Summary:
- In March 2024, Uganda experienced a significant decline in coffee exports, attributed to factors like reduced harvest and shipping container shortages. Despite this, annual exports showed positive growth. UCDA implemented initiatives to boost production and sustainability.
In March 2024, Uganda experienced a significant drop in coffee exports compared to the prior month, as per the latest report released by the Uganda Coffee Development Authority (UCDA). Data indicated that 329,686 60-kilo bags of coffee were exported, totaling USD 64.74 million. This marked a notable decline from the 434,583 bags exported in February 2024. Alongside the decrease in export volume, there was a sharp decrease in export value, with March figures showing a USD 17.8 million drop compared to February. The total export value decreased from USD 82.56 million in February to USD 64.74 million in March 2024.
March 2024 exports consisted of 244,975 bags of Robusta, valued at USD 46.01 million, and 84,711 bags of Arabica, valued at USD 18.72 million.
The UCDA report attributed the export volume decrease compared to the same month last year to several factors, including a smaller harvest in the Elgon region, delays in the harvest season onset, and a shortage of shipping containers.
Despite the monthly decline, coffee exports for the twelve months ending March 2024 showed positive growth, totaling 5.90 million bags worth USD 993.63 million. This represented a 2.42 percent increase in quantity and a significant 16.91 percent increase in value compared to the previous year.
The report also noted changes in export prices, with the average export price per kilo rising to USD 3.27, up from USD 3.17 in February 2024. Robusta continued to dominate exports, accounting for 74 percent of the total, with Kyagalanyi Coffee Ltd maintaining the highest market share at 10.21 percent.
Italy retained the highest market share among Uganda’s coffee export destinations, followed by India, Germany, Belgium, and Sudan. Europe remained the primary destination for Uganda’s coffee exports, with a 66 percent import share.
In terms of global trends, world coffee production for 2023/24 is forecasted to reach 171.4 million bags, with increased output expected from Brazil, Colombia, and Ethiopia. Global exports are projected to rise to 119.92 million bags, primarily driven by strong shipments from Brazil, while global coffee consumption is forecasted to reach 169.5 million bags.
UCDA implemented various initiatives across Uganda in March 2024 to boost coffee production and sustainability. Activities included promoting Good Agricultural Practices (GAPs) and Rehabilitation & Renovation (R&R) techniques through 108 demonstrations, providing training to optimize cultivation methods for farmers, verifying nurseries and seed gardens, providing soil fertility support to farmers, and addressing pest and disease challenges with targeted interventions.
Despite the challenges faced in March, UCDA anticipates a rebound in Uganda’s coffee exports, with a target of reaching 400,000 60-kilo bags in the upcoming months.
(Inputs taken from UCDA Monthly Report- March 2024)
