Period/Coffee

Type10

2018/19 2017/18 %age Change

Qty(60-kgbag) Value (US $) Qty(60-kgbag) Value (US $) Qty(60-

kgbag)

Value (US $)

October Total 350,743 35,220,033 381,636 43,741,276 -8.09 -19.48

Robusta 242,870 23,591,961 259,696 28,423,983 -6.36 -17.08

Arabica 107,873 11,628,072 121,940 15,317,294 -11.80 -23.93

Coffee exports for 12 months 4,273,228 453,684,664 4,777,650 564,351,208

-10.56 -19.61

UCDAMONTHLY REPORT-OCTOBER 2018

A total of 350,743 60-kilo bags of coffee valued at

US$ 35.22 million were exported in October 2018 at

an average weighted price of US $1.67/kilo, 3 centshigher than US$ 1.64 /kilo in September.

Farm-gate prices for Robusta Kiboko averaged UGX

2,200per kilo; FAQ UGX 4,600 per kilo, Arabica

parchment UGX 5,750 per kilo and Drugar UGX 5,250per kilo.

Report 2018/19 Issue 1

Key Highlights

Coffee exports for the last 12 (November 2017 to October

2018) totalled to 4.27 million bags worth US $454million comprising Robusta 3.19 million bags worthUS$322 million and Arabica 1.11 million bags worth US$140 million.

72.97% of the total volume was exported by 10exporters, out of 33 companies that performed during themonth compared to 81.08% in September 2018

The ICO Composite Indicator price increased from US Cents 98.17 per lb. in September 2018 to US cents 111.21per lb. in October 2018. The appreciation of the Brazilian currency (Real) and reduced supplies from manyproducing countries at the beginning of the coffee year caused prices to rise.

1. Coffee exports

Coffee exports in October 2018 amounted to 350,743 60-kilobags worth US $ 35.22 million as shown in Fig 1. This comprised242,870 bags (US $ 23.59 million) of Robusta and 107,873 bags(US $11.62 million) of Arabica (see Annex1). This was adecrease of 8.09% and 19.48% in quantity and valuerespectively from the same month last year.

By comparing quantity of coffee exported by type in the samemonth of last coffee year (September 2017/18 and2018/19), both Robusta and Arabica registered a percentagedecrease in both Quantity and Value; Robusta (6.36% and17.08% )respectively, Arabica

(11.80% and 23.93% )respectively. Coffee exports for a year were10.56% and 19.61% lower in both quantity and value respectivelycompared to the previous year (Table 1). Some of the factors thatled to this were: Low global prices on account of higher crop inBrazil which affected export prices as well as lower productionfrom the main harvest in Masaka and South-Western regionscompared to the previous year, new trees coming intoproduction notwithstanding.

Fig 1: Trend of Total Quantity and Value of Coffee exported: Nov 2017-Oct 2018

Table1: Comparison of Coffee Exports of October 2017/18 and 2018/19 Coffee years

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2. Exports by Type and Grade

Table 2 shows coffee exports by type, grade and average realizedprice for each grade during the month of October 2018. Theaverage export price was US$ 1.67 per kilo, 3 cents up from US$1.64 per kilo the previous month. Robusta exports accounted for69.34% of total exports compared to 74.45% last month. Theaverage Robusta price was US$ 1.62 per kilo, 1 cent higher thanthe previous month. Organic Robusta had the highest price of US$1.99 per kilo, fetching a premium price of 21 cents overconventional Screen 18 sold at an average of US$ 1.78 per kilo.This was followed of by Washed Robusta at US$ 1.98 per kilofetching a premium price of 20 cents over screen 18.

Arabica fetched a weighted average price of US$ 1.81 per kilo, USCent 7 higher than US $ 1.74 in September 2018. The highestprice was for Organic Drugar sold at US $ 2.64 per kilo, a premiumof 92 cents over conventional Drugar and 43 cents over BugisuAA. It was followed by Organic Bugisu at a unit price of US$ 2.36per kilo. Drugar exports contributed 73.69% of Arabica coffeeexports.

Table 2: Coffee Exports by Type, Grade & Unit Price in October 2018

3. Individual Exporter Performance

Fig 2 shows the top 10 export companies in the month of October2018. Ugacof (U) Ltd led with a market share of 13.07% compared to18.13% last month. It was followed by Ideal Quality Commodities Ltd12.29% (12.44%); Kyagalanyi Coffee Ltd 11.06% (13.30%); Olam (U)Ltd 7.23% (9.43%); Ibero (U) Ltd-5.83% (3.25%); Besmark CoffeeCompany Ltd-5.67% (1.82%). 33 companies exported in October2018.

The top 10 exporters held a market share of 72.97% lower than81.08% commanded in September 2018. Out of the 33 exporterswho performed, 8 exported Robusta Coffee only while 7 exportedArabica coffee only. Annex 2 shows a detailed list of exportersperformance in October 2018.*The figures in brackets representpercentage market share held in September 2018.

Fig 2: Top 10 Exporting Companies by market share

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Coffee type Quantity 60-Kilo Bags

%-age Quantity

Value in US $ %-age Value Unit Price US$/Kilo

TOTAL 350,743 100.00 35,220,033 100.00 1.67

ORGANIC ROBUSTA 1,050 0.43 250,617 1.06 1.99

WASHED ROBUSTA 320 0.13 38,095 0.16 1.98

SCREEN 18 21,500 8.84 2,293,596 9.73 1.78

SCREEN 17 12,314 5.06 1,312,835 5.57 1.78

SCR 15 115,521 47.50 11,637,309 49.38 1.68

SCREEN 14 2,030 0.83 207,575 0.88 1.70

SCREEN 13 2,056 0.85 200,447 0.85 1.62

SCREEN 12 55,624 22.87 5,208,572 22.10 1.56

BHP 1199 21,325 8.77 1,497,543 6.35 1.17

Other Robustas 11,450 4.71 921,223 3.91 1.34

Total Robusta 242,870 100.00 23,591,961 100.00 1.62

ORGANIC BUGISU 320 0.30 45,249 0.39 2.36

ORGANIC OKRO 700 0.65 91,945 0.79 2.19

ORGANIC DRUGAR 2,040 1.90 322,763 2.77 2.64

MT.ELGON A+ 9,080 8.44 1,230,176 10.56 2.26

BUGISU A+ 3,660 3.40 433,177 3.72 1.97

BUGISU AA 5,437 5.06 721,100 6.19 2.21

BUGISU AB 1,009 0.94 128,456 1.10 2.12MIXED ARABICA 300 0.28 30,159 0.26 1.68WUGAR 986 0.92 125,389 1.08 2.12

DRUGAR 79,253 73.69 8,183,077 70.23 1.72

Other Arabicas 4,768 4.43 340,730 2.92 1.19

Total Arabica 107,873 100.00 11,628,072 100.00 1.81

5. Global Situation

4. Local Situation

During the month of October, farm gate prices ranged from 2,000 -2,400 UGX per kilo of Kiboko (Robusta dry cherries); 4,500-4,700UGX for FAQ; 5,500-6,000 UGX for Arabica parchment; and 5,000-5,500 UGX per kilo for Drugar from Kasese. The averages were: Sh.2,200 per kilo for Kiboko coffee; Sh. 4,600 for Robusta FAQ; 5,750for Arabica parchment and Sh. 5,250 UGX for Drugar.

6. Coffee Exports By Destination

The destinations of Uganda’s coffee exports during the month ofOctober 2018 are shown in Fig 3 (details in Annex 3). Exports toEU countries amounted to 243,964 bags higher than 179,978bags exported in the previous month. This represented a 69.56%of total exports. EU was followed by Sudan with 29,020 bags(8.27%) compared to 45,454 bags (15.50%) the previous month.USA imported 15,794 (4.50%) compared to 16,627 (5.67%), India12,164 bags (4.15%) compared to 18,520 (5.31%) and Morocco8,100 (2.76%) compared to 14,292(4.10%). Coffee exports toAfrica amounted to 44,304 bags, a market share of 13%compared to 60,699 (20.70%) bags exported in the previousmonth.

Fig 3: Map showing Main Destinations of Uganda Coffee by Quantity in 60kgsBag: October 2018

Global coffee exports for September 2018 were 9.43 million bagsbringing total exports for coffee year 2017/18 to 121.86 millionbags, which was an increase of 2% on last year’s exports of119.52 million bags.

The 2017/18 global production is estimated at 163.51 millionbags compared to 155.96 million bags, an increase of 4.8% fromlast year. Arabica production increased by 1.7% to 101.23million bags while Robusta increased by 10.5 % to 62.28 millionbags. Africa’s production increased by 3.4% from last year withan output of 17.26 million bags.

The ICO Composite Indicator price increased from US Cents98.17 per lb. in September 2018 to US cents 111.21 per lb. inOctober 2018. It ranged from US cents 101.04 to 116.93 per lbduring the month. The Appreciation of the Brazilian currency(Real) and tight supplies at the start of the coffee year frommany producing countries caused the rise in coffee prices.

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Annex 4 shows a list of Ugandan coffee buyers in October 2018.The top 10 buyers held a market share of 63.96 % of total exportshigher than 57.40% the previous month. Sucafina led with amarket share of 11.59% compared to 11.51 % in September 2018.It was followed by Olam International-21.36% (3.42%); Altasheel–7.38% (18.07%); Bernhard Rothfos 6.94% (0.17%); Volcafe–6.89%(6.91%) Bercher Coffee-5.15%, Ecom Agro Idustrial-4.59% (2.14%),Coex Coffee International 4.28% (4.15%), Strauss Commodities-3.76% (1.77%) and Touton 3.60% (0.55%)

7. Foreign buyers of Uganda Coffee

Note: The figures in brackets represent percentage performance inthe previous month -September 2018.

8. Coffee Development and Promotional

Activities

A total of 152,051 Coffee seedlings have been allocated forsecond planting season (September to November 2018). Ofthese Central region has been allocated 51,447,370, Eastern23,360,858, Western 56,426,028, South Western 20,633,131and Northern 184,500. (Fig. 4)

9. Outlook for November 2018

Coffee exports are projected to be 380,000 bags as the mainseason in Central and Mt. Elgon regions is peaking. The cropin Central region is expected to be higher while Mt Elgonregion the crop is expected to be lower than the previousyear on account of being of being an off year.

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Fig 4: Map showing Seedlings Allocated for Second Season of 2018 (Sep-Nov)

Annex 2: List of Coffee Exporters and their Market Share: October 2018

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EXPORTING COMPANY

POSITION HELD IN

SEPTEMBER

QUANTITY (Bags) PERCENTAGE MARKET SHARE

Robusta Arabica Total Individual Cumulative

Total 242,870 107,873 350,743 100

1 Ugacof (U) Ltd 1 35,599 10,250 45,849 13.07 13.07

2 Ideal Quality Commodities Ltd 3 42,802 320 43,122 12.29 25.37

3 Kyagalanyi Coffee Factory Ltd 2 17,974 20,811 38,785 11.06 36.42

4 Olam Uganda Ltd 4 20,324 5,020 25,344 7.23 43.65

5 Ibero (U) Ltd 9 20,448 20,448 5.83 49.48

6 Besmark Coffee Company Limited 14 5,432 14,470 19,902 5.67 55.15

7 Kawacom (U) Ltd 5 11,294 5,418 16,712 4.76 59.92

8 Commodity Solutions (U) Ltd 15 9,872 6,080 15,952 4.55 64.47

9 Export Trading Company (U) Ltd 6 14,570 700 15,270 4.35 68.82

10 Touton Uganda Limited 7 8,006 6,561 14,567 4.15 72.97

11 Grainpulse Ltd 25 9,044 3,040 12,084 3.45 76.42

12 Kampala Domestic Store Ltd 18 10,530 10,530 3.00 79.42

13 Coffee World Ltd 20 3,222 6,660 9,882 2.82 82.24

14 Ishaka Quality Commodities Ltd 16 9,430 9,430 2.69 84.93

15 Great Lakes Coffee Company Ltd 10 8,188 8,188 2.33 87.26

16 Bakhsons Trading Co. (U) Ltd 13 2,924 2,100 5,024 1.43 88.69

17Ankole Coffee Producers Coop Union

Ltd 11 4,840 4,840 1.38 90.07

18 Louis Dreyfus Company (U) Ltd 8 1,696 2,940 4,636 1.32 91.40

19 Mbale Importers & Exporters Ltd 19 1,336 2,620 3,956 1.13 92.52

20 Qualicoff (U) Limited 32 3,758 3,758 1.07 93.60

21 Nakana Coffee Factory Ltd 27 3,388 3,388 0.97 94.56

22Falcon International Coffee Company

Limited - 2,640 2,640 0.75 95.31

23 Darley Investments Ltd - 2,560 2,560 0.73 96.04

24 Discovery Trading Ltd 31 1,374 1,050 2,424 0.69 96.73

25 Omega Oil (U) Ltd - 1,980 1,980 0.56 97.30

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EXPORTING COMPANY

POSITION HELD IN

SEPTEMBER

QUANTITY (Bags) PERCENTAGE MARKET SHARE

Robusta Arabica Total Individual Cumulative

26 Bakwanye Trading Co. Ltd 23 1,960 1,960 0.56 97.86

27Bulamu Coffee Buyers, Proc.& Exports

Ltd 29 1,002 660 1,662 0.47 98.33

28 Nucafe - 1,426 155 1,581 0.45 98.78

29 The Edge Trading (U) Ltd - 700 700 1,400 0.40 99.18

30Banyankole Kweterana Coop Union

Ltd - 1,054 1,054 0.30 99.48

31 Sena Indo Uganda Limited 21 825 825 0.24 99.72

23 Bukonzo Joint Co-operative Union Ltd 30 640 640 0.18 99.90

33Superbia International Coffee Trade

Ltd - 350 350 0.10 100.00

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DESTINATIONPOSITION HELD IN SEPTEMBER

QUANTITY (60kg bags)%AGE MARKET SHARE

Robusta Arabica Total Individual Cumulative

Total 242,870 107,873 350,743 100.00

1 EU 1 172,038 71,926 243,964 69.56 69.56

2 Sudan 2 28,700 320 29,020 8.27 77.83

3 USa 3 3,884 11,910 15,794 4.50 82.33

4 India 4 12,700 12,700 3.62 85.95

5 Israel 7 5,120 6,400 11,520 3.28 89.24

6 Morocco 5 6,566 2,240 8,806 2.51 91.75

7 Mexico 6 334 4,770 5,104 1.46 93.20

8 South Africa 16 3,200 620 3,820 1.09 94.29

9 Canada 14 320 2,560 2,880 0.82 95.11

11 Saudi Arabia - 2,640 2,640 0.75 95.87

12 Russia 13 1,634 320 1,954 0.56 96.42

13 Australia 15 640 928 1,568 0.45 96.87

14 Japan 8 1,220 334 1,554 0.44 97.31

15 Libya - 1,375 1,375 0.39 97.71

16 Switzerland 12 320 1,020 1,340 0.38 98.09

17 Algeria 11 1,002 1,002 0.29 98.37

18 Madagascar - 1,002 1,002 0.29 98.66

19 South Korea - 320 640 960 0.27 98.93

20 Malaysia - 870 870 0.25 99.18

21 China 17 308 255 563 0.16 99.34

22 Turkey - 350 350 0.10 99.44

23 Ukraine 22 350 350 0.10 99.54

24 Egypt - 334 334 0.10 99.64

25 Singapore 18 333 333 0.09 99.73

26 Kenya 23 320 320 0.09 99.82

27 VIETNAM 9 320 320 0.09 99.91

28 TAIWAN 19 300 300 0.09 100.00

Annex 3: Main Destinations of Uganda Coffee by Type in October 2018.

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BUYERS POSITION

HELD IN

SEPTEMBER

QUANTITY

(60kg BAGS) %AGE MARKET SHARE

Robusta Arabica Total Individual Cumulative

Total 242,870 107,873 350,743 100.00

1 Sucafina 1 30,398 10,250 40,648 11.59 11.59

2 Olam International 3 31,226 3,060 34,286 9.78 21.36

3 Al-tasheel 3 25,900 25,900 7.38 28.75

4 Bernhard Rothfoss 6 24,328 24,328 6.94 35.68

5 Volcafe 4 13,174 11,007 24,181 6.89 42.58

6 Bercher Coffee - 1,760 16,320 18,080 5.15 47.73

7 Ecom Agro Industrial 5 11,294 4,808 16,102 4.59 52.32

8 Coex Coffee International 10 13,342 1,670 15,012 4.28 56.60

9 Strauss Commodities 8 4,985 8,196 13,181 3.76 60.36

10 Touton Geneva 14 1,080 11,548 12,628 3.60 63.96

11 Icona Café 20 10,400 1,640 12,040 3.43 67.40

12 Louis Dreyfus 9 6,606 4,800 11,406 3.25 70.65

13 Pacorini Silocaf 11 9,630 9,630 2.75 73.39

14 Hamburg Coffee - 6,924 6,924 1.97 75.37

15 Elmathahib 15 5,950 5,950 1.70 77.06

16 Koninklijke - 5,400 5,400 1.54 78.60

17 Indus Coffee 7 4,500 4,500 1.28 79.89

18 Falcon Coffees 13 3,680 3,680 1.05 80.94

19 Dek 24 3,240 3,240 0.92 81.86

20 Jacobs Douwe Egberts - 360 2,880 3,240 0.92 82.78

21 S.L.N Coffee 29 3,000 3,000 0.86 83.64

22 Guzman Global - 1,336 1,640 2,976 0.85 84.49

23 Mitsubishi - 2,880 2,880 0.82 85.31

24 Mmlakat Alkaif - 2,640 2,640 0.75 86.06

25 Coprocafe 27 2,560 2,560 0.73 86.79

Annex 4: List of External Coffee Buyers during the Month of October 2018

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BUYERS

POSITION

HELD IN

SEPTEMBER

QUANTITY

(60kg BAGS) %AGE MARKET SHARE

Robusta Arabica Total Individual Cumulative

26 ETC Trading - 2,260 2,260 0.64 87.43

27 Grupo Gimoka - 2,160 2,160 0.62 88.05

28 Coffein Compagnie 18 2,100 2,100 0.60 88.65

29 Trc Speciality Commodities - 1,600 1,600 0.46 89.11

30 Others - 18,957 19,254 38,211 10.89 100.00

Annex 4: List of Foreign Coffee Buyers during the Month of October 2018

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Compiled by:Directorate of Strategy and BusinessDevelopmentUganda Coffee Development Authority

October 2018

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