Overview:
According to the July monthly coffee report released by Uganda Coffee Development Authority (UCDA) on Monday, a total of 576,468 60-kilo bags of coffee valued at US$ 83.52 million were exported in July 2022 at an average weighted price of US$ 2.41 /kilo, 22 cents, lower than US$ 2.63 /kilo in June 2022 but US cents 75 higher than US$ 1.66/kilo in July 2021.
Uganda’s coffee exports for the month of July 2022 declined by 18 percent compared to the month of June following drought that hit most of the country.
According to the July monthly coffee report released by Uganda Coffee Development Authority (UCDA) on Monday, a total of 576,468 60-kilo bags of coffee valued at US$ 83.52 million were exported in July 2022 at an average weighted price of US$ 2.41 /kilo, 22 cents, lower than US$ 2.63 /kilo in June 2022 but US cents 75 higher than US$ 1.66/kilo in July 2021.
This was a decrease of 18% in quantity but an increase of 20% in value compared to the same month last year, according to UCDA.
“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. The increase in Arabica coffee exports is due to an on-year cycle characteristic of Arabica coffee production,” UCDA said in the report.
Coffee exports for 12 months (August 2021- July 2022) totaled 6.14 million bags worth US$ 875.95 million compared to 6.23 million bags worth US$ 578.77 million the previous year (August 2020-July 2021). This represents a decrease of 1.57% in quantity but an increase of 51.35 % value.
The average export price was US$ 2.41 per kilo, 22 U.S cents lower than US$ 2.63 per kilo realized in June 2022. It was 75 US cents higher than in July 2021 (US $ 1.66/kilo). Robusta exports accounted for 92% of total exports higher than 84% in June 2022.
“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. The increase in Arabica coffee exports is due to an on-year cycle characteristic of Arabica coffee production,”
ucda
The average Robusta price was US$ 2.26 per kilo, 3 cents lower than the previous month. Organic Robusta and washed Robusta fetched the highest price of US$ 2.46 per kilo. They were followed by Screen 17 at US$ 2.42 per kilo. Screen 17 was 14 cents higher than Screen 15 concretizing government policy of expanding exportable grades.
Arabica fetched an average price of US$ 4.14 per kilo, 27 cents lower than in June 2022. The highest price was Organic Okoro sold at US$ 5.75 per kilo a premium of US cents 95 over conventional Bugisu AA, and was followed by Wugar sold at US$ 5.55 per kilo,.
Drugar was sold at US$ 4.18 per kilo, a discount of US cents 62 from Bugisu AA. Drugar exports were 41% of total Arabica exports compared to 61% the previous month. The share of sustainable Arabica exports to total Arabica exports was 5%.
Ugacof (U) Ltd had the highest market share of exports of 11.12% compared to 15.33% in June 2022. It was followed by Ideal Quality Commodities Ltd 11.56% (10.86%); Olam Uganda Ltd 10.99% (8.91%) Kyagalanyi Coffee Ltd 8.40% (9.79%); Louis Dreyfus Company (U) Ltd 7.48% (7.07%) Touton Uganda Limited 7.48% (4.38%); Ibero (U) Ltd 6.04% (5.17%); Kawacom (U) Ltd 5.64% (5.29%); Besmark Coffee Company Limited.4.79% (2.19%); and Export Trading Company (U) Ltd 3.69% (2.18%).
The top 10 exporters held a market share of 78% higher than 74% the previous month. There were changes in positions compared to last month reflecting competition at the exporter level. Out of the 54 exporters that performed, 23 exported Robusta Coffee only while 5 exported Arabica coffee only.
Italy maintained the highest market share of 40.62% compared with 40.25% last month. It was followed by Sudan 13.78% (10.35%), Germany 8.77% (13.34%) India 6.48% (7.42%) and Belgium 5.38% (3.71%). Coffee exports to Africa amounted to 118,694 bags, a market share of 21% compared to 109,506 bags (21%) the previous month. African countries that imported Uganda coffee included Algeria, Sudan, Morocco, South Africa, and Kenya. Europe remained the main destination for Uganda’s coffees with a 61% imports share lower than 65% in June 2022.