The export earnings of Uganda from Coffee exports in the month of April 2022 amounted to US$ 70.85 million (Shs256.75bn) from 407,762, 60-kilo bags.
According to the Uganda Coffee Development Authority (UCDA) report of last month, the 407,762 60-kilo bags comprised 277,244 bags of Robusta valued at the US $37.24 million and 130,518 bags of Arabica valued at US$ 33.61 million.
By comparing the quantity of coffee exported by type in the same month of last Coffee Year (April 2021), Robusta decreased by 40.31 per cent and 4.65 per cent in quantity and value respectively, while Arabica exports increased by 78.93 per cent and 207.87 per cent in quantity and value respectively.
“The decrease in Robusta exports was mainly attributed to lower yields this year that were characterized by drought in some regions. This led to a shorter main harvest season in Central and Eastern regions,” the report says, adding.
“The increase in Arabica coffee exports is due to an on-year cycle characteristic of Arabica coffee production. Shortage of shipping containers in Asia and weather-related concerns in Brazil has fueled an increase in global prices for the past several months.”
The report also revealed that coffee exports for the 12 months (May 2021-April 2022) amounted to 6,384,890 60-kilo bags worth US$ 811.18 million compared to 5,824,032 60-kilo bags valued at US$ 535.93 million the previous year (May 2020- April 2021). This represents a 9.63% and 51.36% increase in both quantity and value respectively.
The average export price was US$ 2.90 per kilo, 8 cents higher than US$ 2.82 per kilo realized in March 2022. Robusta exports accounted for 68 per cent of total exports, lower than 75 per cent in March 2022. The average Robusta price was US$ 2.26 per kilo, 9 cents higher than the previous month.
Washed Robusta fetched the highest price of US$ 3.17 per kilo, a premium of 83 US cents over conventional Screen 18. It was followed by Organic Robusta sold at an average price of US$ 2.43 per kilo.
Arabica fetched an average price of US$ 4.29 per kilo, 23 cents lower than in March 2022. The highest price was for Mt. Elgon A, AB, PB, B and C sold at US$ 6.00 per kilo mostly as samples, and was followed by Mt. Elgon A+ sold at US$ 5.61 per kilo, a premium of US Cents 83 over conventional Bugisu AA.
Drugar was sold at 4.01 US$ per kilo, a discount of US$ 1.16 from Bugisu AA. Drugar exports were 43 per cent of total Arabica exports compared to 37% the previous month. The share of sustainable Arabica exports to total Arabica exports was 13 per cent
According to the report, over 10 companies in the month of April managed to perform competitively in the international market. Among these include; Kawacom (U) Ltd had the highest market share of 13.10 per cent followed by Ugacof (U) Ltd, Touton Uganda Limited, Olam Uganda Limited, Ideal Quality Commodities Ltd, Kyagalanyi Coffee Ltd, Louis Dreyfus Company (U) Ltd, Export Trading Company (U), Kampala Domestic Store Ltd and Ibero (U) Ltd.
“Out of the 51 exporters that performed, 20 exported Robusta Coffee only while 16 exported Arabica coffee only,” the report adds.
Coffee Exports By Destination
Italy maintained the highest market share of 33.12 per cent compared with 32.39 per cent in March. It was followed by Sudan at 14.59 per cent, Germany at 13.41 per cent, India at 7.71 per cent and the United States of America at 7.30 per cent.
Other African countries included Algeria, Sudan, Morocco, Tunisia, Tanzania, South Africa, South Sudan, Somalia and Kenya however, Europe remained the main destination for Uganda’s coffees with a 58 per cent imports share lower than 57 per cent in March 2022.
Meanwhile, globally the report showed that world coffee production for 2021/22 is forecast down 8.5 million bags from the previous year to 167.5 million, due primarily to Brazil’s combined effect of Arabica trees entering the off‐year of the biennial production cycle and a weather‐related shortfall.
As a result of lower output, global ending inventories are expected to drop 6.3million bags to 30.0 million. World coffee bean exports are expected down 3.8 million bags to 117.2 million as lower exports from Brazil more than offset higher shipments from Vietnam.
Global consumption rises by 1.5 million bags to 164.9 million, with the largest gains in the European Union, the United States, and Brazil (United States Department of Agriculture, Coffee: World Markets and Trade report).
The report also revealed that Coffee exports are projected to be 450,000 bags. The main harvesting period season in Masaka and southwestern region has begun and a good crop is expected given the adequate rains in April 2022,”
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