Uganda is increasingly earning big from coffee exports
Uganda’s coffee exports in February 2024 amounted to 434,582 60-kilo bags, worth US$ 82.56 million (Shs319.8bn).
According to Uganda Coffee Development Authority monthly report for February 2024, this comprised of 372,407 bags of Robusta valued at US $ 68.58 million and 62,175 bags of Arabica valued at US$ 13.98 million.
This was a decrease of 9.36% in quantity and an increase of 25.06% in value compared to the same month last year.
By comparing quantity of coffee exported by type in the same month of last Year (February 2023), the report says, Robusta decreased by 0.52% in quantity and increased by 53.16% in value, while Arabica exports decreased by 40.83% and 34.18% in quantity and value respectively.
“The monthly coffee export volume was lower than the previous year and this was more pronounced in Arabica coffee due to a small harvest in Elgon region which was as a result of drought that affected yields. The value of the coffee exports was however higher than last year and this was due to the prevailing high global coffee prices,” the report says.
It adds that coffee exports for the twelve months (March 2023-February 2024) totaled 6.06 million bags worth US$ 999.80 million compared to 5.75 million bags worth US$ 859.40 million in the previous year (March 2022-February 2023). This represents an increase of 5% and 16% in quantity and value respectively.
Exports by Type and Grade
According to the report, the average export price was US$ 3.17 per kilo, US cents 21 higher than in January 2024 (US$ 2.96).
It was 87 US cents higher than in January 2023 (US $ 2.30/kilo). Robusta exports accounted for 86% of total exports, higher than 84% in January 2024.
The average Robusta price was US$ 3.07 per kilo, 25 cents higher than US$ 2.82 per kilo the previous month.
The highest price was Screen 18 sold at US$ 3.35 per kilo and it was followed by Washed Robusta sold at US$ 3.30 per kilo.
The share of Sustainable/washed coffee to total Robusta exports was 2% compared to 1.36% in January 2024.
Arabica fetched an average price of US$ 3.75 per kilo US cents 4 higher than the previous month.
The highest price was for Mt. Elgon PB sold at US$ 8.71 per kilo. It was followed Organic Bugisu sold at US$ 7.11 per kilo. Drugar was sold at US$ 3.75 per kilo, 41 cents higher than 3.34 per kilo last month, and was US cents 21 lower than Bugisu AA. Drugar exports were 39% of total Arabica exports lower than 34% the previous month.
The share of sustainable Arabica exports to total Arabica exports was 14.03% compared to 19.67 in January 2024.
Individual Exporter Performance
The report shows that Olam Uganda Ltd had the highest market share of 11.53% compared to 10.07% in January 2024. It was followed by Kyagalanyi Coffee Ltd 9.06% (9.34%); Louis Dreyfus (U) Ltd 8.34% (10.21%); Ideal Quality commodities Ltd 7.72% (7.42%); Kawacom (U) Ltd 7.71% (3.98%); Ibero (U) Ltd 6.77% (4.71%); Ugacof (U) Ltd 6.48% (11.73%); Export Trading Company (U) Ltd 5.35% (3.57%); JKCC General Supplies Ltd 4.47% (4.67%); and Sena Indo Uganda Limited 4.40% (3.50%) Note: The figures in brackets represent percentage market share held in January 2024.
“The top 10 exporters held a market share of 72% higher than 69% the previous month reflecting increasing concentration at exporter level. Changes in positions compared to last month show competition at this level,” the report says, adding that out of the 50 exporters who performed, 24 exported Robusta Coffee only while 10 exported Arabica coffee only.
Coffee Exports By Destination
Italy maintained the highest market share with 37.74% compared to 41.80% last month, the report says.
It was followed by India 11.11% (9.77%), Sudan 9.50% (3.63%), Germany 9.08% (13.39%) and U.S.A 4.31% (4.38%).
Note: The figures in brackets represent percentage market share held in January 2024.
The first 10 major destinations of Uganda coffee took a market share of 87.23% compared to 89.64% last month. Coffee exports to Africa amounted to 60,948 bags, a market share of 14% compared to 45,094 bags (9%) the previous month.
African countries that imported Uganda coffee included Morocco, Sudan, Algeria, South Africa, Egypt, and Kenya. Europe remained the main destination for Uganda’s coffees with a 64% imports share, lower than 72% in January 2024.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 57% lower than 65% in the previous month. Olam International led with a market share of 11.48% compared to 9.94% in January 2024 2023. It was followed by Louis Dreyfus 8.34% (10.35%); Bernhard Rothfos 6.77% (4.71%); Sucafina 6.25% (12.60%); Ecom Agro Industrialist 6.07% (3.28%); Volcafe 4.91% (5.95%); Touton SA 4.10% (3.87%); Eurocafe SRL 3.62% (5.88%); Strauss 2.98% (2.21%); and Hamburg Coffee 2.98% (4.17%).
Note: The figures in brackets represent percentage performance in the previous month –January 2043. Changes in the relative positions of the first 10 major buyers reflects continued demand for Uganda coffee abroad.
Global Situation
World coffee production for 2023/24 is forecast to reach 171.4 million bags , 6.9 million bags higher than the previous Year of 164.5 million bags, with higher output in Brazil, Colombia and Ethiopia expected to more than offset reduced production in Indonesia. Global exports are expected to increase by 8.4 million bags to 119.92 million bags, mainly due to strong shipments from Brazil. Global consumption is forecast at 169.5 million bags, with the largest increase in the European Union, the United States of America and Brazil. Ending inventories are expected to continue to tighten to a 12-year low of 26.5 million bags.
(United States Department of Agriculture, Coffee: World Markets and Trade report December 2023).
Local Situation
During the month of February 2024, farm gate prices ranged from Sh.5,000-5,500/= per kilo of Kiboko (Robusta dry cherries); Shs.10,000-11,000/= for FAQ (Fair Average Quality); Sh. 11,000- 12,000/= for Arabica parchment; and Sh. 10,000-11,000/= per kilo for Drugar.
Compared to the previous month, Robusta Kiboko averaged UGX 5,250 per kilo, higher than UGX 4,250 per kilo , FAQ UGX 10,500 per kilo higher than UGX 9,750, Arabica parchment UGX 11,500 per kilo higher than10,500 per kilo and Drugar UGX 10,500/= per kilo higher than 9,750/= per kilo.
Outlook for March 2024
Coffee exports are projected to be 430,000 bags, UCDA says.
“Harvesting of the main crop north of the equator and the fly crop in South western and Greater Masaka is tailing off. The harvest season of the main crop in Masaka and South Western regions is expected to start in April,” the report says.
