Uganda’s coffee earnings have experienced an upward trend, registering a sh37b more in earnings in the month of June, compared to earnings registered in May.

In June, a total of 530,365 60-kilo bags of coffee valued at $83.79m (sh307b) were exported. This is as compared to $73.01m (sh270b) earned in the month of May 2022 when Uganda exported 455,166 60-kilo bags of coffee.

According to a report by the Uganda Coffee Development Authority (UCDA), Ugandan coffee sold at an average weighted price of $2.63 per kilo, 4 cents lower than $2.67 per kilo in May 2022 and $1.05 higher than $1.58 per kilo in June 2021.

“This was a decrease of 14% in quantity but an increase of 43% in value compared to the same month last year,” reads part of the report, adding that Coffee exports for 12 months [Financial year 2021/22] totalled 6.26 million bags worth $862.28m compared to 6.08 million bags worth $559.16m the previous financial year 2020/21. This represents 2.97% and 54.21% increase in both quantity and value respectively.

By comparing the quantity of coffee exported by type in the same month of last Coffee Year [June 2021], Robusta decreased by 21.44% in quantity but increased by 21.37% in value. Arabica exports on the other hand increased by 62.77% and 174.46% in quantity and value respectively.

UCDA attributed the decrease in Robusta exports to lower yields this year that were characterized by drought in most regions.

“This led to a shorter main harvest season in Central and Eastern regions and reduced harvests from Greater Masaka and South-Western regions whose peak is expected in July 2022. The increase in Arabica coffee exports is due to a on-year cycle characteristic of Arabica coffee production,” further reads the monthly report.

The report says farm-gate prices for Robusta Kiboko averaged sh2,600 per kilo while FAQ sold at sh6,450 per kilo. Arabica parchment stood at sh10,500 per kilo while Drugar went for sh9,500 per kilo.

UCDA says that 74% of the total volume was exported by 10 exporters, out of 55 companies which performed during the month, compared to 77% in May 2022.

Ugacof (U) Ltd had the highest market share of 15.33% compared to 15.65% in May 2022. It was closely followed by Ideal Quality Commodities Ltd at 10.86%, Kyagalanyi Coffee Ltd at 9.79%, Olam Uganda Limited at 8.91% and Louis Dreyfus Company (U) Ltd at 7.07%.

These were followed by Kawacom (U) Ltd at 5.29%, Ibero (U) Ltd at 5.17%, Touton (U) Ltd at 4.38%, Sena Indo Uganda Limited Ltd at 4.28% and Commodity Solutions (U) Ltd at 3.09%.

UCDA further says that the top 10 exporters held a market share of 74% lower than 77% the previous month. “There were changes in positions compared to last month reflecting competition at the exporter level. Out of the 55 exporters that performed, 24 exported Robusta coffee only while 13 exported Arabica coffee only.”