Uganda’s 2021/22 coffee exports hit 6.26 million bags

Uganda exported 6.26 million bags of coffee in the 12 months of financial year 2021/22 worth US$ 862.28 million.

This was a three percent increase from the 6.08 million bags worth US$ 559.16 million for the previous financial year 2020/21.

This is contained in the June Coffee Report by Uganda Coffee Development Authority (UCDA) release on Thursday, 14 July 2022.

According to UCDA, this was a remarkable performance given the fact that in the last financial year, the country was hit by a big drought that affected production.

For the month of June 2022, Uganda’s coffee exports amounted to 530,365 60-kilo bags of coffee valued at US$ 83.79 million.

“This comprised 444,197 bags of Robusta valued at US $60.98 million and 86,168 bags of Arabica valued at US$ 22.82. This was a decrease of 14% in quantity but an increase of 43% in value compared to the same month last year,” the report reads in part.

Farm-gate prices for Robusta Kiboko averaged UGX 2,600 per kilo; FAQ UGX 6,450 per kilo, Arabica parchment UGX 10,500 per kilo and Drugar UGX 9,500 per kilo.

Robusta exports accounted for 84% of total exports higher than 77% in May 2022. By comparing quantity of coffee exported by type in the same month of last Coffee Year (June 2021), Robusta decreased by 21.44% in quantity but increased by 21.37% in value.

The decrease in Robusta 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 reduced harvests from Greater Masaka and South-Western regions whose peak is expected in July 2022.

Arabica exports increased by 62.77% and 174.46% in quantity and value respectively, due to an on-year cycle characteristic of Arabica coffee production. Arabica fetched an average price of US$ 4.41 per kilo. Okoro CP/B from West Nile sold at the highest price of US$ 7.23 per kilo. Ten exporters out of 55 companies which performed during June exported 74% of the total volume.

Italy maintained the highest market share of 40.25% followed by Germany 11.34%, Sudan 10.35% (10.74%) India 7.42% (7.27%) and Morocco 4.82% (1.95%). Coffee exports to Africa amounted to 109,506 bags, a market share of 21% compared to 70,782 bags (16%) the previous month.

Coffee exports for July are projected to be 600,000 bags.

UCDA is a government agency mandated to regulate, promote and oversee the quality of coffee along the entire value chain, support research and development, promote production, and improve the marketing of coffee in order to optimize foreign exchange earnings for the country and payments to the farmers.