New report reveals coffee exports have declined

Despite higher prices throughout the month, the Ministry of Finance's performance of the economic report for May shows that earnings from coffee exports fell by 16.1% compared to March 2023 because of reduced coffee export quantities.

The earlier drought and decreased coffee exports to Sudan as a result of the disturbances from the current hostilities are partly to blame for this trend.

The government further notes that the market's expectation of increased Brazilian output, which was anticipated to intensify in May 2023, led to lower prices, which in turn reduced the value of coffee exports.

On a larger scale, however, the value of goods shipped in April 2023 increased by 59.3% in comparison to April 2022, mostly because of higher profits from the export of maize and mineral products.

The Ugandan Government considers coffee to be one of the major exports for the country.

There are efforts to scale up coffee production and value addition in the country, something Government hopes will subsequently lead to more exports of the product to the international market.

Earlier, Government had entrusted Italian investor Enrica Pinetti through her company the Uganda Vinci Coffee Company Limited to spear head coffee value addition and export.

This was however met with strong resistance from stakeholders who argued that Government had to consult them about the new development.

Meanwhile, following the restart of gold exportation in FY 2022/23, which had been put on hold the previous financial year, exports of mineral goods have increased year over year.