Coffee remains Uganda’s leading cash crop and a top foreign exchange earner
Uganda’s coffee exports in October 2024, amounted to 496,820 60-kilo bags, worth US$ 139.05 million (Shs512.9bn), Uganda Coffee Development Authority (UCDA) has revealed in its monthly report for October 2024.
This comprised of 457,853 bags of Robusta valued at US $ 127.46 million and 38,967 bags of Arabica valued at US$ 11.59 million.
This was an increase of 5.77% and 76.27 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 (October 2023), the report indicates that Robusta increased by 11.66% and 90.64% in quantity and value respectively, while Arabica exports decreased by 34.67% and 3.64% in quantity and value respectively.
The monthly coffee exports volume was higher than the previous year. Arabica exports were, however, lower due to the bi annual off year cycle coupled with poor flowering in Mt. Elgon region.
The value of coffee exports was higher due to the increase in global coffee prices as a result of dry conditions in Brazil and Vietnam, the world’s largest producers of Arabica and Robusta coffee respectively that are seen to affect coffee crop yields and, therefore, a likelihood of supply deficit in 2024/25.
Coffee exports for twelve months (November 2023-October 2024) totaled 6.38 million bags worth US$ 1.46 billion compared to 6.16 million bags worth US$ 953.14 million in the previous year (November 2022-October 2023).
This represents an increase of 3.60% and 53.38% in quantity and value respectively.
Exports by Type and Grade
The report reveals that the average export price was US$ 4.66 per kilo, US cents 13 higher than in September 2024 (US$ 4.53).
It was US$ 1.86 higher than in September 2023 (US $ 2.80/kilo). Robusta exports accounted for 92.1% of total exports, lower than 94.8% in September 2024. The average Robusta price was US$ 4.64 per kilo, 11 cents higher than US$ 4.53 per kilo the previous month.
The highest price was for Organic Robusta and sold at US$ 5.56 per kilo, followed by Organic Screen 18 and 12 sold at US$ 5.53 per kilo. The share of Sustainable/washed coffee to total Robusta exports was 4.9% higher than 4.2% in September 2024.
Arabica fetched an average price of US$ 4.96 per kilo US cents 43 higher than the previous month (US$ 4.53).
The highest price was for Organic Bugisu sold at US$ 6.09 per kilo. It was followed by Bugisu AB sold at US$ 5.43 per kilo.
Drugar was sold at US$ 4.99 per kilo, 27 cents higher than 4.72 per kilo last month.
Drugar exports were 53% of total Arabica exports higher than 31% the previous month.
The share of sustainable Arabica exports to total Arabica exports was 7%, lower than 16% in September 2024.
Individual Exporter Performance
Ugacof (U)Ltd had the highest market share of 15.83% compared to 11.62% in September 2024. It was followed by Kyagalanyi Coffee Ltd 12.81% (11.43%); Olam Uganda Ltd 11.61% (16.73%), Touton Uganda Ltd 9.78% (7.95%), Louis Dreyfus Company (U) Ltd 5.31% (5.36%) JKCC General Supplies Ltd 4.71% (3.29%), Ibero (U) Ltd 4.41% (5.26%), DRK General Merchants Ltd 3.65% (3.44%), Ideal Quality commodities Ltd 3.47% (4.95%), and Ankole Coffee Producers Coop Union Ltd 3.30% (0.63 %).
Note: The figures in brackets represent percentage market share held in September 2024. The top 10 exporters held a market share of 75% lower than 76% the previous month reflecting competition at exporter level.
The report further notes that out of the 55 exporters who performed, 33 exported Robusta Coffee only while 7 exported Arabica coffee only.
Destinations of Uganda’s coffee exports
The report shows that Italy maintained the highest market share with 37.35% compared to 36.20% last month. It was followed by Germany 17.51% (15.36%), India 9.37% (8.60%), Algeria 4.91% (1.63%) and Morocco 4.46% (5.11%).
Note: The figures in brackets represent percentage market share held in September 2024.
The first 10 major destinations of Uganda coffee took a market share of 88.00% compared to 88.57% last month. Coffee exports to African countries totaled 66,414 bags, a market share of 13% compared to 62,837 bags (12%) the previous month.
African countries that imported Uganda coffee included Algeria, Morocco, Sudan, Tunisia, Egypt and Kenya. Europe remained the main destination for Uganda’s coffees with a 68% imports share, lower than 71% in September 2024.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 63.67% lower than 64.66% the previous month. Sucafina led with a market share of 15.83% compared to 11.93% in September 2024. It was followed by Olam International 11.67% (16.32%); Touton SA 9.78% (8.26%); Volcafe 6.26% (6.28%); Louis Dreyfus 5.31% (5.48%); Bernahard Rothfos 4.47% (5.29%); GRB 4.06%; (2.23%); Eurocaf SRL 2.41% (1.88%); Narasus 2.02% (1.18%) and Ecom Agro Industrialist 1.85% (4.54%).
Note: The figures in brackets represent percentage performance in the previous month –September 2024.
Global Situation
World coffee production for 2024/25 is forecast to increase by 7.1 million bags from the previous year to 176.2 million mainly due to continued recovery in Brazil and rebounding output in Indonesia. With additional supplies, global exports are expected to increase by 3.6 million bags to 123.1 million primarily on strong shipments from Indonesia and Brazil. Consumption is seen to be 3.1 million bags higher to 170.6 million. Ending stocks are expected to rise by 1.9 million bags to 25.8 million following 3 years of decline. (United States Department of Agriculture, Coffee: World Markets and Trade report-June 2024).
Local Situation
During the month of September 2024, UCDA says, farm gate prices ranged from Shs 6,000-7,000/= per kilo of Kiboko (Robusta dry cherries); Shs.12,000-13,000/= for FAQ (Fair Average Quality); Sh. 12,000- 13,000/= for Arabica Parchment; and Sh. 11,000-12,000/= per kilo for Drugar. Compared to the previous month, Robusta Kiboko averaged UGX 6,500/= lower than 6,750/= Robusta FAQ averaged UGX 12,500/= lower than UGX 12,750, Arabica parchment UGX 12,500 per kilo, Drugar UGX 11,500/= per kilo remaining the same in September 2024.
Outlook for November 2024
UCDA says coffee exports are projected to be 520,000 60-kilo bags in November 2024.
It adds that the main harvest season north of the equator has begun. The harvesting season for the fly crop in Greater Masaka and South-Western regions has also begun.
