December coffee export value tops UGX424 billion
The value of December coffee exports rose by 88% compared to the same period in 2023. FILE PHOTO
Uganda continues to cement its position as a key player in the global coffee market, earning UGX424 billion (US$ 115.03 million) from coffee exports in December 2024.
According to the Monthly Coffee Report – December 2024 released by the Ministry of Agriculture, Animal Industry, and Fisheries, the country exported 413,079 bags during the month, reflecting a 2.77% increase in quantity and a remarkable 74.26% rise in value compared to the same period in 2023.
Robusta coffee dominated with 365,853 bags valued at $99.91 million, an 8.36% rise in quantity and 88.7% increase in value compared to December 2023. Meanwhile, Arabica exports totalled 47,226 bags worth US$ 15.12 million, representing a 26.57% decline in quantity but a 15.54% increase in value.
- The report attributed the surge in export value to a rise in global coffee prices driven by dry conditions in Brazil and Vietnam, the largest producers of Arabica and Robusta coffee, respectively. These adverse weather conditions are expected to impact coffee yields, creating a potential supply deficit in the 2024/25 crop season.
For the calendar year 2024, Uganda’s coffee exports totalled 6.37 million bags worth US$ 1.55 billion (UGX 5.71 trillion), up from 6.12 million bags worth US$ 965.27 million in 2023. This represents a 4.12% increase in quantity and a staggering 60.61% rise in value.
"Coffee exports in 2024 have performed exceptionally well, with Robusta leading the growth in both quantity and value," the report noted. However, Arabica exports faced setbacks due to the biannual off-year cycle and poor flowering conditions in the Mt. Elgon region.
- The report also highlighted the significant role of exporters, with 67% of the total volume in December handled by just ten companies out of 60 active exporters.
Top among the exporters included Kyagalanyi Coffee Limited, a company that has consistently contributed to the country’s coffee export success. Kyagalanyi Coffee Limited, one of Uganda’s oldest and largest coffee exporters, plays a key role in processing and exporting premium-quality Arabica and Robusta coffee. In December 2024, the company reported strong export volumes, leveraging its expertise in sustainable sourcing and farmer partnerships.
Notably, the highest price per kilogram, US$6.63, was fetched by Mt. Elgon A+, reflecting the premium quality of Uganda’s Arabica coffee from this region.
Despite challenges in Arabica production, Uganda’s overall performance was buoyed by strong demand and favourable global market conditions. The robust growth underscores the importance of coffee to Uganda’s economy as a major foreign exchange earner and a key driver of rural livelihoods.
As the country moves into 2025, stakeholders in the coffee value chain are optimistic about sustaining this growth. Continued efforts to improve quality, expand production, and tap into high-value markets will be crucial in capitalizing on the growing global demand for coffee.
- “With Uganda’s coffee exports achieving such significant milestones, the sector remains pivotal in shaping the country’s economic trajectory, driving growth, and ensuring sustainable development,” the report adds.