Africa-Press – Uganda. At least three-thirds Uganda’s coffee is exported by just 10 companies, according to Uganda Coffee Development Authority (UCDA).
Data contained in the monthly UCDA Coffee Report indicates that Uganda has at least 61 coffee exporters, but the majority export under 1 percent of the country’s coffee.
Over the years, just 10 companies have dominated Uganda’s coffee exports, locking out new competition from participating in the trading of Uganda’s second-largest export commodity.
“The top 10 exporters hold a market share of 69.74 percent lower than 72 percent in the previous month,” the March Coffee Report reads in part, noting that out of the 61 exporters, 22 export Robusta only while 15 export Arabica.
The report further indicates that Kyagalanyi Coffee tops the list of top exporters with a market share of 10.21 percent, an increase from the 9.06 percent recorded in February.
Olam Uganda follows with a market share of 8.64 percent, which, however, was a decline from 11.53 percent in February, while Kawacom with a market share of 7.86 percent from 7.71 percent comes in third position.
Ibero, with a market share of 7.33 percent, and Touton Uganda at 7.18 percent, close off the list of top five coffee exporters. Touton increased its market share from 3.22 percent in February.
Other exporters in the top 10 include Louis Dreyfus, whose market share decreased to 6.81 percent from 8.34 percent, Export Trading Company (6.45 percent), Ideal Quality Commodities (5.69 percent) Ugacof (5.57 percent), and Besmark Coffee Company (4.01 percent).
The report also notes that during March, at least 60.53 percent of Uganda’s coffee was exported to only three countries, with Italy taking up the largest share of the commodity.
Italy has for years been the leading destination of Uganda’s coffee exports, taking up at least 38.08 percent of the commodity, which was an increase from 37.74 percent it took in February.
India increased its uptake to 12.29 percent from 11.11 percent, while Germany was the third destination of choice with a 10.5 percent intake from 9.08 percent in February.
Belgium’s uptake reduced to 2.92 percent from 4.31 percent, while Sudan, with an intake of 4.99 percent, was the only African country among the top destinations. However, the country’s intake reduced from 9.5 percent.
The report further indicates that Uganda’s coffee has 10 major destinations, which take up 89.27 percent of the exported commodity.
A report by the Ministry of Finance indicates that coffee is the second largest export earner after gold with a market share of about 13 percent.
In the 12 months ended February, data indicates that coffee earned Uganda a monthly average of $84.3m (Shs321b), which returned a cumulative income of $1b (Shs3.8 trillion).
The UCDA report indicates that in March, Uganda exported 33,328 60-kilogramme bags, or 10 percent of its coffee within Africa, which, however, was a reduction from the 60,948 bags recorded in February, with Sudan, Morocco, South Africa, Egypt, and Kenya being the biggest destination markets.
The report also indicates that 59.16 percent of Uganda’s coffee is bought by 10 companies including Olam International, which buys a share of 9.16 percent, Volcafe (7.53 percent) and Touton (7.37 percent), and Bernhard Rothfos (7.33 percent).
Others are Louis Dreyfus (6.81 percent), Sucafina (5.85 percent) Ecom Agro Industrialist (5.64 percent) Hamburg Coffee (3.97 percent), Eurocafe (2.96 percent).
For More News And Analysis About Uganda Follow Africa-Press
