Uganda coffee for export

By George Mangula

Uganda’s coffee exports for 12 months (September 2017 to August 2018) totalled to 4.35 million bags worth $472 million, the Uganda Coffee Development Authority (UCDA) says in the latest report.

According to the report, Robusta coffee which was 3.25 million bags fetched $333 million while Arabica coffee which comprised 1.10 million bags brought home $139 million during the period under review.

Cumulatively, coffee exports for 12 months (September 2017- August 2018) were less than 4.47 million bags worth $529 million in the previous year (September 2016-August 2017), representing a decrease of 2.67 per cent and 10.81 per cent in quantity and value respectively.

A total of 348,952 60-kilo bags of coffee valued at US$35.68 million were exported in August 2018. That comprised 296,901 bags ($ 29.29 million) of Robusta and 52.051 bags ($6.40 million) of Arabica. But that was a decrease of 16.59 per cent and 24.18 per cent in quantity and value respectively from the same month last year.

By comparing quantity of coffee exported by type in the same month of last year (August 2016/17 and 2017/18), Robusta registered a percentage decrease in both quantity and value which was 22.38 per cent and 30.75 per cent respectively.

Arabica registered a percentage increase in both quantity and value of 45.31 per cent and 34.05 per cent respectively.

Coffee exports in 11 months (Oct-August) were 5.92 percent and 14.41 per cent lower than the previous year.

According to the report, some of the factors that led to the decline were: Low global prices on account of higher crop in Brazil which affected export prices as well as lower production from the main harvest in Masaka and South-Western regions compared to the previous year, new trees coming into production notwithstanding.

Destination of Uganda’s coffee in August

The destinations of Uganda’s coffee exports during the month of August 2018 showed that: Exports to EU countries amounted to 224,035 bags lower than 253,142 bags exported in the previous month. This represented a 64.20 per cent of total exports.

EU was followed by Sudan with 42,227 bags (12.10 per cent) compared to 65,037bags (16.55 per cent) the previous month. India imported 18,520 (5.31 percent) compared to 18,960 (4.82 per cent), USA 14,513 bags (4.16 per cent) compared to 16,760 (4.82 per cent) and Morocco 14,292 (4.10 per cent) compared to 11,535 (2.93 per cent).

Coffee exports to Africa amounted to 60,437 bags, a market share of 17.32 per cent compared to 80,804 (20.56 per cent) bags the previous month.

Global situation

Global coffee exports for July 2018 were 10.11 million bags, which was 4.6 per cent higher than in July 2017. Total exports for the ten months of coffee year 2017/18 were 101.20 million bags, which was an increase of 0.9 per cent.

But the 2017/18 global production is still estimated at 158.56 million bags compared to 159.05 million bags, a decrease of 0.3 per cent from last year.

Arabica production is estimated to reduce by 6.6 per cent to 97.16 million bags while Robusta is projected to increase by 11.5 per cent to 61.40 million bags.

Africa’s production is expected to increase by 5.3 per cent from last year with an output of 17.30 million bags. Global consumption is projected to increase by 2 per cent at 162.12 million bags with major increases noted in Asia and Oceania countries and South America.