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Uganda Earns Shs185bn From 560,000 Bags Of Coffee Exported In February

Coffee ready for export

Coffee exports in February  2021 amounted to 563,763 60-kilo bags worth US$50.55m (Shs185.4bn), Uganda Coffee Development Authority (UCDA) monthly report for February has revealed.

 This comprised 500,685 bags of Robusta valued at US$40.96m and 62,078 bags of Arabica valued at US$9.59m.

 This was an increase of 18.89% and 8.10% in quantity and value compared to the same month last year.

UCDA says coffee exports for the 12 months (March 2021-Feb 2021) amounted to 5,558,175 60-kilo bags worth US$511.21m (Shs1.87 trillion) compared to 4,744,275 60-kilo bags valued at US$459.47m (Shs1.68 trillion) the previous year. This represents 17.16% and 11.26% increase in quantity and value respectively.

According to the report, 74% of the total volume was exported by 10 exporters, out of 37 companies which performed

during the month compared to 72% in January 2021, reflecting increased concentration.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (February 2020), Robusta increased by 28.72% and 18.17% in quantity and value respectively.

On the other hand, Arabica exports decreased in both quantity and value by 26.40% and 20.72% respectively

“The decrease in Arabica monthly exports compared to the previous year has been attributed mostly to the off-year biennial cycle characteristic of Arabica production. Increasing Robusta exports during the month was on account of fruition of the newly planted coffee as well as favourable weather,” the report says.

It adds: “This was also due to a positive trend in global coffee prices which influenced exporters to offload more coffee. The decrease in value of Arabica coffee is due to low volumes exported.”

Prices

The report shows that the average export price was US$ 1.50 per kilo, 2 cents higher than US$ 1.48 per kilo realized in January 2021. Robusta exports accounted for 88.97% of total exports lower than 89.16% in January 2020. The average Robusta price was US$ 1.36 per kilo, 1 cent lower than the previous month. Washed Robusta fetched the highest price of US$ 1.73 per kilo, a premium of 25 over Screen 18, and it was followed by Screen 14 sold at an average price of US$ 1.50 per kilo, 19 cents higher than US $ 1.10 per kilo for Screen 12.

Arabica fetched an average price of US$ 2.57 per kilo, 15 cents higher than in January 2021. The highest price was Rwenzori A+ sold at US$ 7.01 per kilo., followed by Sustainable Arabica Fully Washed Sipi Falls sold at US$ 4.57 per kilo. Drugar exports had a 33% share of Arabica exports compared to 24% the previous month and was sold at US$ 2.23 per kilo, a discount of 51 cents from Bugisu AA.

“The downward trend in percentage of Drugar exports to total Arabica exports compared to the past depicts a desired outcome of increased washed Arabica quantities and value,” the report reads in part.

Local Prices

According to the report, farm-gate prices for Robusta Kiboko averaged Shs1,900 per kilo; FAQ Shs4,000 per kilo, Arabica parchment Shs5,300 per kilo and Drugar Shs5,150 per kilo.

The destinations of Uganda’s coffee exports

 Italy maintained the highest market share with 28.12% compared with 32.10% last month. It was followed by Germany 20.82% (13.37%), Belgium 9.67% (10.73%) India 9.13% (7.09%) and United States 5.11% (5.29%). *The figures in brackets represent percentage market share held in January 2021.

Coffee exports to Africa amounted to 67,615 bags, a market share of 12% compared to 80,332 bags (18%) the previous month. African countries included Sudan, Morocco, Kenya, Algeria, Egypt and South Africa. Europe remained the main destination for Uganda’s coffees with a 68% imports share.

Outlook

UCDA says coffee exports are projected to be 500,000 bags as the main harvesting period in Central and Eastern regions is at it tail end.

“Increased exports would be fueled by increasing global coffee prices which will attract exporters to continue releasing their stocks. Drier weather will quicken drying and movement of the remaining coffee from the countryside,” the report says.

Taddewo William Senyonyi
https://www.facebook.com/senyonyi.taddewo
William is a seasoned business and finance journalist. He is also an agripreneur and a coffee enthusiast.

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