July coffee exports drop by 44%
Aug 17, 2009
UGANDA coffee export volumes and earnings were down 18% and 44% respectively compared to a similar month last year, the Uganda Coffee Development Authority said in a report.
By Alice Kiingi
UGANDA coffee export volumes and earnings were down 18% and 44% respectively compared to a similar month last year, the Uganda Coffee Development Authority said in a report.
“The drop in volume of 265,927 60-kilo bags (15,956 tonnes) of coffee was due to world market prices, speculative funds movement in and out of the market on the back of the US dollar strength and the bearish trading due to seasonal low demand because of summer,†the report said.
The report said coffee exports were expected to drop by 23% this month to 250,000 60-kg bags compared with August last year.
Uganda is Africa’s second largest producer of beans after Ethiopia. The nation has exported an annual average of 158,300 tonnes of coffee worth $255.7m over the last four years.
The UCDA said its lower estimate for this month was due to a dry spell in some growing areas and poor global prices for beans that were keeping some growers out of the market.
Uganda made $41.57m from coffee in August 2008. “The improvement in arabica continues to be attributed to improved agronomic practices including pest and disease management and good weather conditions in the arabica areas,†UCDA said.
UGANDA coffee export volumes and earnings were down 18% and 44% respectively compared to a similar month last year, the Uganda Coffee Development Authority said in a report.
“The drop in volume of 265,927 60-kilo bags (15,956 tonnes) of coffee was due to world market prices, speculative funds movement in and out of the market on the back of the US dollar strength and the bearish trading due to seasonal low demand because of summer,†the report said.
The report said coffee exports were expected to drop by 23% this month to 250,000 60-kg bags compared with August last year.
Uganda is Africa’s second largest producer of beans after Ethiopia. The nation has exported an annual average of 158,300 tonnes of coffee worth $255.7m over the last four years.
The UCDA said its lower estimate for this month was due to a dry spell in some growing areas and poor global prices for beans that were keeping some growers out of the market.
Uganda made $41.57m from coffee in August 2008. “The improvement in arabica continues to be attributed to improved agronomic practices including pest and disease management and good weather conditions in the arabica areas,†UCDA said.