Coffee Annual Report

An Expert's View about Beverages in Uganda

Last updated: 11 Jul 2011

FAS/Nairobi projects Uganda coffee production to increase to 3.2 million 60-kilogram bags in Marketing Year (MY) 2012 (October 2011 to September 2012) in line with the general trend of increased yields resulting from the coffee production campaign now in its final year.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 6/10/2011 GAIN Report Number: Uganda Coffee Annual Uganda Coffee Annual Report Approved By: Souleymane Diaby Prepared By: Souleymane Diaby and Carol N. Kamau Report Highlights: FAS/Nairobi projects Uganda coffee production to increase to 3.2 million 60-kilogram bags in Marketing Year (MY) 2012 (October 2011 to September 2012) in line with the general trend of increased yields resulting from the coffee production campaign now in its final year. However, a number of challenges that include unpredictable weather, pests and diseases, and declining soil fertility may limit the industry?s ability to achieve the government of Uganda?s coffee production target of 4.5 million 60-kilogram bags by 2015. Commodities: Coffee, Green Production: MY 2012: According to the Uganda Coffee Development Authority (UCDA), production is expected to increase slightly because farmers have renewed interest in coffee farming due to strong coffee prices and the re-invigoration of the industry resulting from the coffee production campaign. As a result of both, agronomic practices have improved and yields have increased. Notably, Arabica coffee production continues to increase at a higher rate than Robusta coffee due to premium prices for Arabica in the world market. MY 2011: Production recovered slightly from the disease-affected crops of the previous year. MY 2010: Robusta production dropped (12.6 %) in the main producing areas due to prolonged drought that negatively affected coffee bean development. In addition, coffee wilt disease attacked Robusta coffee while coffee leaf rust disease attacked the Arabica variety. The government of Uganda has set a coffee production target of 4.5 million 60-kilogram bags by 2015. There are a number of challenges that may limit Uganda?s ability to achieve the target including unpredictable weather, pests and diseases, and declining soil fertility. In addition, coffee tree replacement has not occurred at projected levels. The graph below summarizes Robusta and Arabica coffee production over the years. Data Sources: 1961-2009 ?USDA 2010 ? UCDA 2011, 2012 ? FAS Nairobi Estimates Consumption: Local coffee consumption remains low but there is potential for growth evidenced by new coffee retail outlets opening in urban centers, and a coffee drinking lifestyle among the young urbanites. Trade: Of the 2.67 million 60 kilo bags of coffee exported in MY2010, Robusta coffee constituted 73 percent; Arabica coffee comprised the remainder. European Union (EU) countries were the main destinations of Ugandan coffee, accounting for 73 percent of the total exports followed by Sudan at 19 percent. Coffee Exports by Destination in 2009/2010 Marketing Year in 60 kilogram bags Coffee Year 2009/2010 Destination Robusta Arabica Total European Union Member Countries 1,319,498 619,737 1,939,235 Sudan 494,277 5,478 499,755 Switzerland 83,509 15,117 98,626 United States 23,820 55,665 79,485 Israel 17,576 5,074 22,650 Singapore 5,310 300 5,610 Canada 520 4,930 5,450 Russia 5,186 - 5,186 Morocco 3,974 640 4,614 Australia 1,260 3,220 4,480 Japan 1,800 1,090 2,890 Egypt 670 - 670 Kenya - 320 320 Grand Total 1,957,400 711,571 2,668,971 Data Source: UCDA Stocks: Coffee processors, wholesalers, and retailers hold most of the stocks. Policy: In its final year of operation, the Coffee Production Campaign, which began in 2006, has accomplished the following: Uganda?s Coffee Research Institute has developed seven Robusta coffee varieties resistant to coffee wilt disease. The new varieties are being multiplied for onward distribution to farmers. The government of Uganda has improved extension services (pruning, stumping, mulching, etc.) to coffee farmers. Coffee farmers have organized themselves into 125 groups comprised of at least 50 farmers to pool their coffee together for marketing purposes, and to get easy access to agro-inputs through the Uganda National Agro-inputs Dealers Association. As a result of a combination of all the above factors, yields per tree have improved from 0.5 kilos to 1.2 kilos. In addition, UCDA with the help of the U.S. Coffee Quality Institute (CQI) can now sell its Arabica coffee into specialty markets after the establishment of the ?Q? rating system, a standardized rating of Arabica coffee developed by CQI. The system was introduced in Uganda in 2009. In addition, Uganda?s Robusta coffee has started appearing in Specialty Markets after CQI?s ?R? grading. The coffee was exhibited at the East African Fine Coffees Association Conference in Arusha, Tanzania in February, 2011 and at the Specialty Coffee Association of America (SCAA) Conference in the United States in April, 2011. Production, Supply and Demand Data Statistics: Coffee, Green U 2009/2010 2010/2011 2011/2012 ganda Market Year Begin: Oct Market Year Begin: Oct Market Year Begin: Oct 2009 2010 2011 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 0 248 0 260 260 Area Harvested 0 0 0 0 0 Bearing Trees 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 Total Tree 0 0 0 0 0 Population Beginning Stocks 43 43 43 111 146 Arabica Production 400 817 400 900 960 Robusta Production 2,400 2,077 2,800 2,100 2,240 Other Production 0 0 0 0 0 Total Production 2,800 2,894 3,200 3,000 3,200 Bean Imports 0 0 0 0 0 Roast & Ground 0 0 0 0 0 Imports Soluble Imports 0 0 0 0 0 Total Imports 0 0 0 0 0 Total Supply 2,843 2,937 3,243 3,111 3,346 Bean Exports 2,350 2,671 2,800 2,800 3,000 Rst-Grnd Exp. 0 0 0 0 0 Soluble Exports 0 0 0 0 0 Total Exports 2,350 2,671 2,800 2,800 3,000 Rst,Ground Dom. 450 145 425 150 155 Consum Soluble Dom. Cons. 0 10 0 15 20 Domestic Use 450 155 425 165 175 Ending Stocks 43 111 18 146 171 Total Distribution 2,843 2,937 3,243 3,111 3,346 1000 HA, MILLION TREES, 1000 60 KG BAGS
Posted: 10 July 2011, last updated 11 July 2011