Uganda registers huge drop in Coffee export earnings for October

Uganda has registered a drop in monthly coffee export earnings for the month of October.

The drop has since been attributed to a harsh environment on the global market and incidents of drought in most coffee-growing regions of the country.

According to figures, Uganda’s Coffee exports in October 2022 amounted to 457,244 60-kilo bags worth $ 67.10 (sh251b).

This comprised 398,592 bags of Robusta valued at $53.25m and 58,652 bags of Arabica valued at $13.85m.

This is as compared to the $71.22m (about 269b) it earned in September 2022, when up to 503,695 60 kg bags of coffee were exported.

This comprised 464,118 bags of Robusta valued at $62.19m and 39,577 bags of Arabica valued at $9.03m.

In the report issued by the Uganda Coffee Development Authority (UCDA), the drier- than-usual weather conditions combined with instability in the global market sent the earnings on a downward trail.

October’s coffee exports experienced a slight decrease of 5.71% in quantity but an increase of 9.82% in value compared to the same month last year.

“Bad weather conditions led to a shorter main harvest season in Central and Eastern regions and also reduced harvests from Greater Masaka and

“South-Western regions,” it said in the recently issued monthly report.

But there is a lot of hope for Uganda’s coffee due to the anticipated increase in farm yields year on year.

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.

During October 2022, UCDA reported that the average export price stood at $2.45 per kilo, 9 U.S. cents higher than the $2.36 per kilo realized in September 2022. It was 35 US cents higher than in October 2021 ($2.10/kilo).

Robusta exports accounted for 87% of total exports, down from 92% in September 2022. The average Robusta price was $2.23 per kilo, the same as the previous month.

Organic Robusta fetched the highest price of $2.54 per kilo. It was followed by washed Robusta at $2.49 per kilo. The share of sustainable or washed coffee in total Robusta exports was only 1.95% lower than 2.47% in September 2022.

UCDA reported that Arabica fetched an average price of $ 3.94 per kilo, 25 cents lower than $3.80 per kilo in September 2022. The highest price was Sustainable Arabica (Rwenzori), sold at $6.67 per kilo, a premium of $2 over conventional Bugisu AA, and was followed by Bugisu A+, sold at $5.72 per kilo, a premium of $1.04 over conventional Bugisu AA. Drugar was sold at $3.91 per kilo, a discount of 77 US cents from Bugisu AA.

Drugar exports represented 49% of total Arabica exports, compared to 55% the previous month. There was generally low global natural Arabica demand during the month, which led to low Arabica ex prices.