Uganda Earns Shs322bn From Coffee Exports In April As Organic Robusta & Arabica Fetch Highest Prices

Coffee is a top foreign exchange earner for Uganda

Uganda’s coffee exports in April 2024, amounted to 390,977 60-kilo bags, worth US$ 84.80 million (Shs321.9bn), Uganda Coffee Development Authority (UCDA) has revealed in its monthly report for April 2024.

This comprised of 290,037 bags of Robusta valued at US $ 61.49 million and 100,940 bags of Arabica valued at US$ 23.31 million. This was an increase of 4.84% and 41.71% 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 (April 2023), Robusta increased by 21.72% and 95.85% in quantity and value respectively, while Arabica exports decreased by 25.02% and 18.05% in quantity and value respectively.

The monthly coffee exports volume was higher than the previous year and this was in Robusta as the newly harvested main crop from Masaka and South Western regions begins to reach the market.

Arabica exports were however lower than last year due to a smaller harvest in Elgon region.

The report adds that coffee exports for the twelve months (May 2023-April 2024) totaled 5.92 million bags worth US$ 1.02 billion compared to 5.73 million bags worth US$ 838.81 million in the previous year (May 2022-April 2023).

This represents an increase of 3.38% and 21.45% in quantity and value respectively.

Exports by Type and Grade

The report says that the average export price was US$ 3.62 per kilo, US cents 35 higher than in March 2024 (US$ 3.27).

It was 95 US cents higher than in April 2023 (US $ 2.67/kilo). Robusta exports accounted for 74% of total exports, the same as March 2024.

The average Robusta price was US$ 3.53 per kilo, 40 cents higher than US$ 3.13 per kilo the previous month. The highest price was for Organic Robusta sold at US$ 4.63 (Shs17,582) per kilo , followed by Screen 18 sold at US$ 3.85 (Shs14,616) per kilo.

The share of Sustainable/washed coffee to total Robusta exports was 1.09% compared to 0.46% in February 2024.

Arabica fetched an average price of US$ 3.85 per kilo US cents 18 higher than the previous month (US$ 3.67). The highest price was Organic Drugar sold at US$ 6.47 (Shs24,568) per kilo. It was followed by sustainable Arabica sold at US$ 5.30 per kilo. Drugar was sold at US$ 3.91 per kilo, 37 cents higher than 3.54 per kilo last month, and was US cents 14 lower than Bugisu AA. Drugar exports were 53% of total Arabica exports higher than 42% the previous month. The share of sustainable Arabica exports to total Arabica exports was 7.67% compared to 15.21% in March 2024.

Individual exporter performance

According to the report,  Olam Uganda Ltd had the highest market share of 9.67% compared to 8.64% in March 2024. It was followed by Ugacof (U) Ltd 7.86%(5.57%); Kyagalanyi Coffee Ltd 7.77% (10.21%), Ideal Quality Commodities Ltd 7.27% (5.69%), Kawacom (U) Ltd 6.95%(7.86%), Ibero (U) Ltd 6.09% (7.33%), Export Trading Company (U) Ltd 6.07% (6.45%), Louis Dreyfus Company (U) Ltd 5.57% (6.81%), JKCC General Supplies Ltd 5.47% (2.93%), and Besmark Coffee Company Limited 5.44% (4.01%).

Note: The figures in brackets represent percentage market share held in March 2024.

The top 10 exporters held a market share of 68% lower than 69% the previous month reflecting competition at exporter level. Out of the 54 exporters who performed, 16 exported Robusta Coffee only while 12 exported Arabica coffee only.

Coffee exports by destination

Italy maintained the highest market share with 43.87% compared to 38.08% last month. It was followed by India 8.08% (12.29%), U.S.A 7.00% (4.08%), Germany 6.89% (10.50%) and Belgium 6.76% (7.42%).

It is worth noting that the figures in brackets represent percentage market share held in March 2024.

The first 10 major destinations of Uganda coffee took a market share of 86.93% compared to 89.27% last month. Coffee exports to Africa amounted to 24,583 bags, a market share of 6% compared to 33,328 bags (10%) the previous month.

African countries that imported Uganda coffee included Morocco, Sudan, South Africa, Kenya, and Egypt. Europe remained the main destination for Uganda’s coffees with a 69% imports share, higher than 66% in March 2024.

Foreign buyers of Uganda Coffee

According to the report, the top 10 buyers held a market share of 59% the same as the  previous month. Olam International led with a market share of 9.76% compared to 9.16% in March 2024. It was followed by Sucafina 8.44% (5.85%); Ecom Agro Industrialist 6.32%; (5.64%) Bernhard Rothfos 6.17% (7.33%); Eurocaf SRL 5.68% (2.96%); Louis Dreyfus 5.65% (6.81%); Touton SA 5.38% (7.37%) Volcafe 5.11% (7.53%); Bercher Coffee Consulting 3.87% (1.85%) and ETG Commodities 3.40% (1.66%).

Note: The figures in brackets represent percentage performance in the previous month –March 2024.

“Changes in the relative positions of the first 10 major buyers reflects continued demand for Uganda coffee abroad,” the report reads.

Global Situation

World coffee production for 2023/24 is forecast to reach 171.4 million bags , 6.9 million bags higher than the previous Year of 164.5 million bags, with higher output in Brazil, Colombia and Ethiopia expected to more than offset reduced production in Indonesia.

Global exports are expected to increase by 8.4 million bags to 119.92 million bags, mainly due to strong shipments from Brazil. Global consumption is forecast at 169.5 million bags, with the largest increase in the European Union, the United States of America and Brazil.

Ending inventories are expected to continue to tighten to a 12-year low of 26.5 million bags. (United States Department of Agriculture, Coffee: World Markets and Trade report December 2023).

Local Situation

During the month of April 2024, farm gate prices ranged  from Shs 5,500-6,000/= per kilo of Kiboko (Robusta dry cherries); Shs.12,000-12,500/= for FAQ (Fair Average Quality); Sh. 12,500- 13,000/= for Arabica parchment; and Sh. 11,500-12,000/= per kilo for Drugar. Compared to the previous month, Robusta Kiboko averaged UGX 5,750 per kilo, higher than UGX 5,100 per kilo , FAQ UGX 12,250 per kilo higher than UGX 11,750 Arabica parchment UGX 12,750 per kilo higher than UGX 11,500 per kilo and Drugar UGX 11,750/= per kilo higher than UGX 10,500 per kilo higher than the previous month.

Outlook for May 2024

UCDA says coffee exports are projected to be 450,000 60-kilobags.

“Harvesting of the main crop south of the equator (Masaka and South Western regions) has started. Harvest of the fly crop North of the equator has also started,” UCDA says.