Uganda, a significant contributor to the global coffee market, witnessed a substantial growth in local coffee prices in the latter part of 2023. This surge is attributed to an escalating global demand and positive evaluations of the country’s coffee crop quality.
Ugandan Coffee Exports Approach $1 Billion Mark
According to the latest data released by the Uganda Coffee Development Authority (UCDA), the total export revenues for coffee surged from $883.3 million (November 2021-October 2022) to $952.24 million (November 2022-October 2023). Simultaneously, the total coffee production rose from 5.83 million to 6.16 million 60-kilogram bags during the same period.
The dominance of robusta coffee in Uganda’s production basket continued, constituting over 70 percent of the country’s overall coffee output. Notably, robusta coffee prices experienced notable growth in the latter half of 2023, reflecting a rise in global demand and positive quality assessments.
The competitive landscape among coffee buyers led to a slight decrease in the market share held by the top 10 buyers, dropping from 71 percent to 67 percent. Louis Dreyfus led the market share with 13.93 percent, followed by Sucafina at 11.02 percent and Volcafe at 8.7 percent.
Italy emerged as the largest consumer of Ugandan coffee, holding a 28.95 percent share of volumes, followed by Germany with 17.19 percent. Other significant consumers included Spain, India, and Algeria, with market shares of 9.74 percent, 7.4 percent, and 5.56 percent, respectively.
Factors such as erratic supply patterns, climate change, and increased domestic consumption in leading producer countries influenced higher coffee prices in the latter half of 2023. Industry experts anticipate stability in Uganda’s coffee output and export revenues in the coming year due to reasonable demand patterns in the international market.
Kyagalanyi Coffee Ltd emerged as the country’s largest coffee exporter with a market share of 16.39 percent by the end of October 2023, followed by Louis Dreyfus Company Uganda Ltd with a 14.01 percent market share.
Despite challenges faced by new coffee farmers, such as issues with seed varieties and planting techniques, coffee remains Uganda’s primary crop earner. Experts predict a potential increase in coffee prices as more individuals enter the parchment business.
