Table1: Comparative Coffee Export Performance 60-kilo bags; US$

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1 UCDA MONTHLY REPORT FOR MARCH 2018 Highlights: This is the sixth report for the coffee year 2017/18. A total of 333, kilo bags of coffee valued at US$ million were exported in March 2018 at an average weighted price of US $1.79/kilo, 1 cent higher than US$ 1.78kilo last month. Farm-gate prices for Robusta Kiboko averaged Shs. 2,200/= per kilo; FAQ Shs.4,750/= per kilo, Arabica parchment Shs 5,650/= per kilo and Drugar Sh. 5,350/kilo. Coffee exports for 12 months (April 2017 to March 2018) totalled 4.69 million bags worth $528 million comprising Robusta 3.65 million bags worth $398 million and Arabica 1.03 million bags worth $135 million % of the total volume was exported by 10 exporters, out of 40 who performed during the month compared to 77.22% in February 2018 The ICO Composite Indicator price decreased from US Cents per lb. in February 2018 to US cents per lb. in March COFFEE EXPORTS Coffee exports in March 2018 amounted to 333, kilo bags worth US $ million comprising 224,036 bags ($ million) of Robusta and 109,310 bags ($13.88 million) of Arabica (see Table 1). This was a decrease of 18.68% and 29.15% in quantity and value respectively. Table1: Comparative Coffee Export Performance 60-kilo bags; US$ Coffee Year 2017/ /17 %-age Change Qty Value $ Qty Value $ Qty Value $ Grand Total 2,334, ,675,653 2,253, ,785, Total Robusta 1,692, ,196,895 1,657, ,180, Total Arabica 642,659 82,478, ,496 87,604, March 333,346 35,737, ,916 50,443, Robusta 224,036 21,852, ,314 36,539, Arabica 109,310 13,884,306 93,602 13,903, February 388,644 41,387, ,523 48,306, Robusta 294,482 29,276, ,116 34,545, Arabica 93,756 12,110,176 95,407 13,761, January 401,930 43,661, ,673 48,981, Robusta 311,567 31,481, ,787 33,973, Arabica 90,363 12,180,021 99,886 15,008, December 386,217 42,719, ,241 51,515, Robusta 291,314 30,008, ,164 36,036, Arabica 94,903 12,711,169 97,077 15,478, November 443,100 49,387, ,693 50,345, Robusta 310,759 33,117, ,245 31,508, Arabica 132,341 16,269, ,448 18,837, October 381,636 43,741, ,144 24,193,

2 Robusta 259,696 28,423, ,068 13,577, Arabica 121,940 15,317,294 80,076 10,615, Compared to the same month last year, Robusta decreased by 29.17% while Arabica exports increased 16.78% In terms of value, both Robusta and Arabica decreased by 40.19% and 0.14% respectively. Coffee exports for 12 months (April 2017-March 2018) totalled 4.69 million bags worth US$ 528 compared to 3.90 million bags worth $ 439 million in the previous year (March 2016-February 2017).This was an increase of 20.45% and 20.27% in quantity and value respectively. Charts 1 and 2 give comparative performance of exports by coffee type in both quantity and value in 2 coffee years during the first sic months (October-March) of 2017/18 and 2016/17. Chart 1 shows an increase of export volume for both Robusta (2.07%) and Arabica (7.92%) over last year while chart 2 shows a decrease in value for both Robusta exports (6.44%) Arabica exports(5.85%). 2

3 2.0 EXPORTS BY TYPE AND GRADE Table 2 shows coffee exports by type, grade and average realized price for each grade during the month of March 2018.The weighted average export price was US$ 1.79 per kilo, 1 cent up from US$ 1.78 per kilo the previous month. Robusta exports accounted for 75.83% of total exports compared to 77.52% last month. The weighted average Robusta price was US$ 1.63 per kilo compared to US$ 1.66 per kilo the previous month reflecting a decrease of US cents 3. Organic Robusta had the highest price of US$ 2.09 per kilo, fetching a premium of 27 cents over conventional Screen 18 sold at an average of US$ 1.82 per kilo. This was followed by Washed Robusta sold at an average of US$1.93 per kilo, a premium of 11 cents above screen 18. Arabica fetched a weighted average price of US$ 2.12 per kilo, US Cents 3 lower than US Cents 2.15 in February The highest price was for Sipi Falls sold at US $ 4.19 per kilo each, a premium of US$ 1.72 above Bugisu AA. It was followed by Mt Elgon A+ at a unit price of US$ 2.83 per kilo, a premium of US cents 36 above Bugisu AA. Drugar contributed 47% of Arabica exports with a discount of od 52 cents compared to Bugisu AA. Table 2: Coffee Exports by Type, Grade & Unit Price in March 2018 in 60-kilo bags; US $, US $/kg Coffee type/ Grade Quantity 60-Kilo Bags %-age Quantity Value in US $ %-age Value Unit Price $/Kilo TOTAL 333, ,737, ROBUSTA 224,036 21,853, ORGANIC ROBUSTA , WASHED ROBUSTA , SCREEN 18 25, ,806, SCREEN 17 7, , SCREEN 15 81, ,398, SCREEN 14 4, , SCREEN , SCREEN 12 57, ,714, BHP , ,970, OTHER ROBUSTAS ARABICA 109, ,884, ORGANIC BUGISU 1, , Sipi Falls 3, , ORGANIC OKORO , MT.ELGON AA , ORGANIC WUGAR , Mt. Elgon A+ 3, , MT.ELGON A 5, , BUGISU AA 7, ,164, BUGISU A 3, , BUGISU AB 2, , BUGISU B , BUGISU PB , MIXED ARABICA , WUGAR 16, ,165, DRUGAR 56, ,575, Other Arabicas 6, ,

4 3.0 INDIVIDUAL EXPORTER PERFORMANCE Table 3 shows the performance of the individual coffee exporting companies in the month of March 2018 in terms of quantity and market share Kyagalanyi Coffee Ltd led with a market share of 15.46% compared to 13.19% last month. It was followed by Ideal Quality Commodities Ltd % (11.33%); Olam (U) Ltd % (15.04%); Touton (U) Ltd- 8.40% (5.35%); Ibero (U) Ltd-6.47% (7.59%); Export Trading Company (U) Ltd-6.22% (5.01%); Kawacom (U)-5.57% (6.25%); Besmark Coffee Company Limited 3.86% (3.60%); and LD Commodities (U) Ltd- 3.41% (2.48%). The first 10 exporters held a market share of 82.08% compared to 77.72% in February 2018 reflecting high concentration at this level. Out of the 40 exporters who performed, 11 exported Robusta Coffee only while 16 exported Arabica coffee only. The figures in brackets represent percentage market share held in February Table 3: Export Performance by Individual Companies in March 2018 EXPORTING COMPANY POSITION HELD IN FEBRUARY QUANTITY (Bags) PERCENTAGE MARKET SHARE Robusta Arabica Total Individual Cumulative Total 224, , , Kyagalanyi Coffee Ltd 2 20,088 31,444 51, Ideal Quality Commodities 3 35,137 4,535 39, Ltd 3 Olam Uganda Ltd 1 33,930 2,991 36, Ugacof (U) Ltd 5 31, , Touton Uganda Limited 7 13,833 14,170 28, Ibero (U) Ltd 4 21,558 21, Export Trading Company (U) 8 18,648 2,070 20, Ltd 8 Kawacom (U) Ltd 6 11,130 7,443 18, Besmark Coffee Company ,522 12, Limited 10 Ld Commodities (U) Ltd 11 5,720 5,662 11, Great Lakes Coffee Company 16 8,520 8, Ltd 12 Kampala Domestic Store Ltd 14 6, , Coffee World Ltd 12 1,544 5,250 6, Nakana Coffee Factory Ltd 15 5,100 5, Bulamu Coffee Buyers, 20 3, , Proc.& Exports Ltd 16 Commodity Solutions (U) Ltd 10 1,642 1,280 2, Bakhsons Trading Co. (U) Ltd 18 2,822 2, Ishaka Quality Commodities 13 2,150 2, Ltd 19 Banyankole Kweterana Coop 29 2,070 2, Union Ltd 20 Qualicoff (U) Limited 17 1,800 1, Mbale Importers & 28 1,748 1, Exporters Ltd 22 Ankole Coffee Processors Ltd 19 1,400 1, Kibinge Coffee Farmers' 38 1,400 1, Coop Soc Ltd 24 Omega Oils (U) Ltd 23 1,400 1,

5 25 The Edge Trading (U) Ltd 26 1,400 1, Risala (U) Ltd 24 1,295 1, Bakwanye Trading Co. Ltd 37 1,280 1, Ankole Coffee Producers Coop Union Ltd Bukonzo Joint Co-Operative Union Ltd 30 Darley Investments Ltd Mountain Harvest Smc Ltd Bufumbo Organic Farmers Association 33 Cisco Petroleum (U) Ltd Shiba World Investments Ltd Kasese Coffee Co.Ltd Nucafe Bugisu Coop Union Ltd Ziwango Coffee (U) Ltd Discovery Trading Ltd Herad International Services Ltd LOCAL SITUATION During the month, farm gate prices ranged from Sh.2,200-2,400 per kilo of Kiboko (Robusta dry cherries); Shs. 4,500-5,000/= for FAQ; Sh. 5,300-6,000/= for Arabica parchment; and Sh. 5,200-5,500/= per kilo for Drugar from Kasese. The averages were: Sh. 2,200 per kilo for Kiboko coffee; Sh. 4,750 for Robusta FAQ; Sh. 5,650 for Arabica parchment and Sh. 5,350/= for Drugar. 5.0 GLOBAL SITUATION Coffee exports for February 2018 were 9.93 million bags, which was 0.4% higher compared to February Total exports for the first five months of coffee year 2017/18 were million bags compared to million bags exported in the same period last year, which was a 3.2% increase. The 2017/18 Global production is estimated at million bags compared to million bags, an increase of 1.2% from last year. Arabica production is estimated to reduce by 1.1% to million bags while Robusta is projected to increase by 8.2 % to million bags. Africa s production is expected to increase by 3.2% from last year with an output of million bags. Global consumption is projected to increase by 1% at million bags with major increases noted in Asia and Oceania countries. The ICO Composite Indicator price decreased from US Cents per lb. in February 2018 to US cents per lb. in March It ranged from US cents to per lb. 6.0 COFFEE EXPORTS BY DESTINATION The destinations of Uganda s coffee exports during the month of March 2018 are illustrated in Table 4. Exports to EU countries amounted to 233,958 bags lower than 246,110 bags exported in the previous month. This represented a 70.18% of total exports. EU was followed by Sudan with 45,175 bags (13.55%) compared to 62,932 bags (16.12%) the previous month. USA imported 12,283 (3.68%) compared to 11,308 (2.90%), Morocco 9,060 bags (2.72%) compared to 8,046 (2.06%) and Algeria 8,013 (2.40%) compared to 7,464 (1.91%) in February Coffee exports to Africa amounted to 69,638 bags, a market share of 20.89% compared to 87,478 (22.41%) bags the previous month. Among the first 10 importers of Uganda 5

6 coffee, 5 were African countries, indicating intercontinental trading. The figures in brackets represent the percentage market share of the previous month. Table 4: Main Destinations of Uganda Coffee in March DESTINATION POSITION HELD IN FEBRUARY QUANTITY (60kg bags) %AGE MARKET SHARE Robusta Arabica Total Individual Cumulative Total 224, , , EU Sudan USA Morocco Algeria Russia Madagascar Japan Switzerland Israel Kenya South Africa China United Kingdom South Korea Canada Egypt Vietnam Australia Bahrain Ukraine Saudi Arabia BUYERS OF UGANDA COFFEE Table 5 shows buyers of Uganda coffee in March The top 10 buyers held a market share of % of total exports higher than 57.97% the previous month. Olam International led with a market share of 11.70% compared to 12.99% in February It was followed by Sucafina-7.86% (5.85%); Bernhard Rothfos 6.36% (7.59%); Touton Geneva-6.28% (5.51%); Volcafe 5.93% (3.46%) Ecom Agro Indistrial -5.57% (4.19 %) Aldwami -5.35% (3.58%), Bercher Coffee- 3.95% (3.29%), Altasheel -3.58% (7.69%) and Gollucke & Rothfos- 3.32% (0.90%). The changes in relative positions of the buyers compared to the previous month reflect competition for Uganda coffee among different buyers. Note: The figures in brackets represent percentage performance in the previous month -February

7 TABLE 5 : Buyers of Uganda Coffee in March 2018 BUYERS POSITION HELD IN FEBRUARY QUANTITY (60kg BAGS) %AGE MARKET SHARE Robusta Arabica Total Individual Cumulative Total 224, , , Olam International 1 34,430 4,566 38, Sucafina S.A 4 24,613 1,600 26, Bernhard Rothfoss 3 21,198 21, Touton Geneva 5 5,902 15,040 20, Volcafe 9 6,003 13,763 19, Ecom Agro Industrial 6 11,130 7,443 18, Aldwami 8 14,350 3,500 17, Bercher Coffee ,800 13, Al-Tasheel 2 11,935 11, Gollucke & Rothfos 27 11,080 11, S.L.N Coffee Pvt Ltd 26 10,610 10, Cofftea 18 10,500 10, Icona Café 13 8, , Strauss Commodities 7 3,965 4,518 8, Pacorini Silocaf 23 7, , Vayhan Coffee Ltd 21 4,800 4, Elmathahib 28 4,550 4, N.V Group Sopex 16 4,380 4, Indus Coffee 19 4,250 4, Louis Dreyfus 14 4,110 4, Falcon Coffees - 3,840 3, Koninklijke Douwe 11 3,600 3, Gebr Westhoff ,150 3, Coffein Compagnie - 1,500 1,750 3, Hamburg Coffee 15 1,360 1,800 3, Supremo - 2,780 2, Etc Trading 20 2,700 2, Tata Coffee ,800 2, Mitsubishi - 2,240 2,

8 30 Others 20,482 16,300 36, COFFEE DEVELOPMENT AND PROMOTIONAL ACTIVITIES 8.1. The Weather Situation Central Region The Weather situation and how it affected Coffee Production: The generally heavy and well distributed rainfall had started in the entire Region. In Buikwe and Buvuma, most of the roads were not motorable and transport was very difficult and expensive. The only means of transport was the motorcycle and they could move in very restricted places. Luweero Sub Region received very good amounts of rains in all her 3 Districts of Nakasongola, Nakaseke and Luweero. However, by the last week of March, the frequency of the rains reduced especially in Bamunanika and parts of Katikamu South. In Gomba/Butambala the month of March was characterized by adequate rainfall in all parts of the Sub-Region. The rainfall has been good enough to rejuvenate the coffee seedlings in the nurseries that had been stressed and also for the mature coffee trees. Harvesting of the coffee beans was ongoing with sub counties of Ngando, Bulo in Butambala and Kabulasoke, Kyegonza and Mpenja in Gomba respectively registering a bumpy harvest. However, the heavy rainfall was having a negative effect on postharvest handling with drying of the coffee beans being affected. In Bukomansimbi/Sembabule the sub region received heavy rains in all parts. There were indicators that rains would continue. Coffee seedling distribution started and was on going at 80% in Sembabule district. In Rakai/Kyotera, the month of March has experienced consistent rain showers all over the Sub-region which has enabled farmers to start planting coffee and other food crops. A heavy flower flush has also been observed in the coffee shambas and also some ripening of coffee has started which is expected to continue through April to probably July There were fair rains in Lwengo/ Lyantonde Sub-Region. Farmers were already planting coffee and there were higher expectations coffee harvests during the Month of May especially in Lwengo District. However there was a less demand for coffee seedlings from Lyantonde district for the March-May 2018 season since it is a very short planting season compared to the September-November Season given the adverse effects of drought in this Sub-Region. Western Region During the month, most areas of the Region received fairly well distributed rains favorable for good performance of already well established coffee trees and the seedlings in the nurseries. The flowering of coffee trees had been observed to be quite good and some coffee trees that had been hard hit by the recently ended dry spell had started rejuvenating. 8

9 Flower formation and fruit development was also favored by the positive change in weather. Land preparation for coffee planting was easier especially when digging holes. Northern Region During the month, minimal rains were received which occasionally turned into heavy rains at the end of the month. In Kitgum district, very dry spells that lasted for over a week were experienced. Overall the rains were unreliable and insufficient for the planting of coffee seedlings but favorable for planting annual crops. Zombo District experienced the most favorable conditions and preparation for planting of coffee seedlings started much earlier than the rest of the Districts in the region. The rains are expected to stabilize in April 2018 and distribution of seedlings shall commence across the region accordingly. Eastern Region The month was very wet in the first two weeks of the monthas heavy rains were received in most parts of the Eastern region. However, no rain was received from the third week. Planting was consequently interrupted by the uncertainty in weather patterns. The erratic weather behavior is likely to impact negatively in parts of Luuka, Kaliro, Namutumba, Busembatya, Budaka, Pallisa, Kibuku and neighboring areas Coffee Planting 275,178,950 Coffee seedlings are available in 2,492 coffee nurseries for planting in the five coffee growing regions during March and May 2018 season Last coffee planting season September/ November 2017, a total of 131,019,698 coffee seedlings was reported planted in 102 coffee growing districts compared to 157,063,064 coffee seedlings that was available in the 2,089 nurseries. Farmer sensitization, and training of farmers to provide shade or bottle irrigation continues in collaboration with Local Government extension officials and nursery operators who were encouraging farmers to provide shade for the newly planted coffee in all regions Coffee seedlings planted in the five coffee regions. REGION DISTRICTS NURSERIES NO. SEEDLINGS SOUTH WESTERN ,093,637 WESTERN ,401,262 EASTERN ,418,257 9

10 NORTHERN(WESTNILE) ,560 CENTRAL ,657,192 TOTAL 102 2, ,329, : Management of Diseases and Pest Out breaks. 70 boxes Granular Imidacloprid and 12 boxes of liquid Imidachlorid were distributed in Greater Luweero. The intention was to encourage coffee farmers appreciate the chemicals on the market that would be used to manage Black coffee twig borer (BCTB) and how such chemicals would be used, stored and possibly transported. Six (6) demonstration sites were established in Luweero and Nakaseke Districts to show coffee farmers how the provided chemicals would be used. The meetings were also used as a platform to train farmers on a holistic approach for managing BCTB on their farmers and distribution of the chemicals to farmers BCTB has continued to cause greater damage to coffee in all the five regions. The dry weather has increased the infestation and devastating effect of the pest. Pest and disease incidences: Type of pest or Incidence Extent of damage disease a) Pests 1. Stem borers low Infestations were low in Arabica areas 2. Coffee Berry borer 3. Black Coffee Twig Borer low Reported in areas with aging trees but isolated mostly in Kapchorwa District. low Iow incidences of Black Coffee Twig borer were reported in all regions with greater incidence in central districts and Busoga, sub region b) Diseases 1. Coffee leaf rust low Low levels of infestation reported in Sebei subregion during the month. 2. Coffee berry High Very severe in high altitude areas of Kapchorwa and disease Kween 3. Coffee Wilt Disease Not reported The disease was not reported in any of the coffee regions COFFEE PROMOTION ACTIVITIES 10

11 9.1. PROGRESS ON IMPLEMENTATION OF MOU WITH UGANDA PRISONS A Field visit was conducted to Lututuru prison farm to backstop and ascertain progress in preparation for start planting. The following were the findings; Bush clearing was completed and digging of holes for 5 acres completed and activity is ongoing. 120,000 coffee Seedlings have attained 4 pairs of true leaves and are well managed. Partitioning the farm into blocks of the farm was completed and digging of holes is being done in blocks of the 28 acres. Labour shortage was a major hindrance especially in digging holes due to few inmates Collaborative engagements UCDA Participated in the second Northern Uganda Agribusiness Exhibition which was held in Mayors Gardens Lira District from 23rd to 25th March The exhibition attracted mainly agricultural businesses and companies dealing in agro inputs with the objective of selling their products to farmers since it was the onset of the rain season. UCDA stall exhibited coffee seedlings, farm tools and field officers were available to respond to all questions and inquiries by visitors. In preparation for next planting season, constant engagements and collaborations are ongoing with the Local Governments both at District and Sub county levels to ensure that registration of farmers is completed and demand letters written to guide in the issuance of allocation letters to Districts. Verification of Nurseries was completed and procurement process has started for Districts which have received allocation letters. 9.3 President s visits to Buyende District. The President, Speaker of Parliament, most ministers and members of Parliament from Eastern region, UCDA Board of Directors Chairman Mr. Perez Bukumunhe, MAAIF Minister and other prominent dignitaries turned up for a fundraising ceremony for 50 cooperatives in Buyende district. The President launched coffee planting in the district and UCDA regional staff sourced the quality seedlings that were distributed to identified/selected farmers. The district production team had inspected the seedlings prior to the presidential launch. UCDA brewed and served over 400 litres of coffee to over 3,000 cooperators. The function took place at Nabitula Primary school at the extreme end of Buyende district. UCDA pledged to support the cooperatives in terms of farmer training, sensitization, mobilization and provision of seedlings to expand their coffee farms in a bid to increase house hold incomes 9.4 Technical extension services 11

12 Light picking of berries was observed in Western Region. Key players were continuously sensitized on selective picking, drying on tarpaulins, avoiding heaping of wet coffee, storing of coffee in gunny bags on wooden pallets, processing properly dried coffee (13% - 14% M.C) and inspection coffee buying stores or Factories to ensure that factories have valid UCDA License was continuously done. A mini task force was conducted in Kasese during the first week of March and over 30 coffee factories and buying stores were inspected. Processors were continuously improving their facilities with more compliance but machinery improvement was still a challenge. The movements were mainly inspection as a reassessment for all applicants. Kiboko to FAQ out turn was ranging between 38% and 50% and Total coffee outturn was averagely above 80% for machinery that have not been manipulated in Robusta growing regions. 24 Stores were inspected in Central Region. These were mainly in out skirts of Kampala. 25 hullers, 8 buying stores, 13 roasters were registered. 69 exporters were registered A total of 3 task forces were undertaken in Eastern and Western and 4 Mini taskforces were conducted in the districts of Kayunga, Mukono and Luwero with greater Mpigi/ greater Masaka and with more concentration in Nakaseke Sensitization and training of coffee farmers 174 trainings and 20 farm visits were conducted in the five coffee regions Sensitization of players continued throughout the month, 100 value chain players were sensitized on good post-harvest handling during the month. Radio announcements continued to be aired out on all the procured radios in all the five coffee growing regions. The radio talk shows and announcements included coffee agronomic practices and post-harvest handling in preparation for coffee planting. 9.6 Promotion of coffee consumption In order to promote coffee consumption among the youth, UCDA carried out University Coffee promotions in UCU, MUBS, KYU and MUK. UCDA also held trainings in coffee and health for medical practitioners in Kabale, Luwero, Masindi, Kisoro, Kagadi with a goal to change the negative perception that coffee is not healthy Generic promotion UCDA carried out a coffee promotion in St.Pietsburg, Russia with an aim of penetrating new markets OUTLOOK FOR APRIL 2018 April exports are projected at 350,000 bags. The main season in Central and Eastern Regions has virtually ended, and the main harvesting season in Western region is starting in May UPCOMING EVENTS -Specialty coffee production training in Luwero, Mityana, Mubende, Mukono and Buikwe. 12

13 22 nd 24 th April 2018 Seattle, USA. Specialty Coffee Association of America (SCAA) UCDA will be promoting Uganda coffee promotion at the SCAA conference in Seattle, USA, alongside other stakeholders in the Uganda coffee value chain. 13