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Uganda Earns Sh262b From Coffee Exports In August

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Uganda’s Coffee exports in August 2022 amounted to 501,054 60-kilo bags worth $71.15m (sh262b). 

This comprised 456,271 bags of Robusta valued at $60.26m and 44,783 bags of Arabica valued at $10.89m.

According to the monthly coffee report issued by the Uganda Coffee Development Authority (UCDA), this was a drastic fall in earnings and export volume compared to July.

In July 2022 exports amounted to 576,468 60-kilo bags worth $83.52m (sh320.9b).

“The decrease in exports and earnings can be blamed on lower yields this year that was characterized by drought in most regions,” reads part of the report, adding: “This led to a shorter main harvest season in Central and Eastern regions and also reduced harvests from Greater Masaka and South-Western regions.”

Robusta exports accounted for 91% of total exports, which was slightly lower than 92% in July 2022.

“The average Robusta price was $2.20 per kilo, 6 cents lower than the previous month. Organic Robusta fetched the highest price of $2.49 per kilo. It was followed by Screen 18 at $2.34 per kilo. 

The share of Sustainable/washed coffee to total Robusta exports was only 1.48%, slightly higher than 1.09% in July 2022,” further reads the report.

It says Arabica fetched an average price of $4.05 per kilo, 9 cents lower than $4.14 per kilo in July 2022. The highest price was Organic Okoro sold at $5.35 per kilo, a premium of US cents 59 over conventional Bugisu AA.

“This was followed by Bugisu A+ sold at $5.19 per kilo, a premium of US cents 44 over Conventional Bugisu AA. Drugar was sold at $4.11 per kilo, a discount of US cents 65 from Bugisu AA. 

Drugar exports, on the other hand, were 43% of total Arabica exports compared to 41% the previous month. The share of sustainable Arabica exports to total Arabica exports was 4%,” reads the UCDA report.

The report specifies a decrease of 28.52% and 5.25% in quantity and value respectively compared to the same month last year.

“By comparing quantity of coffee exported by type in the same month of last Coffee Year (August 2021), Robusta decreased by 28.31 % and 7.65% in quantity and value respectively. Arabica exports decreased by 30.60% in quantity but increased by 10.59% in value.”

UCDA further reports that Coffee exports for 12 months (September 2021- August 2022) totalled 5.93 million bags worth $871.76m compared to 6.41 million bags worth $607.82m the previous year (September 2020-August 2021). This represents a decrease of 7.49% in quantity but an increase of 43.43% value.

Exports by type

Exports by type, grade and average realized price for each grade during the month of August 2022 reveals that the average export price was $2.37 per kilo, 4 U.S cents lower than $2.41 per kilo realized in July 2022. It was 58 US cents higher than in August 2021 ($1.79 per kilo).

During the month of August, there were top 10 export companies and these included Ugacof (U) Ltd which had the highest market share of 17.28% compared to 12.12% in July 2022. 

It was followed by Touton Uganda Ltd with 11.95%, Kyagalanyi Coffee Ltd at 8.99% and Ideal Quality Commodities Ltd with a share of 8.48%. 

Other firms included Olam Uganda Ltd with a share of 8.02%, Louis Dreyfus Company (U) Ltd at 6.37%, Kawacom (U) Ltd at 4.75%, Ibero (U) Ltd at 4.50%, Besmark Coffee Company Limited with a share of 3.68% and Export Trading Company (U) Ltd with 3.48%.

The top 10 exporters held a market share of 77%, slightly lower than 78% the previous month.

“There were changes in positions compared to last month, reflecting competition at the exporter level. Out of the 51 exporters that performed, 23 exported Robusta Coffee only while 4 exported Arabica coffee only,” says UCDA.

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