Uganda’s coffee export volumes have reached 6.13 million 60-kg bags, the highest in 30 years, according to the Uganda Coffee Development Authority (UCDA).
The value of coffee exports also increased by 35% within the 2024 fiscal year (FY) to $1.14 billion compared to the $846 million earned for FY2023 when Uganda, the world’s 8th largest coffee producing country, exported 5.8 million 60-kg bags.
UCDA attributes the 30-year all high increase in both export volumes and earnings to “effective regulation, and coffee quality greatly improved resulting in high prices.” The quality of the country’s coffee is currently determined by 19 active export grading factories in the coffee producing region of Bugisu and in the towns of Mbarara and Kampala.
The Authority is confident of maintaining the upward trend in volumes sold in the global market and earnings from the sales as Uganda’s coffee “is in high demand in global coffee markets for its quality.” A large share of Ugandan coffee is sold to Europe, which takes 64% of the commodity as well as Asia, Africa, and North America that bought 19%, 14%, and 4% respectively. Leading buyers include Italy, Sudan, India, Germany, Belgium, Morocco and USA.
UCDA Managing Director Dr. Emmanuel Iyamulemye Niyibigira says Uganda is focusing on emerging markets to diversify its global reach including engaging buyers in Türkiye and Denmark, “where UCDA recently participated in two highly attended expos - the COFFEX Istanbul Coffee Expo, where Uganda was the focus country, and the World of Coffee 2024 Expo in Copenhagen.”
At the beginning of the current fiscal year, UCDA statistics show Uganda’s upward foreign coffee trade performance off to a good start after the country exported 821,593 60-kilo bags, worth $210 million. The coffee was priced at $4.27 per kg, which is $.21 higher than the $4.06 price in June 2024, and $1.56 higher than the $2.71 price in July 2023.
Export volumes in July 2024 were the highest ever for a single month. Partly due to a new bigger crop harvested from the Greater Masaka and Southwestern regions, although Uganda reported a slight decline of 17% and 0.73% in quantity and value respectively attributed to “to the bi-annual off year cycle coupled with poor flowering in the region.”
“The value of coffee exports was higher in tandem with high global coffee prices as result of dry weather conditions in Brazil and Vietnam that are seen to affect coffee yields and therefore a likelihood of supply deficit in 2024/25,” says the UCDA.
However, Uganda’s coffee exports are projected to reduce slightly to 720,000 60-kilobags “as the main harvest season south of the equator especially Masaka and Southwestern regions winds up.”
UCDA is optimistic Uganda will achieve its production target of 20 million 60-kg bags by 2030 and increase earnings from export sales to $1.5 billion.
These ambitious production and earnings targets will be achieved through an increased focus on “coffee production and productivity, modernising post-harvest handling and storage, increasing coffee processing and value addition,” according to UCDA’s Coffee Sub-Sector Strategy.
Meanwhile, Uganda, riding on a growing appreciation of its coffee in the international market has moved to ease the coffee export procedures for exporters and other market players by shifting to a paperless system.
The introduction of the Uganda Electronic Single Window will process all coffee export transactions and procedures through the digital platform, including applying for export licenses, contract registrations, pre-shipment inspection requests, loading inspection requests, and CESS payment online.
“Imagine, in the past, some exporters had to travel long distances to submit export documents to UCDA and in case the documents had issues, the exporter had to travel back. This will be no more.” Said UCDA IT manager, Nicholas Ssesinde. “The system eliminates back and forth processes which are a cost to export companies and hindrances to trade.”