Uganda coffee exports fall 13.7% in August as drought cuts harvest

Kampala, Oct 15: Uganda’s coffee exports fell 13.7% in August from a year earlier after a prolonged drought cut harvests in some areas. The East African country shipped 737,766 60-kilogram bags in August, down from 855,441 bags in the same period last year.

The agriculture ministry report, shared on Thursday, Oct 15, did not give a reason for the decline. An industry player attributed the drop to drought that blighted coffee trees in parts of Uganda and depressed harvests.

Export value also drops

August exports earned Uganda $181.7 million, down 11.6% from earnings in the corresponding month a year ago, the report showed. The fall in both volume and value puts pressure on one of the country’s biggest foreign exchange earners.

Coffee remains a key forex earner

Coffee, alongside gold, is one of Uganda’s largest foreign exchange earners. Uganda is also Africa’s largest coffee exporter, making its harvest and shipment trends closely watched by traders and buyers.

The drought hit coffee trees in some parts of the country, reducing the harvest available for export. The ministry report did not provide a breakdown of the affected areas or an estimate of losses.

What the decline means

The 13.7% drop in August shipments from Africa’s largest coffee exporter reduces supply from Uganda. The 11.6% fall in export value also means lower earnings from a crop that, with gold, is central to Uganda’s foreign exchange receipts.