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Report Highlights:

Marketing year (MY) 2014 Ugandan exportable coffee surplus will likely reach 3.4 million 60 kilogram bags, above MY 2012 and 2013 exports. FAS/Nairobi forecasts Uganda’s coffee production to reach a near-record 3.5 million 60 kilogram bags. The government of Uganda envisages producing 4.5 million 60 kilogram bags of green coffee per year by 2015. 

Production: 

FAS/Nairobi forecasts an increase in both Robusta and Arabica coffee production in MY 2014 in response to favorable world prices, continued government-sponsored coffee production campaigns (started in 2006), and improved crop husbandry practices.

Consumption: 

The African Fine Coffee Association estimates coffee consumption in Uganda at 3 percent of its annual production. Following factors account for the relatively low coffee consumption in the domestic market:

• Limited promotional/coffee awareness campaigns; 

• Domestic coffee roasters face fierce competition for the good graded coffee from exporters, who prefer to sell in the international market than the local market because of better prices; and 

• Inadequate roasting equipment and packaging materials. 

Uganda has about 12 registered domestic coffee roasters. Three of the roasters are located in the eastern Bugisu area of Mount Elgon and roast Arabica coffee while another two roasters process coffee at the TANICA soluble coffee factory in Bukoba, Tanzania and then re-package the powder in Kampala, before distributing to the local and regional markets. 

Trade: 

Europe remains the most important importer of Ugandan Robusta and Arabica coffees, followed by the United States, India, and Russia. Robusta beans, used in espressos and instant drinks, accounted for 70 percent of Ugandan exports in MY 2011/2012, according to Uganda’s Coffee Development Authority (UCDA).

Policy: 

Since the liberalization of the coffee market in 1991, the Ugandan government has encouraged coffee farmers to gradually replace the old, diseased coffee trees with new, genetically pure and high yielding coffee varieties at a rate of 5% per annum for Robusta and 2% per annum for Arabica for 20 years. 

The government has also developed a National Coffee Policy which is awaiting debate in Parliament. The key focus areas of the policy include increasing productivity; restoring and increasing area under coffee; and creating an enabling policy environment

Black Sea Trade Flows (BST Flows)

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