Record Surge in Uganda’s Coffee Exports: May 2024 Report Highlights
In May 2024, Uganda saw a significant surge in its coffee exports, marking a notable growth in both quantity and value. According to the Uganda Coffee Development Authority (UCDA) report, a total of 553,529 60-kilo bags of coffee were exported, valued at $127.3 million. This represents a remarkable 22.16% increase in quantity and a substantial 73.81% rise in value compared to May 2023.
Robust Growth in Robusta Exports
Robusta coffee led the charge, with exports increasing by 44.23% in quantity and a staggering 136.28% in value year-over-year. In May 2024, Uganda exported 473,693 bags of Robusta, generating $107.92 million. The surge is attributed to the peak harvest of the main crop in the Masaka and South Western regions.
Decline in Arabica Exports
In contrast, Arabica coffee exports declined by 35.98% in quantity and 29.68% in value compared to the previous year. Uganda exported 79,836 bags of Arabica worth $19.38 million. The decrease is linked to a smaller harvest in the Elgon region.
Yearly Performance
For the twelve months ending in May 2024, Uganda exported a total of 6.02 million bags of coffee, valued at $1.07 billion. This marks a 5.17% increase in quantity and a substantial 27.85% rise in value compared to the previous year. The export performance underscores Uganda’s growing prominence in the global coffee market.
Market Prices
The average export price in May 2024 was $3.83 per kilo, up from $3.62 per kilo in April 2024 and $2.69 per kilo in May 2023. Robusta fetched an average price of $3.80 per kilo, with Organic Robusta achieving the highest price of $4.43 per kilo. Arabica averaged $4.05 per kilo, with Mt. Elgon A+ commanding the highest price at $5.27 per kilo.
Exporter Performance
The top 10 exporting companies accounted for 72% of the total coffee exports in May 2024. Ugacof (U) Ltd led the market with a 16.44% share, followed by Export Trading Company (U) Ltd with 8.68% and Ideal Quality Commodities Ltd with 8.66%. The competition among exporters remains intense, reflecting the dynamic nature of Uganda’s coffee industry.
Global Market Dynamics
Globally, coffee production for 2023/24 is forecasted to reach 171.4 million bags, up by 6.9 million bags from the previous year, driven by higher outputs in Brazil, Colombia, and Ethiopia. Global exports are expected to rise by 8.4 million bags to 119.92 million bags, primarily due to increased shipments from Brazil. Global consumption is forecasted at 169.5 million bags, with significant increases in the European Union, the United States, and Brazil. Ending inventories are projected to tighten to a 12-year low of 26.5 million bags.
Promoting Domestic Coffee Consumption
UCDA actively promoted domestic coffee consumption through various events, including the European Union day celebrations, Women’s Day celebrations in Sembabule, and the Pearl of Africa Tourism Expo. These events featured demonstrations of different brewing techniques and provided over 10,000 cups of coffee for tasting, highlighting the rich diversity of Ugandan coffee.
Future Outlook
Looking ahead, coffee exports for June 2024 are projected to be around 550,000 60-kilo bags. The peak harvesting season south of the equator and ongoing harvesting of the fly crop north of the equator are expected to contribute to this robust performance.
Conclusion
Uganda’s coffee export growth in May 2024 highlights the country’s strong position in the global coffee market. With significant increases in both quantity and value, Uganda continues to cement its reputation as a key player in the coffee industry. The UCDA’s efforts in promoting both domestic and international markets, along with ongoing improvements in coffee cultivation and processing, are set to further enhance Uganda’s coffee sector in the coming years.
