By JONATHAN KAMOGA

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Uganda's coffee export volumes grew to a record 4.8 million bags this year from 4.5 million bags in September last year, according to the Uganda Coffee Development Authority (UCDA).

Figures released last week by the authority show that the country has also raked in Ush1.8 trillion ($472 million) in the 2018/2019 financial year, up from Ush1.2 trillion ($315 million) in 2016/2017.

Both the value and volume of coffee exports have been on a steady increase since 2015.

The UCDA attributed the increase to conducive weather in coffee growing areas and an increase in the number of households growing the crop.

An estimated 1.8 million Ugandan households are involved in coffee production, with 80 per cent growing the robusta variety.

Top producer

Uganda is the second biggest producer and exporter of coffee on the continent at 4.8 million bags (288,000 metric tonnes) behind Ethiopia with 6.4 million bags or 384,000 metric tonnes.

Farmers in the country’s main coffee producing areas in central and eastern regions are expecting a bumper bean yield in the harvest season that started earlier this month.

The UCDA has projected output in the 2018/19 season to increase to over five million bags (60kg) given improved conditions.

The government has an ambitious target of reaching 20 million bags per annum by 2020, an almost 77 per cent increase by the current numbers.

But the more realistic figure rests in the Uganda National Coffee Strategy Plan for 2015-2020, which sees Uganda producing 5.8 million bags by 2020.

Foreign exchange earner

This would rake in at least $1.1 billion, making coffee the second highest foreign exchange earner, after tourism, which brings in $1.5 billion.

Some UCDA officials however cite effects of climate change coupled with ageing crops, poor cultivation and post-harvest methods, as hurdles to achieving the 20 million bags by 2020,

However, coffee processors say the country could get much more than what it is currently earning from its coffee exports if it pushed for value addition and branding.

The government is now looking to promote value addition as a means of increasing its coffee export value through courting investors to set up factories and it is currently distributing wet mills to coffee grower’s co-operatives.

The UCDA is also carrying out sensory analysis on coffee products due for export.

Uganda still earns lower premiums in export for its arabica coffee compared with countries such as Ethiopia and Kenya although it still preferred for its lower-priced and more bitter tasting robusta beans.

Local processors blame the low premium placed on Ugandan beans on lack of brand awareness of Ugandan coffee leading to poor access to premium markets, less effective pricing and contracting, lower margins and lost volumes.

Whereas production and export is rising, Uganda’s coffee consumption is still low with the biggest population preferring tea.

According to UCDA, Uganda’s coffee consumption rate stand at 244,800 bags while its per capita consumption is at 1.4 kg annually.

A domestic Coffee Consumption Strategy, which looks at various ways through which the country can improve coffee consumption, was rolled out in early 2017 but is yet to yield results.