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Coffee exports drop as value increases by 6.73%

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Coffee exports in September 2022 amounted to 503,695 60-kilo bags worth US$ 71.22 million (Shs 272.2 billion). This comprised 464,118 bags of Robusta valued at $62.19 million (Shs 237.7billion) and 39,577 bags of Arabica valued at $ 9.03 million (Shs 34.5 billion).

This was a decrease of 14.13 percent in quantity but an increase of 6.73 percent in value compared to the same month last year. By comparing the quantity of coffee exported and type in the same month of the last Coffee Year (September 2021), Robusta decreased by 14.72 percent in quantity but an increase of 3.57 percent in value. The quantity of Arabica exports decreased by 6.43 percent and increased by 35.09 percent in value.

The decrease in 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 also reduced harvests from Greater Masaka and South-Western regions.

Coffee exports for 12 months (Coffee Year 2021/22) totaled 5.85 million bags worth US$ 876.43 million (Shs 3.3trillion) compared to 6.50 million bags worth US$ 630.01 million (Shs 2.4trillion) the previous year (The coffee year 2020/21). This represents a decrease of 9.90 percent in quantity but an increase of 39.11 percent in value.

The average export price was US$ 2.36 (Shs 9,022) per kilo, one U.S cent lower than US$ 2.37 (Shs 9061) per kilo realized in August 2022.

Robusta exports accounted for 92 percent of total exports slightly higher than 91 percent in August 2022. The average Robusta price was US$ 2.23 (Shs 8525) per kilo, three cents higher than the previous month. Washed Robusta fetched the highest price of US$ 2.48 (Shs 9481) per kilo. It was followed by Organic Robusta at US$ 2.46 (Shs 9405) per kilo. The share of Sustainable/washed coffee to total Robusta exports was 2.48 percent slightly higher than 1.48 percent in August 2022.

Ugacof (U) Ltd had the highest market share of 15.91 percent compared to 17.28 percent in August 2022. It was followed by Louis Dreyfus Company (U) Ltd 10.37 percent (6.37 percent); Kyagalanyi Coffee Ltd 10.31 percent (8.99 percent) Ideal Quality Commodities Ltd 9.81 percent (8.48 percent); Kawacom (U)Ltd 8.91 percent (4.75 percent) Olam Uganda Ltd 6.46 percent (8.02 percent); Touton Uganda Ltd 5.86 percent (11.95 percent); Ibero (U) Ltd 4.36 percent (4.60 percent; Grainpulse Ltd. 3.82 percent (2.67 percent); and Export Trading Company (U) Ltd 3.55 percent (3.48 percent).

Coffee Exports by Destination

Italy maintained the highest market share of 39.15 percent compared with 39.67 percent last month. It was followed by Sudan 12.86 percent (10.20 percent), Germany 11.46 percent (13.83 percent) India 6.69 percent (7.75 percent) and Morocco 5.97 percent (3.37 percent).

Coffee exports to Africa amounted to 120,295 bags, a market share of 24 percent compared to 93,988 bags (19 percent) the previous month. African countries that imported Uganda coffee included Algeria, Sudan, Morocco, Tunisia, South Africa, Somalia, Egypt, Libya and Kenya. Europe remained the main destination for Uganda’s coffees with a 61 percent import share the same as in August 2022.

Foreign buyers of Uganda Coffee

The top 10 buyers held a market share of 72 percent of total exports the same as the previous month. Sucafina led with a market share of 13.72 percent compared to 16.41 percent in August 2022. It was followed by Louis Dreyfus 10.30 percent (6.30 percent); Olam International 8.74 percent;(10.59 percent); Ecom Agro-Industrial 8.56 percent (4.60 percent) Volcafe 8.14 percent (8.34 percent); Altasheel Import & Export Enterprises 6.46 percent (4.47 percent); Touton Geneve 5.86 percent; (11.95 percent) Bernhard Rothfos 4.42 percent (4.76 percent), Hamburg Coffee 3.64 percent (1.82 percent) and Cofftea (Sudan) 2.64 percent.

Global Situation

World coffee production for 2022/23 is forecast to reach 175 million bags which is an increase of 7.8 million bags from the previous year as Brazil’s Arabica crop enters the one year of the biennial production cycle.

The effect of the Brazilian drought and frost which occurred in the previous year on its 2022/23 harvest though has not been quantified yet. If the damage is high, the global production forecast might be revised downwards.

Global consumption is expected to increase by 1.81 million bags to 167 million with the largest increase in European Union, the United States, Japan and Brazil. World exports are forecast to be higher on gains in Brazil and Indonesia. Ending stocks are expected to be 2.1 million bags higher than last year to be 34.7 million bags following last year’s sharp drawdown.

Outlook for October 2022

 Coffee exports are projected to be 450,000 bags. The main harvesting period season in Greater Masaka and Southwestern regions ended. It was affected by a dry spell, especially in Bukomansimbi and Sembabule districts. Exporters are likely to draw down their stock levels to fulfill contractual obligations with the buyers as they prepare for the main harvest in Central and Eastern regions.

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