Farmer picks coffee

Coffee exports for 12 months (Financial year 2021/22) totaled 6.26 million bags worth US$ 862.28 million compared to 6.08 million bags worth US$ 559.16 million the previous year (Financial year 2020/21). This represents an increase of 3 per cent and 54 per cent in both quantity and value respectively, the UCDA June Coffee Report reveals.

Uganda’s coffee exports for the month of June amounted to 530,365 60-kilo bags of coffee valued at US$ 83.79 million. This comprised 444,197 bags of Robusta valued at US $60.98 million and 86,168 bags of Arabica valued at US$ 22.82. This was a decrease of 14 per cent in quantity but an increase of 43 per cent in value compared to the same month last year.

Farm-gate prices for Robusta Kiboko averaged Shs 2,600 per kilo; FAQ Shs 6,450 per kilo, Arabica parchment Shs 10,500 per kilo and Drugar Shs 9,500 per kilo.

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Robusta exports accounted for 84 per cent of total exports higher than 77 per cent in May 2022. By comparing quantity of coffee exported by type in the same month of last Coffee Year (June 2021), Robusta decreased by 21.44 per cent in quantity but increased by 21.37 per cent in value. The decrease in Robusta exports was mainly attributed to lower yields this year that were characterized by drought in most regions. This led to a shorter main harvest season in Central and Eastern regions and reduced harvests from Greater Masaka and South Western regions whose peak is expected in July 2022.

Arabica exports increased by 62.77 per cent and 174.46 per cent in quantity and value respectively due to an on-year cycle characteristic of Arabica coffee production. Arabica fetched an average price of US$ 4.41 per kilo. Okoro CP/B from West Nile sold at the highest price of US$ 7.23 per kilo.

Ten exporters out of 55 companies which performed during June exported 74 per cent of the total volume.

Italy maintained the highest market share of 40.25 per cent followed by Germany 11.34 per cent, Sudan 10.35 per cent (10.74 per cent) India 7.42 per cent (7.27 per cent) and Morocco 4.82 per cent (1.95 per cent). Coffee exports to Africa amounted to 109,506 bags, a market share of 21 per cent compared to 70,782 bags (16 per cent) the previous month.

Coffee exports for July are projected to be 600,000 bags.