The Uganda Coffee Development Authority (UCDA) has reported the highest ever coffee exports amounting to 743,517 60-kilo bags, worth US$ 121.64 million in August.
According to UCDA, coffee was exported at an average price of US$ 2.73/kilo US cent 2 higher compared to July 2023 (US $ 2.71/kilo), and US cents 36 higher than US$ 2.41/kilo in August 2022.
This was an increase of 48.19% and 70.73% in quantity and value respectively compared to the same month last year.
This comprised 689,261 bags of Robusta valued at US $ 111.41 million and 54,256 bags of Arabica valued at US$ 10.22 million.
“By comparing quantity of coffee exported by type in the same month of last Coffee Year (August 2022), Robusta increased by 50.95% and 84.76% in quantity and value respectively, while Arabica exports increased by 20.29% in quantity but a 6.61% reduction in value,” UCDA revealed in a statement released on Monday.
UCDA notes that the monthly coffee exports performance which was seen in Robusta exports and was partly 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.
Coffee exports for 12 months (September 2022-August 2023), according to figures from UCDA totaled 6.08 million bags worth US$ 918.76 million compared to 5.94 million bags worth US$ 872.00 million the previous year (September 2021-August 2023).
This represents an increase of 5% and 2% increase in quantity and value respectively.
“76% of the total volume was exported by 10 exporters, out of 51 companies which performed during the month compared to 72% in June 2023. Bugisu A+ fetched the highest price at US $ 5.37 per kilo,” reads the statement in part.
The top 10 exporters held a market share of 76% higher than 72% the previous month reflecting increasing competition. Changes in exporter positions compared to last month show competition at this level.
“Ugacof (U) Ltd had the highest market share of 14.45% compared to 14.35% in July 2023. It was followed by Olam Uganda Ltd 11.3%, Ideal Quality Commodities Ltd 9.66% (7.78%); Kyagalanyi Coffee Ltd 9.17% ), Touton Uganda Limited 7.01%; Kawacom (U)Ltd 5.88% ; Ibero (U)Ltd 5.06% ; Louis Dreyfus Company (U) Ltd 5.04% ; JBER Coffee Ltd 4.65% ; and Grain Pulse Limited 3.43%”
Coffee exports by destination
The first 10 major destinations of Uganda coffee took a market share of 90.35% compared to 90.64% last month. Coffee exports to Africa amounted to 225,141 bags, a market share of 30% compared to 157,752 bags (24%) the previous month.
African countries that imported Uganda coffee included Sudan, Morocco, Algeria, South Africa, Egypt, and Kenya. Europe remained the main destination for Uganda’s coffees with a 53% imports share, lower than 61% in July 2023.
According to the World Markets and Trade report 2023, world coffee production for 2023/24 is forecast to increase by 4.3 million bags from the previous year to 174.3 million due primarily to higher output from Brazil and Vietnam. Global consumption is forecast at 170.2 million, with the largest gains in the European Union, the United States of America and Brazil.
World Coffee bean exports are forecast to increase by 5.8 million bags to reach 122.2 million bags higher than 116.4 million, fueled by strong shipments from Brazil. Ending stocks are expected to be 31.8 million. (United States Department of Agriculture, Coffee: World Markets and Trade report-June 2023).