By Umaru Kashaka
Italy remained the largest market for Uganda’s coffee exports, accounting for 41.96% of the total market share in June 2024, the finance ministry’s latest report shows.
The report, which is on the performance of Uganda’s economy for July 2024, indicates that other significant markets for the country’s coffee exports included Germany, India, Sudan and Spain, accounting for 10.55%, 7.41%, 6.87% and 5.40% of the total exports, respectively.
It also shows that coffee export earnings grew by 27.5% to $162.36 million in June, up from $127.30 million in the previous month.
“This growth was driven by higher export volumes and an increase in international coffee prices. The increase in coffee export volumes was mainly on account of higher Robusta coffee yields from the Greater Masaka and southwestern regions of Uganda,” it explains.
The report also explains that the rise in international coffee prices was driven by a reduced supply of coffee from Vietnam and Indonesia, which experienced shortages in local supply due to poor harvests.
In comparison to June 2023, export earnings grew by 11.8% from $642.90 million to $718.60 million in June 2024, largely due to increased earnings from coffee and electricity exports.
Museveni fights for value addition
On May 21, 2024, President Yoweri Museveni vowed to fight for value-addition to Uganda’s coffee.
He made the remarks after touring the Inspire Africa Coffee Park in Rwashamaire town council, Ntungamo district.
Museveni told the people of Ntungamo that when they don’t add value to their agricultural products like coffee and green bananas (embiire), they lose a lot of money and jobs.
“If you take a kilogramme of coffee and sell it unprocessed, you get $2.5, but if you process, roast, grind and package it, you end up getting $40,” he said.
He said the way they succeeded in some sectors such as dairy is the same way they will succeed in coffee.
He noted that out of the $460b global coffee value, the coffee-producing countries only take $25b and Africa gets only $2.4b, with most of it going to Uganda because we are now producing nine million bags.
“We get a small value from our coffee and the countries abroad get huge value. The gross domestic product of the whole Africa is now $3.5 trillion. Imagine the whole of Africa; the United States is like $20 trillion. Africa should be talking of $50 trillion,” the President said.
