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1 In 60-Kilo Bags In US $ UCDA Report 2018/19 Issue 2 MONTHLY REPORT-NOVEMBER 2018 Key Highlights A total of 409, kilo bags of coffee valued at US$ million were exported in November 2018 at an average weighted price of US $1.71/kilo, 4 cents higher than US$ 1.67 /kilo in October. Farm-gate prices for Robusta Kiboko averaged UGX 2,250per kilo; FAQ UGX 4,600 per kilo, Arabica parchment UGX 5,750 per kilo and Drugar UGX 5,300 per kilo. Coffee exports for two months (October 2018 to November 2018) totalled to 760,683 bags worth US million compared to 824,736 bags (US$ million) the previous year ((Annex 1) % of the total volume was exported by 10 exporters, out of 38 companies who performed during the month compared to 72.91% in October 2018, reflecting increasing concentration. The ICO Composite Indicator price decreased by 1.5% to US cents/lb in November 2018 following the 13.3% increase to US cents/lb last month. 1. Coffee exports Coffee exports in November 2018 amounted to 409, kilo bags worth US $ million as shown in Fig 1. This comprised 300,233 bags (US $ million) of Robusta and 109,707 bags (US $12.99 million) of Arabica (see Annex1). This was a decrease of 8.09% and 19.48% in quantity and value respectively from the same month last year. By comparing quantity of coffee exported by type in the same month of last coffee year (November 2017/18 and 2018/19), Robusta registered a percentage decrease in both quantity and value (7.48% and 15.04% ) respectively. Arabica exports also registered a percentage decrease in both quantity and value (17.10% and 20.14% respectively). Coffee exports for the last 12 months (December 2017-November 2018) amounted to 4.24 million bags worth US $ 446 million compared to 4.81 million worth US$ million the previous year, a 11.50% and 20.77% reduction in both quantity and value respectively (Table 1). Some of the factors that led to this were: Low global prices on account of higher crop in Brazil which affected export prices as well as lower production from the main harvest in Masaka, South-Western regions and Mt. Elgon regions, new trees coming into production notwithstanding. Fig 1: Trend Trend of Total of Total Quantity Monthly and Quantity Value of and Coffee Value exported: of Coffee Dec Exported 2017-Nov in Dec Nov , , , , , , , , , , , , , , , , ,000 - Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 - Quantity Value Table1: Comparison of Coffee Exports of November 2017/18 and 2018/19 Coffee years Period/Coffee Type / /18 %age Change Qty(60-kgbag) Value (US $) Qty(60-kgbag) Value (US $) Qty(60- kgbag) Value (US $) November Total 409,940 41,958, ,100 49,387, Robusta 300,233 28,965, ,759 33,117, Arabica 109,707 12,993, ,341 16,269, Coffee exports for 12 months 4,240, ,388,970 4,813, ,392,

2 2. Exports by Type and Grade Table 2 shows coffee exports by type, grade and average realized price for each grade during the month of November The average export price was US$ 1.71 per kilo, 4 cents higher than US$ 1.67 per kilo realized the previous month. Robusta exports accounted for 69.34% of total exports compared to 74.45% last month. The average Robusta price was US$ 1.62 per kilo, US$ 1 higher than the previous month. Organic Robusta had the highest price of US$ 2.12 per kilo, fetching a premium of 36 cents over conventional Screen 18 sold at an average of US$ 1.76 per kilo. This was followed of by Washed Robusta at US$ 1.98 per kilo fetching a premium price of 18 cents over screen 18. Arabica fetched a weighted average price of US$ 1.81 per kilo, US Cent 7 higher than US $ 1.74 in September The highest price was for Organic Drugar sold at US $ 2.64 per kilo,. It was followed by Organic Bugisu at a unit price of US$ 2.36 per kilo. Drugar exports contributed 73.69% of Arabica coffee exports. Table 2: Coffee Exports by Type, Grade & Unit Price in November 2018 Coffee type Quantity 60-Kilo %-age Value in US $ %-age Value Unit Price Bags Quantity US$/Kilo TOTAL 409, ,958, ORGANIC ROBUSTA 1, , WASHED ROBUSTA , SCREEN 18 29, ,147, SCREEN 17 12, ,214, SCREEN , ,184, SCREEN , SCREEN , SCREEN 12 70, ,622, BHP , ,661, Other Robustas 9, , Total Robusta 300, ,965, SUSTAINABLE ARABICA 1, , ORGANIC OKORO , ORGANIC DRUGAR , MT.ELGON A+ 18, ,593, BUGISU A+ 3, , BUGISU AA 5, , BUGISU AB 3, , TRIAGE 3, , WUGAR 5, , DRUGAR 62, ,838, Other Arabicas 4, , Total Arabica 109, ,993, Individual Exporter Performance Fig 2: Top 10 Exporting Companies by market share Fig 2 shows the top 10 export companies in the month of November Kyagalanyi Coffee Ltd led with a market share of 16.22% compared to 11.06% last month. It was followed by Ideal Quality Commodities Ltd 12.29% (11.39%); Ugacof (U) Ltd 9.13% (13.07%); Besmark Coffee Company Ltd 6.76% (5.67%); Ibero (U) Ltd-6.10% (5.83%); Kampala Domestic Store Ltd-6.07% (3.00%) to mention but a few. The top 10 exporters held a market share of 73.61% higher than 72.97% commanded in October Out of the 38 exporters who performed, 14 exported Robusta Coffee only while 9 exported Arabica coffee only. Annex 2 shows a detailed list of exporters performance in November 2018.*The figures in brackets represent percentage market share held in October 2018.

3 4. Local Situation During the month of November, farm gate prices ranged from Sh.2,000-2,500 per kilo of Kiboko (Robusta dry cherries); Shs. 4,400-4,800/= for FAQ; Sh. 5,400-6,000/= for Arabica parchment; and Sh. 5,500-5,600/=per kilo for Drugar from Kasese. 5. Global Situation World coffee exports increased by 17% to million bags in October 2018, compared with 8.89 million in October The 2017/18 global production is estimated at million bags compared to million bags, an increase of 4.8% from last year. Arabica production increased by 1.7% to million bags while Robusta increased by 10.5 % to million bags. Africa s production increased by 3.4% from last year with an output of million bags. 6. Activities carried out in November Carried out physical analysis for 19 coffee samples collected for profiling. They are awaiting cupping. Collected 53 coffee samples from Bulambuli, Kapchorwa, Kween and Buko to use for profiling and masters research. These will be subjected to physical, sensory and cup analysis Promoted coffee at the 2018 Hainan International Coffee Congress and Beverage Expo in Haikun China were different coffee grades were showcased, information on Uganda coffee disseminated trade and coffee for tasting was provided to the attendees. Promoted coffee consumption at the Luwero district level dialogue PPP programme and during the press conference at the Media Centre at the launch of the coffee tourism symposium. 3

4 7. Foreign buyers of Uganda Coffee Annex 4 shows a list of Ugandan coffee buyers in November The top 10 buyers held a market share of % of total exports higher than 63.96% the previous month. Volcafe led with a market share of 10.90% compared to 6.89 % in October It was followed by Sucafina-10.68% (11.59%); Olam International 8.19% (9.78%); Bernhard Rothfos 6.18% (6.94%); Icona Cafe 5.68% (3.43%) Coex Coffee International-5.60%(4.28%), Louis Dreyfus- 5.52% (3.25%), Hamburg Coffee 5.32% (1.97%), Bercher Coffee- 4.24% (5.15%) and Ecom Agro Industrialist 3.18% (4.59%) 8. Coffee Development and Promotional Activities A total of 138,605,217 Coffee seedlings were allocated for second planting season (September to November 2018). Of these, Central region has been allocated 41,303,250, Eastern 22,438,508, Western 55,110,828, South Western 19,568,131 and Northern 184, Outlook for December 2018 Note: The figures in brackets represent percentage performance in the previous month -October Fig 4: Map showing Seedlings Allocated for Second Season of 2018 (Sep-Nov) Coffee exports are projected to be 400,000 bags as the main season in Central and Mt. Elgon regions peaks. The crop in Central region is expected to be higher while in Mt Elgon region the harvest was lower than the previous year on account of a biennial cycle characteristic of Arabica production whereby a bumper crop is followed by a lower crop harvest. Note that these allocations are cumulative for the second season Sep-Nov and they are not yet complete 4

5 Annex 1: Comparative Coffee Export Performance 60-kilo bags; US$ Coffee Year 2018/ /18 %-age Change Qty Value $ Qty Value $ Qty Value $ Grand Total 760,683 67,178, ,736 93,128, Total Robusta 543,103 42,557, ,455 61,541, Total Arabica 217,780 24,621, ,281 31,587, November 409,940 41,958, ,100 49,387, Robusta 300,233 28,965, ,759 33,117, Arabica 109,707 12,993, ,341 16,269, October 350,743 35,220, ,636 43,741, Robusta 242,870 13,591, ,696 28,423, Arabica 107,873 11,628, ,940 15,317,

6 Annex 2: List of Coffee Exporters and their Market Share: November 2018 POSITION HELD IN QUANTITY (Bags) PERCENTAGE MARKET SHARE EXPORTING COMPANY OCTOBER Robusta Arabica Total Individual Cumulative Total 300, , , Kyagalanyi Coffee Ltd 3 39,035 27,445 66, Ideal Quality Commodities Ltd 2 46,710-46, Ugacof (U) Ltd 1 35,558 1,871 37, Besmark Coffee Company Limited 6 8,366 19,360 27, Ibero (U) Ltd 5 24,992 24, Kampala Domestic Store Ltd 12 24, , Commodity Solutions (U) Ltd 8 14,408 8,084 22, Olam Uganda Ltd 4 17,284 4,848 22, Kawacom (U) Ltd 9 6 8,760 5,720 14, Great Lakes Coffee Company Ltd 15 14,436 14, Coffee World Ltd 13 8,954 4,540 13, Touton Uganda Limited 10 7,797 4,823 12, Grainpulse Ltd 11 9,400 2,080 11, Nakana Coffee Factory Ltd 21 9,420 9, Export Trading Company (U) Ltd 9 8,018 8, Tata Uganda Limited 13 7,500 7, Bakhsons Trading Co. (U) Ltd ,642 3,500 7, Ishaka Quality Commodities Ltd 14 6,838 6, Ankole Coffee Producers Coop Union 19 Ltd 17 5,672 5, Mbale Importers & Exporters Ltd 19 3,326 1,610 4, Darley Investments Ltd 23 3, Louis Dreyfus Company (U) Ltd , , Sena Indo Uganda Limited 31 1,470 1,500 2, Bulamu Coffee Buyers, Proc.& Exports 24 Ltd 27 2,333 2, Discovery Trading Ltd 24 1, ,

7 EXPORTING COMPANY POSITION HELD IN OCTOBER QUANTITY (Bags) PERCENTAGE MARKET SHARE Robusta Arabica Total Individual Cumulative 26 Bakwanye Trading Co. Ltd 26 1,310 1, Bukonzo Joint Co-operative Union Ltd Brikam (U) Ltd OMEGA OIL (U) Ltd Ankole Coffee Processors Ltd Kaweri Coffee Plantation Superbia International Coffee Trade Ltd Whitecup Coffee and Food Limited Banyankole Kweterana Coop Union Ltd Bukonzo Organic Farmers Cooperative Kibinge Coffee Farmers Qualicoff (U) Limited Turads Trading (U) Ltd

8 8 Annex 3: Main Destinations of Uganda Coffee by Type in November QUANTITY (60kg bags) DESTINATION %AGE MARKET SHARE Robusta Arabica Total Individual Cumulative Total 300, , , Italy 95,474 18, , Germany 55,845 47, , Belgium 17,222 19,120 36, Portugal 29,632 1,340 30, Switzerland 21, , Mexico 8,710 5,470 14, India 12,020 12, Morocco 4, , USA 4,856 4, Spain 3, , China 1,210 1,330 2, France 2,520 2, Russia 1, , South Korea 1,280 1, Sweden 1,070 1, Australia Sudan Ukraine Europe UK Japan Kenya Israel Finland Libya Turkey

9 DESTINATION QUANTITY (60kg bags) %AGE MARKET SHARE Robusta Arabica Total Individual Cumulative DESTINATION TAIWAN Madagascar Poland Slovenia Canada Greece Ireland Romania Unspecified 43,444 1,871 45,

10 Annex 4: List of Foreign Coffee Buyers during the Month of November 2018 BUYERS QUANTITY (60kg BAGS) %AGE MARKET SHARE Robusta Arabica Total Individual Cumulative Total 300, , , VOLCAFE 33,046 11,638 44, SUCAFINA S.A 41,912 1,871 43, OLAM INTERNATIONAL 27,121 6,448 33, BERNHARD ROTHFOSS 25,352 25, ICONA CAFÉ 22, , COEX COFFEE INTERNATIONAL 16,476 6,484 22, LOUIS DREYFUS 21, , HAMBURG COFFEE 19,728 2,100 21, BERCHER COFFEE 2,992 14,400 17, ECOM AGRO 8,710 4,310 13, AL-TASHEEL 12,950 12, STRAUSS 4,815 7,140 11, TATA COFFEE 7,500 7, , GEBR WESTHOFF 7, PACORINI SILOCAF 6,303 6, TOUTON GENEVE 3,674 2,360 6, FALCON COFFEES 5,500 5, INDUS COFFEE 4,520 4, GUZMAN COFFEE & NUTS 3,992 3, GULLOCKE & ROTHFOS 3,850 3, KONINKLIJKE DOUWE 3,600 3,

11 Annex 4: List of Foreign Coffee Buyers during the Month of November 2018 BUYERS QUANTITY (60kg BAGS) %AGE MARKET SHARE Robusta Arabica Total Individual Cumulative 22 KCL GERMANY 3,500 3, MULLER WESER GMBH 3,500 3, MITSUBISHI 2,880 2, NESTLE ESPANA S.A 2,520 2, JOSE MARIA VIERA S.A 2,100 2, SUPREMO S.A 1,750 1, PUR SYSTEM SARL Others 27,414 23,896 51,