Uganda’s Coffee Exports Hit Record High in June, Earning $162.36 Million
By Fredrick Siminyu
Uganda coffee exports in June 2024 amounted to 667,037 60-kilo bags worth US$ 162.36 million (UShs600.87 billion) according to the Uganda Coffee Development Authority (UCDA) monthly report for June.
This is the highest ever earnings recorded in a single month for Uganda.
According to this report, exports comprised of 614,486 bags of Robusta valued at US $ 149.95 million and 52,551 bags of Arabica valued at US$ 12.42 million.
“This was an increase of 18.24% and 79.14% 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 Year (June 2023), Robusta increased by 25.51% and 102.97% in quantity and value respectively, while Arabica exports decreased by 29.51% and 25.90% in quantity and value respectively,” the report reads in part.
It adds that the monthly coffee exports volume was higher than the previous year and this was seen in Robusta exports as the newly harvested bigger crop from Greater Masaka and South Western regions reached the market.
Arabica exports were however lower than last year due to a smaller harvest in Elgon region.
Coffee exports for twelve months (Financial year 2023/24) totaled 6.13 million bags worth US$ 1.14 billion compared to 5.76 million bags worth US$ 846.02 million in the previous year (Financial year 2022/23).
This represents an increase of 6.33% and 35.29% in quantity and value respectively.
Exports by Type and Grade
The report shows that the average export price was US$ 4.06 per kilo, US cents 35 higher than in May 2024 (US$ 3.27).
It was US$ 1.38 higher than in June 2023 (US $ 2.68/kilo). Robusta exports accounted for 92% of total exports, higher than 86% in May 2024.
The average Robusta price was US$ 4.07 per kilo (Shs15,063), 40 cents higher than US$ 3.13 per kilo the previous month.
The highest price was for Screen 15 Organic sold at US$ 4.60 per kilo, and was followed by Organic Robusta sold at US$ 4.52 per kilo.
The share of Sustainable/washed coffee to total Robusta exports was 0.70% compared to 1.80% in May 2024.
Arabica fetched an average price of US$ 3.94 per kilo US cents 11 lower than the previous month (US$ 4.05).
The highest price was sustainable Arabica sold at US$ 5.30 per kilo. It was followed by Bugisu AB sold at US$ 4.63 per kilo. Drugar was sold at US$ 4.18 per kilo, 3 cents lower than 4.21 per kilo last month, and was US cents 28 lower than Bugisu AA. Drugar exports were 54% of total Arabica exports lower than 57% the previous month.
The share of sustainable Arabica exports to total Arabica exports was 4% the same as in May 2024.
Individual Exporter Performance
According to the report, Ugacof (U) Ltd had the highest market share of 15.20% compared to 16.44% in May 2024. It was followed by Olam Uganda Ltd 9.28% (6.53%); Ideal Quality Commodities Ltd 6.90% (8.66%), Louis Dreyfus Company (U) Ltd 6.42% (3.18%), Touton Uganda Limited 5.88%(7.58%), Export Trading Company (U) Ltd 5.73% (8.68%), Kyagalanyi Coffee Ltd 5.29% (5.09%), Ibero (U) Ltd 4.49% (6.02%), JKCC General Supplies Ltd 4.34% (5.08%), and Kawacom (U) Ltd 3.96% (3.93%).
Note: The figures in brackets represent percentage market share held in May 2024.
The top 10 exporters held a market share of 67% lower than 72% the previous month reflecting competition at exporter level.
“Out of the 61 exporters who performed, 36 exported Robusta Coffee only while 8 exported Arabica coffee only,” the report says.
Coffee Exports by destination
Italy maintained the highest market share with 41.96% compared to 44.66% last month.
It was followed by Germany 10.55% (9.68%), India 7.41% (9.68%), Sudan 6.87% (2.52%) and Spain 5.40% (4.63%).
It’s important to note that the figures in brackets represent percentage market share held in May 2024.
The first 10 major destinations of Uganda coffee took a market share of 88.83% compared to 90.58% last month.
Coffee exports to Africa amounted to 79,433 bags, a market share of 12% compared to 24,583 bags (6%) the previous month.
African countries that imported Uganda coffee included Sudan, Morocco, Egypt, Algeria, Kenya and South Africa.
“Europe remained the main destination for Uganda’s coffees with a 69% imports share, lower than 71% in May 2024,” the report says.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 60% higher than 58% the previous month. Sucafina led with a market share of 15.40% compared to 17.10% in May 2024.
It was followed by Olam International 10.61% (6.54%); Touton SA 6.62%; (8.00%) Louis
Dreyfus 6.42% (3.41%); Bernhard Rothfos 4.49% (6.15%); Eurocaf Srl 3.81% (4.23%); Ecom Agroindustrialist 3.71% (3.15%); Koninklijke Douwe 3.29% (2.80%); Volcafe 3.20% (2.65%) and Altasheel Import and Export Enterprises 2.83% (1.96%).
Note: The figures in brackets represent percentage performance in the previous month –May 2024.
“Changes in the relative positions of the first 10 major buyers reflects continued demand for Uganda coffee abroad,” UCDA says in the report.
Global Situation
World coffee production for 2024/25 is forecast to rebound 7.1 million bags from the previous year to 176.2 million due primarily to continued recovery in Brazil and rebounding output in Indonesia. With additional supplies, global exports are expected up 3.6 million bags to 123.1 million primarily on strong shipments from Indonesia and Brazil.
Consumption is seen 3.1 million bags higher to 170.6 million. Ending stocks are expected to rise by 1.9 million bags to 25.8 million following 3 years of decline.. (United States Department of Agriculture, Coffee: World Markets and Trade report-June 2024).
Local Situation
According to UCDA, during the month of June 2024, farm gate prices ranged from Shs5,500-5,800/= per kilo of Kiboko (Robusta dry cherries); Shs.12,000-12,500/= for FAQ (Fair Average Quality); Sh. 12,500- 13,000/= for Arabica parchment; and Sh. 11,000-12,000/= per kilo for Drugar.
Compared to the previous month, Robusta Kiboko averaged UGX 5,650 per kilo, lower than UGX 5,750 per kilo , FAQ UGX 12,250 per kilo and parchment UGX 12,750 per kilo the same as the previous month and Drugar UGX 11,500/= per kilo lower than UGX 10,750 per kilo the previous month.
Outlook for July 2024
UCDA says coffee exports are projected to be 650,000 60-kilo bags in July.
“Harvesting of the main crop south of the equator (Masaka and South Western regions) has peaked,” UCDA says.
