Uganda exported 837,915 60-kilo bags of coffee in August
Uganda’s coffee exports in August 2024 amounted to 837,915 60-kilo bags, worth US$ 221.63 million (UShs820bn), Uganda Coffee Development Authority (UCDA) has revealed in its monthly report for August 2024. This is the highest number of bags to be exported in a single month. It’s also the highest earnings recorded in a single month.
This comprised of 785,667 bags of Robusta valued at US $ 208.14 million and 52,248 bags of Arabica valued at US$ 13.49 million. This was an increase of 13.15% and 82.98% 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 (August 2023), UCDA says Robusta increased by 14.33% and 87.38% in quantity and value respectively, while Arabica exports decreased by 2.01% in quantity and increased by 34.33% in value.
The monthly coffee exports volume was higher than the previous year.
“Robusta exports were higher as exporters continue to release the stocks. Arabica exports were lower than the previous year due to a smaller harvest in Elgon region due to the bi annual off year cycle coupled with poor flowering in the region. The value of coffee exports was higher as global coffee prices continue to rise as dry conditions in Brazil and Vietnam are seen to affect coffee crop yields and, therefore, a likelihood of supply deficit in 2024/25,” UCDA says in its report.
According to UCDA, coffee exports for twelve months (September 2023-August 2024) totaled 6.39 million bags worth US$ 1.35 billion compared to 6.08 million bags worth US$ 918.41 million in the previous year (September 2022-August 2023).
This represents an increase of 5.25% and 46.96% in quantity and value respectively.
Exports by Type and Grade
The average export price was US$ 4.41 per kilo, US cents 14 higher than in July 2024 (US$ 4.27). It was US$ 1.68 higher than in August 2023 (US $ 2.73/kilo).
The report notes that Robusta exports accounted for 94% of total exports, the same as in July 2024. The average Robusta price was US$ 4.42 per kilo, 15 cents higher than US$ 4.27 per kilo the previous month.
The highest price was for Organic Robusta sold at US$ 5.04 per kilo, followed by Screen 18 and Screen 14 sold at US$ 4.57 per kilo. The share of Sustainable/washed coffee to total Robusta exports was 2.2% compared to 0.86% in July 2024.
Arabica fetched an average price of US$ 4.30 per kilo US cents 7 higher than the previous month (US$ 4.23).
“The highest price was for sustainable Arabica Sipi Falls sold at US$ 5.58 per kilo. It was followed by Organic Bugisu sold at US$ 5.57 per kilo,” the report says, adding that Drugar was sold at US$ 4.52 per kilo, 13 cents higher than 4.39 per kilo last month, and was US cents 45 lower than Bugisu AA.
Drugar exports were 54% of total Arabica exports the same as the previous month. The share of sustainable Arabica exports to total Arabica exports was 7%, higher than 2% in July 2024.
Individual Exporter Performance
Ugacof (U) Ltd had the highest market share of 12.60% compared to 16.26% in July 2024. It was followed by Olam Uganda Ltd 11.34% (10.50%); Kawacom (U) Ltd 9.88% (5.52%), Louis Dreyfus Company (U) Ltd 7.31% (8.41%), Export Trading Company (U) Ltd 7.13% (6.39%), Kyagalanyi Coffee Ltd 7.10% (5.13%), Ideal Quality Commodities Ltd 6.00% (6.37%), Touton Uganda Ltd 5.58% (5.76%), Ibero (U) Ltd 4.79% (5.30%) and JKCC General Supplies Ltd 3.05% (4.59%).
Note: The figures in brackets represent percentage market share held in July 2024. The top 10 exporters held a market share of 75% higher than 74% the previous month reflecting competition at exporter level. Out of the 66 exporters who performed, 40 exported Robusta Coffee only while 7 exported Arabica coffee only.
Coffee exports by destination
According to the report, Italy maintained the highest market share with 35.37% compared to 40.68% last month. It was followed by Germany 20.83% (15.75%), India 7.08% (5.26%), Sudan 5.43% (5.41%) and Netherlands 4.94% (4.14%).
Note: The figures in brackets represent percentage market share held in July 2024.
“The first 10 major destinations of Uganda coffee took a market share of 89.17% compared to 88.97% last month. Coffee exports to African countries totaled 101,562 bags, a market share of 12% compared to 112,713 bags (14%) the previous month,” the report says, adding that African countries that imported Uganda coffee included Sudan, Morocco, Algeria, Egypt, Tunisia, Senegal, Kenya, and South Africa.
Europe remained the main destination for Uganda’s coffees with a 73% imports share, higher than 72% in July 2024.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 67% higher than 64% the previous month.
According to the report, Sucafina led with a market share of 14.25% compared to 16.64% in July 2024. It was followed by Olam International 11.49% (10.94%); Ecom Agro Industrialist 9.01%; (4.84%) Louis Dreyfus 7.42% (8.41%); Touton SA 5.66% (6.49%); Koninklijke Douwe 4.94% (3.81%); Bernahard Rothfos 4.82% (5.30%) Volcafe 3.66% (3.13%); ETG Commodities 3.24% (1.45%) and N.V Group Sopex 2.25% (0.88%).
Note: The figures in brackets represent percentage performance in the previous month –July 2024.
Global Situation
World coffee production for 2024/25 is forecast to increase by 7.1 million bags from the previous year to 176.2 million due primarily to continued recovery in Brazil and rebounding output in Indonesia. With additional supplies, global exports are expected to increase by 3.6 million bags to 123.1 million primarily on strong shipments from Indonesia and Brazil. Consumption is seen to be 3.1 million bags higher to 170.6 million. Ending stocks are expected to rise by 1.9 million bags to 25.8 million following 3 years of decline.
(United States Department of Agriculture, Coffee: World Markets and Trade report-June 2024)
Local Situation
During the month of August 2024, UCDA says, farm gate prices ranged from Shs 6,000-6,500/= per kilo of Kiboko (Robusta dry cherries); Shs.11,500- 12,500/= for FAQ (Fair Average Quality); Sh. 12,500- 13,000/= for Arabica Parchment; and Sh. 10,500-11,500/= per kilo for Drugar. Compared to the previous month, Robusta Kiboko averaged UGX 6,250/= higher than 5,900/=, Robusta FAQ averaged UGX 12,500/= higher than UGX 12,000, Arabica parchment UGX 12,750 per kilo the same as the previous month Drugar UGX 11,500/= per kilo higher than UGX 11,000 per kilo the previous month.
Outlook For September 2024
According to UCDA, coffee exports are projected to be 700,000 60-kilo bags as exporters continue to release stocks.
