Uganda’s coffee exports for the financial year 2023/24 have achieved an unprecedented milestone, reaching an all-time high of USD 1.14 billion. The Uganda Coffee Development Authority (UCDA) reports that these exports mark the highest value and volume recorded in the past thirty years.
“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,” UCDA June 2024 report reads.
This significant achievement underscores Uganda’s robust position in the global coffee market, reflecting sustained growth and productivity in its coffee industry.
The record-breaking performance not only highlights Uganda’s status as one of the leading coffee producing countries, but also signals its ability to meet rising global demand while maintaining exceptional quality standards.
Coffee exports in June 2024 alone, amounted to 667,037 60-kilo bags, worth USD 162.36 million. This comprised 614,486 bags of Robusta valued at USD 149.95 million and 52,551 bags of Arabica valued at USD 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 the 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 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 the Elgon region.
During the month of June 2024, the average export price was USD 4.06 per kilo, US cents 35 higher than in May 2024 (USD 3.27). It was USD 1.38 higher than in June 2023 (USD 2.68/kilo).
Robusta exports accounted for 92% of total exports, higher than 86% in May 2024. The average Robusta price was USD 4.07 per kilo, 40 cents higher than USD 3.13 per kilo the previous month. The highest price was for Screen 15 Organic sold at USD 4.60 per kilo, and was followed by Organic Robusta sold at USD 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 USD 3.94 per kilo US cents 11 lower than the previous month (USD 4.05). The highest price was sustainable Arabica sold at USD 5.30 per kilo. It was followed by Bugisu AB sold at USD 4.63 per kilo. Drugar was sold at USD 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.
On matters destination, Uganda’s coffee exports during the month of June were predominantly directed towards Italy which retained the largest market share with 41.96%. It was followed by Germany with 10.55%, India 7.41%, Sudan 6.87% and Spain 5.40%.
The first 10 major destinations of Uganda coffee took a market share of 88.83% compared to 90.58% registered in May 2024. Coffee exports to Africa amounted to 79,433 bags, a market share of 12% compared to 24,583 bags (6%) the previous month of May. 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,” UCDA report reads.
During the month of June 2024, farm gate prices ranged from Shs 5,500-5,800 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 Shs 5,650 per kilo, lower than shs 5,750 per kilo, FAQ shs 12,250 per kilo and parchment shs 12,750 per kilo the same as the previous month and Drugar shs 11,500 per kilo lower than shs 10,750 per kilo the previous month.
In July 2024, Coffee exports are projected to be 650,000 60-kilobags. Harvesting of the main crop south of the equator (Masaka and South Western regions) has peaked.
On the global stage, 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.
