Italy is the biggest importer of coffee from Uganda, a monthly report for October 2020 released by the Uganda Coffee Development Authority (UCDA) shows, with the European nation taking 38.52% of the market share.
It is followed by Sudan at 13.48%, then Germany (9.61%) and India, which overtook Belgium, holds 8.69% and the latter 5.63%.
In East Africa, Kenya is the biggest buyer of Ugandan coffee, appearing number 14 on the list of importers worldwide. No other East African country appears among the top 30 buyers of Ugandan coffee.
In the previous report, Italy had a market share of 29.49%, followed by Sudan with 22.54%, Germany (12.37%), Belgium (8.15), and India (7.39).
A total of 428,015 kilo bags of coffee valued at US$ 38.61 million were exported in October 2020, reflecting an increase of 12.95% and 4.49% in quantity and value respectively compared to the same period last year.
Coffee exports for 12 months (November 2019 to October 2020) totaled 5,409,054 bags worth $513.99 million compared to 4,465,534 bags worth US$435.81 million the previous year.
“This represents 21% and 18% increase in quantity and value respectively,” according to the data from UCDA.
“83.02% of the total volume was exported by 10 exporters, out of 34 companies which performed during the month compared to 78.01% in September 2020, reflecting increasing concentration.”
Of the bags sold in Oct., 371,280 bags (US$ 30.97 million) were of Robusta and 56,735 bags (US$ 7.39 million) were of Arabica.
UCDA attributed the increase in monthly exports to the increased production on account of fruition of the newly planted coffee as well as favourable weather.
It should be recalled that in the month of September, Uganda exported 506,470-kilo bags of coffee valued at US$44.64 million.
On the cause of the decline in exports, UCDA says it was “expected since the main harvest south of the equator has ended.”
As per data from the UCDA, there are 10 main export companies and, in the month of October, Olam Uganda Ltd led the highest market share with 20.14%.
It was followed by Ugacof Ltd with 13.97%, Louis Dreyfus Company (12.02), Touton Uganda (8.71), Ideal Quality Commodities (8.68), Kyagalanyi Coffee (7.01), and Grain Pulse Ltd (3.65).
“The top 10 exporters held a market share of 83.02% compared to 78.01% the previous month,” the report says.
The report reflects change in market dominance.
For instance, while Kyagalanyi led the previous month, it is now in the sixth position.
According to the September report, Kyagalanyi Coffee Ltd had maintained the highest market share with 14.2%, followed by Ugacof Ltd 14.07%, then Ideal Quality Commodities Ltd (12%, Olam Uganda Ltd (9.23%), Louis Dreyfus Company Ltd (7.29% Touton Uganda Limited (6.46%) and Kawacom Ltd (4.51%).
According to UCDA, out of the 34 exporters that performed, 19 exported Robusta Coffee only while 3 exported Arabica coffee only.