UCDA MONTHLY REPORT FOR JANUARY 2010

In This Issue: -
 This is the fourth monthly report for the coffee year (Oct/Sept. 2009/10).
 A total of 264,314 60-kilo bags worth US $ 25.4 m were shipped to various destinations
in January, down from 332,211 bags ($30.73 m) realised in January 2009.
 Unit price averaged 160 cents/kilo, 3 cents up compared to December 2009 and
November 2009.
 Farm-gate prices for Robusta Kiboko averaged Shs. 1,000 per kilo and FAQ was Shs.
2,100 while Arabica parchment prices oscillated around Shs. 3,500 per kilo.
 Cumulative exports in the first four months (Oct/Jan) of the coffee year - 2009/10 totalled
971,275 bags valued at US $ 91.9 m. This comprised: Robusta – 753,582 bags and
Arabica – 217,693 bags.
 Shipment in the 12 months (Feb/Jan) totalled 2.95 m bags, 10% down compared to a
similar period last year. This comprised Robusta – 2.27 m and 0.68 m bags of arabica.
A total of 264,314 60-kilogramme bags of coffee worth US $ 25.4 m were exported to
various destinations during the month of January 2010. This represents a drop of
20.4% and 17.5% in volume and value respectively in relation to the performance of
the same month last year as indicated in table 1.0.
TABLE 1.0 COMPARATIVE COFFEE EXPORT PERFORMANCE – 60-KILO BAGS; US$

2009/10 2008/09 %-Age Change

MONTHS Qty Value $ Qty Value $ Qty Value $
G/ Total 971,275 91,857,897 1,077,155 108,570,429 (9.8) (15.4)
October 199,011 18,644,339 179,564 21,003,596 10.8 (11.2)
 Robusta 146,411 11,733,063 151,485 17,185,337 (3.4) (31.7)
 Arabica 52,600 6,911,276 28,079 3,818,259 87.3 81.0
November 235,171 22,097,487 266,732 27,598,387 (11.8) (19.6)
 Robusta 186,654 15,144,982 220,268 21,705,523 (15.3) (29.8)
 Arabica 48,517 6,952,505 46,464 5892,864 4.4 18.0
December 272,755 25,764,709 298,648 29,240,135 (8.6) (15.0)
 Robusta 208,904 16,572,527 251,386 23,361,825 (16.90) (32.19)
 Arabica 63,875 9,192,182 47,262 5,878,310 35.15 56.37
January 264,314 25,351,362 332,211 30,728,311 (20.4) (17.5)
  Robusta 211,613 17,252,584 272,395 24,305,521 (22.3) (29.0)
 Arabica 52,701 8,098,778 59,816 6,422,790 (11.9) 26.1

This brings total shipment in the first four months (Oct/Jan) of the current coffee year
2009/10 to 971,011 bags valued at $ 91.9 m, representing an overall drop of 10% and
15% in volume and value respectively compared to a similar period last year. As per
coffee type, Robusta registered a drop of 17% in volume while arabica quantities went
up by 35.5% from181,621 bags last year to 217,693 bags as illustrated in Figure 1.0
below. The rise in arabica is explained by the on cycle, improved agronomic practices
in response to good prices received by farmers.

Page 1 UCDA Monthly Report: January 2010

 In the case of robusta, the 17% drop is largely due to the dry spell that hit the robusta
coffee growing districts at the critical stage of bean formation and development.

On a year-on-year basis (February 2009 to January 2010), shipment amounted to

around 2.95 m bags worth $ 274.8 m, representing a decline in both volume and value
of 10.0% and 29.3% respectively compared with 3.28 m bags worth US $ 388.7 m,
recorded a year before.
1.0 EXPORTS BY TYPE AND GRADE
Table 2.0 shows coffee exports by type, grade and the unit price realised for each
grade during the month of January 2010.
There was an improvement in the weighted average prices during the month from 153
cents in September 2009, 157 cent in November and December 2009 to 160 cents per
kilogramme in January 2010.
The average realised price for Robusta went up from 135 cents/kilo in November
2009, 132 cents in December 2009 to 136 cents in January 2010; the highest price
attained being 145 cents for washed Robusta and Sc 18 grades.
Arabica prices averaged 256 cents/kilo, an improvement from 240 cents in December
2009 and 239 cents in November 2009. Organic Bugisu fetched the highest prices of
324 cents/kilo followed by Bugisu Supremo at 316 cents, Organic Okoro at 284 cents
and Wugar at 283 cents all of which went to Specialty Markets. The raise in arabica
prices was in tandem with what obtained on the international market; supply tightness
in arabicas.
TABLE 2.0 COFFEE EXPORTS BY TYPE, GRADE, & UNIT PRICE IN JANUARY 2010
– in 60-kilo bags; US $, US $/kg –
QUANTITY Unit Price
TYPE/GRADE Value $
60-Kilo Bags %-age $/Kilo
Grand TOTAL 264,314 -  25,351,362 1.60
ROBUSTA 211,613 100.00 17,252,584 1.36
Washed Robusta 2,240 1.06 195,134 1.45

Page 2 UCDA Monthly Report: January 2010

 Screen 18 13,679 6.46 1,190,052 1.45
Screen 17 9,838 4.65 807,455 1.37
Screen 15 113,298 53.54 9,471,925 1.39
Screen 14 1,730 0.82 144,361 1.39
Screen 13 5,204 2.46 416,238 1.33
Screen 12 54,392 25.70 4,272,138 1.31
BHP 119 3,798 1.79 265,432 1.16
1
Other Rob. 7,434 3.51 489,848 1.10
ARABICA 52,701 100.00 8,098,778 2.56
ORG-OKORO 1,080 2.05 184,287 2.84
ORG-BUGISU 1,950 3.70 379,169 3.24
BUGISU AA 10,880 20.64 1,811,336 2.77
BUGISU A 910 1.73 149,303 2.73
BUGISU PB 330 0.63 48,016 2.43
BUGISU SU 1,280 2.43 242,541 3.16
ARA-CPB 320 0.61 48,678 2.54
Arabica AB 12,530 23.78 2,011,075 2.68
Wugar 7,550 14.33 1,282,494 2.83
Drugar 11,376 21.59 1,562,061 2.29
Others 4,495 8.53 379,819 1.41
1
Represents such coffees like Sc.1299, Sc. 1599, Sc. 1899, etc. in robusta.
2.0 INDIVIDUAL EXPORTER PERFORMANCE
Table 3.0 below shows the performance of individual exporters in the month of
January 2010. Out of the 34 export companies that have registered as at the end of
January 2010, only 22 performed as shown below.
The top 10 companies held a market share of 82.3% down from 85.5% and 91.1%
recorded in December and November respectively, a continued reduction in
concentration at exporter’s level. The best five included: Kyagalanyi Coffee Ltd with
43,798 bags which was 16.6% up from 23,819 bags (8.7%), followed by Ugacof (U)
Ltd. – 13.2% (15.2%); Job Coffee Ltd. – 10.4% (10.5%); Kawacom (U) Ltd – 7.8%
(10.2%); and Ibero (U) Ltd. – 7.2% (7.5%), where figures in brackets represent
exporter’s performance in the previous month.

Table 3.0 INDIVIDUAL EXPORTER PERFORMANCE IN JANUARY 2010

Quantity %- age Market Share
Exporting Company
Bags Individual Cumulative
263,314 100.00
1 Kyagalanyi Coffee Ltd. 43,798 16.63 16.63
2 Ugacof Ltd. 34,722 13.19 29.82
3 Job Coffee Ltd. 27,249 10.35 40.17
4 Kawacom (U) Ltd. 20,533 7.80 47.97
5 Ibero(U) Ltd. 18,830 7.15 55.12
6 Great Lakes Coffee Co. Ltd. 18,124 6.88 62.00
7 Savannah Commodities 14,820 5.63 67.63

Page 3 UCDA Monthly Report: January 2010

 8 Olam (U) Ltd. 13,854 5.26 72.89
9 Lakeland Holdings Ltd. 12,119 4.60 77.49
10 Pan Afric Impex Ltd. 12,555 4.77 82.26
11 Coffee World 11,739 4.46 86.72
12 Nakana Coffee Factory Ltd. 10,612 4.03 90.75
13 Kampala Domestic Store 7,275 2.76 93.51
14 Kamba Petroleum (U) Ltd 4,550 1.73 95.24
15 Mbale Importers & Exporters 3,370 1.28 96.5 2
16 Ankole Coffee Processors Ltd. 2,070 0.79 97.31
17 Kaweri Coffee Plantation 2,240 0.85 98.16
18 LD Commodities 1830 0.69 98.85
19 Senti Initiatives 1400 0.53 99.38
20 Gumutindo Co-op Society 960 0.36 99.75
21 Anderson Investments Ltd. 334 0.13 99.87
22 Ankole Coffee Producers Co-op Union 330 0.13 100.00

3.0 LOCAL SITUATION

Although coffee harvesting and marketing in Central and Eastern regions is close to an
end, there are farmers still with substantial stocks in their possession which they
release to the market in bits to meet their financial needs as they fall due. Some millers
have literally closed operations and are beginning to reallocate in south and south
western regions in readiness for the crop, which is due to start in April/May.
Kiboko, the dry Robusta coffee cherries, sold at the same price range as in the
previous month of Shs. 1,100-1,200 per kilo; and FAQ – Shs. 2,100 – 2,300. Arabica
parchment prices averaged Shs. 3,700 in Mt. Rwenzori region while in Mt. Elgon area some
farmers sold 30 tonnes of parchment at Shs. 4,000 per kilogramme. Farmers are responding
to market requirement in terms of quality as it plays a dominant role in determination
of farm-gate prices.
Marketing of coffee in Mid North especially in the regions of Lango and Acholi has
brought a lot of excitement among farmers. Over 20 metric tonnes of Kiboko were
collectively sold to traders at around Shs. 1,000 during the month. This has translated
into increased demand for clean planting materials; and a number of farmers have
started preparing their gardens in readiness for the coming rains.
Training coffee industry players in basic quality control techniques is currently going
on at UCDA premises, and it has attracted 19 participants, 15 of whom are from
export grading factories. Similar training of primary processors shall be undertaken in
3rd quarter.
4.0 COFFEE EXPORTS BY DESTINATION
Table 4.0 shows the main destinations of Uganda coffee during the month of January
20109.
Coffee exports to EU countries totalled 166,241 bags (62.9%) down from 178,469
(65.4%) recorded in the previous month. This was followed by Sudan with 53,577
bags (20.3%) up from 36,900 bags (13.5%), followed by Switzerland with 21,007
bags (8.0%) against 27,760 bags (10.2%) recorded in the previous month.
Page 4 UCDA Monthly Report: January 2010
 Table 4.0 MAIN DESTINATIONS OF UGANDA COFFEE IN JANUARY 2010
EXPORTER QTY %- Age Market Share
60-Kilo Bags Individual Cumulative
GRAND TOTAL 264,314 100.00
1 EU1 166,241 62.90 62.90
2 Sudan 53,577 20.27 83.17
3 Switzerland 21,007 7.95 91.11
4 USA 13,581 5.14 96.25
5 South Africa 2,710 1.03 97.28
6 Israel 2,282 0.86 98.14
7 India 1,500 0.57 98.71
8 Morocco 1,336 0.51 99.21
9 Australia 1,110 0.42 99.63
10 Egypt 670 0.25 99.89
11 Singapore 300 0.11 100.00
5.0 BUYERS OF UGANDA COFFEE
Table 5.0 represents the buyers of Uganda coffee in the month of January 2010. The
top 5 buyers in terms of quantity were: Socadec – 14.1% (13.4%); followed by
Aldwami – 10.3% (4.8%); Sucafina – 8.7% (10.9%); ABACO - 8.6% (5.7%); and
Decotrade – 6.2% (2.5%). The figures in brackets represent performance in the
previous month – December 2009.
TABLE 5.0 BUYERS OF UGANDA COFFEE IN JANUARY 2010: 60-kilo bags
QTY %-Age Market Share
BUYERS
60-Kilo Bags Individual Cumulative
GRAND TOTAL 264,314 100.00
1 SOCADEC 37,341 14.13 14.13
2 ALDWAMI 27,300 10.33 24.46
3 SUCAFINA 23,084 8.73 33.19
4 ABACO 22,837 8.64 41.83
5 DECOTRADE 21,590 8.17 50.00
6 ECOM AGROINDUSTRIAL 18,463 6.99 56.98
7 B.ROTHFOS 16,562 6.27 63.25
8 OLAM INT. 14,472 5.48 68.72
9 HAMBURG C 9,928 3.76 72.48
10 VOLCAFE 9,160 3.47 75.95
11 COEX COFFEE 8,864 3.35 79.30
12 STRAUSS CO 8,502 3.22 82.52
13 GUZMAN 4,020 1.52 84.04
Others 42,191 15.96 100.00

6.0 COFFEE DEVELOPMENT AND PROMOTIONAL ACTIVITIES

 Mt. Gorilla Organic Coffee Estate Association together with LEAD-USAID
finalised implementation arrangements of a one-year programme for promoting
and market of organic coffee from Kisoro district.
Field extension staff (10) for the project have been recruited and deployed in the
areas to advise farmers on good agronomic practices. This initiative is envisaged to
increase the quantity in the range of 100 tonnes of coffee from the areas to the
Specialty markets in the US, thus enhancing household incomes.

1
EU countries are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Rumania, Slovakia, Slovenia, Spain, Sweden,
The Netherlands, and UK.

Page 5 UCDA Monthly Report: January 2010

  During this year’s taste of harvest, five samples of washed arabica coffee, namely
Kapchorwa Bukwo Mild, Bugisu A, Rwenzori A, Wugar and Mt. Elgon A were
presented for competition at EAFCA Head Quarter, Muyenga Hill. Kapchorwa
Bukwo Mild was ranked the best with 84.7 points followed by Mt. Elgon A (83.2
pts) and Rwenzori A (82.7 pts) both fielded by Kyagalanyi Coffee Ltd, and
Bugisu A (81.4 pts) and Wugar (78.9 pts) by Great Lakes Coffee Ltd.
The taste of harvest was preceded by training in Laboratory Management, which
attracted 12 participants from the industry – exporters, EAFCA and UCDA. The
training was conducted by Ms Wendy Dejong from Coffee Quality Institute
(CQI), USA.
 Over 70 Ugandan women in coffee drawn from various strata of the coffee supply
chain undertook training in coffee matters; and at the end they resolved to form the
International Women Coffee Association (IWCA) Uganda Chapter to address the
challenges of women in coffee. A Steering Committee comprising representatives
from Central, Eastern, Western, South-Western and Northern regions was
constituted to concretize formation of the Chapter. The Secretariat is to initially be
hosted by Cafe Africa. The meeting and training were jointly funded by Cafe
Africa, EAFCA and UCDA.
8.0 OUTLOOK FOR FEBRUARY 2010
February exports are projected at around 250,000 bags as per field reports, which
indicate low level of stocks at household and primary processing levels. In view of
this, the year’s exportable production has been revised to around 3.0 m bags (180,000
tonnes), down from 3.4 m bags (204,000 tonnes) released in June last year.
Uganda’s best Barista in the 3rd National Barista Championship, which was held in
November 2009, Mr. MBABAZI Robert is to represent Uganda in the 1 st African
Barista Championship (ABC) due to take place in Mombasa, Kenya at the EAFCA
Annual Conference.
9.0 CALENDAR OF EVENTS
 The 7th African Fine Coffees Conference and Exhibition 2010 is due in February
12– 14, 2009 in Mombasa, Kenya preceded by the 6 th Scientific Conference; and
Uganda is to have a high level representation from the coffee industry, which will
include representatives of the International Women Coffee Association Uganda
Chapter. These are to share their experiences in coffee with fellow women from
Africa over a cup of coffee as a side event.
 The ICO – World Coffee Conference 2010 is slated to take place in Guatemala
City, Guatemala during the period February 26– 28, 2010, under the them:
‘Coffee for the future: Towards a sustainable coffee sector’. Uganda’s
presentation is on: ‘Youth, Social Sustainability and Coffee in African Coffee
Producing Countries’. For more details visit: www.wcc2010guatemala.com

Page 6 UCDA Monthly Report: January 2010