Uganda’s Coffee Industry Sees Historic $940.3 Million in Exports
Uganda celebrated a significant milestone in its coffee export industry by earning $940.3 million in revenue for the 2022/2023 coffee year, which concluded on September 30. This marked a remarkable 7% increase from the previous year, primarily attributed to a surge in export volumes.
Data from the Uganda Coffee Development Authority (UCDA) reveals that Uganda exported 6.14 million 60kg bags of coffee in the last fiscal year, surpassing the 5.86 million bags exported in the preceding year. The robusta coffee variety played a pivotal role in this success.
The achievement can be credited to a bountiful crop harvest in the South-Western region and favorable global coffee prices.
As of the end of September, farm gate prices ranged from Sh.3,800-4,200 per kilogram for robusta dry cherries and Shs. 7,800-8,000 per kilogram for fair Average Quality coffee.
Uganda’s primary coffee export destinations included Italy, Germany, India, Sudan, and Morocco, with additional shipments to Tunisia, Somalia, Egypt, Libya, and Kenya.
This record-breaking performance coincided with discussions among leaders of coffee-producing African countries regarding strategies to restrict the export of raw coffee beans. The proposal was introduced during the second meeting of the G-25 African Coffee Summit held in Munyonyo on August 8.
Participants at the summit emphasized the need for African nations to gain control and dominance within the market to improve farmers’ incomes and reduce exploitation by Western nations.
Uganda’s sustained growth in coffee export earnings since 2014 can be attributed to the government’s efforts to boost coffee production. In the 2014/15 coffee year, Uganda exported 3.24 million 60kg bags of coffee valued at $403 million.
Despite the positive outlook, challenges persist. Changes in the coffee distribution policy through the Parish Development Model (PDM) limited access to free coffee seedlings, impacting coffee planting in several regions. Additionally, pest and disease challenges, including root mealy bugs and coffee berry disease, were reported in certain areas.
Francis Wakabi, the interim chairperson of National Coffee Forum – Uganda, expressed optimism about the 7% improvement, highlighting that it signifies improved quality and increased quantity, which can lead to increased income for farmers, depending on the exporter. He encouraged the government to raise awareness among elite farmers about the benefits of coffee farming to further boost production and output.
In the broader East African region, Ethiopia and Rwanda also experienced significant increases in coffee export revenues. Ethiopia’s coffee exports fell short of annual targets but still generated over $1.3 billion in the 2022/23 fiscal year. Rwanda recorded a 34% rise in revenues, reaching $105 million in 2022, driven by favorable coffee prices. However, Kenya witnessed a decline in coffee export earnings, totaling Kshs25.5 billion (approximately $170.85 million) in the first six months of 2023, compared to KshsSh26.6 billion (approximately $178.2 million) in the same period last year.
On a global scale, the coffee market outlook indicates an increase in production and exports. World coffee production for 2023/24 is forecasted to reach 174.3 million bags, with Brazil and Vietnam expected to offset reduced production in Indonesia. Global exports are predicted to reach a record 122.2 million bags, primarily driven by strong shipments from Brazil. The global consumption forecast is 170.2 million bags, with notable increases in the European Union, the United States, and Brazil. Ending stocks are projected to be 31.8 million bags, according to the United States Department of Agriculture.
