Stanbic Bank
Stanbic Bank
Stanbic Bank
Stanbic Bank
22.7 C
Stanbic Bank
Stanbic Bank
Stanbic Bank
Stanbic Bank

Uganda reaps Shs445b from August coffee exports

Must read

Simon Kabayo
Simon Kabayo
Reporter whose work is detailed

Uganda exported 743,517 60-kilo bags of coffee in August 2023, the highest ever in the country’s history. This has earned Uganda $121.64 million (Shs455.37 billion).

According to Uganda Coffee Development Authority (UCDA) monthly report for August 2023, the exports comprised 689,261 bags of Robusta valued at $111.41 million and 54,256 bags of Arabica valued at $10.22 million.

This was an increase of 48.19% and 70.73% in quantity and value respectively compared to the same month last year.

By comparing the quantity of coffee exported by type in the same month of last Coffee Year (August 2022), Robusta increased by 50.95% and 84.76% in quantity and value respectively, while Arabica exports increased by 20.29% in quantity but a 6.61% reduction in value.

According to UCDA, the monthly coffee exports performance was higher than the previous year which was seen in Robusta exports and was partly on account of a good crop harvest in South-Western region and the prevailing good prices on the global scene which prompted exporters to release their stocks.

Coffee exports for 12 months (September 2022-August 2023) totaled 6.08 million bags worth $ 918.76 million compared to 5.94 million bags worth $ 872.00 million the previous year (September 2021-August 2023). This represents an increase of 5% and 2% increase in quantity and value respectively.

The average export price was US$ 2.73 per kilo, 2 US cents higher than in July 2023 (US $ 2.71/kilo). It was 36 US cents higher than in August 2022 (US $ 2.37/kilo).

Robusta exports accounted for 93% of total exports, higher than 91% in July 2023.

The average Robusta price was US$ 2.69 per kilo, 6 cents higher than US$ 2.63 per kilo the previous month.

The highest price was for Screen 14 sold at US $ 2.96 per kilo, and it was followed by Organic Robusta sold at US$ 2.95 per kilo.

Washed Robusta was sold at US$ 2.84 per dollars, 3 cents higher than conventional Screen 18.

The share of Sustainable/washed coffee to total Robusta exports was 0.54% compared to 0.63% in July 2023.

The report says Arabica fetched an average price of US$ 3.14 per kilo compared to 3.50 per kilo last month, US cents 25 lower than US$ 3.75 per kilo realized in July 2023.

The highest price was Bugisu A+ sold at US$ 5.37 per kilo. It was followed by Bugisu CPB sold at US$ 4.74 per kilo. Drugar was sold at US$ 3.35 per kilo, 14 cents lower than 3.49 per kilo last month. This price was US cents 46 from Bugisu AA. Drugar exports were 48% of total Arabica exports compared to 58% the previous month. The share of sustainable Arabica exports to total Arabica exports was 6.64% compared to only 1.24% in July 2023.

According to a UCDA report, Ugacof (U) Ltd had the highest market share of 14.45% compared to 14.35% in July 2023. It was followed by Olam Uganda Ltd 11.32% (9.33%); Ideal Quality Commodities Ltd 9.66% (7.78%); Kyagalanyi Coffee Ltd 9.17% (7.11%), Touton Uganda Limited 7.01% (6.90%); Kawacom (U)Ltd 5.88% (6.33%); Ibero (U)Ltd 5.06% (4.27%); Louis Dreyfus Company (U) Ltd 5.04% (7.55%); JBER Coffee Ltd 4.65% (4.34%); and Grain Pulse Limited 3.43% (2.65%).

Italy maintained the highest market share with 30.27% compared to 37.68% last month. It was followed by Sudan 22.11% (18.37%), Germany 11.00% (10.96%), India 9.59% (7.51%) and Algeria 4.86% (1.42%). *The figures in brackets represent percentage market share held in July 2023. The first 10 major destinations of Uganda coffee took a market share of 90.35% compared to 90.64% last month.

Coffee exports to Africa amounted to 225,141 bags, a market share of 30% compared to 157,752 bags (24%) the previous month. African countries that imported Uganda coffee included Sudan, Morocco, Algeria, South Africa, Egypt, and Kenya. Europe remained the main destination for Uganda’s coffees with a 53% imports share, lower than 61% in July 2023.

The top 10 buyers held a market share of 66% of total exports, higher than 62% the previous month. Sucafina led with a market share of 15.00% compared to 14.51% in July 2023. It was followed by Olam International 11.63% (9.69%); Touton SA 7.33% (7.05%); Hafco Trading 5.23% (3.36%); Ecom Agro Industrialist 5.22% (6.80%) Bernhard Rothfos 5.19% (4.22%); Volcafe 4.60%; (3.09%) Louis Dreyfus 4.59% (7.43%) Aldwami Company 3.91%, (2.01%); Altasheel Import & Export Enterprises 3.58% (3.03%).

World coffee production for 2023/24 is forecast to increase by 4.3 million bags from the previous year to 174.3 million due primarily to higher output from Brazil and Vietnam. Global consumption is forecast at 170.2 million, with the largest gains in the European Union, the United States of America and Brazil. World coffee bean exports are forecast to increase by 5.8 million bags to reach 122.2 million bags higher than 116.4 million, fueled by strong shipments from Brazil. Ending stocks are expected to be 31.8 million. (United States Department of Agriculture, Coffee: World Markets and Trade report-June 2023).

During the month of August 2023, farm gate prices ranged from Shs3,800-4,500/= per kilo of Kiboko (Robusta dry cherries); Shs7,700-8,300/= for FAQ (Fair Average Quality); Shs9,000- 10,000/= for Arabica parchment; and Shs8,000- 8,500/= per kilo for Drugar from Kasese. Robusta Kiboko averaged Shs4,150 per kilo; FAQ Shs8,000 per kilo same as the previous month, Arabica parchment Shs9,500 per kilo lower than 10,250 per kilo last month and Drugar Shs8,250/= per kilo lower than 9,250/= per kilo last month.

According to UCDA, coffee exports are projected to be 600,000 bags. The main harvesting season in Greater Masaka and South-Western regions is at the tail end and exporters will draw down on their stocks to fulfil contractual obligations with buyers. They are also preparing for the main harvest south of the equator which is soon starting especially in Mt. Elgon region.

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

- Advertisement -