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Uganda Earns Shs265bn From December Coffee Exports Amid Global Supply Shortage

Uganda Coffee exports in December 2021 amounted to 536,889 60-kilo bags worth US$ 75.25 million (Shs265bn), the Uganda Coffee Development Authority (UCDA) December 2021 report reveals.

This comprised 452,55 bags of Robusta valued at US $55.26 million and 84,301 bags of Arabica valued at US$ 19.99 million.

This was an increase of 28.03% and 100.64% 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 Coffee Year (December 2020), the report says, Robusta increased by 21.79% and 80.74% in quantity and value respectively, while Arabica exports increased by 76.68% and 188.41% in quantity and value respectively.

“Increasing coffee exports during the month compared to the previous year was due to newly planted coffee which started yielding supported by favorable weather,” the UCDA report reads.

It adds: “The positive trend in global coffee prices were attributed to weather related issues in Brazil and shortage of shipping containers which prompted exporters to release their stocks.”

Meanwhile, Coffee exports for the 12 months (January 2021-December 2021) amounted to 6,765,428 60-kilo bags worth US$ 718.57 million compared to 5,488,927 60-kilo bags valued at US$ 520.01 million the previous year (January 2020- December 2020). This represents 23.26% and 38.18% increase in both quantity and value respectively.

Coffee exports by destination

 Italy maintained the highest market share with 37.11% compared with 32.76% last month. It was followed by Germany 17.38% (17.43%), Sudan 5.99% (3.39%) USA 4.68% (4.66%) and Spain 4.62% (4.83%).

It’s important to note that the figures in brackets represent percentage market share held in November 2021.

Coffee exports to Africa amounted to 88,546 bags, a market share of 16% compared to 83,803 bags (16%) the previous month. African countries included Algeria, Sudan, Morocco, Egypt, South Africa, and Kenya.

“Europe remained the main destination for Uganda’s coffees with a 70% imports share higher than 69% November 2021,” the report says.

Global Situation

World coffee exports for November totaled 9.25 million bags down by 12% from 10.56 million bags in November 2020.

Total exports for 12 months (December 2020-November 2021)totaled 127 million bags an increase of 1.6% compared to 129.11 million bags December 2019-November 2020. The ICO Composite Indicator price increased by 4% to 203.06 US cents up from 195.17 US cents in November 2021, the highest in ten years. The prices have seen a positive trend since October 2020.

“Concerns of supply shortage due to adverse weather conditions in Brazil and supply disruption caused by shortage of containers in Vietnam continue to push prices higher,” the report says, adding that global coffee production for 2020/21 coffee year is estimated to increase by 0.4% to 169.66 million bags a 0.4% up from 169.00 million bags in Coffee Year 2019/20.

“Global consumption is estimated to increase by 1.9% % to 167.24 million bags in 2020/21 coffee year compared to 164.08 million bags in 2019/20 coffee year (ICO December 2021 report),” UCDA report reads in part.

Outlook for January 2022

“Coffee exports are projected to be 500,000 bags (in January 2022) as the main harvesting period season in Central and Eastern regions begins to tail off,” the report says.

During the month of December 2021, farm gate prices ranged from Sh.2,700-3,500/= per kilo of Kiboko (Robusta dry cherries); Shs. 5,800-6,700/= for FAQ; Sh. 11,000- 13,000/= for Arabica parchment; and Sh.,10,000-11,000/= per kilo for Drugar from Kasese. Robusta Kiboko averaged UGX 3,100/= per kilo; FAQ UGX 6,250/= per kilo, Arabica parchment UGX 12,000/= per kilo and Drugar UGX 10,500/= per kilo.

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.

2 thoughts on “Uganda Earns Shs265bn From December Coffee Exports Amid Global Supply Shortage

  1. Senoga Kenedy

    Please updates of global coffee markets, prices are vital.

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