Uganda’s coffee exports in December 2023 amounted to 418,829 60-kilo bags worth US$ 59.54 million (Shs219bn), Uganda Coffee Development Authority (UCDA) has revealed in its recently released monthly report for December 2022.
This comprised 331,476 bags of Robusta valued at US $40.55 million and 87,353 bags of Arabica valued at US$ 18.99 million. This was a decrease of 22.05% and 20.99% 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 (December 2022), Robusta decreased by 26.81% and 26.66% in quantity and value respectively, while Arabica exports increased by 3.5% in quantity but decreased by 5.37% in value .
“The decrease in exports was mainly attributed to lower yields this year that were characterized by drought in most regions. This led to a shorter main harvest season in Central and Eastern regions and also reduced harvests from Greater Masaka and South-Western regions,” the report says.
However, it adds, despite being an off-year of the biennial cycle characteristic of Arabica coffee, coffee exports increased compared to the same month last year.
Coffee exports for 12 months (January – December 2023) totaled 5.63 million bags worth US$ 859.94 million compared to 6.77 million bags worth US$ 718.71 million the previous year (January-December 2022).
This represents a decrease of 16.79% in quantity but an increase of 19.65 % in value.
Exports by Type and Grade
According to the report, the average export price was US$ 2.37 per kilo, 2 U.S cent lower than US$ 2.39 per kilo realized in November 2023.
It was 3 US cents higher than in December 2021 (US $ 2.34/kilo). Robusta exports accounted for 79% of total exports lower than 82% in November 2022.
The average Robusta price was US$ 2.04 per kilo, US cents 3 lower than the previous month. Washed Robusta fetched the highest price of US$ 2.29 per kilo.
It was followed by Screen 14 Fair Trade at US$ 2.27 per kilo. The share of Sustainable/washed coffee to total Robusta exports was only 2.55% higher than 0.93% in November 2023.
Arabica fetched an average price of US$ 3.62 per kilo, 18 cents lower than US$ 3.80 per kilo in October 2022. The highest price was Mt. Elgon A+ sold at US$ 5.10 per kilo a premium of US $ 1.19 over conventional Bugisu AA.
It was followed by Mt. Elgon AA sold at US$ 4.78 per kilo, a premium of US cents 88 over Conventional Bugisu AA. Drugar was sold at US$ 3.40 per kilo, a discount of US cents 50 from Bugisu AA. Drugar exports were 39% of total Arabica exports compared to 38% the previous month.
The share of sustainable Arabica exports to total Arabica exports was 8% compared to 17% last month.
Individual Exporter Performance
The report shows that Ugacof (U) Ltd had the highest market share of 18.35% compared to 16.66% in November 2022. It was followed by Olam Uganda Ltd 8.36% (7.91%); Ideal Quality Commodities (U)Ltd 8.02% (10.42%) Kawacom (U) Ltd 7.72% (6.69%); Export Trading Company (U) Ltd 7.01% (4.76%), Kyagalanyi Coffee Ltd 5.56% (4.70%); Ibero(U) Ltd 4.77% (5.18%); Touton Uganda Ltd 4.43% (8.92%); JBER Coffee Ltd 3.26% (0.58%); and Louis Dreyfus Company (U) Ltd 2.46% (9.20%).
Note: The figures in brackets represent percentage market share held in November 2022.
The top 10 exporters held a market share of 71% lower than 77% the previous month reflecting reduced concentration.
“Changes in exporter positions compared to last month show competition at this level. Out of the 55 exporters that performed, 21 exported Robusta Coffee only while 12 exported Arabica coffee only,” the report says.
Coffee Exports by destination
Italy maintained the highest market share with 38.47% compared with 34.40% last month. It was followed by Sudan 16.63% (10.04%), Germany 11.67% (10.85%), India 7.71% (9.93%) and Belgium 6.20% (5.45%).
Note: The figures in brackets represent percentage market share held in November 2022.
The first 10 major destinations of Uganda coffee took a market share of 92.24% compared to 87.15 % last month.
Coffee exports to Africa amounted to 85,044 bags, a market share of 20% compared to 83,187 bags (19%) the previous month. African countries that imported Uganda coffee included Sudan, Morocco, South Africa, Egypt, Algeria, Kenya and Somalia.
“This reflects considerable exports to the MAGREB region. Europe remained the main destination for Uganda’s coffees with a 64% imports share, higher than 63% in November 2022,” the report says.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 60% of total exports lower than 67% the previous month, reflecting reduced concentration.
Sucafina led with a market share of 16.43% compared to 15.27% in November 2022.
It was followed by Olam International 8.60% (8.56%); Ecom Agro Industrialist 8.13% (7.15%); Hamburg Coffee 4.92% (1.96%) Bernhard Rothfos 4.77% (5.18%); Touton Geneve 4.43% (8.92%); Jacobs Douwe Egberts 3.61% (1.93%); Louis Dreyfus 3.38% (9.20%), Cofftea (Sudan) 3.18% (1.17%) and DLF For Complete Solution 2.84%.
Note: The figures in brackets represent percentage performance in the previous month – November 2022. There were changes in relative position of the first ten major buyers reflecting increasing demand for Uganda coffee abroad.
Global Outlook
World coffee production for 2023/24 is forecast to rebound 6.6 million bags from the previous year to 172.8 million due primarily to Brazil’s Arabica crop entering the on-year of the biennial production cycle.
Global consumption is expected to rise by 800,000 bags to 167.9 million, with the largest gains in the European Union, the United States, and Brazil. World coffee bean exports are forecast 3.0 million bags lower to 116.1 million as losses in Brazil, Vietnam, and India more than offset gains in Honduras and Colombia.
Ending stocks are expected 1.5 million bags higher to 34.1 million. (United States Department of Agriculture, Coffee: World Markets and Trade report).
Local Situation
During the month of November 2023, UCDA says, farm gate prices ranged from Sh.2,300-2,600/= per kilo of Kiboko (Robusta dry cherries); Shs. 5,800-6,500/= for FAQ (Fair Average Quality); Sh. 9,000- 10,000/= for Arabica parchment; and Sh. 8,000-9,000/= per kilo for Drugar from Kasese. Robusta Kiboko averaged UGX 2,450/= per kilo; FAQ UGX 6,150/= per kilo, Arabica parchment UGX 9,500/= per kilo and Drugar UGX 8,500/= per kilo.
Outlook for January 2024
UCDA says coffee exports are projected to be 400,000 bags. The main harvesting season in Central and Eastern regions started in November is likely to begin tailing off in February due to a short main harvest.
“Exporters are likely to drawdown on their stocks to fulfil contractual obligations with buyers abroad,” UCDA says.
