As Uganda looks to emerging markets to diversify its coffee buyers, Türkiye promises to be an excellent market following overwhelming interest in Uganda Coffee at this year’s COFFEX Istanbul Coffee Expo, where Uganda was the focus country.
Coffee exports to Türkiye have been on the rise in the recent past growing from 2,260 bags in 2019 to 44,019 bags in 2023. This is set to rise further following a successful promotion campaign in Türkiye led by Uganda Coffee Development Authority and Uganda’s Embassy in Ankara at the COFFEX International Coffee expo.
Delivering the keynote address at the opening ceremony held at the Halic Congress Center in Istanbul, Eunice Kabibi, UCDA Board Secretary and Head of Legal Services thanked the organizers for selecting Uganda to be the focus country at the premier event.
“Uganda is honoured to be the Focus Country at the Coffex Istanbul 2024. This is a testament to the undeniable trust and optimism in our coffee industry. Coffex Istanbul is the biggest international trade fair and promotion platform for coffee in the Middle East and offers our coffee producers and exporters new investment opportunities and trade connections with the Turkish and Middle East markets,” Ms. Kabibi noted.
“I wish to thank the Turkish Government, the CEO of COFFEX, Niyazi Coşkunsoy, and his entire team or this magnificent space where coffee producers, buyers, and lovers are going to meet, showcase different coffee cultures, and do business,” she added.
During the 4-day event, the potential of Ugandan coffee in Türkiye became evident with an overwhelming number of buyers linking up with Ugandan coffee exporters. The buyers made inquiries about procedures to import Uganda coffee, and the profiles and called on UCDA to set up a liaison office in the country where they can buy Uganda coffee directly.
Pison Kukundakwe, Principal Quality Officer at Ankole Coffee Producers Cooperative (ACPCU), one of the exporters that attended the EXPO noted the huge opportunity in the Turkish coffee market and called for a greater presence of Uganda players in the market to capture the demand.
“There is increasing demand for coffee especially Robusta. A number of buyers are ready to buy coffee and have revealed that Robusta is a big thing in the Turkish market. For Uganda, which is one of the largest producers of Robusta, this is a big opportunity to capture the market,” Kukundakwe said.
He also noted that Uganda needs more presence in Türkiye to meet the demand and compete favourably against already established origins.
“Buyers need to keep seeing us at such expos so that we can build credibility for our companies. Demand here is high and it is important to have a link or an address within Türkiye where someone can find our coffee if they want 20, 50 or 100 bags,” Kukundakwe noted.
However, Mr. Kukundakwe pointed out that the buyers prefer to pay after the coffee has reached a port in Istanbul rather than Free on Board (FOB) and added that this may be a challenge for some of the Ugandan exporters to bear all the charges. He noted that by building relationships with the buyers, doing business will become easier. Other Uganda coffee exporting companies that participated in the expo were Gorilla Summit Ltd, Ideal Commodities Ltd and In-Touch Trading Ltd.
Mr. Julius Mwijutsya, the Counselor in charge of Economic and Commercial Diplomacy at the Uganda Embassy Ankara said that Türkiye offers a significant opportunity for Ugandan coffee exporters, with its large population and growing economy.
“Given Türkiye’s economic potential and Uganda’s goal to expand its coffee exports, we concentrated on establishing a strong presence in the Turkish market. Our efforts yielded impressive results, with coffee exports from Uganda to Türkiye increasing from 2000 bags in 2019 to 44,000 bags in 2023.”
Tapping into the Türkiye coffee market
Türkiye is one of the countries experiencing a rapid rise in coffee consumption driven by shifting trends as more people especially the youth switch from drinking tea to coffee.
Annual coffee consumption per capita in Türkiye has increased fourfold and reached 1.5kg today from 350g ten years ago. Demand for both specialty and commercial coffees is growing and Uganda’s growing coffee volumes can sustainably meet the demand.
During a panel discussion, Veronica Najjemba, the Value Addition and Promotions Manager, UCDA pointed out the unique attributes of Uganda coffee to coffee buyers and urged importers to consider Uganda as a source of high-quality Robusta and Arabica coffee to match the growing demand for coffee in Türkiye.
Ms. Najjemba represented Uganda on a panel discussion that had Nesli İbrahim – Henson Coffee Ethiopia, Stephanie Garcia – Guatemalan Coffees and Dr. Muhammad Reza Hani – Ceh Agro Indonesia.
Data shows overall coffee consumption has quadrupled since 2012, while coffee imports jumped 193% between 2008 and 2019 according to the International Coffee Organization (ICO). International brands are also investing heavily in the Turkish market. Turkish branded coffee shops grew 9% in 2022-2023 and 7.3% over the last 12 months to exceed 3,100 stores. Türkiye’s branded coffee shop market is among the fastest-growing by outlets in Europe.
According to Judith Engena, a Quality Assurance Officer at UCDA, Türkiye is a growing market for Uganda coffee that exporters should focus on.
“The Turkish people have shown a lot of love for Uganda coffee and it can become a key export destination among the emerging markets. If exporters can penetrate the Turkish market as they try to get into China, it will be a big win for Uganda,” Engena noted.
Cupping Uganda Coffee
UCDA held cupping sessions for importers and café owners to assess the flavor profiles of Uganda coffee and identify those preferred by the Turkish market. Cupping helps buyers identify Ugandan coffees that match the taste profiles of the Turkish market.
“During the cupping, I realized the people liked specifically washed and specialty Arabica because they found the coffees to have complex flavours. The intrinsic attributes stood out,” Engena noted.
Demand for specialty coffee is high. Türkiye’s coffee market has moved in step with surging demand for premium and specialty coffee around the world. As a result, both domestic and international coffee brands, such as Starbucks, have increased their investments in the country.
According to the world coffee portal, an information platform for the global coffee industry, distinct demographics are shaping Türkiye’s evolving coffee landscape, with age, locale, and even class, underpinning consumption patterns. Major city centres, popular with young and educated Turks with a global outlook, have seen specialty coffee shops thrive.
Conversely, traditional Turkish coffee maintains a stronghold in the more conservative Anatolian regions and smaller cities, where its cultural significance, strong flavour and affordability remain popular.
The traditional areas can become a top destination for Uganda’s Robusta coffee which is often used to blend other coffees to enhance their flavor.
In 2022, Türkiye imported $412M in coffee, becoming the 21st largest importer of coffee in the world. Türkiye imports coffee primarily from Brazil ($246M), Netherlands ($29.7M), India ($27.9M), Germany ($19.9M), and Bulgaria ($12.5M).
Centre of excellence for machinery
Apart from the high demand for green beans, the Turkish market is an excellent source of machinery and coffee-related equipment. Türkiye is a major producer of roasting and brewing equipment that Ugandan value chain actors should consider.