Coffee revenue increases as exports grow

Coffee beans in a plantation. The commodity is Uganda’s top export earner. Photo BY DOMINIC BUKENYA

What you need to know:

Growth in exports. In July, 314,304 kilogramme bags were exported, up from the previous 274,992 bags exported in June.

Coffee exports to different destinations registered a 15.8 per cent and 13.3 per cent increase in both volume and value, respectively for the month ending July.
Experts say this is a good sign for the country’s general exports performance since coffee is the leading export commodity.
The latest Uganda Coffee Development Authority report shows that in July-the 10th on the coffee calendar, 314,304 kilogramme bags were exported up from the previous 274,992 bags exported in June”.
The UCDA report further shows that the July exports earned the country revenue worth $37.9 million (Shs99.1 billion) up from June’s value worth $31.04 million (Shs81.3 billion)
In this month, out of the 314,304 kilogramme bags exported, comprised 274,992 bags of Robusta and 39,312 bags of Arabica.
However, on the year-to-year accumulative basis, there was a drop in coffee exports for the period of August 2013 to July 2014 totaled 3.57 million bags worth $396 million (Shs1 trillion). This is in comparison to the 3.44 million bags worth $426 million (Shs1.1 trillion) in the same period the previous year (August 2012 -July 2013).
“This was an increase of 3.8 per cent in volume and a 7 per cent decrease in value,” the report noted.

Price grades
Coffee exports by type, grade and average realised a price increase for each coffee grade during July.
The weighted average Robusta price which accounted for 87 per cent of total exports was $1.88 per kilo (Shs4, 925), US cents 2 higher than that of June 2014.
“Organic Robusta had the highest price for Robusta at $2.34 per kilo (Shs6, 130), followed by Screen 18 at $2.00 per kilo (Shs5, 240),” the report added.
Arabica fetched a weighted average price of $2.89 per kilo (Shs6, 130), US cents 16 higher than the previous month.
The highest price was for Organic Wugar which was at $3.66 per kilo (Shs9, 589). It was followed by sustainable Bugisu A+ at $3.65 per kilo (shs9, 563).

Local situation
During the month, farm gate coffee prices improved in line with the global prices. They were in the range of Shs2,000 to Shs2,300 per kilo of Kiboko (Robusta dry cherries); Shs4,000– 4,500 for FAQ; Arabica parchment was sold between Shs6,000 to Shs6,300, Drugar from Kasese was in the range of Shs6,000 to Shs6,500 per kilo.
UCDA report shows that in the month of August that the country will export about 300,000 bags as harvesting of main crop in Masaka and South Western regions is underway.

Global status
The International Coffee Organisation monthly average composite indicator price for July increased to US cents/lb 152.50 from US cents 151.92 earned in June.
The rise was triggered by the anticipated negative impact from the current Brazilian crop whose production estimates have been lowered on account of drought.
“Production in Brazil is officially estimated to be 44.57 million bags, a decrease of 9.3 percent from last year,” the ICO report shows.

Coffee production

Exports. Global coffee exports for June were 9.2 million bags bringing cumulative total for the nine months for coffee year 2013/14 to 81.8 million bags, 3.5 per cent lower than the same period in 2012/13.
Total production. The World total production for 2013/14 crop year is estimated at 145.2 million bags with total production in Arabica at 85.3 million bags, down 4 percent from 2012/13 as Central America coffee production reduced as a result of the coffee leaf rust.