Kampala, Jan. 22 - Ugandan coffee exporters are set to be hit hard because coffee exports destined for international markets are gridlocked at the port of Mombasa, Kenya, as a result of Kenya's post election violence, Uganda's second leading coffee exporter said Tuesday.
Ugacof said coffee exports through the port of Mombasa are stuck because there is limited staff and very little cargo is leaving the port due to congestion and violence.
"Finance is being tied up meaning that if the situation does not change, we shall not be able to buy coffee from farmers/suppliers on top of having to bear huge financing costs," the statement stated.
The company is also facing fines and penalties due to delayed supplies.
Ugandan coffee exporters have not been able to transport the commodity through the port of Mombasa since Dec. 27 as a result of post election violence; public transporters have suspended operations through Kenya for fear of losing both the load and the vehicles to looters.
Ugacof said arrangements to provide security to exports aren't working out due to lack of trucks, containers and congestion at Mombasa.
Uganda's main coffee harvest in the central and eastern region is at its peak and, according to trade officials, there are huge stocks of coffee in the hands of farmers and dealers following a bumper harvest as a result of favorable weather.
The state-run Uganda Coffee Development Authority, or UCDA, said last month that Uganda exported up to 272,519 60-kilogram bags of coffee representing a 9.6% increase on year as a result of a bigger crop due to favorable weather. However, exports in January are expected to be sharply down due to the violence in Kenya.