When compared to the same month the previous year, the quantity of coffee that was exported in October saw a modest decline of 5.71%, while the value of those exports saw a rise of 9.82%.
In October, Uganda’s monthly coffee profits were lower than usual due to a challenging environment on the worldwide market as well as incidences of drought in the majority of Uganda’s coffee-growing regions.
In October 2022, coffee exports totaled 457,244 60-kilogram bags with a total value of $67.10 per bag (sh251b). This included 58,652 bags of Arabica coffee that were worth $13.85 million and 398,592 bags of Robusta that was worth $53.25 million.
When compared to the $71.22 million (approximately 269 billion) that it made in September 2022, when up to 503,695 60 kg bags of coffee were exported, this figure represents a decrease. This included 39,577 bags of Arabica coffee that were worth $9.03 million and 464,118 bags of Robusta that was worth $62.19 million.
According to the study that was published by the Uganda Coffee Development Authority (UCDA), the combination of weather conditions that were drier than typical with instability in the worldwide market caused a negative trend in revenues.
When compared to the same month the previous year, the quantity of coffee that was exported in October saw a modest decline of 5.71%, while the value of those exports saw a rise of 9.82%.
According to the most recent monthly report that was just released, “poor weather conditions led to a shortened main harvest season in Central and Eastern areas as well as reduced harvests from Greater Masaka and “South-Western regions.”
However, there is reason to be optimistic about Uganda’s coffee industry as a result of projections that farm yields will continue to rise year after year.
According to a report by UCDA, when comparing the quantity of coffee exported by type in the same month of the previous coffee year (October 2021), Robusta saw a decline in the quantity of 6.47 percent while seeing an increase in value of 7.51 percent. On the other hand, exports of Arabica experienced a little decline in the quantity of 0.25% but a significant increase in value of 19.75%.
In comparison to the previous year’s total of 6.55 million bags for US$ 652.10 million, coffee exports during the period of November 2021 through October 2022 amounted to a total of 5.83 million bags worth US$ 883.24 million (November 2020- October 2021). This results in a reduction of the quantity of 11.02% while simultaneously producing a rise in the value of 35.36%.
The United States Commodity Data Administration (UCDA) announced that the average export price for the month of October 2022 was $2.45 per kilo, which is 9 cents more than the price of $2.36 per kg that was attained in September 2022. It was 35 cents more expensive than it had been in October 2021 ($2.10 per kilogram).
Robusta accounted for 87% of overall exports, which is a decrease from the 92% share it held in September 2022. The average price for a kilo of Robusta was $2.23, which was the same as the price the previous month.
The greatest price per kilogram was obtained for organic Robusta, which was $2.54. The next item on the list was washed Robusta, which cost $2.49 a kg. In September 2022, the percentage of total Robusta exports that consisted of sustainable or washed coffee was just 1.95% lower than it had been in September 2022.
According to UCDA, the average price for Arabica in September 2022 was $3.94 per kilo, which was 25 cents less than the price of $3.80 per kilo in September 2022. The most expensive coffee was Sustainable Arabica (Rwenzori), which sold for $6.67 per kilo. This represented a premium of $2 over the price of conventional Bugisu AA.
The next most expensive coffee was Bugisu A+, which sold for $5.72 per kilo and represented a premium of $1.04 over the price of conventional Bugisu AA. When compared to the price of Bugisu AA, the kilogram of Drugar was offered for sale at $3.91, representing a savings of 77 cents.
In comparison to the previous month, when Drugar exports made up 55% of total Arabica exports, this month they made up only 49%. The demand for natural Arabica was usually low across the globe throughout the month, which resulted in prices for exported Arabica being kept low.
Compared to the previous month, the proportion of sustainable Arabica exports to overall Arabica exports dropped to 4% from 7%.
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