Uganda earned a record Shs330.5bn from coffee exports in June
Uganda’s coffee exports in June 2023 amounted to 563,832 60-kilo bags, worth US$ 90.56 million (Shs330.5bn), Uganda Coffee Development Authority (UCDA)’s monthly report for June 2023, indicates.
This comprised 489,597 bags of Robusta valued at US$73.88 million and 74,235 bags of Arabica valued at US$ 16.68 million.
This was an increase of 6.31% and 8.08% 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 (June 2022), Robusta increased by 10.22% and 21.16% in quantity and value respectively, while Arabica exports decreased by 13.85% and 26.89% in quantity and value respectively.
The monthly coffee exports performance was higher than the previous year which was seen in Robusta exports and was partly on account of a good crop harvest in South-Western region and the prevailing good prices on the global scene which prompted exporters to release their stocks.
The decrease in Arabica value was pegged on a likely high output from Brazil in Coffee Year 2023/24 where harvesting is moving at a faster rate due to favourable harvest conditions.
Coffee exports for 12 months (Financial year 2022/23) totaled 5.76 million bags worth US$ 845.94 million compared to 6.27 million bags worth US$ 862.28 million the previous year (Financial year 2021/22). This represents a decrease of 8% and 2% in quantity and value respectively.
“The decrease was pegged on a drought and increasing incidence of pests and diseases in Robusta growing areas and considerable reduction in exports to Sudan in second half of the financial year due to a civil war,” the report says.
Exports by Type and Grade
The average export price was US$ 2.68 per kilo, US cent 1 lower than in May 2023 (US $ 2.69/kilo). It was 5 US cents higher than in June 2022 (US $ 2.63/kilo). Robusta exports accounted for 87% of total exports higher than 64% in May 2023. The average Robusta price was US$ 2.51 per kilo, 19 cents higher than US$ 2.32 per kilo the previous month.
The highest price was for Washed Robusta sold at US $ 2.88 per kilo, a premium of 19 cents above Screen 18. This was followed by Screen 18 sold at US$ 2.66 per kilo. Worth noting are lower fair trade prices offered compared to the Conventional grades
The share of Sustainable/washed coffee to total Robusta exports was 1.15% higher than 0.78% in May 2023.
According to the report, Arabica fetched an average price of US$ 3.75 per kilo, US cents 7 higher than US$ 3.68 per kilo realized in May 2023.
The highest price was for Rwenzori PB sold at US$ 7.65 per kilo. It was followed by Rwenzori AA and AB sold at US$ 7.54 per kilo. Drugar was sold at US$ 3.62 per kilo, a discount of US cents 48 from Bugisu AA.
Drugar exports were 60% of total Arabica exports compared to 42% the previous month. The share of sustainable Arabica exports to total Arabica exports was 7% the same as in May 2023.
Individual Exporter Performance
Ugacof (U) Ltd had the highest market share of 13.00% compared to 18.12% in May 2023. It was followed by Ideal Quality Commodities Ltd 10.30% (8.83%); Olam Uganda Ltd 9.54% (10.19%); Louis Dreyfus Company (U) Ltd 8.22% (5.54%); Kyagalanyi Coffee Ltd 6.12% (8.64%), Touton Uganda Limited 5.96% (3.70%); Kawacom (U)Ltd 5.17% (6.78%); JBER Coffee Ltd 5.03% (1.93%); Ibero(U)Ltd 3.88% (7.92%); and Grainpulse Ltd 3.42% (1.00%).
It’s important to note that the figures in brackets represent percentage market share held in May 2023.
The top 10 exporters held a market share of 71% lower than 76% the previous month reflecting increasing competition.
Changes in exporter positions compared to last month show competition at this level.
Out of the 55 exporters that performed, 24 exported Robusta
Coffee only while 10 exported Arabica coffee only.
Coffee Exports by destination
Italy maintained the highest market share with 37.68% compared to 37.34% last month. It was followed by Sudan 15.77% (7.03%), Germany 12.13% (17.42%), India 7.85% (10.94%) and Belgium 3.85% (3.21%).
Note: The figures in brackets represent percentage market share held in May 2023.
The first 10 major destinations of Uganda coffee took a market share of 90.13% compared to 91.97 % last month.
Coffee exports to Africa amounted to 103,285 bags, a market share of 18% compared to 43,777 bags (10%) the previous month. African countries that imported Uganda coffee included Sudan, Morocco, South Africa, Egypt, Madagascar and Kenya.
Europe remained the main destination for Uganda’s coffees with a 64% imports share, lower than 71% in May 2023.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 64% of total exports, lower than 68% the previous month. Sucafina led with a market share of 13.95% compared to 17.79% in May 2023. It was followed by Olam International 10.28% (10.34%); Louis Dreyfus 8.16% (5.61%); Hamburg Coffee 6.42% (4.29%); Touton Geneve 5.96% (3.70%); EcomAgro Industrialst 5.40% (7.08%); Altasheel Import & Export Services 4.40%; (1.89%); Bernhard Rothfos 3.88%, (8.37%); Volcafe 3.12% (3.69%) Eurocaf Sas 2.52% (0.63%).
Note: The figures in brackets represent percentage performance in the previous month – May 2023.
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 increase by 4.3 million bags from the previous year to 174.3 million due primarily to higher output from Brazil and Vietnam. Global consumption is forecast at 170.2 million, with the largest gains in the European Union, the United States of America and Brazil. World coffee bean exports are forecast to increase by 5.8 million bags to reach 122.2 million bags higher than 116.4 million fueled by strong shipments from Brazil.
Ending stocks are expected to be 31.8 million. (United States Department of Agriculture, Coffee: World Markets and Trade report-June 2023).
Local Situation
During the month of June 2023, UCDA says, farm gate prices ranged from Sh.4,000-4,500/= per kilo of Kiboko (Robusta dry cherries); Shs. 8,000-8,500/= for FAQ (Fair Average Quality); Sh. 10,000- 11,000/= for Arabica parchment; and Sh. 9,500-10,000/= per kilo for Drugar from Kasese.
Robusta Kiboko averaged UGX 4,250 per kilo; FAQ UGX 8,250 per kilo, Arabica parchment UGX 10,500 per kilo and Drugar UGX9,750/= per kilo.
Outlook for July 2023
UCDA says coffee exports are projected to be 550,000 bags. The main harvesting season in Greater Masaka and South-Western regions will be at the tail end.
