Uganda Earns Shs265bn From November Coffee Exports As Heavy Rains Delay Bumper Harvest

Uganda is earning big from coffee exports

The Uganda Coffee Development Authority (UCDA) has revealed that Uganda earned Shs256.6bn in November 2023.

The details are contained in the Authority’s monthly performance report for November that highlighted, “Coffee exports in November 2023 amounted to 425,526 (60kilo bags) worth US$ 70.68 million (Shs265.601Bn). This comprised 338,329 bags of Robusta valued at US $ 53.12million and 87,197 bags of Arabica valued at US$ 17.57 million.” This was a decrease of 4.84% in quantity and an increase of 10.11 in value compared to the same month last year.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (November 2022), Robusta decreased by 7.28% in quantity but increased by 16.91% in value, while Arabica exports increased by 5.97% in quantity but decreased by 6.32% in value.

“The monthly coffee exports performance was lower than the previous year which was seen in Robusta exports. This was partly on account of the harvest season that has delayed due to the rains that also delayed drying of the newly harvested coffee,” the report says.

The report adds that coffee exports for the twelve months (December 2022-November 2023) totaled 6.13 million bags worth US$ 958.59 million compared to 5.81 million bags worth US$ 883.32 million in the previous period (December 2021-November 2022). This represents an increase of 6% and 9% in quantity and value respectively.

Exports by Type and Grade

According to the report, the average export price was US$ 2.77 per kilo, US cents 3 lower than in October 2023 (US$ 2.80).

It was 23 US cents higher than in November 2022 (US $ 2.54/kilo). Robusta exports accounted for 80% of total exports, lower than 87% in October 2023.

The average Robusta price was US$ 2.62 per kilo, 10 cent lower than US$ 2.72 per kilo the previous month. The highest price was Screen 14 sold at US$ 3.10 per kilo. It was followed by Organic Robusta sold at US$ 2.84 per kilo.

The share of Sustainable/washed coffee to total Robusta exports was 3.51% compared to 2.34% in October 2023.

Arabica fetched an average price of US$ 3.36 per kilo the same as the previous month.

The highest price was Sustainable Arabica sold at US$ 5.08 per kilo. It was followed by Bugisu C sold at US$4.23 per kilo. Drugar was sold at US$ 3.23 per kilo, 8 cents lower than 3.31 per kilo last month, which was US cents 33 lower than Bugisu AA.

Drugar exports were 52% of total Arabica exports higher than 40% the previous month. The share of sustainable Arabica exports to total Arabica exports was 7.05% compared to 4.74% in October 2023.

Individual Exporter Performance

The report shows that Kyagalanyi Coffee Ltd had the highest market share of 14.22% compared to 16.39% in October 2023. It was followed by Louis Dreyfus Company (U) Ltd 10.49% (14.01%);

Ideal Quality Commodities Ltd 9.25% (9.15%); Ibero (U)Ltd 8.92% (6.86%); Olam Uganda Ltd 8.11% (7.37%); Ugacof (U) Ltd 7.09% (10.66%); Besmark Coffee Company Limited 5.28% (1.68%); Kawacom (U) Ltd 4.34% (3.56%); Jber Coffee Ltd 4.23% (1.49%); and Export Trading Company (U) Ltd 4.06% (6.11%).

Note: The figures in brackets represent percentage market share held in October 2023.

The top 10 exporters held a market share of 76% lower than 82% the previous month reflecting reducing concentration at exporter level.

“Changes in positions compared to last month show competition at this level. Out of the 49 exporters who performed, 14 exported Robusta Coffee only while 9 exported Arabica coffee only,” the report says.

Coffee Exports by Destination

The report indicates that Italy maintained the highest market share with 27.68% compared to 28.95 % last month.

It was followed by Germany 20.50% (17.19%), Sudan 8.73% (5.43%), India 7.59% (7.40%) and Spain 5.53% (9.74%).

Note: The figures in brackets represent percentage market share held in October 2023.

The first 10 major destinations of Uganda coffee took a market share of 86.72% compared to 87.62% last month.

Coffee exports to Africa amounted to 69,288 bags, a market share of 16% compared to 90,042 bags (19%) the previous month.

African countries that imported Uganda coffee included Sudan, Morocco, Algeria, Tunisia, South Africa, Egypt, and Kenya. Europe remained the main destination for Uganda’s coffees with a 68% imports share, the same as in October 2023.

Foreign buyers of Uganda Coffee

The top 10 buyers held a market share of 62% of total exports, lower than 67% the previous month, the report shows.

Louis Dreyfus led with a market share of 10.49% compared to 13.93% in October 2023. It was followed by Bernhard Rothfos 9.62% (6.86%); Olam International 8.11% (7.37%); Sucafina 7.98% (1.02%); GRB 5.83% (3.52%); Volcafe 5.24% (8.70%); Bercher Coffee Consulting 4.48% (1.80%); Hamburg Coffee 3.76% (3.77%); Hafco 3.44% (1.49%); and Altasheel Import & Export Enterprises 3.30% (2.67%).

Note: The figures in brackets represent percentage performance in the previous month –October 2023.

Just like in previous months, there were changes in the relative positions of the first 10 major buyers reflecting continued demand for Uganda coffee abroad.

Global Situation

World coffee production for 2023/24 is forecast to reach 174.3 million bags, 4.3 million bags higher than the previous year, with higher output in Brazil and Vietnam expected to more than offset reduced production in Indonesia.

Global exports are expected to increase by 5.8 million bags to a record 122.2 million bags, higher than 116.4 million bags the previous year, primarily on strong shipments from Brazil.

Global consumption is forecast at 170.2 million bags, with the largest increase in the European Union, the United States of America and Brazil.

Ending stocks are expected to be 31.8 million bags. (United States Department of Agriculture, Coffee: World Markets and Trade report-June 2023).

Local Situation

During the month of November 2023, farm gate prices ranged from Sh.3,500-4,000/= per kilo of Kiboko (Robusta dry cherries); Shs. 7,800-8,200/= for FAQ (Fair Average Quality); Sh. 9,000- 10,000/= for Arabica parchment; and Sh.8,000-9,000/= per kilo for Drugar from Kasese. Robusta Kiboko averaged UGX 3,750 per kilo; FAQ UGX 8,000 per kilo, Arabica parchment UGX 9,500 per kilo higher than 9,250 per kilo last month and Drugar UGX 8,500/= per kilo higher than 8,250/= per kilo last month.