Uganda coffee exports Coffee exports in April 2022 amounted to 407,762 60-kilo bags worth US$ 70.85 million (256.75bn), Uganda Coffee Development Authority (UCDA) has revealed in its April 2022 report.
According to the report, this comprised 277,244 bags of Robusta valued at US $37.24 million and 130,518 bags of Arabica valued at US$ 33.61 million.
This was a decrease of 24.13% in quantity but an increase of 41.78% in value compared to the same month last year.
By comparing quantity of coffee exported by type in the same month of last Coffee Year (April 2021), Robusta decreased by 40.31% and 4.65 in quantity and value respectively, while Arabica exports increased by 78.93% and 207.87% in quantity and value respectively.
“The decrease in Robusta exports was mainly attributed to lower yields this year that were characterized by drought in some regions. This led to a shorter main harvest season in Central and Eastern regions,” the report says, adding:
“The increase in Arabica coffee exports is due to an on-year cycle characteristic of Arabica coffee production. Shortage of shipping containers in Asia and weather related concerns in Brazil have fueled increase in global prices for the past several months.”
The report reveals that coffee exports for the 12 months (May 2021-April 2022) amounted to 6,384,890 60-kilo bags worth US$ 811.18 million compared to 5,824,032 60-kilo bags valued at US$ 535.93 million the previous year (May 2020- April 2021). This represents 9.63% and 51.36% increase in both quantity and value respectively.
The average export price was US$ 2.90 per kilo, 8 cents higher than US$ 2.82 per kilo realized in March 2022.
Robusta exports accounted for 68% of total exports, lower than 75% in March 2022. The average Robusta price was US$ 2.26 per kilo, 9 cents higher than the previous month.
Washed Robusta fetched the highest price of US$ 3.17 per kilo, a premium of 83 US cents over conventional Screen 18. It was followed by Organic Robusta sold at an average price of US$ 2.43 per kilo.
The share of Sustainable/washed coffee to total Robusta exports was only 1.97%. The proportion of Screen 18 was 15% of total Robusta.
Arabica fetched an average price of US$ 4.29 per kilo, 23 cents lower than in March 2022. The highest price was for Mt. Elgon A, AB, PB, B and C sold at US$ 6.00 per kilo mostly as samples, and was followed by Mt. Elgon A+ sold at US$ 5.61 per kilo, a premium of US Cents 83 over conventional Bugisu AA.
Drugar was sold at 4.01 US$ per kilo, a discount of US$ 1.16 from Bugisu AA. Drugar exports were 43% of total Arabica exports compared to 37% the previous month. The share of sustainable Arabica exports to total Arabica exports was 13%.
Individual Exporter Performance
Below are the top 10 export companies in the month of April
Kawacom (U) Ltd had the highest market share of 13.10% compared to 13.39% in March 2022. It was followed by Ugacof (U)
Ltd 11.11% (22.74%); Touton Uganda Limited 9.77% (7.48%) Olam Uganda Limited 8.50% (8.72%); Ideal Quality Commodities Ltd 7.47%(9.88%), Kyagalanyi Coffee Ltd 6.93% (8.54%); Louis Dreyfus Company (U) Ltd 5.27% (4.71%); Export Trading Company (U) Ltd 4.63% (5.19%); Kampala Domestic Store Ltd 4.49% (2.46%); and Ibero (U) Ltd 3.82% (1.99%).
The figures in brackets represent percentage market share held in March 2022. The top 10 exporters held a market
share of 75% lower than 79% the previous month.
The report says, there were changes in positions compared to last month reflecting competition at the exporter level.
“Out of the 51 exporters that performed, 20 exported Robusta Coffee only while 16 exported Arabica coffee only,” the report adds.
Foreign buyers of Uganda Coffee
The top 10 buyers held a market share of 66% of total exports lower than 69% the previous month. Sucafina led with a market share of 12.78% compared to 14.49% in March 2022. It was followed by Ecom Agro Industrial 11.21% (7.76%); Touton Geneve 9.77%;(8.19%); Olam International 9.26% (9.44%) Louis Dreyfus 5.66% (4.77%); Volcafe 4.25% (5.32%); Aldwami Company 3.95%; (3.51%) Bernhard Rothfos 3.82% (1.19%), Altasheel Import & Export Enterprises 3.09% (7.48%) and Bercher Coffee Consulting 2.37% (1.05%).
Important to note is that the figures in brackets represent percentage performance in the previous month – March 2022.
There were changes in relative position of the first ten major buyers reflecting increasing demand for Uganda coffee abroad, says the report.
Coffee exports by destination
Italy maintained the highest market share of 33.12% compared with 32.39% last month. It was followed by Sudan 14.59% (24.98%), Germany 13.41% (12.30%) India 7.71% (4.15%) and United States of America 7.30% (4.55%).
Importantly, the figures in brackets represent percentage market share held in March 2022. Coffee exports to Africa amounted to 90,076 bags, a market share of 23% compared to 143,231 bags (30%) the previous month. African countries included Algeria, Sudan, Morocco, Tunisia, Tanzania, South Africa, South Sudan, Somalia and Kenya. Europe remained the main destination for Uganda’s coffees with a 58% imports share lower than 57% in March 2022.
The report says world coffee production for 2021/22 is forecast down 8.5 million bags from the previous year to 167.5 million, due primarily to Brazil’s combined effect of Arabica trees entering the off?year of the biennial production cycle and a weather?related shortfall.
As a result of lower output, global ending inventories are expected to drop 6.3million bags to 30.0 million. World coffee bean exports are expected down 3.8 million bags to 117.2 million as lower exports from Brazil more than offset higher shipments from Vietnam.
Global consumption rises 1.5 million bags to 164.9 million, with the largest gains in the European Union, the United States, and Brazil (United States Department of Agriculture, Coffee: World Markets and Trade report).
During the month of April 2022, farm gate prices ranged from Sh.2,500-3,000/= per kilo of Kiboko (Robusta dry cherries); Shs. 6,300-6,800/= for FAQ; Sh. 10,000- 11,000/= for Arabica parchment; and Sh.,9,000-10,000/= per kilo for Drugar from Kasese. Robusta Kiboko averaged UGX 2,750/= per kilo; FAQ UGX 6,550/= per kilo, Arabica parchment UGX 10,500/= per kilo and Drugar UGX 9,500/= per kilo.
Outlook for May 2022
“Coffee exports are projected to be 450,000 bags. The main harvesting period season in Masaka and south western region has begun and a good crop is expected given the adequate rains in April 2022,” UCDA says.