Uganda’s Coffee exports in August 2021 amounted to 700,990 60-kilo bags worth US$ 75.09 million (Shs264.7bn), says the Uganda Coffee Development Authority (UCDA) report for August 2021 .
This comprised 636,458 bags of Robusta valued at US $65.24 million and 64.532 bags of Arabica valued at US$ 9.85 million.
This was an increase of 34.89% and 63.06 % 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 (August 2020), Robusta increased by 39% and 70.98% in quantity and value respectively, while Arabica exports increased by 4.44% and 24.80% in quantity and value respectively, the report says.
It adds that increasing Robusta exports during the month compared to the previous year were due to newly planted coffee which started yielding supported by favorable weather. This was also compounded by a positive trend in global coffee prices in the month of July and August as Brazil faced the threat of frost, which prompted exporters to release their stocks.
“The modest increase in Arabica coffee exports with a correspondingly high increase in value compared to the same month last year was on account of higher global coffee prices as mentioned above,” UCDA report reveals.
It adds: “Lower Arabica proportion in the export mix is a result of the off-year biennial cycle.”
Coffee exports for the 12 months (September 2020-August 2021) amounted to 6,414,696 60-kilo bags worth US$ 607.81 million compared to 5,216,608-kilo bags valued at US$ 502.24 million the previous year (September 2019-August 2020). This represents 22.97% and 21.02% increase in both quantity and value respectively.
“The quantity of coffee exported in August was the highest in a single month surpassing the previous month’s exports , while the total export quantity in 12 months was the highest in 30 years,” the report says.
Individual Exporter Performance
Ugacof (U) Ltd had the highest market share with 15.45% compared to 16.45% in July 2021. It was followed by Olam Uganda Ltd 11.09% (11.61%); Kawacom (U) Ltd 9.96% (5.57%); Ideal Quality Commodities Ltd 9.73% (7.44%) Louis Dreyfus Company (U) Ltd 8.42% (6.29%); Touton Uganda Ltd 6.72% (6.44%); Kyagalanyi Coffee Ltd 5.61% (4.67%); Export Trading Company Ltd 4.44% (3.05%); Ibero (U) Ltd 4.30% (4.86%) and Besmark Coffee Company Limited 3.94% (5.27%).
Important to note is that the figures in brackets represent percentage market share held in July 2021.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 60% of total exports, lower than 63% the previous month. Sucafina led with a market share of 15.30% compared to 16.29% in July 2021. It was followed by Olam International 12.05% (12.03%); Ecom Agro Industrial 10.82% (6.51%); Bernhard Rothfos 4.44% (4.81%); Altasheel Import and Export Enterprises 3.94% (4.78%); Hamburg Coffee 2.85% (3.94%); Volcafe 2.74% (3.79%); ETC Trading 2.64% (1.00%), Luigi Lavazza 2.61% (4.71%) and Sucden Coffee 2.54% (2.41%).
It’s important to note that the figures in brackets represent percentage performance in the previous month – July 2021. Minimal changes in relative position of the first ten major buyers compared to the previous month reflect competitiveness of Uganda coffee abroad.
Coffee Exports By Destination
Italy maintained the highest market share with 34.02% compared with 36.25% last month. It was followed by Germany 13.39% (12.12%), Sudan 10.43% (8.18%) Algeria 10.22% (8.54%) and India 7.76% (8.83%).
Note that the figures in brackets represent percentage market share held in July 2021. Coffee exports to Africa amounted to 169,383 bags, a market share of 24% compared to 147,652 bags (21%) the previous month.
African countries included Sudan, Morocco, Kenya, Algeria, Egypt, Madascar and Somalia. Europe remained the main destination for Uganda’s coffees with a 61% imports share.
Global Situation
World coffee exports for July totaled 10.65 million bags up by 1.7% from 10.47 million bags in July 2020. Total exports for ten months of Coffee year 2020/21 totaled 108.96 million bags a 2.2% increase compared to the ten months of coffee year 2019/20. The ICO Composite Indicator price increased by 5.2% to 160.14 US cents up from 152.24 US cents in July 2021.
The prices have seen a positive trend since October as concerns of supply continue due to adverse weather conditions in Brazil and supply disruption caused by shortage of containers and Covid-19 pandemic restrictions in Vietnam.
Global coffee production for 2020/21 is estimated to increase by 0.4% to 169.64 million bags up from 168.98 million bags in Coffee Year 2019/20.
Global consumption is estimated to increase by 1.9% % to 167.01 million bags (ICO August 2021 report).
Local Situation
UCDA report says during the month of August 2021, farm gate prices ranged from Sh.2,500-2,800/= per kilo of Kiboko (Robusta dry cherries); Shs. 4,800-5,500/= for FAQ; Sh. 7,500-8,500= for Arabica parchment; and Sh. 7,000-7,500/= per kilo for Drugar from Kasese. Robusta Kiboko averaged UGX 2,650/= per kilo; FAQ UGX 5,150/= per kilo, Arabica parchment UGX 8,000/= per kilo and Drugar UGX 7,250/= per kilo.
– businessfocus.co.ug
