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Uganda: Coffee Exports Stolen
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New Vision (Kampala)
27 August 2007
Posted to the web 28 August 2007
Macrines Nyapendi
Kampala
COFFEE export earnings are threatened by massive thefts of coffee en route to Mombasa Port. Henry Ngabirano, the chief executive officer of the Uganda Coffee Development Authority (UCDA), said in three months, 20 containers of 20 tonnes each arrived in Europe and the U.S. empty.
According to UCDA, July coffee exports to the European Union (EU) dropped by 9% from 188,979 bags of 60kgs in June to 171,867.
Coffee thefts started in May when prices on the international market started rising.
Local prices range from sh1,200/kg for kiboko (dried cherries) to sh2,400 for washed coffee. International prices stand between $1,800/tonne (sh3m) for Robusta and $2,600 (sh4.4m) for Arabica.
"We have lost over 400 tonnes worth $1,200,000 (sh2.1b) in three months. These evil acts are a huge threat to the sector and the national economy because coffee is a major forex earner. We are perturbed by the way coffee is stolen from the containers because seals remain intact," Ngabirano explained.
Containers carrying coffee to Mombasa bear three seals, one for UCDA after the quality is certified, another one for the shipping company after the quantity is verified and the last one is for the exporter to ensure security of cargo.
"The containers reach Europe with two seals intact. Only the third one is tampered with. We don't know where from and how the coffee is stolen because containers are weighed in Mombasa before they are loaded on to a ship," he said,
Olam International, one of the biggest exporters and promoters of Ugandan coffee, has stopped coffee trade in Uganda because of the thefts. The company now buys Ugandan coffee from other importers in Europe.
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"Exports to the EU and the U.S. have dropped due to thefts. If this problem is not solved immediately, buyers, bankers and insurers will stay away from us," said one exporter from Kyagalanyi Coffee.
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