounted to 5,185,423-kilo bags worth US$ 502.27 million compared to 4,239,095 60-kilo bags worth US$ 418.39 million the previous year, representing 22.32% and 20.05% increase in both quantity and value respectively.

However, coffee dealers recorded reduction in coffee prices with the average export price recorded at US$ 1.53 per kilo, 6 cents lower than US$ 1.59 per kilo realized in June 2020.

The average Robusta price was US$ 1.43 per kilo, US cent 2 higher than the previous month. Organic Robusta fetched the highest price of US$ 1.72 per kilo, a premium of 24 cents over conventional Screen 18 sold at an average of US$ 1.48 per kilo.

Worth noting is that Screen 17 fetched a higher price than Screen 18 at US$ 1.57.

The report noted, “This reflects price differentiation and a positive impact on the new grades.”

On the other hand, Arabica fetched an average price of US$ 2.19 per kilo, 19 cents higher than in June 2020. The highest price was for Organic Drugar sold at US$ 7.29 per kilo., followed by Sustainable Arabica Sipi Falls sold at US$ 3.47 per kilo. Drugar exports had a 40% share of Arabica exports compared to 35% the previous month.

In terms of destinations and consumption, Uganda’s coffee exports during the month of July 2020 was taken up in Italy that maintained the highest market share with 33.14% compared with 31.08% last month.

The European nation’s apetite for Uganda’s coffee was followed by Sudan 23.41% (22.90%), Germany 10.74% (11.29%) and Spain 5.22% (5.89%).

At the continental level, Coffee exports to Africa amounted to 158,999 bags, a market share of 29.27% compared to 106,715 bags (25.39%) the previous month. Africa countries included Sudan, Morocco, South Africa, Kenya, South Sudan and Egypt. Europe remains the main destination for Uganda’s coffees with a 57.36% imports share.

During the month of June 2020, farm gate prices ranged from Sh.1,800 -2,000 per kilo of Kiboko (Robusta dry cherries); Shs. 3,800-4,000/= for FAQ; Sh. 4,800-5,000/= for Arabica parchment; and Sh. 4,000-4,500/= per kilo for Drugar from Kasese. Robusta Kiboko averaged UGX 1,900 per kilo; FAQ UGX 3,900 per kilo, Arabica parchment UGX 4,900/= per kilo and Drugar UGX 4,250 per kilo.

The Authority also revealed that Coffee exports are projected to be 405,000 and admitted not to be in position to comment about the effect of COVID-19 on Uganda coffee production, saying this is yet to be quantified as lock-down is further relaxed and trucks are able to travel to the rural areas to procure coffee. Harvesting of the main crop south of the Equator started is at its tail end.

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