Coffee exports rose by 3.3 per cent in October, the slowest growth rate in five months, according to data from the Uganda Coffee Development Authority.
Uganda exported 470,080 60-kilo bags of coffee, up 3.3 per cent from October 2022, earning $78.9mn (Shs298.5bn) — 18.3 per cent more than the same month last year, the authority said Friday.
Robusta exports increased by 3.4 per cent to 410,113 bags, while their earnings surged 26.2 per cent to $66.9mn. Arabica exports rose 2.9 per cent to 59,967 bags and earned $12.1mn, 12.2 per cent less than a year ago.
Coffee exports for the year to October 2023 were 6.2 million bags valued at $883.3mn, an increase of 5.6 per cent and 7.8 per cent in volume and value respectively.
The bulk of the month’s coffee exports went to Europe, accounting for 67 per cent, followed by Africa with 19 per cent, and Asia with 11 per cent. At a country level, Italy had the largest market share at 28.9 per cent, followed by Germany at 17.2 per cent, Spain at 9.7 per cent and India at 7.4 per cent. The United States — whose president recently told the country’s legislature that his administration would exclude Uganda from the AGOA trade preference programme starting next year — came tenth with 3.2 per cent.
However, the US was the fourth largest buyer of Uganda’s arabica coffee after Italy, Germany, and Belgium. Arabica coffee is more expensive than robusta because it is considered to be of superior quality and taste and is used in higher-end blends, while robusta anchors the instant coffee industry.
UCDA forecast coffee exports of 500,000 bags for November.
($1 = Shs3,780.78, on 31 October 2023)
