KAMPALA- Uganda experienced a drop in both volume and value of coffee in the month ending August, compared to what it exported the previous month.
According to a monthly report by the Uganda Coffee Development Authority (UCDA), a total of 318,338-kilo bags were exported in August down from 395,244-kilo bags exported the previous month (July).
This brought in Shs91 billion (about $35.94 million) in August, less than the Shs114 billion ($45.07 million) collected in July.
The country’s largest export commodity saw a 23.9 per cent and a 25.4 per cent tumble in volume and value, respectively.
However, experts say this is not something that should worry the industry because judging from the cumulative reports, the country is expected to perform better than last year’s coffee calendar.
“Year on year basis, coffee exports for the period (September 2012-August 2013) totaled 3.53 million bags worth Shs1 trillon ($430 million).
This was a 22.15 per cent and a 3.12 per cent increase in volume and value, respectively compared to the same period last year (September 2011-August 2012),” according to the UCDA report.
August which is the 11th month into the coffee calendar, out of the 318,338-kilo bags exported; 259,288 bags ($ 28.59 million) were for Robusta; while 59,050 bags ($ 7.34 million) were for Arabica.
The report adds: “Robusta increased by 50.31 per cent and 33.16 per cent in terms of volume and value respectively, while Arabica decreased by 1.5 per cent and 27.18 per cent in volume and value, respectively compared to the same period last year 2011/12.”
According to the report, the top 10 exporters held a market share of 76.48 per cent; this was lower than 83.73 per cent market share held in July, reflecting consistent concentration at the export level. Ugacof (U) Ltd held the highest market share of 21.08 per cent, followed by Olam (U) Ltd; Kyagalanyi Coffee Limited; Export Trading Co. (U) Limited, and Ibero (U) Limited followed respectively.
The average robusta price was Shs4,600 ($1.84) per kilo. Washed Robusta fetched the highest price for Robusta at Shs5049 ($1.98) per kilo, followed by screen 18 at Shs5,024 9($1.97)per kilo.
Arabica fetched an average price of Shs5278 ($2.07) per kilo.
“The highest price was for Bugisu A which was at $2.98 (Shs7,599) per kilo followed by Bugisu PB at $2.89 [Shs7,369]per kilo,” the report added.
Global prices, according to reports from the International Coffee Organisation average composite indicator price, were US cents/lb 116.45 down from US cents 118.93 in July.
Shs4,600: Average price of a Kilogramme of Robusta coffee
76.48%: Total market share of the top 10 exporters in August