Uganda's February Coffee Shipments Up 42.44%, UCDA Says

Uganda shipped 448,957 60kg bags in February, earning US$72.17 million, higher than $61.98m picked up from exporting 402,212 60-kilo bags in January.

According to the  Uganda Coffee Development Authority (UCDA), February exports comprised 351,944 bags of Robusta valued at $45.9m and 97,013 bags of Arabica valued at $26.27m.

"This was a decrease of 20.43% in quantity but an increase of 42.44% in value compared to the same month last year," reads UCDA's report.

"By comparing the quantity of coffee exported by type in the same month of last Coffee Year (February 2021), although Robusta decreased by 29.91% in quantity, it increased by 11.75% in value, while Arabica exports increased by 56.28% and 173.86% in quantity and value respectively."

UCDA says the decrease in Robusta exports was mainly attributed to lower yields this year that was characterized by drought in some regions.

"This led to a shorter main harvest season in Central and Eastern regions as well as a short fly crop in Greater Masaka and SouthWestern regions," the Authority says.

"The Increase in Arabica coffee exports is due to an on-year cycle characteristic of Arabica coffee production. Shortage of shipping containers in Asia and weather-related concerns in Brazil fueled an increase in global prices. This was however checked by the Russia/Ukraine war which led to an increase in oil prices with a
negative on global commodity prices (coffee inclusive)."

According to the report, coffee exports for the 12 months (March 2021-February 2022) amounted to 6,607,963 bags worth $762.6m compared to 5,556,059 bags valued at $515.57m the previous year (March 2020- February 2022), representing 18.93% and 47.91% increase in both quantity and value respectively.

Coffee exports in Feb. were dominated by 10 companies that took a market share of 79%, the same
as the previous month

The top exporters were Ugacof (U) Ltd which had the highest market share of 20.41% compared to 12.50% in January 2022. 

It was followed by Touton Uganda Limited 12.28% (8.44%), Ideal Quality Commodities Ltd 10.41% (12.50%), Olam Uganda Limited 6.73% (9.79%), Kyagalanyi Coffee Ltd 6.52% (7.09%), Kawacom (U) Ltd 6.32% (7.92%), Louis Dreyfus Company (U) Ltd 5.19% (7.45%), Ibero (U) Ltd 4.72% (5.07%), Besmark Coffee Company Limited 3.49% (3.91%) and Grainpulse Ltd 2.81% (4.41%).

(The figures in brackets represent the percentage market share held in January 2022.)

"There were changes in positions compared to last month reflecting competition at the exporter
level. Out of the 49 exporters that performed, 21 exported Robusta Coffee only while 10 exported Arabica coffee only," reads the report.

Italy maintained the highest market share with 38.02% compared with 30.03% last month. It was followed by Sudan 15.23% (17.02%), Germany 11.96% (10.15%), India 6.54% (6.78%) and the United States 4.39% (4.42%).

(The figures in brackets represent the percentage market share held in January 2022.)

Coffee exports to Africa amounted to 94,647 bags, a market share of 21% compared to 97,554 bags (24%) the previous month. African countries included Algeria, Sudan, Morocco, Egypt, South Africa, South Sudan, Tanzania and Kenya.

Europe remained the main destination for Uganda’s coffee with a 62% import share lower than 58% in January 2022.