Uganda continues to earn big from coffee exports
Uganda’s coffee exports in December 2024 amounted to 413,079 60-kilo bags, worth US$ 115.03 million (Shs424bn), the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) has said in the December 2024 Monthly report.
This comprised of 365,853 bags of Robusta valued at US $ 99.91 million and 47,226 bags of Arabica valued at US$ 15.12 million. This was an increase of 2.77% and 74.258% 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 Year (December 2023), Robusta increased by 8.36% and 88.77% in quantity and value respectively, while Arabica exports decreased by 26.57% in quantity and increased by 15.54% in value.
The monthly coffee exports volume was higher than the previous year and this was seen in Robusta exports. Arabica exports were lower due to the bi annual off year cycle coupled with poor flowering in Mt. Elgon region.
The value of coffee exports was higher in line with the increase in global coffee prices as a result of dry conditions in Brazil and Vietnam, the world’s largest producers of Arabica and Robusta coffee respectively that are seen to affect coffee crop yields and, therefore, a likelihood of supply deficit in 2024/25.
Coffee exports for twelve months (Calendar year 2024) totaled 6.37 million bags worth US$ 1.55 billion compared to 6.12 million bags worth US$ 965.27 million in the previous year (Calendar year 2023). This represents an increase of 4.12% and 60.61% in quantity and value respectively.
Exports by Type and Grade
According to the report, the average export price was US$ 4.64 per kilo, US cents 11 higher than in November 2024 (US$ 4.66). It was US$ 1.90 higher than in December 2023 (US $ 2.74/kilo). Robusta exports accounted for 88.6% of total exports, higher than 85.6% in November 2024. The average Robusta price was US$ 4.55 per kilo, 10 cents higher than US$ 4.45 per kilo the previous month.
The highest price was for Screen 15 Organic and Screen 17 sold at US$ 4.90 per kilo, followed by Screen 18 sold at US$ 4.83 per kilo.
The share of Sustainable/washed coffee to total Robusta exports was 3.13% higher than 1.65% in November 2024.
Arabica fetched an average price of US$ 5.33 per kilo US cents 34 higher than the previous month (US$ 4.99).
The highest price was for Mt. Elgon A+ sold at US$ 6.63 per kilo. It was followed by Bugisu AA sold at US$ 6.35 per kilo. Drugar was sold at US$ 5.73 per kilo, 72 cents higher than 5.01 per kilo the previous month. Drugar exports were 23% of total Arabica exports lower than 48% the previous month. The share of sustainable Arabica exports to total Arabica exports was 7% the same as in November 2024.
Individual Exporter Performance
Ugacof (U)Ltd had the highest market share of 16.98% compared to 13.30% in November 2024. It was followed by Ideal Quality Commodities Ltd 10.45% (14.80%); Olam Uganda Ltd 6.92% (13.19%), Export Trading Company (U) Ltd 5.83% (4.10%), JKCC General Supplies Ltd 5.33% (5.68%) Louis Dreyfus Company (U) Ltd 4.90% (3.43%), Jber Coffee Ltd 4.49% (5.59%), Kyagalanyi Coffee Ltd 4.34% (2.78%); Ibero (U) Ltd 3.84% (5.36%), and DRK General Merchants Ltd 3.74% (4.87%).
Note: The figures in brackets represent percentage market share held in November 2024. The top 10 exporters held a market share of 67% higher than 66% the previous month reflecting competition at exporter level. Out of the 60 exporters who performed, 35 exported Robusta Coffee only while 13 exported Arabica coffee only.
Coffee exports by destination
Italy maintained the highest market share with 38.40% compared to 38.74% last month. It was followed by Germany 12.22% (4.29%), India 9.14%% (9.61%), Spain 6.94% (2.10%) and Morocco 4.90% (4.18%). Note: The figures in brackets represent percentage market share held in November 2024. The first 10 major destinations of Uganda coffee took a market share of 90.54% compared to 86.23% the previous month. Coffee exports to African countries totaled 49,765 bags, a market share of 12% compared to 66,570 bags (17%) the previous month. African countries that imported Uganda coffee included Morocco, Sudan, Algeria, Egypt, Tunisia, and Kenya. Europe remained the main destination for Uganda’s coffees with a 69% import share, higher than 58% in November 2024.
Foreign buyers of Uganda Coffee
The report reveals that the top 10 buyers held a market share of 53.61% lower than 54.50% the previous month. Sucafina led with a market share of 17.06% compared to 13.30% in November 2024. It was followed by Olam International 6.92% (13.19%); Louis Dreyfus 5.33% (3.51%); Koninklijke Douwe 4.10% (1.52%); Bernhard Rothfos 3.76% (5.45%); Volcafe 3.68% (1.52%); Icona Café 3.68%; ETG Commodities 3.20%; Ecom Agro Industrialist 3.10% (2.34%) and Pacorini Silocaf 2.97% (1.79%).
Note: The figures in brackets represent percentage performance in the previous month –November 2024.
Global Situation
World coffee production for 2024/25 is forecast 6.9 million bags higher than the previous year to 174.9 million primarily due to rebounding output in Vietnam and Indonesia. World exports are forecast modestly higher as gains in Vietnam and Indonesia more than offset reduced shipments from Brazil. Global consumption is expected to rise 5.1 million bags to 168.1 million, with the largest gains in the European Union, the United States, and China. Ending stocks are expected to drop 1.5 million bags to 20.9 million. (United States Department of Agriculture, Coffee: World Markets and Trade report-December 2024).
Local situation
During the month of December 2024, farm gate prices ranged from Shs 6,000-7,000/= per kilo of Kiboko (Robusta dry cherries); Shs.12,000-13,000/= for FAQ (Fair Average Quality); Sh. 12,000- 13,000/= for Arabica Parchment; and Sh. 11,000-12,000/= per kilo for Drugar. Compared to the previous month, Robusta Kiboko averaged UGX 6,500/= lower than 6,750/= Robusta FAQ averaged UGX 12,500/= lower than UGX 12,750, Arabica parchment UGX 12,500 per kilo, Drugar UGX 11,500/= per kilo.
Outlook for January 2025
MAAIF says coffee exports are projected to be 500,000 60-kilobags in January 2025. The main harvest season north of the equator is underway. The harvesting season for the fly crop in Greater Masaka and South-Western regions has also begun.
