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Supply Chain

Uganda Coffee Exports Plunge 20% In February

Uganda's coffee exports in February plunged 20% compared to shipments from the same period a year ago, the state-run sector regulator said, attributing the decline to drought that cut yields in some parts of the country.

The east African country exported 448,957 60-kilogram bags in February, 20% lower than volumes exported in February last year, the Uganda Coffee Development Authority (UCDA) said in its latest report.

Uganda is Africa's biggest exporter of coffee followed by Ethiopia and earnings from the beans constitute a major of foreign exchange for the country.

Low Yields Of Robusta

UCDA said the decline in exports were mainly on account of low yields of robusta, the coffee variety that Uganda predominantly cultivates.

'The decrease in robusta exports was mainly attributed to lower yields this year that was characterised by drought in some regions,' UCDA said.

Last month, Uganda blamed its withdrawal from an International Coffee Organisation (ICO) agreement on what it said are unfair tariffs and other barriers that restrict export of processed coffee to Europe and elsewhere.

In January, Brazil's government said that farmers in the world's largest coffee producer will harvest 55.74 million bags in 2022, 16.8% more than in the previous year, but an amount that is smaller than most in the market expect.

Elsewhere, coffee traders are seeking advance payment in any new deal to sell beans to Russia as Western sanctions hit the financial system of the world's sixth largest importer.

News by Reuters, edited by ESM – your source for the latest Supply Chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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