UCDA Report 2017/18 Issue 10 MONTHLY REPORT-JULY 2018 Key Highlights A total of 393,022 60-kilo bags of coffee valued at US$ 40.69 million were exported in July 2018 at an average weighted price of US $1.77/kilo, 2 cents higher than US$ 1.75 kilo last month. Farm-gate prices for Robusta Kiboko averaged Shs. 22100/= per kilo; FAQ Shs 5,000/= per kilo, Arabica parchment Shs 5,700/= per kilo and Drugar Sh. 5,400/kilo. Coffee exports for 12 months ( August 2017 to July 2018) totalled to 4.42 million bags worth $483 million comprising Robusta 3.34 million bags worth $346 million and Arabica 1.08 million bags worth $138 million. 76.36% of the total volume was exported by 10 exporters, out of 34 who performed during the month compared to 78.37% in June 2018 The ICO Composite Indicator price decreased from US Cents 110.44 per lb. in June 2018 to US cents 107.20 per lb. in July 2018. 1. Coffee exports Coffee exports in July 2018 amounted to 393,022 60-kilo bags worth US $ 40.67 million as shown in Fig 1. This comprises 331,342 bags ($ 32.97 million) of Robusta and 61,680 bags ($7.72 million) of Arabica (see Annex1). This was a decrease of 8.01% and 17.49% in quantity and value respectively from the same month last year. Arabica registered a percentage increase in both quantity and value (7.97% and 2.27% respectively). Coffee exports in 10 months (Oct-July) were 4.8% and 13.4% lower than the previous year (Table 1). Some of the factors that led to this were: Low global prices on account of higher crop in Brazil which affected export prices as well as lower production from the main harvest in Masaka and South-Western regions compared to the previous year, new trees coming into production notwithstanding. By comparing quantity of coffee exported by type in the same Cumulatively, coffee exports for 12 months (August 2017-July month of last year (July 2016/17 and 2017/18), Robusta 2018) totalled to 4.42 million bags worth US$ 483 compared to registered a percentage decrease in both Quantity and Value. 4.34 million bags worth $ 512 million in the previous year (August (10.47% and 21.06% respectively). 2016-July 2017). This was an increase of 1.77% and a decrease of 5.66% in quantity and value respectively. Fig 1: Trend of Total Quantity and Value of Coffee exported (August 2017-July 2018) Table1: Comparison of Coffee Exports of June 2016/17 and 2017/18 Coffee years Period/Coffee Type 2017/18 2016/17 %age Change Qty(60-kgbag) Value/$ Qty(60-kgbag) Value/$ Qty(60- kgbag) Value/$ July Total 393,022 40,686,546 427,204 49,313,748-8.01-17.49 Robusta 331,342 32,969,941 370,075 41,768,206-10.47-21.06 Arabica 61,680 7,716,605 57,129 7,545,542 7.97 2.27 Total for 10 Months CY(Oct-July) 3,661,636 397,521,210 3,844,979 459,159,698-4.77-13.42 1
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 July 2018. The weighted average export price was US$ 1.73 per kilo, 1 cent down from US$ 1.74 per kilo the previous month. Robusta exports accounted for 84.31% of total exports compared to 79.55% last month. The weighted average Robusta price was US$ 1.66 per kilo, the same as the previous month. Organic Robusta had the highest price of US$ 2.17 per kilo, fetching a premium of 34 cents over conventional Screen 18 sold at an average of US$ 1.83 per kilo which followed. Arabica fetched a weighted average price of US$ 2.09 per kilo, US Cent 1 higher than US $ 2.08 in June 2018. The highest prices were Mt. Elgon A, Bugisu B and Bugisu PB sold at US $ 3.80 per kilo each, a premium of 32 cents over conventional Bugisu AA (note however the quantities are small which might have been sold as a sample). They were followed by Organic Okoro sold at a unit price of US$ 2.66, a premium of US cents 45 above Wugar. Organic Drugar fetched US$ 2.71 per kilo, a premium of 72 cents over conventional Drugar which contributed 63.06% of Arabica exports. Drugar had a discount of 49 cents compared to Bugisu AA. Table 2: Coffee Exports by Type, Grade & Unit Price in July 2018 in 60-kilo bags; US $, US $/kg Coffee type Quantity 60-Kilo Bags %-age Quantity Value in US $ %-age Value Unit Price $/Kilo TOTAL 393,022 100.00 40,686,547 100.00 1.73 ORGANIC ROBUSTA 3,790 1.14 493,645 1.50 2.17 WASHED ROBUSTA 320 0.10 34,709 0.11 1.81 SCREEN 18 26,965 8.14 2,959,340 8.98 1.83 SCREEN 17 23,521 7.10 2,454,930 7.45 1.74 SCREEN 15 170,399 51.43 17,597,963 53.38 1.72 SCREEN 14 700 0.21 68,519 0.21 1.63 SCREEN 13 694 0.21 67,470 0.20 1.62 SCREEN 12 68,046 20.54 6,558,395 19.89 1.61 BHP 1199 24,485 7.39 1,755,194 5.32 1.19 OTHER ROBUSTAS 12,422 3.75 979,777 2.97 1.31 TOTAL ROBUSTA 331,342 100.00 32,969,941 100.00 1.66 ORGANIC OKORO 3,630 5.89 579,678 7.51 2.66 ORGANIC DRUGAR 640 1.04 103,958 1.35 2.71 MT.ELGON A+ 4,432 7.19 611,066 7.92 2.30 MT.ELGON AA 324 0.53 46,161 0.60 2.37 MT.ELGON A 17 0.03 3,876 0.05 3.80 BUGISU A+ 1,320 2.14 183,335 2.38 2.31 BUGISU AA 3,941 6.39 587,405 7.61 2.48 BUGISU A 1,080 1.75 142,858 1.85 2.20 BUGISU AB 320 0.52 42,752 0.55 2.23 BUGISU B 3 0.00 684 0.01 3.80 BUGISU PB 3 0.00 684 0.01 3.80 MIXED ARABICA 300 0.49 30,556 0.40 1.70 WUGAR 4,170 6.76 548,751 7.11 2.19 DRUGAR 38,893 63.06 4,642,474 60.16 1.99 TRIAGE 2,607 4.23 192,368 2.49 1.23 TOTAL ARABICA 61,680 100.00 7,716,605 100.00 2.09 3. Individual Exporter Performance Fig 2 shows the first top 10 export companies in the month of July 2018. Ugacof (U) Ltd led with a market share of 13.70% compared to 6.69% last month. It was followed by Kyagalanyi Coffee Ltd 11.24% (8.48%); Ideal Quality Commodities Ltd 10.41% (12.54%); Ibero (U) Ltd 7.61% (8.76%); Olam (U) Ltd-6.51% (8.76%); Kawacom (U) Ltd- 6.42% (5.63%) to mention but a few. The first 10 exporters held a market share of 76.74% slightly higher than 76.36% in June 2018. Out of the 34 exporters who performed, 17 exported Robusta Coffee only while 4 exported Arabica coffee only. Fig 2: First 10 market share Exporting Companies-June 2
4. Local Situation During the month of July, farm gate prices ranged from Sh.2,000-2,400 per kilo of Kiboko (Robusta dry cherries); Shs. 4,700-5,300/= for FAQ; Sh. 5,400-6,000/= for Arabica parchment; and Sh. 5,200-5,600/= per kilo for Drugar from Kasese. The averages were: Sh. 2,200 per kilo for Kiboko coffee; Sh. 5,000 for Robusta FAQ; Sh. 5,700 for Arabica parchment and Sh. 5,400/= for Drugar. 6. Coffee Exports By Destination 5. Global Situation Global coffee exports for June 2018 were 10.45 million bags, which were 2.6% higher than in June 2017. Total exports for the nine months of coffee year 2017/18 were 90.86 million bags, which was an increase of 0.3%. The 2017/18 global production is still estimated at 158.56 million bags compared to 159.05 million bags, a decrease of 0.3% from last year. Arabica production is estimated to reduce by 6.6% to 97.16 million bags while Robusta is projected to increase by 11.5 % to 61.40 million bags. Africa s production is expected to increase by 5.3% from last year with an output of 17.30 million bags. Global consumption is projected to increase by 1.5% at 161.23 million bags with major increases noted in Asia and Oceania countries and South America. The ICO Composite Indicator price decreased from US Cents 110.44 per lb. in June 2018 to US cents 107.20 per lb. in July 2018. It ranged from US cents 104.98 to 109.46 per lb during the month. The destinations of Uganda s coffee exports during the month of July 2018 are shown in Fig 3 (details in Annex 3). Exports to EU countries amounted to 253,142 bags higher than 201,931 bags exported in the previous month. This represented a 64.41% of total exports. EU was followed by Sudan with 65,037 bags (16.55%) compared to 43,640 bags (13.62%) the previous month. India imported 18,960 (4.82%) compared to 21,106 (6.59%), USA 16,760 bags (4.26%) compared to 15,369 (4.8%) and Morocco 11,535 (2.93%) compared to 12,968 (4.05%). Coffee exports to Africa amounted to 80,804 bags, a market share of 20.56% compared to 60,100 (18.76%) bags the previous month. Fig 3: Map showing Main Destinations of Uganda Coffee by Quantity in 60kgsBag: July 2018 3
7. External Buyers of Uganda Coffee Annex 4 shows a list of Ugandan coffee buyers in July 2018. The top 10 buyers held a market share of 63.91 % of total exports higher than 62.23% the previous month. Sucafina S.A led with a market share of 14.03% compared to 8.94% in June 2018. It was followed by Altasheel-10.64% (9.83%); Bernhard Rothfos 7.61% (9.84%); Olam International-6.84% (12.33%); Volcafe 6.49% (7.25%) Ecom Agro Industrial-4.94% (3.47 %) Luigi Lavazza-4.52% (0.85%), Kininklijke 3.39% (2.47%), Strauss Commodities-2.77% (1.55%) and Cofftea 2.67% Note: The figures in brackets represent percentage performance in the previous month -June 2018. 8. Coffee Development and Promotional Activities A total 240,425,353 Coffee seedlings were available for planting in the five coffee growing regions in first planting season of 2018 (March to May). Of these, 189,201,302 were allocated and 163,085,239 seedlings have so far been planted. Comparing with the last coffee second planting season (September- November 2017), a total of 131,019,698 coffee seedlings were planted in 102 coffee growing districts out of the 157,063,064 coffee seedlings that were available in the 2,089 nurseries. 9. Outlook for August 2018 Coffee exports are projected to be 380,000 bags as the main season in Masaka and South Western regions begins to tail off. Fig 4: Map showing Seedlings Allocated in First season of 2018 (March-May) 4
Annex 1: Comparative Coffee Export Performance 60-kilo bags; US$ Coffee Year 2017/18 2016/17 %-age Change Qty Value $ Qty Value $ Qty Value $ Grand Total 3,661,636 397,521,210 3,844,979 459,159,698-4.35-12.88 Total Robusta 2,674,799 271,743,676 2,951,835 331,073,865-9.22-17.43 Total Arabica 986,837 125,777,534 893,144 128,085,833 10.66-1.96 July 393,002 40,686,547 427,204 49,313,748-8.01-17.49 Robusta 331,342 32,969,941 370,075 41,768,206-10.47-21.06 Arabica 61,680 7,716,605 57,129 7,545,542 7.97 2.27 June 320,339 33,596,204 430,565 49,591,173-25.60-32.25 Robusta 254,822 25,432,958 356,925 39,456,375-28.61-35.54 Arabica 65,517 8,163,246 73,640 10,134,798-11.03-19.45 May 319,035 34,130,321 408,454 47,191,822-21.97-27.80 Robusta 218,752 21,796,402 324,640 35,752,555-32.62-39.04 Arabica 100,283 12,333,919 83,814 11,439,267 19.65 7.82 April 295,035 32,698,910 325,566 39,277,120-9.38-16.75 Robusta 178,377 17,491,157 242,501 27,915,872-26.44-37.33 Arabica 116,658 12,333,918 83,065 11,361,248 40.63 34.13 March 333,346 35,737,154 409,916 50,443,414-18.68-29.15 Robusta 224,036 21,852,848 316,314 36,539,693-29.17-40.19 Arabica 109,310 13,884,306 93,602 13,903,721 16.78-0.14 February 388,644 41,387,168 396,523 48,306,210-1.99-14.32 Robusta 294,482 29,276,992 301,116 34,545,200-2.2-15.25 Arabica 93,756 12,110,176 95,407 13,761,010-1.73-12 January 401,930 43,661,837 404,673 48,981,950-0.68-10.86 Robusta 311,567 31,481,816 304,787 33,973,480 2.22-7.33 Arabica 90,363 12,180,021 99,886 15,008,470-9.53-18.85 December 386,217 42,719,520 425,241 51,515,317-9.18-17.07 Robusta 291,314 30,008,351 328,164 36,036,618-11.23-16.73 Arabica 94,903 12,711,169 97,077 15,478,699-2.24-17.88 November 443,100 49,387,020 407,693 50,345,770 8.68-1.9 Robusta 310,759 33,117,191 278,245 31,508,240 11.69 5.11 Arabica 132,341 16,269,829 129,448 18,837,530 2.23-13.63 October 381,636 43,741,276 209,144 24,193,173 82.48 80.8 Robusta 259,696 28,423,983 129,068 13,577,626 101.21 109.34 Arabica 121,940 15,317,294 80,076 10,615,548 52.28 44.29 5
Annex 2: List of Coffee Exporters and their Market Share: July 2018 EXPORTING COMPANY POSITION HELD IN JUNE PERCENTAGE MARKET QUANTITY (Bags) SHARE Robusta Arabica Total Individual Cumulative 1 Ugacof (U) Ltd 4 40,337 13,500 53,837 13.70 13.70 2 Kyagalanyi Coffee Factory Ltd 1 28,205 15,956 44,161 11.24 24.93 3 Ideal Quality Commodities Ltd 2 39,163 1,770 40,933 10.41 35.35 4 Ibero (U) Ltd 5 29,916 29,916 7.61 42.96 5 Olam Uganda Ltd 3 23,848 1,720 25,568 6.51 49.47 6 Kawacom (U) Ltd 11 17,530 7,714 25,244 6.42 55.89 7 Touton Uganda Limited 7 21,982 1,377 23,359 5.94 61.83 8 Besmark Coffee Company Limited 9 22,596 22,596 5.75 67.58 9 Kampala Domestic Store Ltd 6 18,418 18,418 4.69 72.27 10 Louis Dreyfus Commodities (U) Ltd 12 14,324 3,260 17,584 4.47 76.74 11 Export Trading Company (U) Ltd 8 6,340 11,037 17,377 4.42 81.16 12 Commodity Solutions (U) Ltd 10 15,564 15,564 3.96 85.12 13 Coffee World Ltd 14 8,536 8,536 2.17 87.30 14 Qualicoff (U) Limited 15 6,590 6,590 1.68 88.97 15 Ankole Coffee Producers Coop Union Ltd 18 6,480 6,480 1.65 90.62 16 Tata Uganda Lmited 22 4,500 4,500 1.14 91.77 17 Bakhsons Trading Co. (U) Ltd 16 4,000 4,000 1.02 92.78 18 Tatoma International Smc Ltd - 4,000 4,000 1.02 93.80 19 Great Lakes Coffee Company Ltd 13 3,580 3,580 0.91 94.71 20 Ishaka Quality Commodities Ltd 26 3,510 3,510 0.89 95.61 21 Savannah Commodities Ltd Bulamu Coffee Buyers, Proc.& Exports Ltd 22 20 16 3,500 3,500 0.89 96.50 2,994 2,994 0.76 97.26 23 The Edge Trading (U) Ltd - 2,800 16 2,816 0.72 97.97 24 Nakana Coffee Factory Ltd 19 2,480 2,480 0.63 98.61 25 NUCAFE 27 1,338 2 1,340 0.34 98.95 6
EXPORTING COMPANY 26 Mbale Importers & Exporters Ltd Banyankole Kweterana Coop Union Ltd 27 28 Discovery Trading Ltd 29 Bakwanye Trading Co. Ltd 30 Brikam Uganda Ltd Bukonzo Joint Co-operative Union Ltd 31 32 Kaweri Coffee Plantation Kibinge Coffee Farmers' Coop Soc Ltd 33 34 The Coffee Gardens Ltd POSITIO N HELD IN JUNE 24-21 29 30 32 25 28 - QUANTITY (Bags) PERCENTAGE MARKET SHARE Robusta Arabica Total Individual Cumulative 350 680 1,030 0.26 99.21 720 720 0.18 99.39 640 20 660 0.17 99.56 360 360 0.09 99.65 330 330 0.08 99.74 320 320 0.08 99.82 320 320 0.08 99.90 320 320 0.08 99.98 41 38 79 0.02 100.00 7A sustainable coffee industry with high stakeholder value for social economic transformation
Annex 3: Main Destinations of Uganda Coffee by Type in July 2018. POSITION HELD QUANTITY (60kg bags) DESTINATION IN JUNE %AGE MARKET SHARE Robusta Arabica Total Individual Cumulative Total 331,342 61,680 393,022 100.00 1 EU 1 216,930 36,212 253,142 64.41 64.41 2 Sudan 2 62,967 2,070 65,037 16.55 80.96 3 India 3 18,960 18,960 4.82 85.78 4 USA 4 7,454 9,306 16,760 4.26 90.05 5 Morocco 5 8,945 2,590 11,535 2.93 92.98 6 Israel 7 960 3,740 4,700 1.20 94.18 7 Japan 9 3,020 462 3,482 0.89 95.06 8 Switzerland 11 3,326 3,326 0.85 95.91 9 Russia - 984 1,280 2,264 0.58 96.48 11 South Africa 13 1,920 16 1,936 0.49 96.98 12 China - 1,030 770 1,800 0.46 97.44 13 Kenya - 1,336 320 1,656 0.42 97.86 14 Vietnam - 1,210 320 1,530 0.39 98.25 15 South Korea 6 1,400 1,400 0.36 98.60 16 Ukraine 17 1,340 1,340 0.34 98.94 17 Canada 8 1,280 1,280 0.33 99.27 18 Taiwan - 1,200 1,200 0.31 99.57 19 Algeria 15 640 640 0.16 99.74 20 United Kingdom 14 320 34 354 0.09 99.83 21 Australia - 320 320 0.08 99.91 22 Saud Arabia - 320 320 0.08 99.99 23 Kuwait - 20 20 0.01 99.99 24 Turkey - 20 20 0.01 100.00 8
Annex 4: List of External Coffee Buyers during the Month of July 2018 BUERS POSITIO N HELD IN JUNE QUANTITY (60kg BAGS) %AGE MARKET SHARE Robusta Arabica Total Individual Cumulative Total 331,342 61,680 393,022 100.00 1 Sucafina S.A 4 41,652 13,500 55,152 14.03 14.03 2 Al-tasheel 3 40,079 1,750 41,829 10.64 24.68 3 Bernhard Rothfoss 2 29,916 29,916 7.61 32.29 4 Olam International 1 25,282 1,600 26,882 6.84 39.13 5 Volcafe 5 18,143 7,382 25,525 6.49 45.62 6 Ecom Agro Industrilal 4 13,330 6,104 19,434 4.94 50.57 7 Luigi Lavazza 26 17,752 17,752 4.52 55.08 8 Koninklijke Douwe 9 13,320 13,320 3.39 58.47 9 Strauss 19 5,025 5,860 10,885 2.77 61.24 10 Cofftea - 10,500 10,500 2.67 63.91 11 Hamburg Coffee 16 9,360 700 10,060 2.56 66.47 12 Bercher Coffee 11 8,110 8,110 2.06 68.54 13 Pacorini Silocaf 15 7,400 7,400 1.88 70.42 14 Coex Coffee International 24 7,320 7,320 1.86 72.28 15 S.L.N Coffee Private - 6,240 6,240 1.59 73.87 16 Vollers - 1,336 4,840 6,176 1.57 75.44 17 Icona Café 12 5,628 360 5,988 1.52 76.96 18 Jacobs Douwe - 5,400 5,400 1.37 78.34 19 Aldwami 13 5,250 5,250 1.34 79.67 9
Annex 4: List of External Coffee Buyers during the Month of July 2018 BUYERS POSITION HELD IN JUNE QUANTITY (60kg BAGS) %AGE MARKET SHARE Robusta Arabica Total Individual Cumulative 20 Nestle Espana - 5,030 5,030 1.28 80.95 21 Guzman Global 27 4,898 4,898 1.25 82.20 22 Tata Coffee Ltd - 4,500 4,500 1.14 83.35 23 Tropicore 22 4,480 4,480 1.14 84.49 24 Elmathahib - 4,200 4,200 1.07 85.55 25 Gebr Westhoff - 4,200 4,200 1.07 86.62 26 Louis Dreyfus 10 4,008 4,008 1.02 87.64 27 Gahwtna - 4,000 4,000 1.02 88.66 28 Touton Geneva - 2,981 60 3,041 0.77 89.43 29 Intergrano S.L - 2,004 970 2,974 0.76 90.19 30 Others 24,198 14,354 38,552 9.81 100.00 Compiled by: Directorate of Strategy and Business Development Uganda Coffee Development Authority 10 July 2018