Uganda earned Shs223.3bn from coffee exports in April/UCDA photo
Uganda’s coffee exports in April 2023 amounted to 373,610 60-kilo bags, worth US$59.99 million (Shs223.3bn), Uganda Coffee Development Authority (UCDA) says in its monthly report for April 2023.
This comprised 238,636 bags of Robusta valued at US $31.50 million and 134,974 bags of Arabica valued at US$ 28.49 million. This was a decrease of 8.37% and 15.37% 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 (April 2022), the report says Robusta decreased by 13.91% and 15.40% in quantity and value respectively, while Arabica exports increased by 3.41% in quantity but decreased by 15.35% in value.
“The monthly coffee exports performance was lower than the previous year which was seen in Robusta exports and was partly on account of an earlier drought coupled with reduced exports to Sudan reflected in the market share which reduced from 18% in March 2023 to 11% in April 2023,” the report says.
It adds that Arabica exports were higher compared to the same month last year due to an on-year of the biennial cycle characteristic of Arabica coffee production.
“The decrease in Arabica value was pegged on a seemingly high output from Brazil in Coffee Year 2023/24 where harvesting is to intensify in May 2023, that is weighing on prices,” UCDA says.
Coffee exports for 12 months (May 2022-April 2023) totaled 5.73 million bags worth US$ 838.54 million compared to 6.38 million bags worth US$ 811.23 million the previous year (May 2021-April 2022). This represents a decrease of 10% in quantity but an increase of 3% in value.
Exports by Type and Grade
According to the report, the average export price was US$ 2.68 per kilo, 24 U.S cent higher than US$ 2.44 per kilo realized in March 2023.
It was 22 US cents lower than in April 2022 (US $ 2.90/kilo). Robusta exports accounted for 64% of total exports lower than 75% in March 2023. The average Robusta price was US$ 2.20 per kilo, higher than US$ 2.10 per kilo the previous month.
The highest price was for Organic Robusta sold at US$ 3.14 per kilo, a premium of 78 cents above Screen 18. This was followed by Washed Robusta sold at US$ 2.46 per kilo, a premium of 10 cents above Conventional Screen 18.
The share of Sustainable/washed coffee to total Robusta exports was 2.53% higher than 0.87% in March 2023. Arabica fetched an average price of US$ 3.52 per kilo, US cents 5 higher than US$3.47 per kilo realized in March 2023.
The highest price was Sustainable Arabica Fully Washed Sipi Falls and Bugisu PB sold at US$ 5.06 per kilo. It was followed by Organic Okoro sold at US$ 4.91 per kilo. Drugar was sold at US$ 3.28 per kilo, a discount of US cents 55 from Bugisu AA.
Drugar exports were 37% of total Arabica exports compared to 38% the previous month.
The share of sustainable Arabica exports to total Arabica exports was 8% lower than 18% in March 2023.
Individual Exporter Performance
Ugacof (U) Ltd had the highest market share of 14.89% compared to 13.97% in March 2023. It was followed by Kyagalanyi Coffee Ltd 13.13% (11.97%); Kawacom (U) Ltd 9.00% (9.32%); Touton Uganda Limited 8.72% (8.66%); Olam Uganda Ltd 8.55% (9.27%), Ideal Quality Commodities Ltd 5.90% (6.58%); Ibero (U) Ltd 5.19% (3.63%); Louis Dreyfus Company (U) Ltd 4.71% (3.94%);
Besmark Coffee Company (U) Ltd 3.27% (2.07%); and Jber Coffee Ltd 2.96% (3.46%).
It’s important to note that the figures in brackets represent percentage market share held in March 2023.
“The top 10 exporters held a market share of 76% the same as the previous month reflecting increasing concentration. Changes in exporter positions compared to last month show competition at this level. Out of the 47 exporters that performed, 23 exported Robusta
Coffee only while 12 exported Arabica coffee only,” the report says.
Coffee Exports By Destination
The report reveals that Italy maintained the highest market share with 26.66% compared to 32.61% last month. It was followed by Germany 19.27% (13.01%), India 12.60% (11.51%), Sudan 10.59% (17.66%) and U.S.A 5.78% (4.37%).
Note: The figures in brackets represent percentage market share held in March 2023.
The first 10 major destinations of Uganda coffee took a market share of 89.94% compared to 91.13% last month.
Coffee exports to Africa amounted to 51,418 bags, a market share of 14% compared to 103,937 bags (21%) the previous month.
African countries that imported Uganda coffee included Sudan, Morocco, South Africa, Egypt, Algeria and Kenya.
“Europe remained the main destination for Uganda’s coffees with a 62% imports share, higher than 60% in March 2023. There were some changes in relative position of the first ten major destinations with Sudan’s market share dropping to 11.% from 18% the previous month,” the report says.
Foreign buyers of Uganda Coffee
According to the report, the top 10 buyers held a market share of 63% of total exports, same as the previous month.
Sucafina led with a market share of 14.88% compared to 13.07% in March 2023. It was followed by Touton Geneve 9.10% (9.10%); Olam International 9.00% (9.62%); Ecom Agro industrialist 7.41% (9.08%); Volcafe 6.50% (6.59%); Bernhard Rothfos 5.19%; (4.08%) Louis Dreyfus 4.79%, (3.94%); GRB 3.08% (1.32%); Hamburg Coffee 2.23% (3.75%) and Strauss 2.09% (2.40%).
Note: The figures in brackets represent percentage performance in the previous month – March 2023.
“There were changes in the relative positions of the first 10 major buyers reflecting continued demand for Uganda coffee abroad,” the report says.
Global Situation
World coffee production for 2022/23 is forecast to rebound 6.6 million bags from the previous year to 172.8 million due primarily to Brazil’s Arabica crop entering the on-year of the biennial production cycle.
Global consumption is expected to rise by 800,000 bags to 167.9 million, with the largest gains in the European Union, the United States of America and Brazil.
World coffee bean exports are forecast 3.0 million bags lower to 116.1 million as losses in Brazil, Vietnam, and India more than offset gains in Honduras and Colombia. Ending stocks are expected 1.5 million bags higher to 34.1 million.
(United States Department of Agriculture, Coffee: World Markets and Trade report).
Local Situation
The report reveals that during the month of April 2023, farm gate prices ranged from Sh.2,800-3,000/= per kilo of Kiboko (Robusta dry cherries); Shs. 6,800-7,300/= for FAQ (Fair Average Quality); Sh. 8,800- 9,500/= for Arabica parchment; and Sh. 7,800- 8,300/= per kilo for Drugar from Kasese.
Robusta Kiboko averaged UGX 2,900 per kilo; FAQ UGX 7,050 per kilo, Arabica parchment UGX 9,150 per kilo and Drugar UGX 8,050/= per kilo.
Outlook for May 2023
The report says coffee exports are projected to be 500,000 bags. The main harvesting season in Greater Masaka and South-Western regions which will peak in June/July is ongoing though affected by heavy rains.
“Exporters will continue drawing down on their stock levels to fulfil contracts with buyer,” the report says.
