January 2016 - Uganda Coffee Development Authority

UCDA MONTHLY REPORT FOR JANUARY 2016
Highlights:
 This is the fourth monthly report for the coffee year 2015/16. A total of 334,393 60-kilo
bags of coffee valued at US $32.10 million were exported in January 2016 at an average
weighted price of US $1.60/kilo, 3 cents lower than US$ 1.63/kilo last month.
 Cumulatively coffee exports from October-January increased by 10% and 40% for Robusta
and Arabica respectively compared to the same period last year. However, the value of
coffee exports decreased by 10% for Robusta and 16% for Arabica
 Farm-gate prices for Robusta Kiboko averaged Shs. 2,100/= per kilo; FAQ Shs.4,000 per
kilo, Arabica parchment Shs 5,000 per kilo and Drugar Sh. 4,250/kilo.
 Coffee exports for 12 months (February 2015 to January 2016) totalled 3.62million bags
worth $395 million. This represented 8% increase in volume of exports compared to the
same period last year.
 In the month of January no seedlings were planted since it is an off-season. This month,
emphasis was on provision of coffee seed to nursery operators for the second rains
planting where 19 MT of Robusta and Arabica seed were distributed to nursery operators
bringing total seed distributed to-date to 49 MT
 Tissue culture seedlings generation for 500,000 seedlings is progressing at FICA Laboratory
in Kyenjojo District, and the entire lot is due for weaning and hardening from February
2016
 Slightly over 79% of the total export volume was exported by 10 exporters, out of 31 who
performed during the month.
1.0 COFFEE EXPORTS
Coffee exports in January 2016 amounted to 334,393 60-kilo bags valued at US $ 32.10
million composed of 256,996 bags ($ 22.87 million) of Robusta and 77,397 bags ($
9.23million) of Arabica (see Table 1).
Table1: Comparative Coffee Export Performance – 60-kilo bags; US$
Coffee Year
Grand Total
2015/16
Qty
2014/15
%-age Change
Value $
Qty
Value $
1,148,941
113,602,727
984,342
129,594,455
16.72
Qty
Value $
-12.34

Robusta
825,846
76,242,278
753,026
85,041,588
9.67
-10.35

Arabica
323,095
37,360,450
231,316
44,552,868
39.68
-16.14
334,393
32,101,652
7.82
-19.12
5.17
-15.40
17.66
-27.06
52.32
12.89
48.95
17.71
64.72
2.04
January

Robusta
256,996
22,869,589

Arabica
77,397
9,232,063
342,429
33,584,753
310,149
244,366
65,783
224,803

Robusta
263,214
24,234,767
176,711

Arabica
79,215
9,349,986
48,092
39,691,234
27,033,929
12,657,306
29,750,803
20,587,890
9,162,913
248,921
25,048,473
219,948
29,494,827
13.17
-15.23
14,836,751
159,447
17,998,556
-1.31
-17.71
December
November

Robusta
157,358

Arabica
91,563
10,211,723
60,501
11,496,271
51.34
-11.35
223,198
22,867,849
229,442
30,657,591
-2.43
-25.20
October

Robusta
148,278
14,301,171
172,502
19,421,213
-13.66
-26.03

Arabica
74,920
8,566,678
56,940
11,236,378
31.58
-23.76
1
UCDA Monthly Report, January 2016
Cumulatively coffee exports from October-January increased by 10% and 40% for
Robusta and Arabica respectively compared to the same period last year. However,
the value of coffee exports decreased by 10% for Robusta and 16% for Arabica.
Just like the previous month, both Robusta and Arabica coffee exports increased by
5.17% and 17.66% compared to the same month the previous year. On the contrary, in
terms of value both types reduced by 15.4% and 27.06% respectively compared to the
same month the previous year.
On a year-on-year basis, coffee exports for 12 months (February 2015 to January 2016)
totalled 3.62 million bags worth $395 million comprising Robusta 2.80 million bags and
Arabica 0.82 million bags. Compared to the same period last year, the volume of
coffee exports increased by 8% while the value decreased by 4%.
Charts 1 and 2 give the cumulative coffee export performance by coffee type in both
quantity and value in 2 coffee years during the first four months of this year 2015/16.
Chart 1 shows an increase in both Robusta and Arabica exports over last year. Chart 2
reflects a reduction in value for the 2 coffee types in CY 2015/16 compared to the
previous year
2
UCDA Monthly Report, January 2016
1.1 EXPORTS BY TYPE AND GRADE
Table 2 shows coffee exports by type, grade and average realised price for each
coffee grade during the month of January 2016.The weighted average export price
was US$ 1.60 per kilo, 3 cents lower than US $ 1.63 realized in December 2015.
Robusta exports accounted for 76.9% of total exports compared 77% the previous
month. The weighted average Robusta price was US$ 1.48 per kilo, US cents 5 lower
than in December 2015. Organic Robusta fetched the highest price for Robusta at
US$ 1.90 per kilo 2 cents lower than last month, followed by Washed Robusta which
fetched US$ 1.79 per kilo. These presented a premium of 28 and 17 cents
respectively over conventional Screen 18 sold at an average of US$ 1.62 per kilo.
Arabica fetched weighted average price of US$ 1.99 per kilo, US Cents 2 higher than
in December 2015. The highest price was for Sipi Falls sold at US $ 4.14 per kilo,
166 cents higher than conventional Bugisu AA. This was followed by Washed Arabica
sold at US$ 3.56 per kilo, 108 cents above Bugisu AA and then followed by Mt. Elgon
A+ sold at US $ 2.57 per kilo, 9 cents above conventional Bugisu AA. A 47 cents
premium between Organic Drugar and conventional Drugar was observed. Drugar
was at US $ 1.66 per kilo.
Table 2: Coffee Exports by Type, Grade & Unit Price in January 2016 in 60kilobags; US $, US $/kg
Coffee type/ Grade
TOTAL
ROBUSTA
WASHED ROBUSTA
ORGANIC ROBUSTA
SCREEN 18
SCREEN 17
SCREEN 15
SCREEN 14
SCREEN 12
BHP 1199
OTHER ROBUSTA
3
Quantity
60-Kilo Bags
334,393
256,996
640
710
27,838
21,114
137,578
654
47,072
9,844
11,546
%-age
Quantity
0.25
0.28
10.83
8.22
53.53
0.25
18.32
3.83
4.49
Value in
US $
32,101,652
22,869,589
68,572
81,125
2,703,124
1,960,341
12,611,077
56,231
3,959,925
634,784
794,410
%-age
Value
100.00
0.30
0.35
11.82
8.57
55.14
0.25
17.32
2.78
3.47
Unit Price
$/Kilo
1.60
1.48
1.79
1.90
1.62
1.55
1.53
1.43
1.40
1.07
1.15
UCDA Monthly Report, January 2016
ARABICA
SIPI FALLS
MT. ELGON A+
MT ELGON A
ORGANIC BUGISU
WASHED ARABICA
ORGANIC OKORO
ORGANIC DRUGAR
BUGISU A+
BUGISU AA
BUGISU PB
BUGISU AB
WUGAR
DRUGAR
OTHER ARABICA
77,397
320
4,900
670
3,620
1,280
1,800
3,100
1,800
9,886
1,240
3,360
5,600
35,331
4,480
0.41
6.33
0.87
4.68
1.65
2.33
4.02
2.33
12.73
1.60
4.34
7.24
45.65
5.79
9,232,063
79,577
754,809
93,255
534,660
273,356
247,621
394,037
259,526
1,473,493
171,573
409,003
759,522
3,513,545
268,086
100.00
0.86
8.18
1.01
5.79
2.96
2.68
4.27
2.81
15.96
1.86
4.43
8.23
38.06
2.90
1.99
4.14
2.57
2.32
2.46
3.56
2.29
2.11
2.40
2.48
2.31
2.03
2.26
1.66
1.00
1.2 INDIVIDUAL EXPORTER PERFORMANCE
Table 3 illustrates the performance of the individual coffee exporting companies in
the month of January 2016 in terms of quantity and market share. Ugacof (U) Ltd
maintained its lead with a market share of 17.15% compared to 14.41% the previous
month, followed by Kyagalanyi Coffee Ltd-15.59% (11.65%); Ideal Commodities10.02% (11.31%); Olam (U) Ltd- 8.17% (9.11%);Kawacom (U) Ltd-5.70%(4.28%); Ibero
(U) Ltd- 5.13% (7.92%); followed by Commodity Solutions-4.56% (1.72%); and
Kampala Domestic Store-4.39%(7.51%).The first 10 exporters held a market share of
79.2% higher than 71.31% the previous month reflecting increasing concentration at
this level compared to the previous month. Changes in relative positions of
exporters indicate competition among the actors. The figures in brackets represent
percentage market share held in December 2015.
4
UCDA Monthly Report, January 2016
Table 3: Export Performance by Individual Companies in January 2016
EXPORTING COMPANY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
GRAND TOTAL
Ugacof (U) Ltd
Kyagalanyi Coffee Ltd
Ideal Commodities (U) Ltd
Olam (U) Ltd
Kawacom (U) Ltd
Ibero (U) Ltd
Commodity Solutions
Kampala Domestic Store
Export Trading Company Ltd
Ishaka Commodities Ltd
Besmark Coffee Ltd
Savannah Commodities
Great Lakes Coffee Ltd
Coffee World
Risala (U) Ltd
Ankole Coffee Processors
Nakana Coffee Factory
Sena Indo (U) Ltd
LD Commodities
Kibinge Coffee Market Ltd
Bakhsons Trading Co. Ltd
Ankole Coffee Producers
Bakwanye Trading Co. Ltd
Karaz Coffee Factory
Banyankole Kweterana Coop
Gumutindo Coffee Cooperative
Bulamu Coffee Buyers Ltd
Kaweri Coffee Plantation
Mbale Importers and Exporters Ltd
Bukonzo Joint Coop Union
NUCAFE Ltd
POSITION HELD IN
DECEMBER
1
2
3
4
8
5
14
6
7
9
13
10
11
12
22
17
15
19
16
25
23
18
21
31
32
24
30
27
QUANTITY
(Bags)
334, 393
57,357
52,116
33,500
27,307
19,060
17,170
15,242
14,674
14,302
14,030
13,498
10,364
9,720
6,006
4,400
4,240
3,824
2,325
2,322
2,240
2,100
1,962
1,294
1,050
1,034
960
660
640
356
320
320
PERCENTAGE MARKET
SHARE
Individual
Cumulative
100.00
17.15
17.15
15.59
32.74
10.02
42.76
8.17
50.92
5.70
56.62
5.13
61.76
4.56
66.31
4.39
70.70
4.28
74.98
4.20
79.18
4.04
83.21
3.10
86.31
2.91
89.22
1.80
91.01
1.32
92.33
1.27
93.60
1.14
94.74
0.70
95.44
0.69
96.13
0.67
96.80
0.63
97.43
0.59
98.02
0.39
98.40
0.31
98.72
0.31
99.03
0.29
99.31
0.20
99.51
0.19
99.70
0.11
99.81
0.10
99.90
0.10
100.00
2.0 LOCAL SITUATION
During the month, farm gate prices ranged from Sh. 1,800-2,300 per kilo of Kiboko
(Robusta dry cherries); Shs. 3,800-4,400/= for FAQ; Sh. 5,700-6,200/= for Arabica
parchment; and Sh. 4,500-4,800/= per kilo for Drugar from Kasese. The averages were:
Sh. 2,000 per kilo for Kiboko coffee; Sh. 4,100 for Robusta FAQ; Sh. 5,250 for Arabica
parchment and Sh. 4,650/= for Drugar.
3.0 GLOBAL SITUATION
Global coffee exports for December 2015 amounted to 9.3 million bags, a 1.3%
increase from the same month the previous year. The global quarterly exports are
26.9 million bags, 2.6% higher than the same quarter last year.
5
UCDA Monthly Report, January 2016
The world total production for coffee year 2014/15 was estimated at 143.25 million
bags down 2.3% compared to the previous year. Robusta production was estimated at
58.25 million bags, 2.3% lower than the previous year.
Global consumption for 2014 was revised upwards again to 150.28 million bags on
account of increased domestic consumption in Asia.
The ICO monthly average composite indicator price was US 111.89 cents/lb down from
US cents 144.63 in December 2015.
4.0 COFFEE EXPORTS BY DESTINATION
Table 4 shows coffee exports by destination during the month of January 2016. Exports
to EU countries amounted to 231,334 bags higher than 21,216 bags the previous month
accounting for 69.18% of total exports higher than 67.57% last month. This was
followed by Sudan with 61,444 bags (18.37%) compared to 83,014 bags (24%) exported
last month; USA with 11,244 bags (3.36%) compared to 10,210 bags (2.98%) exported
last month and South Korea 7,709 bags (2.31%) compared to 6,377 bags(1.86%). Coffee
exports to Africa amounted to 68,196 bags, a market share of 20% valued at US $ 6.14
million. The figures in brackets represent market share.
Table 4: Main Destinations of Uganda Coffee in January 2016.
DESTINATION
POSITION HELD
IN DECEMBER
QUANTITY (60KG BAGS)
%AGE MARKET SHARE
Individual
Grand Total
Cumulative
334,393
100
1 EU
1
231,334
69.18
69.18
2 Sudan
2
61,444
18.37
87.56
3 USA
3
11,244
3.36
90.92
4 South Korea
6
7,709
2.31
93.22
5 Morocco
5
3,872
1.16
94.38
3,490
1.04
95.42
10
2,560
0.77
96.19
8 Mexico
9
1,920
0.57
96.76
9 Russia
7
1,920
0.57
97.34
10 India
4
1,900
0.57
97.91
11 Switzerland
8
1,820
0.54
98.45
5,180
1.55
100
6 New Zealand
7 South Africa
-
12 Others
5.0 BUYERS OF UGANDA COFFEE
The buyers of Uganda coffee in January 2016 are shown in table 5. The top 10
buyers held a market share of 62.25% of total exports lower than 64.57% in
December, 2015. Just like the previous month, Sucafina led with a market share of
16.29% compared to 13.25% the previous month followed by Altasheel –7.94%
(5.76%); Olam International -6.12% (4.73%); Ecom Agro Industrial- 5.6% (4.10%). The
changes in relative positions of the buyers compared to the previous month reflect
6
UCDA Monthly Report, January 2016
competition for Uganda coffee among different buyers. Note: The figures in brackets
represent percentage performance in the previous month – December 2015.
TABLE 5:
Buyers of Uganda Coffee in January 2016
BUYERS
Position held
in December
GRAND TOTAL
QTY 60-Kilo Bags
%-Age Market Share
Individual
334,393
100.00
Cumulative
1
Sucafina
1
54,477
16.29
16.29
2
Altasheel
3
25,200
7.54
23.83
3
4
5
6
7
8
Olam International
Ecom Agro Industrial
Strauss Commodities
Bernhard Rothfos
Cofftea
ETG Commodities
6
8
12
2
9
-
20,466
18,740
18,483
17,170
14,000
13,942
6.12
5.60
5.53
5.13
4.19
4.17
29.95
35.55
41.08
46.21
50.40
54.57
9
Socadec
7
13,285
3.97
58.54
10
11
Coex Coffee
Abaco International
19
4
12,402
11,900
3.71
3.56
62.25
65.81
12
13
Icona Café
Bercher Consulting
10
21
11,714
10,712
3.50
3.20
69.31
72.52
14
15
Volcafe
Elmathahib
11
13
9,600
8,750
2.87
2.62
75.39
78.00
16
17
Aldwami
Namyang D
5
15
7,700
6,809
2.30
2.04
80.31
82.34
18
19
Hamburg Coffee
Falcon Coffee
14
17
6,062
5,440
1.81
1.63
84.16
85.78
20
21
.
22.
23
Luigi Lavazza
Abu - Asma
18
26
4,800
4,400
1.44
1.32
87.22
88.53
Gollucke
Supremo
23
-
3,150
3,100
0.94
0.93
89.48
90.40
24
25
32 Cup
Tropicore
28
2,600
2,014
0.78
0.60
91.18
91.78
26
27
Louis Dreyfus
Outspan
16
22
1,990
1,920
0.60
0.57
92.38
92.95
28
Intergran
-
1,690
0.51
93.46
21,877
6.54
100.00
Others
7
UCDA Monthly Report, January 2016
6.0 COFFEE DEVELOPMENT AND PROMOTIONAL ACTIVITIES
6.1
COFFEE PRODUCTION ACTIVITIES
6.1.1 The Weather Situation
Central Region


The weather was generally hot and dry during the first two weeks of the
month. However, during the last two weeks of the month, several down pours
were received. This enabled the plants/trees that had suffered from water
stress previously to recover. The rains also triggered off flowering of the coffee
trees in most parts of the Region.
Farmers were advised to construct water harvesting trenches so that the coffee
trees could maximally benefit from these short unpredictable rains.
Western Region

Kyenjojo and Rwenzori sub regions experienced a dry spell with some coffee
showing signs of drying in certain parts that are close to the cattle corridor
especially in Kyegegwa. In Kabarole and the highland of Kasese the
mountainous areas are still receiving some moderate rains except the low lands
that are dry.

Mityana and Hoima sub regions are generally dry with Hoima being the most
affected and the district may experience some seedlings mortality.
Northern Region

The month was marked with dry and hot weather in Mid North. However,
during the second to third week some heavy rains were encountered across the
districts of Nebbi and Zombo , only 3 rain days but with high intensity and
fairly evenly distributed except for some heavy storms and hailstones reported
around Warr sub county that destroyed one nursery. The rains triggered
massive flowering of coffee in West Nile region.
Eastern Region
8

The month was characterized by cloudy weather conditions and light rains
evenly distributed throughout a majority of the districts in the region.
Postharvest handling operations were not greatly affected due to the receding
levels of coffee marketing as the harvest season is winding-up.

Most parts of Busoga received good rains throughout the month which has
initiated flowering and have helped the establishment of the recently planted
coffee.

The un -expected rains received in this month could be a result of weather
variations, but on a good note have resulted in heavy flowering of coffee in
most coffee gardens and more so in those farms where management is good,
and pin-head formation ,development which will result in better fly crop.
UCDA Monthly Report, January 2016
South Western Region

The weather was generally dry across the region with occasional unevenly
distributed showers that has helped newly planted trees establish well.
6.1. 2:
Generation of Coffee Planting Material
 No coffee Wilt Disease Resistant seedlings distribution done during the month.
 Tissue culture seedlings generation for 500,000 seedlings progressing at FICA
Laboratory in Kyenjojo District, and due for weaning and hardening from
February 2016.
 Elite seedling Nurseries – 19 MT of Robust and Arabica seed distributed to
Nursery operators bringing total seed distributed to-date to 49 MT.
6.1.3
Management of Diseases and Pest out Breaks.
 Coffee mealy bugs have continued to spread especially in Arabica areas.
Control measures have been put in place through farmer training and
sensitization.
 Prevalence of Black Coffee Twig Borer has escalated in most regions. Chemicals
and Equipment for demonstration and part containment was dispatched to all
the regions and spraying commenced, addition to cultural methods and proper
phytosanitary practices.
 Local Agro-input stockists have started to sale other chemicals in different
brand names but having imidacloropid which has been seen to be effective in
managing the pest as well as other pests in the coffee farms.
6.2
COFFEE PROMOTION ACTIVITIES
6.2.1 Continuous Quality Improvement

Carried out an M&E exercise in Bushenyi, Masaka and Iganga. Farmers and
processors are not fully engaged as it is off season. A few farmers were drying
kiboko. Suspended operations of 1 factory for drying coffee on the ground. Coffee
had started flowering across the Robusta growing areas.

Supported cupping of 9 samples from Buginyanya and Busano from Mt Elgon region.
All samples passed for specialty classification as they all scored above 80 points.
6.2.2 Capacity building of industry players through training and skills
development

Trained and prepared the National Barista champion for the 6th Africa Barista
Challenge. The champion, Mr. Dennis Agaba used coffee from Mt. Elgon area at the
Africa Barista Challenge during the 14TH AFCA in Dar es salaam, Tanzania.
6.2.3 Generic promotion
• Promoted coffee consumption at Parliament with the Ambassadors and high

9
commissioners. UCDA provided coffee for tasting
Promoted Coffee at UCU bazaar by providing information on coffee health
benefits, coffee for tasting and also engaged the coffee club in the promotion of
coffee drinking.
UCDA Monthly Report, January 2016


Held a meeting with the Speke Hotel Group on a collaboration to improve the
quality of the coffee served. UCDA will provide technical support and train their
staff.
UCDA hosted the Taste of Harvest competition. This event was organized by AFCA
and held at Lugogo UCDA Laboratory. 10 samples were selected to be cupped at
African Fine Coffees Conference & Exhibition in Dar es Salaam, Tanzania. The
scores were:
o Arabica: Kawacom Natural Sipi Cheema 84.75; Kawacom Natural Sipi
83.65; Kyagalanyi Bugisu A 83.2; Chanzo Wugar SC 15+ 83.2; Kawacom Fully
Washed Sipi Kaseremu 82.3
o
o
Robusta: Celebrate Hope Ministries Sc17/18 81.75; Kyinabo FAQ 81.7;
Manya TC- SC15+ 81.55; Manya TCsc15+ 81, Kigobero FAQ 80.
The scores reflect Uganda’s competitiveness in Specialty markets for both
Robusta and Arabica and enhanced private investment in value addition.
6.2.4 Centre for Robusta Excellence (CORE)

Carried out a monitoring exercise of the project with aBi trust staff. Visited 12
farms (demos 10 & 2 farmers) stumping, soil and water conservation main
demonstration and adoption by farmers increasing mainly in the South Western
Uganda. 5 out of 10 demos plots visited were performing as expected while others
are still being developed. Rate of adoption was greater in the Western region as
compared to both Eastern and Central regions with demo farmers in Bushenyi and
Greater Masaka demonstrating GAPs (stumping, weeds management).

20 samples were collected from CORE specialty farmers in Central, Eastern and
Western regions for analysis and 6 samples (2 washed and 4 natural) were
presented for National Taste of Harvest (ToH) competition.
7.0 OUTLOOK FOR FEBRUARY 2016
February exports are projected at 300,000 bags as harvesting of the main season in
Central Region and Eastern region is almost over as well as the fly crop in Masaka and
South-Western regions.
8.0
UPCOMING EVENTS
1. 2nd to 4th February, African fine Coffee Conference and Exhibition, Dar es Salaam,
Tanzania
2. Elementary Basic Quality training: 23rd to 26th February 2016, Eastern region:
Bulambuli, Kamuli, Namutumba, Mayuge, Central region: Mityana and Mubende.
This training is aimed at increasing the capacity of field based quality controllers
to analyze coffee.
3. 4th World Coffee Conference 6th to 8th March 2016 at the United Nations
Conference Centre, Menelik II Ave., Addis Ababa, Ethiopia.
4. 17th to 19th March Melbourne International Coffee Expo - Melbourne, Australia
10
UCDA Monthly Report, January 2016