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Uganda Earns Sh269b From September Coffee Exports

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Uganda continues to realize more value from one of its most prized exports, coffee, as it earned up to sh269b in September 2022.

 This compares to $71.15 (sh262b) earned in August 2022, when it exported up to 456,271 bags of Robusta valued at $60.26m and 44,783 bags of Arabica valued at $10.89m respectively.

 In its recently issued monthly report, the Uganda Coffee Development Authority (UCDA) revealed that coffee exports in September 2022 amounted to 503,695 60-kg bags worth $71.22m.

 “This comprised 464,118 bags of Robusta valued at $62.19m and 39,577 bags of Arabica valued at $9.03m. “This was a decrease of 14.13% in quantity but an increase of 6.73% in value compared to the same month last year,” reads part of the report.

By comparing the quantity of coffee exported by type in the same month of the last coffee year (September 2021), Robusta decreased by 14.72% in quantity but experienced an increase of 3.57% in value. Arabica exports, on the other hand, decreased by 6.43% in quantity but increased by 35.09% in value.

UCDA attributes the decrease in exports to lower yields this year, which were characterized by drought in most regions. “This led to a shorter main harvest season in the Central and Eastern regions and also reduced harvests from Greater Masaka and South-Western regions,” says the coffee sector regulator.

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

“The average export price was $2.36 per kilo, 1 U.S cent lower than the $2.37 per kilo realized in August 2022.” It was 46 US cents higher than in September 2021 (at US $ 1.90/kilo). Robusta exports accounted for 92% of total exports, slightly higher than 91% in August 2022. UCDA further states that the average Robusta price was $2.23 per kilo, 3 cents higher than the previous month.

It says that washed Robusta fetched the highest price of US$ 2.48 per kilo. It was followed by Organic Robusta at US$ 2.46 per kilo. The share of sustainable/washed coffee to total Robusta exports was 2.48%, slightly higher than the 1.48% in August 2022.

“On the other hand, Arabica fetched an average price of $3.80 per kilo, 25 cents lower than $4.05 per kilo in August 2022. The highest price was Sustainable Arabica Fully Washed Sipi Falls, sold at $5.81 per kilo, a premium of US cents 80 over conventional Bugisu AA, followed by Bugisu A+, sold at $ 5.12 per kilo, a premium of US cents 10 over conventional Bugisu AA. On the other hand, organic drugar was sold at $4.46 per kilo, a premium of US cents 37 over conventional drugar, which, on the other hand, was sold at $4.09 per kilo with a discount of US cents 92 from Bugisu AA. Drugar exports were 55% of total Arabica exports, compared to 43% the previous month. The share of sustainable Arabica. The proportion of total Arabica exports was 7%.

According to UCDA, Ugacof (U) Ltd., had the highest market share of 15.91% compared to 17.28% in August 2022. It was followed by Louis Dreyfus Company (U) Ltd at 10.37%, while Kyagalanyi Coffee

Ltd exported 10.31% and Ideal Quality Commodities Ltd took a share of 9.81%

Other exporters included Kawacom (U)Ltd at 8.91%, Olam Uganda Ltd at 6.46%, Touton Uganda Ltd at 5.86%, Ibero (U) Ltd at 4.36%, Grainpulse Ltd at 3.82%, and Export Trading Company (U) Ltd at 3.55%.

UCDA further says the top 10 exporters held a market share of 79% higher than 77% the previous month. “There were changes in positions compared to last month, reflecting competition at the export level.

Out of the 47 Of 25 exporters that performed, 25 exported Robusta coffee only, while 3 exported Arabica coffee only, says UCDA.

When it comes to the destinations of Uganda’s coffee exports during September 2022, Italy maintained the highest market share of 39.15% compared with 39.67% last month. It was followed by Sudan at 12.86%, Germany at 11.46%, India at 6.69%, and Morocco at 5.97%.

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