Uganda Earns UGX247Bn in July Coffee Exports

*A happy farmer attending to his coffee garden*

Kampala | RedPepper Digital – Uganda Coffee Development Authority (UCDA) has revealed that exports of coffee in July 2021 amounted to 700,035 60-kilo bags worth US$ 69. 93 million approximately Shs247.055Bn.

This comprised 660,458 bags of Robusta valued at US$62.89 million and 52,939 bags of Arabica valued at US$8.31 million.

By comparing the quantity of coffee exported by type in the same month of last year (July 2020), Robusta increased by 41.27% and 56.32% in quantity and value respectively, while Arabica exports decreased in both quantity and value by 47.99% and 29.42% respectively.

The Authority attributed the increase in Robusta exports in July 2021 compared to July 2020 to newly planted coffee which started yielding supported by favourable weather.

The increase in coffee exports was also compounded by a positive trend in global coffee prices in the month of July as Brazil faced the threat of frost, which prompted exporters to release their stocks on top of increased procurement.

At the annual level, Coffee exports for 12 months (August 2020-July 2021) totalled 6.23 million bags worth US578.90 million approximately Shs2.044Trn compared to 5.19 million bags worth US$ 502.50 million the previous year (August 2019-July 2020).

The Authority argued that the annual performance represents an increase of 20% and 15% in both quantity and value respectively. On how Uganda coffee was exported, 75% of the total volume was exported by 10 exporters, out of 47 companies.

Ugacof (U) Ltd exported most volumes of coffee accounting for the highest market share with 16.45% compared to 19.86% in June 2021.

It was followed by Olam Uganda Ltd 11.61%; Ideal Quality Commodities Ltd 10.61%; Touton Uganda Limited 6.44%.
The other exporters include; Louis Dreyfus Company (U) Ltd 6.29%; Kawacom (U) Ltd 5.57%, Besmark Coffee Company Ltd 5.27%; Ibero (U) Ltd 4.86%, Kyagalanyi Coffee Ltd 4.67% and Export Trading Company Ltd 3.05%.

The Coffee Authority also highlighted that out of the 47 exporters that performed, 24 exported Robusta Coffee only while 6 exported Arabica coffee only. Of nations that were importing Uganda’s coffee, UCDA highlighted Italy as the biggest consumer of Uganda coffee, importing 36.25%, followed by Germany 12.12%, India 8.83%, Algeria 8.54% and Sudan 8.18%.

Coffee exports to Africa amounted to 147,652 bags, accounting for a market share of 21% compared to 112,416 bags (18%) the previous month. African countries included Sudan, Morocco, Kenya, Algeria, Egypt and Somalia. Europe remained the main destination for Uganda’s coffees with a 61% import share.

During the month of July 2021, farm gate prices ranged from Sh.2,000-2,500/= per kilo of Kiboko (Robusta dry cherries); Shs. 4,500-5,200 for FAQ; Sh. 6,800-7,000 for Arabica parchment; and Shs 6,000-6,500 per kilo for Drugar from Kasese.

Robusta Kiboko averaged Shs2,250 per kilo; FAQ Shs4,850 per kilo, Arabica parchment Shs6,900 per kilo and Drugar Shs 6,250 per kilo.

The Coffee Authority in July also conducted a survey on pests and diseases largely in central Uganda and Greater Masaka and established that the main pests are tailed caterpillars, black coffee twig borer and leaf skeletonizers.

The diseases with the highest incidence and severity are red blister diseases and brown eyespots.

“Coffee Wilt Disease (CWD) remains a serious threat to many coffee fields in Robusta regions, while coffee leaf rust is the greatest threat in Arabica regions,” read in part the report.

The report further projects that Coffee exports are projected to be 600,000 bags as the main harvesting period in Greater Masaka and South Western regions tail off. During the month, rains may affect the transportation of the little coffee remaining in the countryside.