Uganda Optimistic about Coffee Sector as June Earnings Hit Shs315Bn

Uganda's coffee exports for the month of June amounted to 530,365 60-kg bags of coffee valued at US$83.79 million (Shs315 billion).

According to Uganda Development Authority (UCDA), the shipment comprised 444,197 bags of Robusta valued at $60.98 million and 86,168 bags of Arabica valued at US$22.82 million.

"This was a decrease of 14% in quantity but an increase of 43% in value compared to the same month last year," reads the Authority's report.

The report shows that Robusta exports accounted for 84% of total exports higher than 77% in May 2022.

By comparing the quantity of coffee exported by type in the same month of last Coffee Year (June 2021), Robusta decreased by 21.44% in quantity but increased by 21.37% in value.

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 whose peak is expected in July 2022.

Arabica exports increased by 62.77% and 174.46% in quantity and value respectively due to an on-year cycle characteristic of Arabica coffee production. 

Ten exporters out of 55 companies that performed during June exported 74% of the total volume.

Italy maintained the highest market share of 40.25% followed by Germany at 11.34%, Sudan at 10.35% (10.74%) India at 7.42% (7.27%) and Morocco at 4.82% (1.95%).

Coffee exports to Africa amounted to 109,506 bags, a market share of 21% compared to 70,782 bags (16%) the previous month, says the report, which noted that coffee exports for July are projected to be 600,000 bags.

Coffee exports for 12 months (financial year 2021/22) totaled 6.26 million bags worth US$ 862.28 million compared to 6.08 million bags worth US$ 559.16 million the previous year (financial year 2020/21). This represents an increase of 3% and 54% in both quantity and value respectively.