By Daniel Mjema, Moshi

Tanzania earned $83.7 million (Sh112 billion) from exporting 34,000 tonnes of coffee last year.

But this year’s production is expected to be less than 40,000 tonnes, a Tanzania Coffee Board (TCB) statement noted yesterday.
The country exported 63,000 worth $134 million in 2008/9.

The statement noted that the price of the crop globally rose from $155 for a 60-kilo bag at the start of the 2009/10 season to $260.
The statement quoted TCB director-general Aldoph Kumburu as saying the price was increasing because demand outstripped supply.

The world produces 7,680 million tonnes of coffee while the demand is 7,920 million tonnes.
According to him, the coffee market has risen in Eastern Europe and China while production in many countries has fallen due to freak weather.

“Weather changes are not severe in Tanzania except in Kilimanjaro and Arusha regions. However, southern and western parts of the country have vast suitable land,” he said.
The government is planning to start setting minimum prices in every coffee grade to protect farmers from being paid poorly by private buyers.

For instance, one kilo of arabica is being sold at more than Sh4,000 at the Moshi auction but private companies buy it from farmers at Sh2,000.

Since the government liberalised the crop market farmers have been complaining of being exploited and some of them have been uprooting coffee trees.

Add this page to your favorite Social Bookmarking websites