Uganda exports record 5 million coffee bags, earns $494 million

Kampala, Uganda | THE INDEPENDENT | Uganda strengthened her position as Africa’s top coffee exporter with a record 5.06 million (60kg) bags in the financial year 2019/20. All indications are that Uganda could also overtake Ethiopia as Africa’s top coffee producer.

Export earnings also reached an all-time second best level of US$494 million (Sh 1.8 trillion), representing an increase of 88% over the first decade of vision 2040. Uganda’s coffee export performance in FY 2019/20 saw an increase of 84% over the same period.

Coffee exports for 2018/19 amounted to 4.18 million bags worth US $416 million compared to 4.45 million worth US $492 million the previous year. Uganda’s record remains US$513 million in the 2016-17 financial year from 4.2 million bags.

Uganda also looks set to overtake Ethiopia as African’s leading coffee producing nation, depending on how production figures for FY 2019/20 turnout.

According to Uganda Coffee Development Authority (UCDA) figures, Uganda’s coffee production doubled from 3.5 million bags in FY 2014/15 to 7.0 million bags in FY 2018/19.

Ethiopia’s coffee production for mid year 2020 (Oct-Sept) is forecast at 7.35 million (60kg) bags while exports for the same period are forecast to reach a record 4 million bags.

COVID-19 slowdown stops

Coffee exports went up by 77,606 bags in May 2020 compared to what was exported in April, an indicator that the cash crop trade continue thriving through the pandemic.

In May, Ugandans exported 437,579 bags, up from the 359,973 bags exported in April 2020. These figures are still below what was exported in March (477,561 bags) before the country fully instituted a lockdown to stem the spread of coronavirus.

According to the reporting by the Uganda Coffee Development Authority (UCDA), coffee exported in May fetched USD 42.48 million (157 billion Shillings) compared to USD 34 million (129 billion Shillings) in April. This is still lower than USD 46 million (172 billion Shillings) the country earned in March 2020.

UCDA, which oversees the coffee sector, said the increase in exports has been attributed to the increased production on account of the fruition of the newly planted coffee. The agency says exporters also “drew down on their stocks in the midst of the lockdown due to the COVID-19 pandemic.”

It notes that, as was the case in the past two months, exports were in May affected by logistical issues due to the country’s lockdown especially at Malaba border point where drivers had to wait for their coronavirus test results for several days before entering Kenya.

Also, the global price was lower in May at USD1.62 per kilogram (6,009 Shillings), 9 cents lower than USD1.71 (6,342 Shillings) per kilogram, the country earned in April 2020.

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