9 out of the top 10 Companies exporting coffee in Uganda are owned by foreigners-Report
Uganda registered an increase in coffee exported out of the country during the month of October, from 3.4% to 18.3% in quantity and value, compared to the same month last year, according to the Uganda Coffee development authority.
While explaining the increase the authority noted in its monthly report for October 2023, that the monthly coffee exports performance was higher than the previous year, on account of a good crop harvest in South-Western region and the prevailing good prices on the global scene, which prompted exporters to release their stocks.
It’s important to note that in the same report, the authority revealed that on the exporter performance, the top 10 exporters held a market share of 82%.
Kyagalanyi Coffee Ltd had the highest market share of 16.39%, followed by Louis Dreyfus (U) Ltd 14.01%, UGACOF (U) LTD with 10.66%, Ideal Quality Commodities-9.15%, Olam Uganda LTD-7.37%, IBERO (U) LTD-6.86%, Touton Uganda LTD-6.21%, Export Trading Company-6.11%, KAWACOM (U) LTD-3.56%, Commodity Solutions (U) LTD-2.06%.
Regardless of all these statistics and the good performance in the coffee industry, CharmarNews.com reveals in this article that 9 out of the 10 top coffee exporters are foreign owned companies, despite Uganda being the leading exporter of coffee in Africa and the 7th largest producer in the world.
Above all, still among the top exporters in Uganda, this website learnt that the same companies happen to be the same top 10 buyers, who in the Uganda Coffee development authority report of October 2023 held a market share of 67% of total exports, lower than 71% the previous month.
Kyagalanyi Coffee Ltd
Kyagalanyi Coffee Ltd recorded the highest market share of 16.39% in exports during the month of October. The company was founded in 1992, and is Uganda’s oldest licensed coffee exporter. It sources and exports some of the finest conventional and certified Robusta and Arabica (washed and natural) coffee, from all the country’s major growing regions.
The company which is located in Nakanyonyi Village, Mukono District, is owned and managed by Volcafe which is one of the largest traders of Arabica and Robusta coffees, Located in Technoparkstrasse 7, 8406 Winterthur, Switzerland, providing the beans for 80 billion cups of coffee each year. It is managed by Trishul Mandana as the appointed Chief Executive Officer.
Louis Dreyfus (U) Ltd
The above company recorded 14.01%, the last report of Uganda Coffee Development Authority (UCDA). Also called the Louis-Dreyfus Group, is a French merchant firm that is involved in agriculture, food processing, international shipping, and finance.
The company also owns and manages hedge funds, ocean vessels, develops and operates telecommunications infrastructures, and it is also involved in real estate development, management and ownership.
Located in Ntinda Industrial Area, the coffee exporting company was founded in 1851, LDC is a global merchant and processor of agricultural goods, with a diversified portfolio covering the entire value chain, from origination to distribution.
UGACOF (U) LTD
Ugacof is a leading coffee processor and exporter out of Uganda, with extensive knowledge of internal and export markets. Founded in 1994, the company located in Bweyogerere, Kireku Zone is owned and managed by SUCAFINA which is a family business established in 1905 in the coastal city of Jaffa, Palestine and recorded 10.66% export.
It remains a family company with a strong entrepreneurial culture and an eye for value, but all investments and development activities are in support of the global coffee supply chain. SUCAFINA is one of the leading trade houses in the world, and sources coffee from most producing countries.
Ideal Quality Commodities
This company emerged 3rd in exporting coffee outside Uganda according to the October report of Uganda Coffee Development Authority. The company located in Kakajjo Zone Village, Bweyogerere registered a 9.15% share of October’s total export.
It started its operations in Uganda in 2012 and it’s a registered coffee buyer, processor and exporter. IDEAL Commodities (U) Limited was initiated by proprietors namely; Hajji Siraj Jaliawala and Hajji Kawere M. Basajjasubbi. The company works with more than 1200 farmers in the Central region of Uganda and processes natural Robusta coffee with FT/FTO certification using dry processing methods, producing a yearly capacity of 2500 MT.
However, out of the top 10 companies that exported coffee last month, it’s the only privately owned company based in Uganda.
Olam Uganda LTD
Temasek Holdings, a global investment company headquartered in Singapore, became the majority shareholder of Olam after the completion of a voluntary general offer in May 2014. Olam exported 7.37% coffee in the month of October.
Over the past 30 years, Olam has developed into a global food and agri-business headquartered in Singapore with global market leadership positions in many of its businesses. Its success has enabled it to attract co-sponsors, strategic and long-term investors, as well as world-class institutional investors, providing stability, business and financial strength to the Company.
IBERO (U) LTD
IBERO exported 6.86% of Uganda’s total export of coffee in the month of October. It is a company of the Neumann Kaffee Gruppe (NKG) and one of the leading exporters of high-quality coffee, with warehouses and processing facilities in Kampala and out-stations in all coffee-growing regions of Uganda.
Ibero Uganda has been working towards better integration in the local market and has become a professional, long-term, and trusted business partner towards its suppliers and customers. Neumann Group GmbH is the parent company of a coffee wholesaler based in Hamburg the second largest city in Germany and the third largest in the German-speaking area and owned by David M. Neumann.
Touton Uganda LTD
Touton Uganda Ltd. is a subsidiary of Touton S.A., a French leading agro-industrial company established in 1848. The group trades in and processes agricultural commodities such as cocoa, coffee, vanilla, ingredients, and spices worldwide. Touton Uganda Ltd is one of the largest green coffee exporters in Uganda.
Touton partners with actors from the public, private and civil society sectors to develop innovative projects that support the business-case for sustainable commodity production. Its headquarters is located at 1 Rue René Magne – Z.C. de gros de BORDEAUX – BP13 Cedex FRANCE. As of the end of October this year, the company had recorded 6.21% export.
Export Trading Company
Located in Namamnve Industrial Area, the company mainly concentrated in procuring processes and exporting, quality agro commodities, cereals and pulses. Warfaa Group Holdings Ltd.
Abbreviated as ETG, the company has developed into a global player with a diverse portfolio of expertise across multiple industries, encompassing Agricultural inputs, logistics, merchandising and processing, supply chain optimization, digital transformation and energy.
The company which exported 6.11% Coffee in October this year, operates multiple business divisions and a network of state-of-the-art processing facilities throughout Canada serving customers around the world.
KAWACOM (U) LTD
Kawacom is owned by Ecom Group and exported 3.56% of coffee in Uganda last month. ECOM operates in more than 40 major producing countries, working with thousands of farmers and local businesses.
It is a global commodity trading and processing company based in Switzerland. The company specializes mainly in coffee, cocoa and cotton. ECOM has more than 40 offices located in over 35 countries all around the world and its one of the largest coffee millers in the world.
Commodity Solutions (U) LTD
Also known as CS Commodity Solutions Ltd, the company was formed in 2001 to act as brokers for commodities in both domestic and international markets. It operates as an independent service-provider to the grain, feed and biomass industries, as well as offering a consultancy service to major food manufacturers on the grain market.
It recorded 2.06% export of Ugandan coffee in October this year. With its coffee factory located at Kakajjo Road Bweyogerere, Kampala, the company has long standing connections with both suppliers and consumers of coffee with its headquarters in the United Kingdom (UK).
According to Uganda Coffee Development Authority, Coffee exports are projected to be 500,000 bags. The main harvesting season in Central and Eastern regions has started and Exporters will continue to draw down on their stocks to fulfil contractual obligations with buyers.
