Germany-based Ugandans vow to promote country’s coffee

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FULDA - A section of Ugandans living in Germany have vowed to promote Uganda’s coffee.

The resolution follows the announcement by the Uganda Coffee Development Authority (UCDA) that the coffee quality has greatly improved and this has resulted in high prices in the past year.

During a meeting held mid-August 2024 between head of State House Diaspora Unit Mohammed Bagonza and Ugandans living in the state of Fulda, Germany, led by their chairperson, Tom Kalyesubula and Ronald Kyeswa, the group said coffee from the Pearl of Africa was picking more market there.

Kyeswa, an executive member of the German Social Democratic Party (SPD) political party, said they had already set up small-scale coffee shops where products from Uganda are being sold to the public.

Bagonza, who is also senior presidential advisor for diaspora affairs, thanked the team for their efforts in promoting Uganda’s coffee and vowed to appeal to the President to give them more support.

According to a UCDA statement posted on August 23, 2024, the quantity of coffee exported from Uganda had also increased by 25.15% in one year.

“A total of 821,593 60-kilo bags of coffee valued at $210.48 million were exported in July 2024 at an average price of US$ 4.27/kilo, US cents 21 higher than US$ 4.06/Kilo in June 2024, and $1.56 higher than $2.71/kilo in July 2023,” UCDA said.

“This was an increase of 26.15% and 98.68% in quantity and value respectively compared to the same month last year,” UCDA added.

Germany, UCDA said, is the second-highest consumer of Uganda’s coffee at about 15% below Italy which imports 40.6% of the total coffee exported from Uganda.

“Coffee exports for 12 months (August 2023-July 2024) totaled 6.30 million bags worth $1.25 billion compared to 5.84 million bags worth $868.53 million in the previous year (August 2022- July 2023). This represents an increase of 7.94% and 43.94% in quantity and value respectively,” UCDA reported.

The country’s biggest exporters in July were Ugacof (U) Ltd, which had the highest market share of 16.26% compared to 15.20% in June 2024. It was followed by Olam Uganda Ltd 10.50% (9.28%).

The other exporters included: Louis Dreyfus Company (U) Ltd 8.41% (6.42%), Export Trading Company (U) Ltd 6.39% (5.73%), Ideal Quality Commodities Ltd 6.00% (6.90%), Touton Uganda Limited 5.76% (5.88%), Kawacom (U) Ltd 5.52% (3.96%), Ibero (U) Ltd 5.30% (4.49%), Kyagalanyi Coffee Ltd 5.13% (5.29%), and JKCC General Supplies Ltd 4.59% (4.34%).

In terms of market, the destinations of Uganda’s coffee exports during July 2024 were; Italy, which maintained the highest market share with 40.68% compared to 41.96% last month. It was followed by Germany 15.75% (10.55%), Sudan 5.41% (6.87%), India 5.26% (7.41%) and Netherlands 4.14% (3.56%).

“The first 10 major destinations of Uganda coffee took a market share of 88.97% compared to 88.83% last month. Coffee exports to Africa amounted to 112,713 bags, a market share of 14% compared to 79,433 bags (12%) the previous month,” UCDA said.
“African countries that imported Uganda coffee included Sudan, Morocco, Algeria, Egypt, Kenya, Tunisia and South Africa. Europe remained the main destination for Uganda’s coffees with a 72% imports share, higher than 69% in June 2024,” the authority said.

Why Germany

Germany’s per capita coffee consumption stands at 5.4kg per year, which is above the European average of 5kg.

The German Coffee Association reports that “domestic in-home consumption of roasted coffee increased by 7,900 tonnes, whereas out-of-home consumption of coffee decreased by 5,800 tonnes in 2021. This decrease in out-of-home consumption was mainly the result of the global COVID-19 pandemic”.

Target achievable

According to UCDA, farmers are earning the highest prices in 30 years. In FY2023/24, UCDA generated revenue of shillings 82.2 billion. With the current trajectory, the Coffee Roadmap target of 20 million 60 kg bags produced by 2030 is achievable. 

The roadmap signed by President Yoweri Kaguta Museveni in 2017, set a target for foreign exchange earnings of $1.5 billion annually from the 20 million bags.