Coffee market: Daily news updates: Global prices inspire Uganda coffee exports

Kampala, Uganda - Improvement in international prices, prompting players at all levels to let go of the stocks in their possession pushed Uganda's export quantities in March to level highs ever experienced in the last two coffee years.
The relatively high realised prices are said to be a response to market fundamentals of supply tightness, continued running down of stocks vis-a-vis increasing consumption.
Statistics from Uganda Coffee Development Authority (UCDA) show that coffee exports in March 2010, totaled 223,099 60-Kilo bags worth $ 34.10 million.
This represents a 1.6% and a 55.3 % bags increase in quantity and value respectively compared to the same month last year.
The weighted average export price stood at 255 cents per kilo, 16 cents above February 2011.
This is the sixth monthly report for the coffee year, which runs from Oct/Sept. 2010/11. Coffee exports in 6 months (Oct/Mar 2010/11) stood at 1.32 million bags comprising: 0.980 million bags of Robusta and 0.345 m bags of Arabica.
On a year-to-year basis, 12 months (April 2010 to March 2011, coffee exports stood at 2.54 million bags worth $ 303 million, representing an 11% drop in volume from 2.85 million bags; and a 13% rise in value from $ 267.3 million realised a year ago.
This comprised 686,765 bags of Arabica worth $123.54 million and 1.85 million bags of Robusta valued at $ 179.43 million.
On a cumulative basis, a total of 1.32 million bags of, Robusta - 0.980 million bags and Arabica - 0.345 million bags, valued at $ 176 million were shipped to various destinations.
The slight drop in Arabica quantity is largely attributed to leaf rust prevalent in Arabica areas.
Overall, coffee exports have been dropping in the last four months from $32 million in November 2010 to $27 million in February last month.
The only nearest Uganda reached the $30 million mark was in November 2010 when it exported 266, 726 60-kg bags valued at $32.1 million.
The fall was attributed to a shift in the weather pattern, characterised by long periods of drought that came at the decisive stage of bean filling and development in Robusta areas.
UCDA reports show that in producing countries, opening stocks of the coffee year 2010/11 were estimated at 13 million bags, 33% lower than in 2009/10 while inventories in importing countries were estimated around 18.3 million bags at the end of December 2010.
Farm-gate prices for Robusta Kiboko, according to the report, averaged Shs. 1,500 per kilo; Arabica parchment prices touched a Shs.11,000 per kilo mark.
The top 10 exporters, led by Kyagalanyi Coffee Ltd with 16%, held a market share of 89.7%, a further concentration compared to 84.2% registered in February.
The European Union (EU) remains Uganda's to coffee destination. Statistics show that coffee to the EU countries totalled 151,258 bags, which was 67.8% of total exports. Sudan followed with 51,450 bags, representing 23.1%, up from 35,350 bags representing 18.2% recorded in February.
Coffee exports in April 2011 are pegged at around 220,000 bags as harvesting is in force and the weather is favourable. Pipeline stocks as on March 31, 2011 at primary processor and exporter levels are also supportive.
Tight supply for Arabica coffee and low stock levels globally will continue to underpin international prices correspondingly maintaining high farm-gate prices in the internal market.
Meanwhile, harvesting of the minor crop has intensified in central and Eastern regions; and the main crop too in Western and Southwestern has picked momentum.
The quality is said to be good and reports from the field point at a good crop.
"The change in weather coupled with good agronomic practices has reduced the incidence of pests and diseases such as the Red blister and twig borer", the report said.
"Farmers are urged to adhere to what the extension workers advise them to do in the current scenario of short rains".