Uganda coffee exports for the month of July 2024 registered a significant increase of 26.15% and 98.68% in quantity and value respectively compared to the same month last year.
According to Uganda Coffee Development Authority (UCDA) monthly report for July, coffee exports in July 2024, amounted to 821,593 60-kilo bags, worth USD 210.48 million. This comprised of 722,444 bags of Robusta valued at USD 198.00 million and 49,149 bags of Arabica valued at USD 12.48 million.
By comparing the quantity of coffee exported by type in the same month of last Year (July 2023), Robusta increased by 22.16% and 112.07% in quantity and value respectively, while Arabica exports decreased by 17.92% and 0.73% in quantity and value respectively.
The higher export revenues contribute significantly to Uganda’s foreign exchange earnings, which can bolster economic growth.
However, the decline in Arabica exports highlights the need for strategic interventions to stabilize and diversify coffee production across different regions in Uganda.
The report shows that the monthly coffee exports volume was higher than the previous year.
“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 the previous year due to a smaller harvest in Elgon region due to the bi annual off year cycle coupled with poor flowering in the region,” the report reads in part.
It adds: “The value of coffee exports was higher in tandem with high global coffee prices as a result of dry weather conditions in Brazil and Vietnam that are seen to affect coffee yields and therefore a likelihood of supply deficit in 2024/25.”
The significant increase in Uganda’s coffee exports in July 2024, particularly in terms of value, is a positive signal for the Ugandan economy and its farmers.
The rise in export quantity and value, especially for Robusta coffee, reflects Uganda’s growing influence in the global coffee market, driven by favorable weather conditions and strong international demand.
Coffee exports for twelve months (August 2023-July 2024) totaled 6.30 million bags worth USD 1.25 billion compared to 5.84 million bags worth USD 868.53 million in the previous year (August 2022- July 2023). This represents an increase of 7.94% and 43.94% in quantity and value respectively.
The report shows that the average export price was USD 4.27 per kilo which is 20 US cents higher than in June 2024 (USD 4.07). This was USD 1.56 higher than in July 2023 (USD 2.71/kilo).
Robusta exports accounted for 94% of total exports, higher than 92% in June 2024. The average Robusta price was USD 4.27 per kilo, 20 cents higher than USD 4.07 per kilo the previous month.
“The highest price was for Organic Robusta sold at US$ 4.57 per kilo, followed by Screen 18 sold at US$ 4.50 per kilo. The share of Sustainable/washed coffee to total Robusta exports was 0.86% compared to 0.70% in June 2024,” the report reads.
Arabica fetched an average price of USD 4.23 per kilo US cents 33 higher than the previous month (USD 3.94). The highest price was Mt. Elgon A+ sold at USD 6.13 per kilo. It was followed by Bugisu A sold at USD 5.07 per kilo. Drugar was sold at USD 4.39 per kilo, 21 cents higher than 4.18 per kilo last month, and was US cents 18 lower than Bugisu AA.
Drugar exports were 54% of total Arabica exports the same as the previous month. The share of sustainable Arabica exports to total Arabica exports was 2%, lower than 4% in June 2024.
Coffee Exports By Destination
Italy maintained the highest market share with 40.68% compared to 41.96% last month. It was followed by Germany at 15.75%, Sudan 5.41%, India 5.26%, and Netherlands 4.14%.
The first 10 major destinations of Uganda coffee took a market share of 88.97% compared to 88.83% last month.
Coffee exports to Africa amounted to 112,713 bags, a market share of 14% compared to 79,433 bags (12%) the previous month.
African countries that imported Uganda coffee included Sudan, Morocco, Algeria, Egypt, Kenya, Tunisia and South Africa.
Europe remained the main destination for Uganda’s coffees with a 72% imports share, higher than 69% in June 2024.
“World coffee production for 2024/25 is forecast to increase by 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 to increase by 3.6 million bags to 123.1 million primarily on strong shipments from Indonesia and Brazil,” the report reads.
It adds that consumption is seen to be 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, according to the United States Department of Agriculture.
Local Prices
“During the month of July 2024, farm gate prices ranged from Shs 5,800-6,000/= per kilo of Kiboko (Robusta dry cherries); Shs.11,500-12,500/= for FAQ (Fair Average Quality); Sh. 12,500- 13,000/= for Arabica Parchment; and Sh. 10,500-11,500/= per kilo for Drugar,” the report reads.
Coffee exports are projected to be 720,000 (60-kilobags) as the main harvest season south of the equator (Masaka and South Western regions) winds up.
