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Uganda had its coffee exports in the month of March 2020 jump about 38.4 percent to 477,561 60kilo bags, according to Uganda Coffee Development Authority (UCDA), the regulator of the local coffee sector.
According to UCDA the coffee exports fetched the country the much needed foreign exchange worth US$ 45.87 million, a 35.72 percentage increment from February 2019 earnings.
“This comprised 385,978 bags (US$33.09 million) of Robusta and 91,583 bags (US$12.78 million) of Arabica. This was an increase of 38.39 percent and 35.72 percent in quantity and value respectively from the same month last year,” UCDA says in its report.
By comparing quantity of coffee exported by type in the same month of last Coffee Year (March 2019 and 2020), Robusta registered a percentage increase both in quantity and value (45.29 percent and of 36.24 percent) respectively. Arabica exports also registered a percentage increase in both quantity and value (15.30 percent and 34.39 percent) respectively.
UCDA says the increase in exports has been attributed to the increased production on account of fruition of the newly planted coffee, the onset of rains notwithstanding. Exporters also drew down on their stocks in the midst of the lockdown due to the COVID-19 pandemic. Exports are yet to be affected by the virus.
Meanwhile, coffee exports for the 12-months period (April 2019 to March 2020) totalled to 4,877,141 bags worth US 471.59 million compared to 4,108,401 bags (US$ 420.45 million) the previous year.
On the other hand, coffee exports for the first 9 months (Financial Year 2019/20) amounted to 3,883,309-kilo bags worth US$ 376.60 million compared to 3,175,685 60-kilo bags worth US$ 320.21 million the previous year. This represents 22.28 percent and 17.61 percent increase in both quantity and value respectively. Cumulatively in twelve months, (April 2019-March 2020), a total of 4.88 million 60-kg bags worth US$ 471.59 million were exported.
Destination of Uganda’s coffee export
The destinations of Uganda’s coffee exports during the month of March 2020 shows that shipments to Italy had the highest market share with 28.48 percent compared to 33.17 percent in February 2020. It was followed by Sudan at 14.43 percent compared to 13.33 percent in February; Germany had 11.76 percent compared to 12.59 percent in February and Spain 10.93 percent compared to 11.32 percent in February.
Coffee exports to Africa amounted to 77,747 bags, a market share of 16.28 percent compared to 77,972 bags or 16.5 percent of the previous month. Europe remains the main destination for Uganda’s coffees with a 66.8 percent imports share.
Outlook for April 2020
Uganda’s coffee exports are projected to be 400,000 bags as exporters will continue releasing stocks in anticipation of lower prices in April 2020 when Brazil’s on-year 2020/21 crop. The main harvest season North of the equator has virtually ended. Emphasis is now on the main crop from South of the equator starting in May which is likely to be good due to adequate rains. The effect of COVID-19 on coffee production has not been quantified yet.
Coffee promotional activities
UCDA says it has started a focused approach on coffee rehabilitation and application of fertilizers. The agency says coffee rehabilitation involves rejuvenating the old and unproductive trees through steps that enable trees revert to a young and vigorous stage and regain optimal production potential. “Through coffee rehabilitation, the very old, un-productive or under-productive coffee trees can be rejuvenated. As a result, UCDA has rolled out a fertilizer program to all regions of Uganda,” it says.
