By Ali Twaha
Uganda’s coffee exporters achieved a historic milestone in earnings, breaking previous records in both quantity and value of exports in August this year, according to the latest report from Uganda Coffee Development Authority (UCDA).
The growth in coffee exports, particularly in the Robusta variety, reflects the country’s strong coffee sector and its ability to respond to favourable market conditions. Uganda exported a total of 743,517-60kg bags of coffee, valued at $121m (sh453b) compared to July’s $104m (sh390b).
The remarkable performance comprised 689,261 bags of Robusta coffee valued at $111.4m (sh417b) and 54,256 bags of Arabica coffee valued at $10.2m (sh38.1b) Comparing these figures to the same period in the previous year reveals extraordinary growth, with a record 48.19% increase in quantity and a substantial 70.73% surge in value.
An analysis of coffee exports by type for the same month in the previous Coffee Year (August 2022) shows that Robusta exports increased by 50.95% in quantity and an impressive 84.76% in value, while Arabica exports rose by 20.29% in quantity despite a slight 6.61% dip in value.
The historic performance in monthly coffee exports can be attributed to several factors.
Robusta exports, in particular, were bolstered by a robust crop harvest in the southwestern region.
The favourable global coffee prices also encouraged exporters to release their stocks, further contributing to the impressive figures.
William Senyoyi, the managing director at Pearl Model Farm, said coffee price appreciation partly underscores the improved quality and desirability of Ugandan coffee in the international market.
“Coffee prices have generally gone up this year. On average, a kilogramme of Robusta (Kiboko) has been going for between sh3,800 and sh4,500. That is a record price and the highest I have seen,” he said.
“Three years ago, the average price was sh2,500. Currently, when you look the demand and supply in the global market, there is a lot of opportunity for the sector to tap into,” he explained.
Achievement
Uganda’s achievement of exporting coffee worth sh453b in a single month reflects the dedication and resilience of the country’s coffee industry, Martin Nangoli, a director at Kikobero Coffee Company Limited, said.
“Uganda coffee has always been appreciated in the international market. Our only problem has been with marketing. The other cause of the growth is that the relationship between technocrats and coffee farmers has improved greatly,” he said.
Coffee remains one of Uganda’s flagship exports, and its growth augurs well for the nation’s trade balance and economic prospects.
To sustain this growth trajectory, Ssenyoyi said stakeholders must continue to invest in coffee production, processing and quality improvement.
He said: “Irrigation is still wanting in the sector and its affecting production. Farmers who will invest in irrigation will make more money, because the global demand for coffee is growing,” he said.
Dr Emmanuel Iyamulemye, the managing director at Uganda Coffee Development Authority, said: “The African Continental Free Trade Area is the largest market worldwide, with 55 member states and 25 members who produce coffee. There is no better time to have a unifi ed negotiating voice on the issues of trade on the global platform.”
Zooming out to a 12-month perspective from September 2022 to August 2023, Uganda’s coffee exports continued to demonstrate strength.
The total coffee exports for this period reached 6.08 million bags, valued at $918m (sh3.4 trillion).
This represents a notable 5% increase in quantity and a solid 2% increase in value compared to the previous year’s performance, covering September 2021 to August 2022, when 5.94 million bags worth $872m were exported.
Other commodities
Uganda’s exports in July 2023 reached a total value of $569m (sh2.1 trillion), marking a 12.42% decrease compared to the previous month’s figure of $650m (sh2.4 trillion) in June 2023.
This is according to the performance of economy report from the finance ministry.
The dip in export earnings during this period can be largely attributed to reduced proceeds from key commodities, including gold, beans, cotton, tea, flowers and fish. Gold exports during the month declined to $146m from $253m the previous month.
Beans export fell to $3.3m from $4.7m. Tea declined from $8.7m to $7.4m according to data from Bank of Uganda.
When compared to the same month in the previous year, July 2023’s merchandise exports surged by a 65.97%.
In July 2022, Uganda recorded merchandise exports valued at $343m or about sh1.2 trillion.
According to the finance ministry, the notable contributors that collectively fuelled this growth include coffee, maize, electricity, gold, cotton, tea, tobacco, oil re-exports and flowers.
