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Uganda Bags Shs2 Trillion From Coffee Exports In 2020

The Uganda Coffee Development Authority (UCDA) has released the annual 2020 coffee exports report, indicating that exports for the calendar year (January 2020 to December 2020) totaled to 5,492,525 bags worth US515.94 million approximately (Shs1.902Trn), compared to 4,519,563 bags worth US$436.54 million equivalent to (Shs1.610Trn) the previous year.

This represents 22% and 18% increase in quantity and value respectively.

On the monthly performance, Coffee exports amounted to 422,922 60-kilo bags worth US$37.78m approximately (Shs.139.202Bn) in December 2020.

This comprised 375,209 bags (US$30.87m) of Robusta & 47,713bags (US$6.92m) of Arabica, recording an increase of 28.06% & 9.42% in quantity and value respectively compared to the same month last year. 

According to the Authority, 74.35% of the total volume was exported by 10exporters, out of 39 companies which performed during the month compared to 72.88% in November 2020, reflecting reduced concentration. Organic Bugisu fetched the highest price at US $ 2.94 per kilo.

The Authority attributed the reduction in monthly export compared to the previous year mostly to the off-year biennial cycle characteristic of Arabica production. On the other hand, increasing Robusta exports during the month was on account of fruition of the newly planted coffee as well as favourable weather.

The average export price was US$ 1.49 per kilo, 1 cent higher than US$1.48 per kilo realized last month. Robusta exports accounted for88.72% of total exports higher than 86.50% in November 2020.

The average Robusta price was US$ 1.37 per kilo, the same as theprevious month. Arabica fetched an average price of US$ 2.42 per kilo, 20 cents higher than in November 2020. The highest price was forOrganic Bugisu sold at US$ 2.94 per kilo., followed by Organic Wugar sold at US$ 2.78 per kilo. 

In terms of leading coffee exporters, Ugacof (U) Ltd led the highest market share with 18.90%, followedby Kyagalanyi Coffee Ltd 9.84%, Louis Dreyfus Company (U) Ltd 9.78%, Ideal Quality Commodities Ltd 8.54% Olam Uganda Limited 5.81%, Kawacom (U) Ltd 5.05%, Export Trading Company(U)Ltd 4.49% and Grainpilse Ltd 4.36%.

Out of the 39 exporters that performed, 19 exported Robusta Coffee only while 8 exported Arabica coffee only.

On the top countries with huge appetite for Uganda’s coffee, Italy emerged top on the table having maintained the highest market share with 24.07% followed by Germany 17.68%, Sudan 13.05%, Belgium 10.34% and India 6.96%. Coffee exports to Africa amounted to 84,098 bags, a market share of 19.88%compared to 97,418 bags (22.64%) the previous month. African countries who are biggest consumers of Uganda coffee include; Sudan, Morocco, Kenya, Algeria, Egypt South Africa and South Sudan reflecting increased continental trade.

Europe remained the main destination for Uganda’s coffees with a 63% imports share. 

On the Global Situation, World coffee exports amounted to 10.15 million bags in November 2020, compared with 9.6 million in November 2019. 

Additionally, during the month of December 2020, farm gate pricesranged from Shs1,800 -2,200 per kilo of Kiboko (Robusta dry cherries); Shs. 3,800-4,200/= for FAQ; Shs5,000-5,600/= for Arabica parchment; and Sh. 5,000-5,500/= per kilo for Drugar from Kasese.

Robusta Kiboko averaged Shs 2,000 per kilo; FAQ Shs4,000 per kilo; Arabica parchment Shs 5,300/= per kilo and Drugar Shs5,250 per kilo.

Coffee exports are projected to be 400,000 bags as the main harvesting period in Central and Eastern regions peaks. This would be compounded by drier weather which will facilitate drying and movement of coffee from the countryside.

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