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Friday, 28 November 2014

WEATHER, GLOBAL PRICES AFFECT COFFEE REVENUES


East Africa’s coffee exporters are expected to realise mixed fortunes this year.

Kenya and Rwanda, which experienced good weather patterns in the second half of the year, are projecting increased earnings. Erratic weather patterns and ageing trees took their toll on Uganda, Tanzania and Burundi.
Data from the Uganda Coffee Development Authority shows that the country has exported 3.5 million 60-kg bags worth $394 million this year.
UCDA executive director Henry Ngabirano said the country hopes to export the same volume next year.
Uganda has planted over 100 million new coffee seedlings in the past five years, with 60 million seedlings planted in 2013. Another 100 million seedlings will be planted over the next three years.
“We are expecting to increase our production capacity, enabling us to export 6 million bags by 2018/19, and double that by 2040,” Mr Ngabirano said.
Uganda’s coffee output was 4.4 million bags in 1996-97, before the outbreak of the coffee-wilt disease that decimated the crop.
Tanzania’s coffee export earnings fell 28.6 per cent to $250 million this year, from 1.2 million bags in 2013 to 866,670 bags, said Twahir Nzallawahe, the director of crop development at Tanzania’s Ministry of Agriculture, Food Security and Co-operatives.
“However, we are projecting next year’s export earnings will be slightly higher because of the projected increase in production to 916,670 bags, and a surge in  prices at the international market,” Mr Nzallawahe said.
Tanzania has a 10-year strategy, started in 2012, to re-plant 10 million coffee seedlings annually.
Burundi’s coffee regulator Arfic said the country’s coffee export revenues fell 64 per cent in the 2013/14 year from the previous season, as a result of poor rainfall.
Coffee, the country’s top revenue earner, generated $23.8 million, down from the $66.3 million earned in the 2012/13 crop year. Burundi exported 164,833 bags of coffee this year, compared with 400,000 bags in the previous season.
This is lower than the 216,666 bags that were expected, officials said. Arfic projects coffee production for the April 2014-March 2015 crop year to reach 350,000 bags due to good rains.
Kenya and Rwanda are projecting high coffee export earnings citing high production of quality coffee.
Grenville Melli, the interim coffee director at Kenya’s Agriculture, Fisheries and Food Authority, said the country’s coffee export earnings are expected to rise 15.7 per cent to $240 million this year.
Prices at the international market were $310 per 50kg bag, compared with $240 for the same quantity last year.
Kenya’s coffee export volumes are projected to increase 15 per cent to 825,000 bags this year.
Rwanda’s coffee export earnings are projected to increase from $55 million to $70 million this year.
Celestin Gatarayiha, the coffee division manager at Rwanda’s National Agricultural Export Development Board, said the country’s export volumes are projected to increase from 333,330 to 383,330 bags this year due to due favourable weather conditions.
“We have established farmers field schools to educate them on how to maintain their plantations and raise their quality and volume,” Dr Gatarayiha said.
The East African

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