UCDA officials hand over equipment as they commemorated World Coffee Day in Gulu recently
HABARI DAILY I Kampala, Uganda I For the second month running, Uganda has broken the record of the highest coffee earnings in its history.
According to the report issued yesterday by the Uganda Coffee Development Authority (UCDA), in August 2024, a total of 837,915 60-kilogram bags of coffee valued at $221.63 million (sh819.03 billion) were exported. This is a 5.3% increase from July revenues of $210.48 million (sh795 billion).
The coffee body says that the exports comprised 785,667 bags of Robusta, valued at $208.14 million (sh769.12 billion), and 52,248 bags of Arabica worth $13.49 million (sh49.91 billion). Compared to the same month last year, this marked a 13.15% increase in quantity and an 82.98% rise in value.
“When comparing coffee exports by type to August 2023, Robusta saw a 14.33% increase in quantity and an 87.38% increase in value, while Arabica exports dropped by 2.01% in quantity but rose by 34.33% in value,” further says UCDA.
It added that the lower Arabica export figures were attributed to a smaller harvest in the Elgon region, driven by the bi-annual off-year cycle and poor flowering conditions.
The higher export value, says UCDA, reflects the continued rise in global coffee prices, spurred by concerns over dry conditions in Brazil and Vietnam, which are expected to affect yields, potentially leading to a supply deficit in the 2024/25 season.
“The coffee was exported at an average price of $4.41(sh16,317) per kilogram, with sustainable Arabica fetching the highest price at $5.58 (sh20,646) per kilogram,” further reads the report.
Uganda’s coffee export destinations didn’t change much in the month of August.
The report points out that Europe remained the largest destination for Uganda’s coffee, with Italy maintaining the highest market share at 35.37%, although down from 40.68% in July 2024.
It was followed by Germany with 20.83% (up from 15.75%), India at 7.08% (from 5.26%), Sudan at 5.43% (up slightly from 5.41%), and the Netherlands at 4.94% (compared to 4.14%).
UCDA further says that coffee exports to African countries totaled 101,562 bags, representing 12% of the total, down from 112,713 bags (or 14%) in the previous month.
“Key African importers of Ugandan coffee included Sudan, Morocco, Algeria, Egypt, Tunisia, Senegal, Kenya, and South Africa.”
Over the twelve-month period from September 2023 to August 2024, 6.39 million bags of coffee were exported valued at $1.35 billion (sh4.995 trillion). This represents a 5.25% increase in quantity and a 46.96% increase in value compared to the 6.08 million bags worth $918.41 million (sh3.398 trillion) exported during the previous year (September 2022 to August 2023).
In a phone interview with Habari Daily, Dr Emmanuel Iyamulemye, the UCDA Managing Director, said that there is an increase in the demand for Robusta coffee.
He added that Arabica coffee, which is known for its superior flavor, has faced supply constraints due to climate issues in Brazil and other growing regions which has resulted in higher prices for Arabica beans, prompting roasters and consumers to turn to the more affordable Robusta variety.
“The rise in instant coffee production, which often utilizes Robusta beans, has contributed to this increased demand, particularly in markets like Asia and Africa,”” he said.
He said UCDA has put in place systems that ensure coffee quality is not compromised.
“We now emphasize good Agricultural practices in order to ensure good harvest and post-harvest handling where farmers are required to only harvest mature coffee (Red cherries) and not to dry on bare ground,” he said.
He further noted that the move helps them ensure that only coffee that meets the International coffee standards is certified for export.
“We have also heavily invested in sustainable coffee production which attracts higher prices compared to conventional coffees.”
