Uganda Earns Shs217bn From October Coffee Exports As Newly Planted Trees Start To Yield

Uganda is increasingly earning big from coffee

Coffee exports in October 2021 amounted to 486,534 60-kilo bags worth US$61.43 million (Shs217.3bn), Uganda Coffee Development Authority (UCDA) has revealed in its monthly report.

The coffee exports comprised 426,148 bags of Robusta valued at US $49.47 million and 60,386 bags of Arabica valued at US$ 11.96 million.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (October 2020), Robusta increased by 14.78% and 59.91% in quantity and value respectively, while Arabica exports increased by 6.44% and 55.82% in quantity and value respectively.

The Authority attributes the increasing coffee exports during the month to newly planted coffee which started yielding supported by favorable weather and the performance was further compounded by a positive trend in global coffee prices.

According to UCDA, the top 10 buyers held a market share of 66% of total exports, the same as the previous month with Olam International leading in coffee exports, with a market share of 15.97% followed by Sucafina 15.24%, Louis Dreyfus 10.61% and Volcafe 6.03%.

The report also detailed destinations of Uganda’s coffee exports during the month of October 2021 with Italy maintaining its top slot as biggest consumer of Uganda Coffee, commanding market share of 26.27%, followed by Algeria 14.82%, Germany 14.20%, United States 7.19% and Belgium 6.11%.

At the continental level, Coffee exports to Africa amounted to 106,681 bags with Algeria, Sudan, Morocco, Egypt, and Kenya being big consumers of Uganda coffee but Europe remained the main destination for Uganda’s coffees with a 57% imports share higher than 50% in September 2021.

During the month of October 2021, farm gate prices ranged from Sh.2,500-2,800/= per kilo of Kiboko (Robusta dry cherries); Shs. 4,800-5,600/= for FAQ; Sh8,500-9,000= for Arabica parchment; and Sh8,000-8,500/= per kilo for Drugar from Kasese.

Coffee exports are projected to be 500,000 bags in November since harvesting period season in Central and Eastern regions has started.

The Authority also revealed that Coffee prices have been going up since July 2021 as Brazil faced the threat of frost and high temperatures, while Vietnam faced a challenge of shipping containers as a result of Covid 19 related restrictions.