Coffee is Uganda’s key foreign exchange earner
Uganda’s coffee exports in February 2025, amounted to 555,756 60-kilo bags, worth US$ 167.68 million (Shs614.85bn), the Ministry of Agriculture, Animal Industry and Fisheries, has said.
In its monthly report for February 2025, MAAIF says this comprised of 466,691 bags of Robusta valued at US $ 135.32 million and 89,065 bags of Arabica valued at US$ 32.36 million.
This was an increase of 27.93% and 103.25% 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 (February 2025), Robusta increased by 25.32% and 97.39% in quantity and value respectively, while Arabica exports increased by 43.60% and 132.04% in quantity and value respectively.
The monthly coffee exports volume was higher than the previous year.
“The prevailing high prices at the international scene prompted exporters to release their stocks. The value of coffee exports was higher due to the high global coffee prices as dry conditions in Brazil and Vietnam, the world’s largest producers of Arabica and Robusta coffee respectively continue to fuel uncertainty of the global coffee supply,” the report reads in part.
It adds that coffee exports for twelve months (March 2024-February 2025) totaled 6.57 million bags worth US$ 1.72 billion compared to 6.14 million bags worth US$ 999.84 million in the previous year (March 2023-Febryary 2024). This represents an increase of 6.99% and 70.71% in quantity and value respectively.
Exports by Type and Grade
According to the report, the average export price was US$ 5.03 per kilo, US cents 29 higher than in January 2025 (US$ 4.74). It was US$ 1.86 higher than in February 2024 (US $ 3.17/kilo). Robusta exports accounted for 84% of total exports, lower than 88.3% in January 2025. The average Robusta price was US$ 4.83 per kilo, 18 cents higher than US$ 4.65 per kilo the previous month.
The highest price was for Washed Robusta sold at US$ 6.12 per kilo, followed by Screen 17 sold at US$ 5.29 per kilo. The share of Sustainable/washed coffee to total Robusta exports was 0.44% lower than 1.31% in January 2025.
Arabica fetched an average price of US$ 5.06 per kilo US cents 66 higher than the previous month (US$ 5.40). The highest price was for Bugisu PB sold at US$ 8.17 per kilo.
It was followed by Organic Drugar sold at US$ 7.60 per kilo. Drugar was sold at US$ 6.20 per kilo, 68 cents higher than 5.52 per kilo the previous month. Drugar exports were 21% of total Arabica exports lower than 24% the previous month. The share of sustainable Arabica exports to total Arabica exports was 9%, higher than 7% in January 2025.
Individual Exporter Performance
Ugacof (U)Ltd had the highest market share of 12.96% compared to 15.30% in January 2025. It was followed by Olam Uganda Ltd 11.34% (7.32%); Jber Coffee Ltd 6.85% (6.23%), Kawacom (U) Ltd 6.62% (10.65%), Touton Uganda Limited 6.62% (4.21%) Ideal Quality Commodities Ltd 6.32% (5.81%), Export Trading Company (U) Ltd 5.28% (2.10%), Louis Dreyfus Company (U) Ltd 5.51% (6.90%) Kyagalanyi Coffee Ltd 4.78% (5.47%), and Ibero (U) Ltd 3.70% (4.78%).
Note: The figures in brackets represent percentage market share held in January 2025.
The report shows that the top 10 exporters held a market share of 71% slightly higher than 70% the previous month reflecting competition at exporter level.
Out of the 61 exporters who performed, 34 exported Robusta Coffee only while 6 exported Arabica coffee only.
Coffee Exports by destination
The report shows that Italy maintained the highest market share with 45.17% compared to 36.94% last month. It was followed by Germany 8.71% (8.30%), India 8.36%% (9.76%), Belgium 7.13% (11.90%) and Sudan 6.17% (9.41%).
Note: The figures in brackets represent percentage market share held in January 2025. The first 10 major destinations of Uganda coffee took a market share of 89.32% compared to 91.31% the previous month. Coffee exports to African countries totaled 53,720 bags, a market share of 10% compared to 73,324 bags (13%) the previous month. African countries that imported Uganda coffee included Sudan, Morocco, Tunisia, Algeria, Egypt, Tanzania, Kenya and South Africa. Europe remained the main destination for Uganda’s coffees with a 74% import share, higher than 69% in January 2025.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 59.88% lower than 60.12% the previous month. Sucafina led with a market share of 13.48% compared to 15.54% in January 2025. It was followed by Olam International 12.36% (7.68%); Louis Dreyfus 7.91% (6.90%); Ecom Agro Industrialist 6.68% (10.34%); Touton SA 6.62% (4.39%); Bernhard Rothfos 3.87% (5.08%); Pacorini Silocaf 2.39% (1.65%); Koninklijke Douwe 2.33% (0.98%); Strauss 2.21% (1.95%) and CCL Products 2.04%. (2.52%).
Note: The figures in brackets represent percentage performance in the previous month –January 2025.
Global Situation
World coffee production for 2024/25 is forecast to reach 6.9 million bags higher than the previous year to 174.9 million due primarily to rebounding output in Vietnam and Indonesia. World exports are forecast to be slightly higher as gains in Vietnam and Indonesia more than offset reduced shipments from Brazil. Global consumption is expected to increase by 5.1 million bags to 168.1 million, with the largest gains in the European Union, the United States, and China. Ending stocks are expected to drop by 1.5 million bags to 20.9 million. (United States Department of Agriculture, Coffee: World Markets and Trade report-December 2024).
Local situation
According to MAAIF, during the month of February 2025, farm gate prices ranged from UGX 7,500/=-8,000/= per kilo of Kiboko (Robusta dry cherries); UGX.15,000/=-16,000/= for FAQ (Fair Average Quality); UGX. 14,000- 15,000/= for Arabica Parchment; and UGX 13,000/=- 13,500/= per kilo for Drugar. Compared to the previous month, Robusta Kiboko averaged UGX 7,750/= higher than UGX 7,000/= Robusta FAQ averaged UGX 15,500/= higher than UGX 13,000, Arabica parchment UGX 14,500 per kilo, higher than 13,250/= Drugar UGX 13,250/= per kilo higher than 13,000/= per kilo.
Outlook for March 2025
MAAIF says coffee exports are projected to be 450,000 60-kilobags.
“The main harvest season north of the equator and the fly crop in Greater Masaka and South-Western regions is at the tail end,” the report says.
