By George Mwangi

Special to Dow Jones Newswires

Uganda's coffee export is forecast to rise 6.7% in the marketing year October 2022 through September 2023 compared with the current year, the U.S. Department of Agriculture said.

Exports are expected to rise to 6.52 million 60-kilogram bags due to increased production, the USDA said in its annual Uganda coffee report.

Coffee marketing in Uganda is liberalized, allowing private traders to purchase coffee from either producer organizations or directly from farmers for onward processing and export, it said.

The Uganda Coffee Development Authority charges a levy of 2% on all coffee exported from Uganda based on the export contract price, it said.

In February, Uganda announced a two-year suspension of its membership at the International Coffee Organization due to concerns over coffee classification and a lack of progress in removing trade barriers, the department said.

"Uganda's temporary withdrawal from the ICO is unlikely to affect production or trade," the USDA said.

At least 70% of Uganda's coffee is exported to the European Union, it said.

Other major destinations include the U.S., Morocco, India, Russia, and China, the USDA said.

Uganda is currently Africa's second largest coffee producer after Ethiopia.

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(END) Dow Jones Newswires

May 20, 2022 08:11 ET (12:11 GMT)

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