Uganda: Coffee Exports Decline
Coffee exports have continued to take a downward trend as the coffee year comes to an end, according to the monthly released by the Uganda Coffee Development Authority.
In September, the last month of the coffee year, coffee exports further dropped by 22.2 per cent, according to the report.
The report shows that coffee exports dropped from about 230,800 bags in August to about 179,400 bags in September. Similarly, the value of exports also dropped from $23.9 million in August to $18.3 million.
In August, coffee exports dropped by 14 per cent from more than 268,800 bags in July to about 230,850 bags, with the resultant fall in the value from $28.3 million in July to $23.9 million.
As projected in the previous months, the declining trend was expected to continue through September. The months of August and September mark the end and start of the main seasons where farmers do not expect much of the crop. This is the last monthly report for the coffee year, which runs from October - September.
Compared to the same period last year, the total shipments went up to about 179,400 bags worth $18.4 million from about 158,550 bags worth $14 recorded in 2006.
This represents an increase of 13.2 per cent and 31.3 per cent in volume and value respectively.
Additionally, foreign exchange earnings from coffee totalled $257 million in the twelve months, up from $170 million in the in the previous coffee year, with Kyagalanyi Coffee Ltd, Ugacof and Kawacom continuing to be the leading coffee exporters.
The European Union is still commanding the biggest market share of our coffee exports followed by Sudan, the US and Japan.
The increase in unit export price from 166 cents in June to 176 cents in July per kilo, favorable weather and the government's strategic intervention plan to counter the Coffee Wilt Disease have been a big boost the coffee sector.
Although harvesting of the new crop for the next coffee year had started early in the central and eastern regions, the ongoing intermittent rains are reported to have delayed the drying process posing a threat to exports for the first month of the coffee year.
Globally, coffee production is provisionally estimated at 121.19 million bags but it is expected to decline to 114 million bags in the 2007/08 coffee year.