Uganda collects Shs167bn from coffee exports; top players gain stronger market grip

Kp Reporter·Business·

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Uganda collects Shs167bn from coffee exports; top players gain stronger market grip

In the month of September, coffee dealers in Uganda exported 506,470-kilo bags of coffee valued at US$44.64 million, or about Shs167 billion, according to the...

In the month of September, coffee dealers in Uganda exported 506,470-kilo bags of coffee valued at US$44.64 million, or about Shs167 billion, according to the Uganda Coffee Development Authority (UCDA).

“This was an increase of 39.82% and 28.63% in quantity and value respectively compared to the same period last year,” the Authority said, attributing the growth to favorable weather.

“The increase in exports has been attributed to the increased production on account of the fruition of the newly planted coffee, and favorable weather.”

It, however, said that lack of containers and delays of truck drivers at border posts somewhat affected the movement of cargo.

The aforementioned sales comprised of 445,465 bags ($37.25 million) of Robusta and 61,009 bags (S$7.39 million) of Arabica.

“By comparing the quantity of coffee exported by type in the same month of last coffee year (September 2019 ), Robusta increased in quantity by 43.30% and 28.63 in quantity and value respectively. Arabica exports also increased in both quantity and value by 18.80% and 29.56%respectively,” UCDA said.

Coffee exports for the coffee year (October 2019 to September 2020) totaled to 5,360,859 bags worth $512.23 million compared to 4,439,808 bags worth $ 433.95 million the previous year.

This represents 21% and 18% increase in quantity and value respectively.

Uganda’s coffee export market is dominated by 10 companies and in September, they contributed 78.01% to the total volume.

The other portion was share by 27 firms.

In August, the 10 companies contributed 76.35%. The top 10 players are Kyagalanyi Coffee Ltd, which maintained the highest market share with 14.2% compared to 11.2% last month.

It was followed by Ugacof Ltd 14.07% (12.39), Ideal Quality Commodities Ltd (12%; 12.06%), Olam Uganda Ltd (9.23%; 6.77%), Louis Dreyfus Company Ltd (7.29%; 7.98%), Touton Uganda Limited (6.46;5.58) and Kawacom Ltd (4.51%; 6.76%).

Out of the 37 exporters that performed, 20 exported Robusta Coffee only while four exported Arabica coffee only.

Most of the coffee was sold in Italy, which maintained the highest market share with 29.49% compared with 29.38% last month.

It was followed by Sudan with 22.54% compared to 26.59 the previous month; Germany (12.37%; 14.06), Belgium (8.15; 5.12), and India (7.39; 4.16).

Coffee exports to Africa amounted to 138,196 bags, a market share of 27.29% compared to 156,591 bags (27.23%), the previous month.

Africa countries included Sudan, Morocco, Kenya, Algeria, Egypt, and South Sudan and contributed 27% of import share signifying continued continental trade under AfCFTA. Europe remains the main destination for Uganda’s coffees with a 55% imports share.

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