Italy remains top destination for Uganda’s coffee exports

Italy maintained the highest market share of Uganda’s coffee in September, with 36.2% compared to 35.3% a month earlier, a report by Uganda Coffee Development Authority (UCDA) indicates.

It was followed by Germany with 15.36% (20.83%), India with 8.6% (7.08%), Belgium at 6.73% (4.08%) and Morocco at 5.11% (3.47%).

The first 10 major destinations of Uganda coffee took a market share of 88.57% compared to 89.17% the previous month.

Coffee exports to African countries totalled 62,837 bags, a market share of 12% compared to 101,562 bags (12%) the previous month.

The report said African countries that imported Uganda coffee included Morocco, Sudan, Algeria, Kenya, Egypt, Tunisia and South Africa.

Europe remained the main destination for Uganda’s coffees with a 71% imports share, lower than 73% in August.

Coffee exports for 12 months (Coffee year 2023/2024) totalled 6.35 million bags worth $1.4 billion compared to 6.14 million bags worth $940.1 million in the previous year (Coffee year 2022/2023).

“This represents an increase of 3.42% and 48.97% in quantity and value, respectively. 76% of the total volume was exported by 10 exporters, out of 65 companies which performed during the month compared to 75% in August 2024,” the report said.

According to UCDA, world coffee production for 2024/25 is forecast to increase by 7.1 million bags from the previous year to 176.2 million due primarily to continued recovery in Brazil and rebounding output in Indonesia.

“With additional supplies, global exports are expected to increase by 3.6 million bags to 123.1 million primarily on strong shipments from Indonesia and Brazil. Consumption is seen to be 3.1 million bags higher to 170.6 million,” it said.

It also said ending stocks are expected to rise by 1.9 million bags to 25.8 million following the three years of decline.

During September, farm gate prices ranged from shillings 6,500-7,000 per kilo of Kiboko (Robusta dry cherries), shillings 12,500-13,000 for FAQ (Fair Average Quality), shillings 12,500-13,000 for Arabica Parchment, and shillings 11,000-12,000 per kilo for Drugar.

Compared to the previous month, Robusta Kiboko averaged shillings 6,750 per kilo higher than shillings 6,250 Robusta FAQ averaged sh12,750 per kilo higher than shillings 12,500, Arabica parchment shillings 12,500 per kilo, Drugar shillings 11,500 per kilo remaining the same in September.