Uganda Coffee beans are expected to be exported to China in large quantities.
Uganda's coffee exports in June 2021 were 618388 bags of 60 kg bags worth US $58.56 million, the highest in a single month since 1991.
This includes 565449 bags of robusta coffee valued at $50.25 million and 52939 bags of Arabica coffee valued at $8.31 million, according to UCDA's monthly report in June 2021. Compared with the same month last year, the quantity and value increased by 47.04% and 46.63% respectively.
Compared with the amount of coffee exported by type in the same month of the previous coffee year (June 2020), the quantity and value of Robusta increased by 63.89% and 72.56% respectively, while the export quantity and value of Arabica coffee decreased by 29.93% and 23.16%, respectively.
Compared with the previous year, the increase in Robusta exports that month was due to an increase in the production of newly grown coffee supported by favorable weather. The situation was also exacerbated by a positive trend in global coffee prices in the last two weeks of the month, prompting exporters to release stocks on the basis of increased purchases.
The decline in the value of Arabica coffee is due to low exports, and monthly exports of Arabica coffee continue to decline compared to the previous year, due to the non-annual biennial characteristics of Arabica coffee production, "the UCDA report shows.
Coffee exports in 12 months (fiscal year 2020) were 6078638 bags of 60 kg, valued at $559.26 million, compared with 5105881 kg bags in the previous year (fiscal year 2019), valued at $496.28 million.
This represents an increase of 19.05% in quantity and 12.69% in value. The total export volume in 12 months reached the highest level in 30 years.
Like many African countries, Uganda has a huge trade deficit with China. Last year, Uganda exported only $40 million worth of goods to China, but imported more than $1.3 billion in return, according to the United Nations.
The government is taking steps to solve the problem by using coffee, one of its most valuable exports. Ugandan coffee beans are coming to China on a large scale, and Ugandan coffee first arrived in China in 2003 through a joint venture with a Chinese company. They use online advertising as the key to focus Ugandan coffee on high-quality boutique coffee.
With the new coffee law coming into effect, Iyamulemye said UCDA will encourage farmers, buyers and exporters to increase production and exports while applying best practices.
"for traceability purposes, we will register farmers. We are also concerned about the certification of organic coffee growers. We want Ugandan coffee to be different in terms of quality and consistency, "he said." When trying to capture the Chinese coffee market, UCDA's boss said they were discussing preferential treatment such as export quotas with China. "our coffee will be aimed at the high-end coffee market in China,"
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