Uganda exports over 600,000 bags of coffee in a single month

According to the UCDA report, the increase in Robusta exports during the month compared to the previous year were due to newly planted coffee which started yielding supported by favorable weather.

Uganda’ s Coffee exports in June 2021 amounted to 618,388 60-kilo bags worth US$ 58.56 million, the highest ever in a single month since 1991, according to Uganda Coffee Development Agency(UCDA).

The exported coffee comprised 565,449 bags of Robusta valued at US $ 50.25 million and 52,939 bags of Arabica valued at US$ 8.31 million. According to UCDA, this was an increase of 47.04% and 46.63 % 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 2020), Robusta increased by 63.89% and 72.56% in quantity and value respectively, while Arabica exports decreased in both quantity and value by 29.93% and 23.16% respectively,” read  part of UCDA monthly report.

Commenting on the increase in coffee exports, Dr. Emmanuel Iyamulemye, the Managing Director UCDA said: “June was a historical landmark for Uganda Coffee. Coffee exports hit 618,388 bags, the highest in 30 years! In FY20/21, coffee exports increased to 6.08m bags from 5.10m bags in FY2019/20 & up from 3.6m bags in FY2015/16. I thank our farmers, traders, exporters & all sector players.”

Favorable weather conditions key in increased coffee exports

According to the UCDA report, the increase in Robusta exports during the month compared to the previous year were due to newly planted coffee which started yielding supported by favourable weather.

“This was also compounded by a positive trend in global coffee prices in the last two weeks of the month which prompted exporters to release their stocks on top of increased procurement. The
decrease in value of Arabica coffee was due to low volumes exported. Arabica monthly exports continued to reduce compared to the previous year attributed to the off-year biennial cycle characteristic of Arabica production.”

Financial Year 2020/21 coffee exports

According to the report, coffee exports for the 12 months (Financial year 2020/21) amounted to 6,078,638 60-kilo bags worth US$ 559.26 million compared to 5,105,881-kilo bags valued at US$ 496.28 million the previous year (Financial Year 2019/20).

“This represents a 19.05% and 12.69% increase in both quantity and value respectively. The quantity of coffee exported in June was the highest in a single month while the total quantity of exports in 12 months was the highest in 30 years.

Farm-gate prices

Farm-gate prices for Robusta Kiboko averaged sh2,250 per kilo; FAQ UGX 4,350 per kilo, Arabica parchment sh 6,650 per kilo and Drugar sh5,750 per kilo. The report also indicated that 78% of the total volume was exported by 10 exporters, out of 46 companies which performed during the month compared to 81% in May 2021. Sustainable Arabica fully Washed Sipi Falls fetched the highest price at US $ 5.37 per kilo.

Outlook for July 2021

Coffee exports are projected to be 650,000 bags as the main harvesting period in Greater Masaka and South Western regions reaches its peak during the month. Dry weather coupled with some rains will speed up ripening and procurement of the coffee from the countryside.

“Increased exports are also likely to be driven by increasing global coffee prices exhibited in the last two weeks of the previous month on account of reduced harvest from Brazil and Vietnam which will stimulate exporters to also release their stocks.”

Global Situation

According to UCDA, World coffee exports amounted to 9.79 million bags in June 2021 compared to 10.89 million in May 2020. Exports for the first 8 months of the coffee year 2020/21 (October 2020-May 2021) increased by 2.2% to 87.3 million bags from 85.38 million bags the previous period (October 2019-May 2020).

Global coffee production for 2020/21 is estimated to increase by 0.3% to 169.5 million bags while the consumption is estimated to increase by 1.9% to 167.24 million bags.

Italy, Germany lead as top coffee exports destinations

The report indicates that Italy maintained the highest market share with 34.57% compared with 37.02% last month. It was followed by Germany 13.11% (14.36%), India 9.52% (5.00%) Sudan 7.81% (4.04%) and Algeria 6.28% (5.80%). It’s important to note that the figures in brackets represent percentage market share held in May 2021.

Coffee exports to Africa amounted to 112,416 bags, a market share of 18% compared to 69,349 bags (14%) the previous month. Leading African countries included Sudan, Morocco, Kenya, Algeria, Egypt, Ethiopia and South Africa. Europe remained the main destination for Uganda’s coffees with 61% imports share.

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