How Is Uganda's Coffee Production Changing Its Export Trade?

Uganda exported more than 6.13 million bags of coffee in the 2023/24 fiscal year, worth US$1.144 billion, according to the Uganda Coffee Development Authority. That is a rise of 6.33 percent in volume and 35.29 percent in value over the previous year, driven by higher international prices, the EU deforestation-free rules and tighter supply from Vietnam.

Agriculture remains the backbone of the economy, supporting about 80 percent of the population, and coffee is a leading export alongside cotton and tea. Ugandan coffee first entered China in 2003, and with the Forum on China-Africa Cooperation deepening agricultural ties, coffee development officials expect shipments to China to grow further.

Uganda, as an important coffee-producing country in Africa, recently delivered an impressive export report card. In the 2023/24 fiscal year, the country's total coffee exports exceeded 6.13 million bags, with export value reaching US$1.144 billion, up 6.33% and 35.29% year-on-year respectively. This growth benefited both from rising international coffee prices and from the EU's upcoming deforestation-free regulation and tight supply in Vietnam. At the same time, China-Uganda agricultural cooperation continues to deepen, and the Forum on China-Africa Cooperation is expected to open a broader Chinese market for Ugandan coffee. This article will review the latest data on Uganda's coffee exports, variety performance, and future prospects, and bring relevant recommendations from Front Street Coffee.

According to media reports, on September 3, the Party Secretary of China's Ministry of Agriculture and Rural Affairs met in Beijing with Uganda's Minister of Agriculture, Animal Industry and Fisheries. The Chinese side said it will continue to implement the South-South cooperation project well with Uganda to benefit more people. Uganda's Minister of Agriculture, Animal Industry and Fisheries also expressed hope that China will strengthen exchanges in agricultural scientific research and personnel training for Uganda, and push cooperation to achieve results.

This news will be beneficial to the development of Uganda's agriculture, animal industry, and fisheries. Agriculture, animal industry, and fisheries are the mainstay of Uganda's economy, with the agricultural population accounting for about 80% of the country's total population. Its main exports include coffee, cotton, and tea. Ugandan coffee entered China as early as 2003, and the country's coffee development authority is also accelerating coffee production, and with this Forum on China-Africa Cooperation, exports to China are expected to increase.

Recently, the Uganda Coffee Development Authority (UCDA) released its 2023/24 fiscal year report, which pointed out that Uganda achieved growth in both coffee export volume and export value. According to the report, as of the end of June 2024, Uganda's total coffee exports in the 2023/24 fiscal year reached 6.13 million bags, with export value reaching US$1.144 billion. Compared with the previous 2022/23 fiscal year's export volume of 5.8 million bags, this was an increase of 6.33%, and export value also increased by 35.29%.

The sharp increase in export value was mainly affected by international coffee prices. In January this year, Uganda's average coffee export price was US$2.96/kg. By June, the average coffee export price had risen to US$4.06/kg, an increase of 79.14% compared with the same period last year. By July this year, coffee export volume reached 821,593 bags, an increase of 26.15% compared with the same period last year, and it has continued to grow.

This situation benefited from the EU's earlier publication of the Deforestation Regulation (EUDR), because the regulation will take effect on December 30, 2024. To prevent a bean shortage in the first half of next year, EU traders increased imports and were even willing to pay higher prices to purchase.

In addition, coffee supply in Vietnam, the world's largest robusta producer, declined due to severe drought, and affected by the threat of the Red Sea crisis and rising shipping prices, the EU began turning to producing countries such as Brazil or Uganda.

Uganda's largest coffee export market is the EU, and robusta is Uganda's main export variety. Affected by this, in this fiscal year Uganda exported a total of 614,486 bags of robusta, with export value reaching US$149.95 million, an increase of 25.5% in export volume and 102.97% in export value compared with the same period last year.

But at the same time, arabica export volume decreased. In this fiscal year, arabica exports totaled 52,551 bags, with export value of US$12.415 million, down 29.51% in export volume and 25.9% in export value compared with the same period last year.

According to the Uganda Coffee Development Authority (UCDA), Ugandan coffee performed excellently, export volume grew substantially, and the income of Ugandan coffee farmers also increased significantly. This benefited from funds previously applied for from the government, which strengthened Uganda's agricultural output. In addition, the Ugandan government previously stated that it would continue to strengthen Uganda's coffee industry and hoped to raise output to 20 million bags, while the upcoming Forum on China-Africa Cooperation is expected to increase trade between the two sides, and Ugandan coffee can also strengthen exports to China.

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The above content is compiled by CoffeeHunters, a coffee news website.