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Uganda’s coffee exports rise 47 percent in June 2021

Despite an unbroken covid-19 pandemic and compared to June 2020, Uganda’s Coffee exports in June 2021 rose by about 47 percent to hit 618,388 60-kilo bags worth US$ 58.56 million, the highest ever in a single month since 1991.

The value of the coffee exports in the period under review increased by 46.63 percent when compared to the same month last year, says the Uganda Coffee Development Authority (UCDA), a government agency that supervises coffee activities in the country.

By comparing quantity of coffee exported by type in the same month of last Coffee Year (June 2020), Robusta increased by 63.89 percent and 72.56 percent in quantity and value respectively, while Arabica exports decreased in both quantity and value by 29.93 percent and 23.16 percent respectively.

Increasing Robusta exports during the month compared to the previous year were due to newly planted coffee which started yielding supported by favourable weather. This was also compounded by a positive trend in global coffee prices in the last two weeks of the month which prompted exporters to release their stocks on top of increased procurement.

The decrease in value of Arabica coffee which is grown on the slopes of Mt. Elgon in eastern Uganda, was due to low volumes exported as the result of the off-year biennial cycle characteristic of Arabica production,” UCDA report reveals.

However, Coffee exports for the 12 months (Financial year 2020/21) amounted to 6,078,638 60-kilo bags worth US$ 559.26 million compared to 5,105,881-kilo bags valued at US$ 496.28 million the previous year (Financial Year 2019/20).

This represents 19.05 percent and 12.69 percent increase in both quantity and value respectively. The total quantity of exports in 12 months was the highest in 30 years.

Outlook for July 2021

Coffee exports for the month of July are projected to be 650,000 bags as the main harvesting period in Greater Masaka and South Western regions reaches its peak during the month. Dry weather coupled with some rains will speed up ripening and procurement of the coffee from the countryside.

Increased exports are also likely to be driven by increasing global coffee prices exhibited in the last two weeks of the previous month on account of reduced harvest from Brazil and Vietnam which will stimulate exporters to also release their stocks.

Global Situation

World coffee exports amounted to 9.79 million bags in June 2021 compared to 10.89 million in May 2020. Exports for the first 8 months of coffee year 2020/21 (October 2020-May 2021) increased by 2.2 percent to 87.3 million bags from 85.38 million bags the previous period (October 2019-May 2020).

The ICO Composite Indicator price increased by 4.6 percent to 141.03 US compared to 134.78 US cents in May 2021.

The prices have seen a positive trend since October due to an expected reduction in supply in key producing countries.

Global coffee production for 2020/21 is estimated to increase by 0.3 percent to 169.5 million bags while the consumption is estimated to increase by 1.9 percent to 167.24 million bags.

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