Coffee exports from Uganda have experienced a 13 per cent drop in volume.
According to the monthly report from the Uganda Coffee Development Authority for the month of December, 237,747 bags were shipped out of the country compared to the 272,755 bags that were shipped in December 2009.
This indicated an 11 per cent drop and a 17 per cent below an initial forecast of 285,000 bags, the UCDA report indicates.
“This drop in volume is largely blamed on unfavourable weather conditions and outbreaks of pests like mealy bugs, twig borers; and urbanisation in some key areas,” the report reads in part.
However, the value went up reflecting an increase in profits for farmers.
From the coffee shipped, the country earned $28.6 million (USh67.2 billion) indicating a 12 per cent increase from $25.6 million (USh60.1 billion) value earned in December 2009.
The report said the performance of Arabica has continued to show a positive trend from 121,805 bags in October/December 2008 to 164,659 bags in 2009 and 187,044 bags in 2010.
“The continued improvement in Arabica is attributed to the remunerative farm-gate prices that have prompted farmers to front load whatever was in their possession,” the report said.
Conversely, the good prices notwithstanding, Robusta continues to exhibit a downward trend, which is largely blamed on unfavourable weather conditions, outbreak of pests and urbanisation in some key coffee growing areas.
The weighted average export price stood at 201 cents per kilogramme just like in November.
Farm-gate prices for Robusta Kiboko averaged Shs1, 800 per kilo and FAQ was at Shs3,600 and Arabica parchment at Shs5,900 per kilo.
The weighted average price remained at $2.01 per kilogramme same as in November 2010.
Arabica prices went up by 12.5 per cent from $3.2 per kilogramme in November to $3.6.
The highest realised price recorded among the Arabica grades was $4.61 per kilogramme for Mt. Elgon (Bugisu) followed by Bugisu A and Organic Wugar, which stood at $4.5 per kilogramme.
Robusta prices averaged $1.64 per kilogramme up from $1.51 recorded in the previous month.
Washed Robusta fetched the highest unit price of $1.96 kilogrammes followed by Sc 17 at$ 1.80 per kilogramme.
Exporters
The top 10 exporters, led by Ugacof Ltd, held a market share of around 80 per cent.
This was followed by Savannah Commodities, Olam (U) Ltd, Kawacom (U) Ltd, Kyagalanyi Coffee Ltd, Kampala Domestic Store, Great Lakes Ltd, Ibero (U) Ltd, LD Commodities and Wabulungu Multi-Purpose followed respectively.
Following the government’s effort to advocate for value addition on all exports, Good African Coffee-roasting company in December saw their second consignment of roast and ground coffee shipped.
The company exported a total of 18,000 kilogrammes (18 tonnes) of roast and ground coffee to the US; this realised $89,350 (Sh209 million).
Coffee prices in the internal market remained firm but oscillated in the following ranges: Shs1,700 – Shs2,000 per kilo of Kiboko.
For a kilogramme of FAQ, exporters parted with Shs3,600 - Shs3,900 per kilogramme while conventional coffee went for Shs5,500 – Shs6,000 per kilogramme.
Farmers with good quality coffee in reasonable quantities realised better prices.
Sustainable coffees continued to attract the best price, touching Shs6,600 per kilogramme of Arabica parchment in the Mt. Elgon area.
The report said: “The prevailing prices are supportive to the coffee production campaign, which envisages Uganda’s exportable coffee to hit 270,000 tonnes (4.5 million bags) by the year 2015”.
The campaign centres research, farmer organisation, extension and access to agro-inputs and credit to enhance productivity and household incomes.
Uganda’s coffee exports to EU countries totalled 158,043 bags, which were 66.5 per cent of total exports.
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