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Optimism as July coffee exports top 800,000 bags

Peter 19th Aug, 2024 Agriculture Pedson Mumbere
Optimism as July coffee exports top 800,000 bags

The UCDA is optimistic that the record nine million bags target for 2024 would be achieved. FILE PHOTO


Uganda's coffee exports have surged to new heights, signaling a robust boost to the nation’s economy and a promising future for farmers.

According to the Uganda Coffee Development Authority (UCDA) report for July 2024, Uganda exported more than 821,500 bags of coffee, bringing in US$ 210.48 million, indicating an increase of 26% in volume and 98% rise in value compared to the same period in 2023.

UCDA further shows that Europe remains the dominant market for Ugandan coffee, accounting for 72% of total exports, up from 69% in June 2024.

  • “Europe’s increasing share of Uganda’s coffee exports reflects a growing appreciation for the high-quality beans produced by Ugandan farmers,” said Emanuel Iyamulyemye, the UCDA Executive Director. This shift highlights Europe's expanding preference for Ugandan coffee, which is celebrated for its distinctive flavors and superior quality.

Italy continues to reaffirm its position as the leading importer of Ugandan coffee, taking in almost 41% of Uganda’s coffee exports in July 2024, which translates to to more than 334,000 bags. Italy’s continued dominance as the top destination for our coffee underscores the exceptional quality and global appeal of our beans, Iyamulyemye added.

Germany follows as the second-largest importer, receiving almost 16% of the coffee exports (about 129,000 bags).

  • The UCDA attributed the dramatic rise in coffee export values to several factors, including favorable global market conditions, improved coffee quality and supply side challenges in South America.

According to the UCDA report, the value of coffee exports surged due to high global coffee prices driven by adverse weather conditions in Brazil and Vietnam. This has led to anticipated supply deficits for the 2024/25 period. These conditions have created a lucrative environment for Uganda’s coffee, enhancing its competitiveness on the world stage.

The economic ramifications for Uganda are profound. The substantial revenue from coffee exports bolsters the nation’s trade balance and supports foreign exchange reserves, contributing to economic stability.

Additionally, this revenue stimulates growth in related sectors such as transportation, processing, and marketing, further amplifying the economic impact.

For Ugandan farmers, the benefits are equally significant. Higher coffee prices and increased export volumes mean better incomes, enabling them to invest in improved farming practices and sustainable agriculture.

  • “The surge in coffee exports not only improves our livelihoods but also allows us to enhance the quality and yield of our coffee,” a local farmer told this publication. This positive feedback loop strengthens the coffee industry and contributes to the overall economic well-being of Uganda.
  • The rise in Uganda’s coffee exports represents a vibrant sector poised for continued growth. With Europe’s expanding market share and the substantial increase in export values, Uganda is solidifying its role as a key player in the global coffee arena.

This success is not only good for the national economy but also a lifeline for countless Ugandan farmers, underscoring the critical importance of the coffee industry to the country’s economic prosperity.

The coffee exports performance trend in the first half of the year points to the possibility that the country would hit its export target for the year.

For 2024, the UCDA did set a target to export approximately nine million 60-kilogram bags of coffee. This ambitious goal reflects Uganda's effort to strengthen its position in the global coffee market and improve its economic standing through increased coffee production and export.

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