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Annual coffee export rise 17 percent in May 2021

Uganda’s coffee exports Coffee exports for 12 months (June 2020 to May 2021) rose by 17 percent to 5.88 million bags worth US 540.72 million compared to 5.03 million bags worth US$ 488.19 million the previous year, says Uganda Coffee Development Authority (UCDA)in its latest monthly report. The value of the exports increased by 11 percent.

Meanwhile, the report says coffee exports for the month of May 2021 amounted to 494,050 60-kilo bags worth US$ 47.16 million. Uganda, Africa’s biggest coffee exporter produces both Robusta and Arabica coffee types.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (May 2020), Robusta increased by 25.98% and 27.02% in quantity and value respectively, while Arabica exports decreased in both quantity and value by 33.16% and 25.55% respectively.

“Increasing Robusta exports during the month of May compared to the previous year were due to newly planted coffee which started yielding supported by favourable weather,” says UCDA.

UCDA in the report says the increase was also a result of positive trend in global coffee prices which prompted exporters to release their stocks on top of increased procurement. “The decrease in value of Arabica coffee was due to low volumes exported. Arabica monthly exports continued to reduce compared to the previous year attributed to the off-year biennial cycle characteristic of Arabica production.”

Global picture

According to International Coffee Organisation (ICO), world coffee exports amounted to 11.41 million bags in April 2021 compared with 11.29 million in March 2021. Exports for the first 7 months of coffee year 2020/21 (October 2020- April 2021) increased by 4.1% to 77.52 million bags from 74.49 million bags the previous period (October 2019-April 2020). The ICO Composite Indicator price increased by 10.4% to 134.78 US compared to 122.03 US cents in April 2021.

The prices have seen a positive trend since October with an expected reduction in production in key exporting countries like Brazil for the 2021/22 season. Global coffee production for 2020/21 is estimated to increase by 0.4% to 169.61 million bags while the consumption is estimated to increase by 1.9% to 167.59 million bags, as there are prospects for increased demand as the Covid 19 pandemic related lockdown measures are being removed in major consuming markets after intensifying the vaccine programmes.

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