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Coffee Earnings Rise In September

by Jacquiline Nakandi
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By Stephen Nuwagira

Uganda’s coffee export trade continues to grow with the country shipping out over six million bags of beans for the coffee year (2022/23).

According to the Uganda Coffee Development Authority (UCDA) monthly report for September, the country exported a total of 6.14 million bags of coffee, raking in $940.36 million (about sh3.5 trillion) in revenue. 

This was higher than the 5.86 million bags exported during the previous coffee year, 2021/222, bringing in $877.66 million (around sh3.28 trillion). 

UCDA said this shows an increase of 5% in quantity exported over the reporting period, with revenue going up by 7%.

The export volumes were also higher than what the country shipped out for the period September 2022 to August 2023 which stood at over 6.08 million worth $918.76 million.

Uganda recorded the highest-ever coffee exports in August, when it shipped out 743,517 60-kilogramme bags of coffee, bagging $121.64m (about sh456.75b) in forex revenue.

However, the growth in export volumes and revenue eased last month when 577,073 60-kilo bags worth $94.39 million were shipped out. 

But this was an increase of 12.8% and 30.4% in quantity and value, respectively, when compared to the same month last year, 2022, UCDA added.

Last month, 543,361 bags of Robusta were exported, raking in $88.09 million while $ 6.29 million was recorded from 33,712 bags of Arabica shipped during the month under review.

On a year-on-year basis, Robusta exports rose by 14.9% in quantity and revenue was 38.7%. On the contrary, Arabica coffee exports dropped 13.5% and 29.2% in quantity and value, respectively, according to the report.

“The monthly coffee exports performance was higher than the previous year, partly on account of a good crop harvest in south-western region and the prevailing good prices on the global scene which prompted exporters to release their stocks,” noted the sector watchdog in the report.

The coffee was at $2.73 per kilo, on average, unchanged on a monthly basis, but US cents 37 higher than $2.36 per kilo recorded in September last year.

During the month, farm-gate prices for Robusta Kiboko averaged sh4,000 per kilo, that of fair average quality(FAQ) was at sh7,900, Arabica parchment cost sh9,250 per kilo and Drugar was going for sh8,250 per kilogramme.

Destination

Italy maintained its position as the biggest importer of Uganda’s coffee, taking 35.11%, Germany at 22.48%, Sudan at 9.16%, India at 7.08% and Algeria at 4.25%. Others are South Africa, Egypt, Kenya, and Morocco.

PHOTO CAPTION: A farmer sorts coffee beans. By Stephen Nuwagira

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