UCDA MONTHLY REPORT FOR DECEMBER 2009

In This Issue: -
• This is the third monthly report, which marks the end of the first quarter
(Oct/Dec) of coffee year 2009/10.

• Total exports in December amounted to 272,779 60-kilo bags of coffee worth

US $ 25.76 million up from 235,171 bags worth US$ 22.10 million shipped in
November 2009. Compared to a similar month last year, there was a drop of
9% and 15% in volume and value, respectively.

• Farm-gate prices for Robusta Kiboko ranged between Shs. 800-900/= slightly
lower than in the previous month when it hovered between Shs. 900-1,100
per kilo. FAQ was Shs. 1,800 – 1,900. Arabica parchment prices were in the
range: Shs. 3,000 – 3,500 per kilogramme.

• Coffee exports in the first quarter (Oct/Dec 2009) totalled 706,961

bags ($ 66.51 m), 5.1% and 15.6% down in volume and value, respectively in
contrast to a similar quarter last year.

• The year-on-year coffee exports stood at 3.02 million 60-kilo bags

valued at US$ 280 million: Robusta 2.33 million bags and Arabica-0.69 million
bags.

A total of 272,779 60-kilo bags worth US$ 25.76 million were

shipped in December 2009 up compared to 235,171 bags valued at
US $ 22.10 m, recorded in November, representing a rise of 16.0% in
volume and 16.6% in value.
As compared to the same month last coffee year, both volume and
value fell by 8.6% and 15%, respectively as indicated in the table
below. Robusta dropped by 16.9% and 32.2% in volume and value,
respectively but the performance of arabica was 35.1% and 56.4%
up in volume and value.
TABLE 1.0 COMPARATIVE COFFEE EXPORT PERFORMANCE – 60-KILO
BAGS; US$
2009/10 2008/09 %-Age Change
Qty Value $ Qty Value $ Qty Value $
66,506,5 78,796,51
G/ Total 706,961 744,944 (5.10) (15.60)
35 3
18,644,3 21,003,59
October 199,011 179,564 10.83 (11.23)
39 6
11,733,0
 Robusta 146,411 151,485 17,185,337 (3.35) (31.73)
63
6,911,27
 Arabica 52,600 28,079 3,818,259 87.33 81.01
6
22,097,4 27,475,00
November 235,171 266,732 (11.83) (19.57)
87 0
15,144,9
 Robusta 186,654 220,268 21,582,136 (15.26) (29.83)
82
6,952,50
 Arabica 48,517 46,464 5,892,864 4.42 17.98
5

Page 1 UCDA Monthly Report: December 2009

 25,764,7 30,317,91
December 272,779 298,648 (8.6) (15.0)
09 7
16,572,5
 Robusta 208,904 251,386 24,439,607 (16.90) (32.19)
27
9,192,18
 Arabica 63,875 47,262 5,878,310 35.15 56.37
2

The cumulative total for the first quarter (Oct/Dec 2009) of the
current coffee year 2009/10 stood at 706,961 bags worth $ 66.5 m,
a decrease of 5.1% and 15.6% in volume and value, respectively
compared to a similar period last year. The drop is attributed to the
prolonged dry spell that affected coffee bean development resulting
in very low out turn, which ranged between 35% – 45% for the initial
harvest in most parts.

As for the Calendar year 2009, coffee exports stood at 3.02 million
60-kilo bags worth US$ 280 million; and comprising 2.33 million bags
of Robusta and 0.69 million bags of Arabica. This is yet a drop in
contrast to 2008, when at total of 3.3 million bags ($ 398.0 m)
comprising 2.8 m bags of Robusta and 0.51 m bags of arabica.
1. EXPORTS BY TYPE AND GRADE
Table 2.0 gives coffee exports in December 2009 by type, grade and
realised unit price for each grade. The weighted average price stood
at 157 cents, same as in November 2009, but up from 153 per
kilogramme in September and 156 cents, exhibiting a positive trend.
The weighted average price for Robusta further went down from 135
cents per kilo in November to 132 cents. Washed Robusta, which
went to the Specialty market, fetched the highest price of 191
cents/kilo, 20 cents higher than 171 cents in November 2009.

Page 2 UCDA Monthly Report: December 2009

 The average realised price for Arabica continued with its upward
trend rising from US$1.95/kilo in September, $ 2.19 in October, $
2.39 in November and $ 2.40 in December. Organic Okoro fetched
the highest price of US$ 2.91 per kilo same as in the previous
month, followed by Bugisu A and Bugisu CPB at US$ 2.80 and US$
2.76 per kilo respectively compared to US$ 2.25 and US$ 2.31 per
kilo recorded in the previous month.
The market fundamentals identified in the previous month are still at
play i.e. (a) ICO’s global production estimate for 2009/10 of 128.1 m
bags lower than the consumption of 130 m bags (b) Colombia’s poor
harvest estimated at 8.0 m bags down from an average of 11.5 m
bags per year on account of high incidence of pests and diseases
and limited use of fertilizers; and (c)the anticipated lower
Vietnamese coffee production in the near future as the
implementation of the replanting programme to replace ageing
trees takes effect.
TABLE 2.0 COFFEE EXPORTS BY TYPE, GRADE, & UNIT PRICE IN DECEMBER
2009
– in 60-kilo bags; US $, US $/kg –
QTY
TYPE/GRADE 60-Kilo Value $ PRICE $/Kilo
% - AGE
Bags
G/TOTAL 272,779 25,764,709 1.57
Robusta 208,904 100.00 16,572,527 1.32
Washed Robusta 1,660 0.79 197,911 1.99
Organic Robusta 1,400 0.67 130,093 1.55
Screen 18 13,740 6.58 1,161,584 1.41
Screen 17 8,150 3.90 674,573 1.38
Screen 15 109,699 52.51 9,007,553 1.37
Screen 14 720 0.34 51,429 1.19
Screen 13 1,002 0.48 75,548 1.26
Screen 12 42,742 20.46 3,259,851 1.27
BHP 1199 14,855 7.11 941,649 1.06
Others –
Robusta1 14,936 7.15 1,072,335 1.20
ARABICA 63,875 100.00 9,192,182 2.40
Organic Okoro 2,300 3.60 401,087 2.91
Bugisu AA 9,410 14.73 1,538,584 2.73
Bugisu A 5,780 9.05 971,948 2.80
Bugisu PB 980 1.53 154,247 2.62
Bugisu AB 6,650 10.41 1,059,351 2.66
Bugisu CPB 960 1.50 158,731 2.76
Wugar 4,540 7.11 683,391 2.51
Drugar 24,540 38.42 3,325,812 2.26
Others 8,715 13.64 899,031 1.71
1 Represents such coffees like Sc.1299, Sc. 1599, Sc. 1899, etc. in robusta.
2. PERFORMANCE BY INDIVIDUAL EXPORTER
Table 3.0 below represents export performance by individual coffee
exporting companies during December 2009, in terms of quantity
and market shares both individual and cumulative.
Twenty two (22) exporters performed in December 2009 compared
to 21 last month with 10 top companies taking a market share of

Page 3 UCDA Monthly Report: December 2009

 85.5% compared to 91.1% the previous month. This reflects
reducing concentration at this level during the month. The first five
best performers include: Ugacof (U) Ltd with 15.2% compared to
11.2% the previous month; Job Coffee Ltd. – 10.5% (5.2%); Kawacom
-10.2% (13.9%), Kyagalanyi Coffee Ltd -8.7% (14.5)%; and Kampala
Domestic Store – 8.3% (10.7%) in that order. The figures in
parenthesis reflect exporters’ respective performance in November
2009.
Table 3.0 INDIVIDUAL EXPORTER PERFORMANCE IN DECEMBER 2009
EXPORTER QTY %-age Market Share
60-kilo Individu Cumulativ
bags al e
GRAND TOTAL 272,779 100.00
1 Ugacof (U) Ltd. 41,375 15.17 15.17
2 Job Coffee Ltd. 28,732 10.53 25.70
3 Kawacom (U) Ltd. 27,742 10.17 35.87
4 Kyagalanyi Coffee Ltd. 23,819 8.73 44.60
5 Kampala Domestic Stores Ltd. 22,657 8.31 52.91
6 Great Lakes Ltd. 21,048 7.72 60.63
7 Ibero (U) Ltd. 20,371 7.47 68.09
8 Savannah Commodities Ltd. 20,336 7.46 75.55
9 Nakana Coffee Factory Ltd. 14,390 5.28 80.82
10 Pan Afric Impex Ltd. 12,790 4.69 85.51
11 Olam (U) Ltd. 12,001 4.40 89.91
12 Coffee World Ltd. 6,123 2.24 92.16
13 Lakeland Holdings Ltd. 5,975 2.19 94.35
14 Mbale Importers and Exporters Ltd. 3,770 1.38 95.73
15 Kaweri Coffee Plantation 3,520 1.29 97.02
16 Anderson Investments Ltd. 3,340 1.22 98.24
17 Ankole Coffee Processors Ltd. 2,100 0.77 99.01
18 LD Commodities Ltd. 990 0.36 99.38
19 Senti Initiatives Ltd. 700 0.26 99.63
20 Kitasha Coffee Buyers Ltd. 340 0.12 99.76
21 Bakwanye Trading Co. Ltd. 330 0.12 99.88
22 Elgon Quality Company Ltd. 330 0.12 100.00
3. LOCAL SITUATION
Marketing of coffee intensified during the month as good weather
catalyzed harvesting and drying. Farm level stocks were also
released as farmers prepared for the festive Christmas and end of
year season. Kiboko (dry Robusta cherries) prices were in the range
of Shs. 800 – 900 per kilo slightly lower than in November; FAQ
(milled) was Shs. 1,800 – 1,900; and Arabica parchment in the Mt.
Elgon zone went at Shs. 3,000 – 3,500 same as the previous month.
However, farmers and farmer groups with economic quantities of
very good quality attracted higher prices.
4. COFFEE EXPORTS BY DESTINATION
The main destinations of Uganda coffee during the month of
December 2009 in terms of quantity and market share are
illustrated in table 4.0. EU member countries took a market share of

Page 4 UCDA Monthly Report: December 2009

 65.4% with 178,469 bags up from,413 bags (64.0%) in November
and 142,930 bags (71.8%) in October 2009.
Sudan, the second main destination of Uganda coffee, imported
36,900 bags, 4% lower than 39,100 bags in November and 25,001
bags in October 2009.

Table 4.0 MAIN DESTINATIONS OF UGANDA COFFEE IN

DECEMBER 2009
QTY %- Age Market Share
60-Kilo
Individual Cumulative
bags
GRAND TOTAL 272,779 100.00
E
U[1] 178,469 65.43 65.43
Sudan 36,900 13.53 78.95
Switzerland 27,760 10.18 89.13
India 11,700 4.29 93.42
USA 10,613 3.89 97.31
Morocco 1,670 0.61 97.92
Israel 1,280 0.47 98.39
Ecuador 1,255 0.46 98.85
Singapore 668 0.24 99.10
Canada 640 0.23 99.33
South Africa 520 0.19 99.52
Syria 334 0.12 99.64
China 330 0.12 99.76
Australia 320 0.12 99.88
Mexico 320 0.12 100.00

5. BUYERS OF UGANDA COFFEE

The main buyers of Uganda coffee in December are listed in table
5.0 below in terms of volume and percentage market share. The top
10 buyers had a market share of 72.3% up from 66.9% in the
previous month, reflecting a rise in concentration at the buyer level.
The first 5 major buyers include: Socadec with a market share of
13.4% compared to 7.1% in November; Sucafina – 10.9% (4.9%);
Ecom Agro industrialists – 10.1% (14.1%); Bernhard Rothfos – 7.8%
(9.4%); and Hamburg Coffee – 6.9% (4.4%) in that order. The figures
in parenthesis reflect buyers’ respective performance in November
2009.
TABLE 5.0 BUYERS OF UGANDA COFFEE IN DECEMBER 2009:
60-kilo bags
QTY %-age Market Share

E 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, Romania, Slovakia, Slovenia, Spain, Sweden, The Netherlands, and UK.
Page 5 UCDA Monthly Report: December 2009
 60-kilo bags Individu Cumulativ
BUYERS
al e
GRAND TOTAL 272,779 100.00
1 Socadec 36,495 13.38 13.38
2 Sucafina 29,627 10.86 24.24
3 Ecom Agro Industrialists 27,422 10.05 34.29
4 Bernhard Rothfos 21,253 7.79 42.08
5 Hamburg Coffee 18,830 6.90 48.99
6 Abaco 15,400 5.65 54.63
7 Olam International 13,269 4.86 59.50
8 Aldwami 12,950 4.75 64.24
9 Tata Coffee 12,900 4.73 68.97
10 Cofftea (Sudan) 9,100 3.34 72.31
11 Louis Dreyfus 7,996 2.93 75.24
12 Decotrade 6,840 2.51 77.75
13 Coex Coffee 6,748 2.47 80.22
14 Strauss Company 6,523 2.39 82.61
15 Icona Café 4,996 1.83 84.45
16 Volcafe 4,166 1.53 85.97
17 Webcor 4,060 1.49 87.46
18 Luigi Lavazza 4,008 1.47 88.93
17 Others 30,196 11.07 100.00

6. COFFEE DEVELOPMENT AND PROMOTIONAL ACTIVITIES

1. On 22nd December 2009, UCDA participated in an end-of-year
party held at Entebbe organized by the Ministry of Agriculture,
Animal Industry and Fisheries. The Minister, Hon. Hope
Mwesigye, thanked members of staff of the Ministry and
affiliated institutions for the good work done during the year
while fulfilling government programmes towards household
poverty reduction; and food security. She assured staff of
government’s total commitment to increase agricultural
productivity. On climatic change, she urged staff to impart skills
to farmers to adopt technologies that mitigate the negative
effects associated with climatic change. She underscored the
importance of having an annual event where interactive and
constructive debates are held to forge a common agenda for the
agricultural sector.
• The Minister of State for Agriculture, Hon. Aggrey Henry
Bagiire visited coffee farmers in Ibanda district under Ankole
Coffee Processors Ltd, which is undertaking UTZ certified with
over 2,000 farmers. He launched a SACCO that is run by Agro
Finance Trust; and a heifer project during the visit. These
initiatives are intended to enable farmers in the area access
credit; and use heifer project to boost productivity. The Minister
appealed to farmers to take advantage of these resources as they
directly contribute to poverty reduction at household level.
The Managing Director of Ankole Coffee Processors Ltd, Mr.
Hannington Karuhanga, was glad that certified farmers would be
able to access extension services, do bulk-marketing and share
the high premiums with exporters arising from a shortened
Page 6 UCDA Monthly Report: December 2009
 market chain. His desire is to have all farmers in the project UTZ
certified.
Ankole Coffee Processors Ltd. is addressing one of the four areas
identified by coffee stakeholders under the coffee production
campaign, providing access to inputs and credit.
• To operationalize the National Export Strategy (NES) 2008-
2012, which is spearheaded by Uganda Export Promotion Board
(UEPB), in which coffee is a major component, consultants from
the CBI (Centre for Export Promotion of products from developing
countries) and the International Trade Centre (ITC) visited
Uganda in December 2009 to identify key areas and actors that
would enhance Uganda’s export competitiveness. At the end of
the mission, consultants had identified a bankable project that
would increase Ugandan coffee farmers’ competitiveness and
hence incomes through capacity building and market penetration
abroad. NUCAFE (National Union of Coffee Agribusinesses and
Farm Enterprises) will be the main implementer while UCDA will
play a monitoring role. UEPB, the NES focal point, will be
responsible for evaluating the success of the project in addition to
its role of coordination with the ITC and CBI.
• UCDA participated in a workshop at Protea Hotel in which
results of a rapid appraisal of the effect of the global financial and
economic crisis on Uganda’s economy and employment in
particular were disseminated. The study, funded by the
International Labour Organization (ILO) and carried out by
Professor John Sender of Oxford University, indicated that indeed
most of the sectors, coffee inclusive, had been affected especially
the low wage earners whose real wages had decreased
considerably as a result of high inflation (high food prices). The
report also noted reduction in export commodity prices and
instability in the exchange rate thus affecting foreign exchange
earnings. The cost of borrowing from banks had also risen (due to
high lending risks) making it harder for micro and small scale
enterprises to access credit to inject in their businesses. Major
recommendations advanced were to: institute a minimum wage;
stabilize the exchange rate; ensure access to both short and long
term credit; invest in agro-processing and infrastructural
development with targeted programmes to increase employment
for the youth and women.
7. OUTLOOK FOR JANUARY 2010
In January 2010, coffee exports are envisaged to be about
290,000 bags, as some pipeline stocks are likely to be released
to the market in preparation for payment of school fees, the
effect of the dry spell in the past notwithstanding.
8. UPCOMING EVENTS

Page 7 UCDA Monthly Report: December 2009

• The Basic Quality Control Course is due to commence on 15th
January 2010 at the UCDA Lugogo Laboratory and will run for a
period of four months. Applicants to attend should contact Ms.
Doreen Rweihangwe at UCDA UMA show grounds on e-mail:
doreen@ugandacoffee.org.
• The first Africa Barista Championship (ABC) is slated for February
2010 in Mombasa, Kenya. Uganda to be represented by MBABAZI
Roberts and KATONGOLE Emmanuel.
• 7th African Fine Coffees Conference and Exhibition to be held in
Mombasa, Kenya, 11-13 February 2010. EAFCA (East African Fine
Coffees Association) will host a breakfast for women in coffee in
Mombasa, Kenya.

• World Coffee Conference 2010 will take place at the Westin

Camino Real Hotel in Guatemala City, Guatemala, from 26 to 28
February 2010. The Conference is being hosted by the
Guatemalan National Coffee Association (Anacafé). The theme of
the Conference is: “Coffee for the future: Towards a sustainable
coffee sector”, with four main sessions:
- Session 1: Economic sustainability: the economics of
production
- Session 2: Economic sustainability: the economics of
demand
- Session 3: Environmental sustainability
- Session 4: Social sustainability
• The world’s favourite Tea & Coffee Exhibition and Symposiums
shall be taking place: April 25 - 27, 2010 at Vienna’s Reed Messe
Wien. Tea & Coffee World Cup Europe is a three-day
comprehensive marketplace for tea and coffee products and
ideas. With hundreds of exhibitors of every type of services,
supplies, machinery and equipment, roasters, packers, tea &
coffee traders; restaurant, hotel and coffee bar chains; retail
outlets and department stores from more than 100 countries will
visit. Vienna's show will exceed all our previous ten shows in
quantity of exhibitors and attendees - and, in keeping with the
present economic situation, we've lowered our rates!
• International Conference on Agricultural Statistics (ICAS V) will be
held in Kampala in October 2010. For details, refer to Uganda
Bureau of Statistics (UBOS): website: www.ubos.org .

Page 8 UCDA Monthly Report: December 2009