Uganda is increasingly earning big from coffee exportsThe Ministry of Agriculture has revealed that Uganda’s coffee exports for twelve months (February 2024-January 2025) totaled 6.44 million bags worth US$ 1.62 billion (Shs5.95 trillion) compared to 6.20 million bags worth US$ 984.60 million (Shs3.62 trillion) in the previous year (February 2023-January 2024). This represents an increase of 3.91% and 64.47% in quantity and value respectively.The details are contained in the recently released monthly performance report for January 2025 by the Coffee Production and Development Department at the Ministry of Agriculture.According to the report, Uganda’s coffee exports in January 2025 amounted to 550,341 60-kilo bags worth US$ 156.50 million (Shs575.1bn). This comprised of 485,999 bags of Robusta valued at US $ 135.67 million and 64,342 bags of Arabica valued at US$ 20.83 million.This was an increase of 14.43% and 83.38% in quantity and value respectively compared to the same month last year.It’s important to note that Uganda’s coffee exports reached a record high of US$1.4 billion in the 2023/24 coffee year, which ended on September 30, 2024. This was a substantial increase from the previous year’s US$940.1 million.By comparing quantity of coffee exported by type in the same month of last Year (January 2024), Robusta increased by 20.64% and 99.37% in quantity and value respectively, while Arabica exports decreased by 17.59% in quantity and increased by 20.46% in value.The monthly coffee exports volume was higher than the previous year. Arabica exports were however lower than the previous year as it was a bi annual off year cycle, coupled with poor flowering in Mt. Elgon region.The report indicates that the value of coffee exports was higher due to the prevailing high global coffee prices which is as a result of dry conditions in Brazil and Vietnam, the world’s largest producers of Arabica and Robusta coffee respectively which affected coffee crop yields and, therefore, a likelihood of supply deficit in 2024/25.Exports by Type and GradeMAAIF’s report shows that the average export price was US$ 4.74 per kilo, US cents 10 higher than in December 2024 (US$ 4.64).It was US$ 1.90 higher than in January 2024 (US $ 2.96/kilo). Robusta exports accounted for 88.3% of total exports, slightly lower than 88.6% in December 2024.The average Robusta price was US$ 4.65 per kilo, 10 cents higher than US$ 4.55 per kilo the previous month.The highest price was for Washed Robusta sold at US$ 5.47 per kilo, followed by Screen 14 sold at US$ 5.18 per kilo. The share of Sustainable/washed coffee to total Robusta exports was 1.31% higher than 3.13% in December 2024.Arabica fetched an average price of US$ 5.40 per kilo US cents 7 higher than the previous month (US$ 5.33). The highest price was for Organic Wugar sold at US$ 6.85 per kilo. It was followed by Mt. Elgon A+ sold at US$ 6.24 per kilo. Drugar was sold at US$ 5.52 per kilo, 21 cents lower than 5.73 per kilo the previous month. Drugar exports were 24% of total Arabica exports higher than 23% the previous month. The share of sustainable Arabica exports to total Arabica exports was 7%, the same as in December 2024.Individual Exporter PerformanceThe report reveals that Ugacof (U)Ltd had the highest market share of 15.30% compared to 16.98% in December 2024. It was followed by Kawacom (U) Ltd 10.65% (1.62%); Olam Uganda Ltd 7.32% (6.92%), Louis Dreyfus Company (U) Ltd 6.90% (4.90%), Jber Coffee Ltd 6.23% (4.49%) Ideal Quality Commodities Ltd 5.81% (10.45%), Kyagalanyi Coffee Ltd 5.47% (4.34%), Ibero (U) Ltd 4.78% (3.84%); Touton Uganda Limited 4.21% (2.35%), and DRK General Merchants Ltd 3.68% (3.74%).Note: The figures in brackets represent percentage market share held in December 2024.“The top 10 exporters held a market share of 70% higher than 67% the previous month reflecting competition at exporter level. Out of the 60 exporters who performed, 34 exported Robusta Coffee only while 9 exported Arabica coffee only,” the report reads in part.Coffee exports by destinationItaly maintained the highest market share with 36.94% compared to 38.40% last month, the report reveals.It was followed by Belgium 11.90% (4.42%), India 9.76%% (9.14%), Sudan 9.41% (4.32%) and Germany 8.30% (12.82%).It’s important to note that the figures in brackets represent percentage market share held in December 2024. The first 10 major destinations of Uganda coffee took a market share of 91.31% compared to 90.54% the previous month.Coffee exports to African countries totaled 73,324 bags, a market share of 13% compared to 49,756 bags (12%) the previous month. African countries that imported Uganda coffee included Sudan, Morocco, Egypt, Algeria, South Africa and Tunisia.Europe remained the main destination for Uganda’s coffees with a 69% import share, the same as in December 2024.Foreign buyers of Uganda CoffeeThe top 10 buyers held a market share of 60.12% higher than 53.61% the previous month. Sucafina led with a market share of 15.54% compared to 17.06% in December 2024. It was followed by Ecom Agro Industrialist 10.34% (3.10%); Olam International 7.68% (6.92%); Louis Dreyfus 6.90% (5.33%); Bernhard Rothfos 5.08% (3.76%); Touton SA 4.39% (2.35%); Altasheel Import & Export 3.55% (2.12%); CCL Products 2.52% (1.11%); Volcafe 2.18% (3.68%) and Strauss 1.95%.Note: The figures in brackets represent percentage performance in the previous month –December 2024.Global SituationWorld coffee production for 2024/25 is forecast to reach 6.9 million bags higher than the previous year to 174.9 million primarily due to rebounding output in Vietnam and Indonesia.World exports are forecast to be slightly higher as gains in Vietnam and Indonesia more than offset reduced shipments from Brazil. Global consumption is expected to increase by 5.1 million bags to 168.1 million, with the largest gains in the European Union, the United States, and China. Ending stocks are expected to drop by 1.5 million bags to 20.9 million. (United States Department of Agriculture, Coffee: World Markets and Trade report-December 2024).Local situationDuring the month of January 2025, MAAIF says, farm gate prices ranged from Shs 6,500-7,500 per kilo of Kiboko (Robusta dry cherries); Shs.12,500-13,500 for FAQ (Fair Average Quality); Shs13,000- 13,500 for Arabica Parchment; and Shs12,500-13,500 per kilo for Drugar. Compared to the previous month, Robusta Kiboko averaged Shs7,000 higher than Shs6,500. Robusta FAQ averaged Shs13,000 lower than Shs 12,500, Arabica parchment Shs 13,250 per kilo, Drugar Shs13,000 per kilo higher than Shs11,500 per kilo.Outlook for February 2025The report indicates that coffee exports are projected to be 500,000 60-kilobags. The main harvest season north of the equator and the fly crop in Greater Masaka and South-Western regions is at the tail end.The post Uganda Earns Record Shs6 Trillion From Coffee Exports In 12 Months appeared first on Business Focus.