Uganda’s Coffee Exports hit record high in 2023, surpassing $965 Million

Uganda’s coffee exports for the twelve months of Calendar year 2023 witnessed a substantial increase, reaching 6.12 million bags valued at US$ 965.14 million. This marks a rise compared to the 5.63 million bags worth US$ 860.45 million recorded in the previous period (Calendar year 2022). The surge represents a 12% increase in quantity and a 9% increase in value, as revealed in a statement by the Uganda Coffee Development Authority on Monday, January 15, 2024.

According to the report, 72% of the total volume was exported by 10 key exporters out of the 49 companies performing during the month, showcasing a slight decrease from 76% in November 2023. Sustainable Arabica coffee fetched the highest price at US $4.66 per kilo.

In December 2023, coffee exports amounted to 401,336 60-kilo bags, totaling US$ 65.94 million. This comprised 337,026 bags of Robusta valued at US $52.84 million and 64,310 bags of Arabica valued at US$ 13.10 million.

Although there was a 4.17% decrease in quantity, the value increased by 10.76% compared to the same month last year. Analyzing coffee exports by type in December 2022, Robusta showed an increase of 1.68% in quantity and an impressive 30.32% in value, while Arabica exports witnessed a decline of 26.38% in quantity and 31.02% in value.

The UCDA Monthly Report for December 2023 indicates that the monthly coffee exports performance was lower than the previous year, partly due to a delayed harvest season caused by rains that hindered the drying of newly harvested coffee and a limited harvest in the Elgon region.

Louis Dreyfus Company (U) Ltd led the market with a market share of 11.56%, followed by Ugacof (U)Ltd at 9.01%, Olam Uganda Ltd at 8.97%, and Ideal Quality Commodities Ltd at 7.92%. Italy maintained the highest market share with 39.45%, followed by India at 12.05%, Germany at 11.47%, Morocco at 6.12%, and Spain at 5.96%. The top 10 destinations accounted for 92.25% of Uganda’s coffee exports.

Coffee exports to Africa amounted to 56,253 bags, capturing a 14% market share compared to the previous month’s 16%. Sudan, Morocco, Algeria, South Africa, Egypt, and Kenya were among the African countries importing Uganda coffee. Europe remained the primary destination for Uganda’s coffees with a 67% import share, slightly lower than 68% in November 2023.

On a global scale, the world coffee production for 2023/24 is forecasted to reach 171.4 million bags, an increase of 6.9 million bags from the previous year. Global exports are expected to rise by 8.4 million bags to 119.92 million bags, primarily driven by strong shipments from Brazil.

Global consumption is projected at 169.5 million bags, with notable increases in the European Union, the United States of America, and Brazil. Ending inventories are anticipated to tighten to a 12-year low of 26.5 million bags, according to the United States Department of Agriculture’s Coffee: World Markets and Trade report in December 2023.

Locally, during December 2023, farm gate prices ranged from Sh.3,800-4,300/= per kilo of Kiboko (Robusta dry cherries), Shs. 8,500-9,000/= for FAQ (Fair Average Quality), Sh. 10,000- 10,500/= for Arabica parchment, and Sh. 9,000-9,500/= per kilo for Drugar from Kasese. Compared to the previous month, there was an increase in prices for Robusta Kiboko, FAQ, Arabica parchment, and Drugar.

Looking ahead, in January 2024, Uganda is projected to export 450,000 bags of coffee. The harvesting of the main crop north of the equator and the fly crop in Southwestern and Greater Masaka is ending.