Kampala, Uganda — Uganda has achieved a historic milestone in its coffee exports, generating an impressive $940.3 million in revenues for the 2022/2023 coffee year that concluded on September 30. This represents a remarkable 7% increase compared to the previous year, attributed to a surge in export volumes.
Data from the Uganda Coffee Development Authority (UCDA) indicates that the East African nation 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 robust performance was particularly notable in the robusta variety.
This success is credited to a bountiful crop harvest in the South-Western region and favorable global prices.
The farm gate prices, as of the end of September, 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.
Italy, Germany, India, Sudan, and Morocco were the primary destinations for Uganda's coffee exports, with additional shipments to Tunisia, Somalia, Egypt, Libya, and Kenya.
This record performance comes as leaders from coffee-producing countries in Africa are actively considering strategies to halt the export of raw coffee beans. The proposal emerged during the second meeting of the G-25 African Coffee Summit held in Munyonyo on Aug.08.
Participants unanimously emphasized the need for Africa to take control and dominance within the market to elevate the income of farmers and curb exploitation perpetuated by Western nations.
During the summit, President Yoweri Museveni highlighted statistics showing that although Africa contributes significantly to the global coffee market, the producing countries reap the least benefits. He emphasized the need for coffee-producing nations to enhance the value of their crop to amplify revenue and create local employment opportunities.
Uganda's sustained growth in coffee export earnings since 2014 is 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. Limited access to free coffee seedlings, resulting from changes in the coffee distribution policy through the Parish Development Model (PDM), impacted 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 told The Independent that the 7% improvement is good news for the industry.
He said the new report shows improved quality and increased quantity which means increased income for the farmer depending on who the exporter is.
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"Once we have this good performance sustained, it will encourage new farmers especially the elite to join the sector," Wakabi said.
He encouraged the government to raise more awareness amongst the elite farmers on the benefits of coffee farming to increase production and output. "The elite can easily mobilise funds to invest in the sector once they realise there is money to make," he said.
Beyond Uganda
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 (approx. $170.85milion) in the first six months of 2023 compared to KshsSh26.6 billion (approx. $178.2million) 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.
