Uganda’s coffee exports in December 2022 amounted to 418,829 60-kilibags worth US$59.54 million {shs 219bn},Uganda Coffee Development Authority{UCDA} has revealed in its recently released monthly reports for December 2022.This comprised 331,476 bags of Robusta valued at US$ 18.99 million.This was a decrease of 22,o5% and 20,99% in quantity and value respectively compared to the same month last year.
By comparing quantity of coffee exported by type in the same month of last coffee year {December 2021}Robusta decreased by 26.81% and 26,66% in quantity and value respectively,while Arabica exports increased by 3.5% in quantity but decreased by 5.37% in value.
“The decrease in Exports was mainly attributed to lower yields this year and that were characterized by drought in most regions.This led to a shorter main harvest season in central and EAastern regions from greater Masaka and South western regions .”the report says.
However,it adds,despite being an off-year of biennial cycle characteristic of Arabica coffee, cofffee exports increased compared to the same month last year.
Coffee exports for 12 months {January-December 2022} tottale 5.63 million bags worth US$ 718.71 Millions the previous year{January-December 2022}. This represents a decrease of 16.79% in quantity but an increase of 19.65% in value.
Exports by Type and Grade.
According to the report,the average export price was US$ 2.37 per kilo,2 U.S cent lower than US$ 2.39 per kilo realized in November 2022.It was 3 US cents higher than in December 2021{US $ 2.234/Kilo}.Robusta coffee accounted for 79% of total exports lower than 82% in November 2022.
The average Robusta price was US$ 2.04 per kilo, US Cents 3 lower than the previous months.Washed Robusta fetched the higher price of US$ 2.29 per kilo.It was followed by screen 14 Fair Trade at US$ 2.27 per kilo.This share of sustainable/washed coffee to total Robusta exports was only 2,55% higher than 0.93% in November 2022.
Arabica fetched an average price of US$ 3,62 per kilo ,18 cents lower than US$ 3,80 per kilo in october 2022.The highest price was Mt. Elgon A+ sold at US$ 5.10 per kio a premium of US$ 1.19 over conventional Bugisu AA.
It was followed by Mt, Elgon AA sold at US$ 4.78 per kilo, a premium of US cents 88 over conventional Bugisu AA. Drugar was sold at US$ 3.4O per kilo, a discount of US cents 50 from Bugisu AA.Drugar exports were 39% of total Arabica exports compared to 38% the previous month.The share of sustainable Arabica exports to total Arabica exports was 8% compared to 17% last month.
Individual Exporteer Performance..
The report shows that Ugacof{U} LTD had the highest market share of 18.35% compared to 16.66% in November 2o22.It was followed by Olam Uganda ltd 8.36%{7.91} ;Ideal Quality Commodities [U] ltd 8.02% [10.42%] Kawacom [U] Ltd 7.72% [6,69%];Export Trading Company [U] Ltd 7.01%[4.76%, Kyagalanyi Coffee Ltd 5.56% [470%];Ibero[U] Ltd 4.77%[5.18%];Touton Uganda ltd 4.43% [8.92%]; JBER Coffee Ltd 3……26% [0.58];and Louis Dreyfus Company [U] Ltd 2.46% [9.20%]
Note:The figures in brackets represent percentage market share held in November 2022.The top 10 Exporters held a market share of 71% lower than 77%Â the previous month reflecting reduced concentration.
“Changes in export positions compared to last month show competition at this level.Out of the 55 exporters that performed,21 exported Robusta coffee only while 12 exported Arabica coffee only,” the report says.
Coffee Exports by destination Itary maintained the highest market share with 38.47% compared with 34.40% last month.It was followed by Sudan 16.63% [10.04%]. Germany 11.67%[10.04%],India 7.71% [9.93%] and Belgium 6.20% [5,45%].
NOTE: The figures in brackets represents percentage market share held in November 2022.
Coffee exports to Africa amounted to 85.044 bags, a market share of 20% compared to 83,187 bags [19%] the previous month.African countries that imported Uganda coffee included Sudan,Morocco,South Africa,Kenya, and Somalia
“This reflects considerable exports to the MAGREB region,Europe remained the destination for Uganda’s coffee with a 64% imports share, higher than 63% in November 2022,”the report says.
Foreign buyers of Uganda Coffee.
The top 10 buyers held a market share of 60% of total exports lower than 67% the previous month reflecting reduced concentration. Sucafina led with a market share of 16.43% compared to 15.27% in November 2022.
It was followed by Olam international 8.60%[8.56%];Ecom Agro Industrialist 8.13%[7.15%];Hamberg coffee 4.92%[1.96%]Bernhard Rothfos 4.77%[5.18%]; Touton Geneva 4.43% [8.92%];Jacobs Douwe Egberts 3.61%[1.93%] Louis Dreyfus 3.38%[9.20%], Cofftea {sudan} 3.18%[1.17%] and DLF for complete solutions 2.84%.
NOTE: The figures in brackets represents percentage performance in the previous month-November 2022.There were changes in relative position of the first ten major buyers reflecting increasing demand for Uganda coffee abroad.
Global outlook.
World coffee production for 2022/23 is forecast to rebound 6.6 million bags from the previous year to 172.8 million due primarily to Brazil’s Arabica crop entering the one year of the biennial production cycle.
Global consumption is expected to rise by 800,000 bags to 167.9 million,with the largest gains i n the European Union,the United States,and Brazil. World coffee bean exports are forecast 3.0 million bags lower to 116.1 million as losses in Brazil,Vietnam and India more than offset gains in Honduras and Columbia.
Ending stocks are expected 1.5 million bags higher to 34.1 million {United States Department of Agriculture,Coffee: World markets and Trade reports}
Location situation.
During the month of November 2022, UCDA says, farm gate prices ranged from sh. 2,300-2,600/= per kilo of kibooko{Robusta dry cherries}; shs. 5,800-6,500/= for FAQ{Fair Average Quality}; sh.9,000-10,000/= for Arabica parchment; and sh. 8,000-9,000/= per kilo for Druger from kasese .Robusta kiboko averaged UGX 2,450/= per kilo FAQ UGX 6,150/= per kilo Arabica perchment UGX 9,500/= per kilo and Druger UGX 8,500/= per kilo.
Outlook for january 2023
UCDA says coffee exports are projected to be 400,000 bags.The main harvesting season in central and Eastern regions started in November is likely to begin tailing off in February due to a short main harvest.
“Exporters are likely to draw down on their stocks to fulfill contractual obligations with buyers abroad,” UCDA says.
