coffe exports by uganda

coffee exports by Uganda

Coffee exports by Uganda

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, the UCDA June Coffee Report reveals (https://ugandacoffee.go.ug/file-download/download/public/82).

Uganda’s coffee exports for the month of June amounted to 530,365 60-kilo bags of coffee valued at US$ 83.79 million. This comprised 444,197 bags of Robusta valued at US $60.98 million and 86,168 bags of Arabica valued at US$ 22.82. This was a decrease of 14% in quantity but an increase of 43% in value compared to the same month last year.

Farm-gate prices for Robusta Kiboko averaged UGX 2,600 per kilo; FAQ UGX 6,450 per kilo, Arabica parchment UGX 10,500 per kilo and Drugar UGX 9,500 per kilo.

Robusta exports accounted for 84% of total exports higher than 77% in May 2022. By comparing 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. Arabica fetched an average price of US$ 4.41 per kilo. Okoro CP/B from West Nile sold at the highest price of US$ 7.23 per kilo.

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

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

UGANDA’S COFFEE EXPORTS TO TURKEY

Uganda’s coffee industry has made a significant breakthrough in the Turkish market, with exports increasing by a remarkable 2,200% between 2019 and 2024. From a modest 2000 bags (120 tons) in 2019, coffee exports to Turkey surged to 44,000 bags (2,640 tons) in 2024. This impressive growth is attributed to the Uganda Mission in Turkey’s strategic shift in approaching investment, trade, and tourism. By focusing on Uganda’s major product that Turkey cannot easily substitute – coffee – the Mission successfully tapped into the Turkish market’s growing demand for high-quality coffee.

“Turkey offers a significant opportunity for Ugandan coffee exporters, with its large population and growing economy making it an attractive market,” said Counselor Julius Mwijutsya, in charge of Economic and Commercial Diplomacy at the Uganda Embassy in Ankara. He added: “Given Turkey’s economic potential and Uganda’s goal to expand its coffee exports, we concentrated on establishing a strong presence in the Turkish market. Our efforts yielded impressive results, with coffee exports from Uganda to Turkey increasing from 2000 bags in 2019 to 44,000 bags in 2023”. Ugandan coffee has gained popularity in Turkey due to its excellent intrinsic quality characteristics, with many coffees suitable for differentiated markets. In particular, there is a strong demand for Robusta coffees, especially Screen 18 and Screen 15, which Uganda can supply. The Uganda Embassy in Ankara has been actively promoting Ugandan coffee in Turkey and has participated in the Coffex International Coffee Exhibition in Istanbul.

The For more information, please contact: Margaret Awino Kafeero Head of Public Diplomacy margaret.kafeero@mofa.go.ug, 0787639414 Embassy’s efforts have helped raise awareness about Ugandan coffee and its unique characteristics. “Turkey’s tourism industry is particularly noteworthy, with cities like Istanbul and Antalya, attracting millions of visitors each year,” Counselor Mwijutsya noted. “In fact, Istanbul was the most visited city in the world in 2023, with over 20 million tourists, followed by London, Dubai, and Antalya.” The country’s coffee consumption has increased fourfold in the last 10 years, with per capita consumption standing at 1.7 kg in 2023. This significant increase in coffee exports to Turkey has substantial economic benefits for Uganda. Using the current market price in Uganda of 6000 shillings per kilogram, the value of these exports can be estimated, highlighting the significant economic benefits of the strategic partnership between Uganda and Turkey. “To put this achievement into perspective, let’s consider the volume and value of these exports. The 44,000 bags of coffee translate to approximately 2614 tonnes. Using the current market price in Uganda of 6000 shillings per kilogram, we can estimate the value of these exports. This calculation highlights the significant economic benefits of our strategic partnership with Turkey,” said Mwijutsya, who ends his tour of duty at the end of June, 2024.

The potential revenue gains are substantial, with estimates suggesting that Uganda’s coffee exports to Turkey could reach USD 1.5 billion by 2025. This would not only boost Uganda’s economy but also solidify its position as a major player in the global coffee market. Mwijutsya also believes his successor, an experienced senior diplomat, will continue the progressive trend. “Our mission’s strategic plan is designed to ensure continuity and sustained progress in our economic and commercial diplomacy efforts. With dedicated professionals at the helm, I am assured that our collaboration with Turkey will flourish, driving growth and prosperity for both nations,” he said.  With the support of the Uganda Coffee Development Authority (UCDA) and the Ministry of Foreign Affairs, he believes Ugandan coffee can establish a strong presence in the Turkish market and contribute to the country’s economic growth.

COFFEE EXPORTS

Coffee exports in August 2023 reached an all-time high, totaling 743,517 60-kilogram bags, valued at US$121.64 million, as shown in Figure 1. This consisted of 689,261 bags of Robusta worth US$111.41 million and 54,256 bags of Arabica valued at US$10.22 million. This marks an increase of 48.19% in quantity and 70.73% in value compared to the same month last year.

When comparing the quantity of coffee exported by type in August 2022, Robusta exports rose by 50.95% in quantity and 84.76% in value, while Arabica exports increased by 20.29% in quantity but experienced a 6.61% decline in value.

The strong performance in monthly coffee exports, particularly Robusta, was attributed to a good harvest in the South-Western region and favorable global prices, encouraging exporters to release their stocks.

For the 12-month period from September 2022 to August 2023, total coffee exports amounted to 6.08 million bags, worth US$918.76 million, compared to 5.94 million bags valued at US$872.00 million in the previous year (September 2021-August 2022). This reflects a 5% increase in quantity and a 2% rise in value.

TABLE SHOWING COFFEE SALES BY UGANDA