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Uganda Exports Coffee To Mexico As Country Earns Shs251 billion From October Exports.


Coffee is an important foreign exchange earner for Uganda/Courtesy photo

 Uganda’s Coffee exports in October 2022 amounted to 457,244 60-kilo bags worth US$ 67.10 million (Shs251bn), Uganda Coffee Development Authority (UCDA) has revealed in its October monthly report.

According to the report, this comprised 398,592 bags of Robusta valued at US $53.25 million and 58,652 bags of Arabica valued at US$ 13.85 million.

This was a decrease of 5.71% in quantity but an increase of 9.82% 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 (October 2021), Robusta decreased by 6.47% in quantity but increased by 7.51% in in value.

Arabica exports slightly decreased by 0.25% in quantity but increased by 19.75% 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,” the report says.

Coffee exports for 12 months (November 2021-October 2022) totaled 5.83 million bags worth US$ 883.24 million compared to 6.55 million bags worth US$ 652.10 million the previous year

(November 2020- October 2021). This represents a decrease of 11.02% in quantity but an increase of 35.36 % in value.

 Individual Exporter Performance

The top 10 export companies in the month of October 2022 included Ugacof (U) Ltd which had the highest market share of 13.89% compared to 15.91% in September 2022.

It was followed by Louis Dreyfus Company (U) Ltd 10.96% (10.37%); Ideal Quality Commodities Ltd 10.94% (9.81%) Olam Uganda Ltd 10.25% (6.46%); Kyagalanyi Coffee Ltd 7.16% (10.31%), Ibero (U) Ltd 5.04% (4.36%); Kawacom (U) Ltd 4.85% (8.91%); Touton Uganda Limited 4.84% (5.86%); Export Trading Company (U) Ltd 3.86% (3.55%); and Grainpulse Ltd 2.83% (3.82%).

Importantly, the figures in brackets represent percentage market share held in September 2022.

The top 10 exporters held a market share of 75% lower than 79% the previous month reflecting reduced concentration.

“Changes in exporter positions compared to last month show competition at this level. Out of the 47 exporters that performed, 20 exported Robusta Coffee only while 9 exported Arabica coffee only,” the report reads in part.

Coffee Exports By Destination

According to the report, Italy maintained the highest market share with 33.04% compared with 36.15% last month. It was followed by Germany 11.44% (11.46%), India 9.10% (6.69%) Belgium 6.16% (5.05%) and Sudan 5.96% (12.86%).

Note: The figures in brackets represent percentage market share held in September 2022. The first 10 major destinations of Uganda coffee took a market share of 85.7% compared to 88.69 % last month.

“Worth noting was coffee exported to Mexico as a new and emerging market,” the report says without detailing the quantity that was exported.

Coffee exports to Africa amounted to 63,899 bags, a market share of 14% compared to 120,295 bags (24%) the previous month. African countries that imported Uganda coffee included Sudan, Morocco, Tunisia, Cape Verde, Egypt, Tanzania and Kenya.

Europe remained the main destination for Uganda’s coffees with a 66% imports share, higher than 61% in September 2022.

Foreign buyers of Uganda Coffee

The top 10 buyers of Ugandan coffee held a market share of 67% of total exports lower than 72% the previous month. Sucafina led with a market share of 13.35% compared to 13.72% in September 2022. It was followed by Louis Dreyfus 11.38% (10.30%); Olam International 10.74%;(8.74%); Volcafe 5.52% (8.14%) Ecom Agro Industrialist 5.15% (8.34%); Bernhard Rothfos 5.04% (4.42%); Touton Geneve 4.84%; (5.86%) Hamburg Coffee 3.88% (3.64%), Altasheel Import & Export Enterprises 6.46% (3.44%) and Icona Cafe 3.26% (1.85%).

Note: The figures in brackets represent percentage performance in the previous month – September 2022. There were changes in relative position of the first ten major buyers reflecting increasing demand for Uganda coffee abroad.

Global Situation

World coffee production for 2022/23 is forecast to increase by 7.8 million bags to reach 175 million bags, as Brazil’s Arabica crop enters the on year of the biennial production cycle.

Global consumption is expected to increase by 1.81 million bags to 167 million with the largest increase expected in European, U.S.A, 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 34.7 million bags following last year’s sharp drawdown.

A new global outlook will be released in December 2022 (United States Department of Agriculture, Coffee: World Markets and Trade report).

 Local Situation

During the month of October 2022, UCDA says farm gate prices ranged from Sh.2,400-2,800/= per kilo of Kiboko (Robusta dry cherries); Shs. 6,300-6,800/= for FAQ (Fair Average Quality); Sh. 10,000- 11,000/= for Arabica parchment; and Sh. 9,000- 10,000/= per kilo for Drugar from Kasese. Robusta Kiboko averaged UGX 2,600/= per kilo; FAQ UGX 6,550/= per kilo, Arabica parchment UGX 10,500/= per kilo and Drugar UGX 9,500/= per kilo.

Outlook for November 2022

Coffee exports are projected to be 500,000 bags, UCDA says.

“The main harvesting season in Central and Eastern regions started in November and will peak in December and January. The Arabica season in South West and Eastern regions (including Mt. Elgon ) started in October 2022,” the report says.

Source; Business Focus.

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