Uganda’s Coffee Exports Earn $1.14 Billion in 2023-24

Uganda’s coffee exports have reached unprecedented levels, marking a significant boost to the nation’s economy and offering a promising future for its farmers. The coffee industry has been a cornerstone of its agricultural sector for several years, and is now positioned as a key driver of the nation’s economic development.

In 2023-24 (Uganda’s financial year runs from July to June), coffee exports were 6.13 million bags valued at little over $1.14 billion and this was an increase of 6.33% in volume and 35.29% in value compared to 2022-23 when exports were 5.8 million bags valued at $846 million, the Uganda Coffee Development Authority (UCDA) said.

Due to effective regulation by UCDA, coffee quality has greatly improved and this has resulted in high prices and currently, coffee growers were earning the highest prices in 30 years. In 2023-24, UCDA generated revenue of $220 million and Uganda coffee is in high demand in global coffee markets for its quality.

With the current trajectory, the coffee roadmap target of 20 million 60 kg bags produced by 2030 is achievable, the UCDA said. The roadmap was signed by Uganda’s President Yoweri Kaguta Museveni in 2017, set a target for foreign exchange earnings of $1.5 billion annually from the $20 million bags.

More Exports in July

In July 2024 alone, the East African nation exported 821,593 60-kilogram bags of coffee, generating a revenue of $210.48 million. This impressive growth highlights Uganda’s growing prominence in the global coffee market and underscores the crucial impact on its economy and agricultural sector, UCDA said.

In its report, the UCDA said that Europe remained the dominant market for its 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,” the report noted.

This shift underscores Europe’s expanding preference for Ugandan coffee, celebrated for its distinctive flavours and superior quality.

Among the EU countries, Italy has reaffirmed its position as the leading importer, purchasing 40.68% of Uganda’s coffee exports in July 2024, translating to approximately 334,252 bags. “Italy’s continued dominance as the top destination for our coffee underscores the exceptional quality and global appeal of our beans,” the report said.

Germany followed as the second-largest importer, receiving 15.75% of the coffee exports, or about 129,387 bags, further emphasising the strong demand from European markets.

Several factors have contributed to the dramatic rise in coffee export values, including favourable global market conditions and improved coffee quality.

Exports Surge Due to High Prices

According to the 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 implications 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. With continued investment in quality improvement and market expansion, Uganda is set to solidify its standing as a leading coffee producer on the global stage.