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Uganda Bags Shs238.3bn From November Coffee Exports As Twig Borer Infestation, Red Blister Disease Cut Production

The average export price was US$ 2.39 per kilo, 6 U.S cent lower than US$ 2.45 per kilo realized in October 2022/Courtesy photo

Uganda’s Coffee exports in November 2022 amounted to 447,162 60-kilo bags worth US$ 64.14 million (Shs238.3bn), Uganda Coffee Development Authority (UCDA) has revealed in its November 2022 report.

This comprised 364,875 bags of Robusta valued at US $45.38 million and 82,287 bags of Arabica valued at US$ 18.76 million.

This was a decrease of 14.97% and 9.94% 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 Coffee Year (November 2021), Robusta decreased by 16.58% and 11.96% in quantity and value respectively, while Arabica exports also decreased by 7.02% and 4.65% in quantity and value respectively.

The report adds that the decrease in exports was mainly attributed to lower yields this year that were characterized by drought in most regions for the second consecutive year leading to increased incidences of pests and diseases such as the Coffee Twig Borer and red blister disease.

For Arabica, the decrease is due to the off-year cycle characteristic of Arabica coffee production.

Coffee exports for 12 months (December 2021-November 2022) totaled 5.78 million bags worth US$ 875,74 million compared to 6.65 million bags worth US$ 680.86 million the previous year (December 2020- November 2021).

This represents a decrease of 13.53% in quantity but an increase of 28.62 % in value.

Exports by Type and Grade

According to the report, the average export price was US$ 2.39 per kilo, 6 U.S cent lower than US$ 2.45 per kilo realized in October 2022. It was 13 US cents higher than in November 2021 (US $ 2.26/kilo).

Robusta exports accounted for 82% of total exports lower than 87% in October 2022. The average Robusta price was US$ 2.07 per kilo, US cents 16 lower than the previous month. Screen 14 fetched the highest price of US$ 2.43 per kilo.

It was followed by Screen 17 at US$ 2.29 per kilo. The share of Sustainable/washed coffee to total Robusta exports was only 0.93% lower than 1.95% in October Arabica fetched an average price of US$ 3.80 per kilo, 14 cents lower than US$ 3.94 per kilo in October 2022.

The highest price was Sustainable Arabica (Sipi Falls) sold at US$ 5.00 per kilo a premium of US cents 45 over conventional Bugisu AA. It was  followed by Mt. Elgon AB, C/PB and UG sold at US$ 4.89 per kilo, a premium of US$ 1.04 over Conventional Bugisu AA.

Drugar was sold at US$ 3.91 per kilo, a discount of US cents 35 from Bugisu AA. Drugar exports were 40% of total Arabica  exports compared to 49% the previous month.

There was generally low global natural Arabica demand during the month which led to low Arabica export prices compared to the previous month.

The share of sustainable Arabica exports to total Arabica exports was 17% compared to 4% last month.

Individual Exporter Performance

Ugacof (U) Ltd had the highest market share of  16.66% compared to 13.89% in October 2022. It was followed by  Ideal Quality Commodities Ltd 10.42% (10.94%); Louis Dreyfus Company (U) Ltd 9.20% (10.94%); Touton Uganda Limited 8.92% (4.84%); Olam Uganda Ltd 7.91% (10.25%), Kawacom (U) Ltd 6.69% (4.85%); Ibero(U) Ltd 5.1% (5.04%); Export Trading Company (U) Ltd 4.76% (3.86%); Kyagalanyi Coffee Ltd 4.70% (7.16%); and JKCC General Supplies Ltd 2.46% (2.03%).

Note: The figures in brackets represent percentage market share held in October 2022.

The top 10 exporters held a market share of 77% higher than 75% the previous month reflecting increasing concentration. Changes in exporter positions compared to last month show competition at this level.

“Out of the 50 exporters that performed, 13 exported Robusta Coffee only while 10 exported Arabica coffee only,” the report says.

The destinations of Uganda’s coffee exports

Italy maintained the highest market share with 34.40% compared with 33.04% last month. It was followed by Germany 10.85% (11.44%), Sudan 10.04% (5.96%); India 9.93% (9.10%) and Morocco 6.67% (5.67%).

Note: The figures in brackets represent percentage market share held in October 2022. The first 10 major destinations of Uganda coffee took a market share of 87.15% compared to 85.69 % last month.

Coffee exports to Africa amounted to 83,187 bags, a market share of 19% compared to 63,899 bags (14%) the previous month.

African countries that imported Uganda coffee included Sudan, Morocco, South Africa, Egypt, Tanzania Algeria and Kenya. Europe remained the main destination for Uganda’s coffees with a 63% imports share, lower than 66% in October 2022,” the report says.

Foreign buyers of Uganda Coffee

The top 10 buyers held a market share of 67% of total exports the same as the previous month. Sucafina led with a market share of 15.27% compared to 13.35% in October 2022. It was followed by Louis Dreyfus 9.20% (11.38%); Touton Geneve 8.92% (4.84%); Olam International 8.56% (10.74%); Ecom Agro Industrialist 7.15% (5.15%); Bernhard Rothfos 5.18% (5.04%); Altasheel Import & Export Enterprises 3.99%; (3.44%) Volcafe 3.51% (5.52%), Bercher Coffee Consulting 3.04% and Icona Cafe 2.31% (3.26%).

Note: The figures in brackets represent percentage performance in the previous month – October 2022.

There were changes in relative position of the first ten major buyers reflecting increasing demand for Uganda coffee abroad.

Global Situation

World coffee production for 2022/23 is forecast to increase  by 7.8 million bags to reach 175 million bags, as Brazil’s  Arabica crop enters the on year of the biennial production cycle.

Global consumption is expected to increase by 1.81 million bags to 167 million with the largest increase expected  in European Union, U.S.A, Japan and Brazil.

World exports are forecast to be higher on gains in Brazil and Indonesia.

Ending stocks are expected to be 2.1 million bags higher than last year to 34.7 million bags following last year’s sharp  drawdown.

A new global outlook will be released in December 2022 (United States Department of Agriculture, Coffee: World Markets and Trade report).

Local Situation

During the month of November 2022, UCDA says farm gate prices ranged from Sh.2,200-2,600/= per kilo of Kiboko (Robusta  dry cherries); Shs. 6,300-6,500/= for FAQ (Fair Average  Quality); Sh. 9,000- 10,000/= for Arabica parchment; and Sh. 8,000-9,000/= per kilo for Drugar from Kasese.

Robusta Kiboko averaged UGX 2,400/= per kilo; FAQ UGX 6,400/= per kilo, Arabica parchment UGX 9,500/= per kilo and Drugar UGX 8,500/= per kilo.

Outlook for December 2022

UCDA says coffee exports are projected to be 500,000 bags in December 2022.

“The main harvesting season in Central and Eastern regions started in November and will peak in December and January. The Arabica season in South West and Eastern regions (including Mt. Elgon )

started in October 2022,” UCDA November 2022 report says.

Taddewo William Senyonyi
William is a seasoned business and finance journalist. He is also an agripreneur and a coffee enthusiast.

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