Drought cuts coffee earnings to $25.4m

Feb 14, 2010

COFFEE earnings dropped by 20% to $25.4m in January from $30.7m in the same period last year after a long dry spell, the Uganda Coffee Development Authority (UCDA), has said.

By Alice Kiingi

COFFEE earnings dropped by 20% to $25.4m in January from $30.7m in the same period last year after a long dry spell, the Uganda Coffee Development Authority (UCDA), has said.

The UCDA in its January coffee report said the decline in the coffee exports is largely due to the dry spell experienced last year that deprived the crop of moisture necessary for coffee bean development.

The coffee statistics show a 17% drop in value and 20% in volume, recording a total of 264,314 for 60 kilo bags, compared to 332,211 bags shipped in January last year.

The UCDA said in January, robusta accounted for 211,613 bags worth $17.2m while Arabica represented 52,701 bags valued at $8.1m.

In October to January 2009/10, Arabica coffee went up to 217,693 bags, from 181,621 bags, while robusta coffee dropped to 753,582 bags from 892,204 bags.

“Arabica coffee prices are going up in the international market on the account of improved agricultural practices. While the drop in volume for robusta coffee is attributed to the long dry spell that hit the bean at the critical stage of development,” said the report.

It added that the farm gate prices for robusta kiboko (dry cherries) sold at sh1,000 while Arabica parchment (dry processed coffee) prices were at sh3,500 per kilo.

“The low pricing of robusta kiboko is the lack of clean planting materials which resulted in low demand.

Only 20 metric tonnes which were sold to traders during the month,” UCDA said.

Coffee analysts projected the February coffee exports to drop to about 250,000 bags, which indicate low level of stocks at household and primary processing levels.

Uganda is Africa’s second-largest producer of coffee, after Ethiopia. Robusta accounts for about 85% of the country’s annual output.

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