THE supply of coffee at Moshi Exchange declined to 18,924 bags compared to 21,036 bags offered in the previous market session which is equivalent to 10.03 per cent.
According to the Tanzania Coffee Board (TCB) auction carried on January 24, the amount sold also dipped to 14,237 bags compared to 17,131 bags weighing 60kg each, which is equivalent to 20.03 per cent down. The overall average price at Moshi exchange were down by 1.13/50 US dollars kgs (about 1,808/-) for Mild Arabica while Robusta were up by 17/50 kgs (about 27,200/-) compared to the last auction.
Likewise, the average prices were below the terminal market by 12.05/50 kgs (about 19,280/-) for Mild Arabica while Robusta were above the terminal market by 31.02/50 kgs (about 49,632/-). Prices for the locally produced coffee continue to be volatile due to competitions exerted by large scale producers in the international market leading to reduced farmers' earnings.
The situation has consequently made some farmers to abandon coffee production for failure to yield the expected returns, necessary for bettering producers' livelihood from abject poverty. Apart from farmers' earnings, country revenues have been also affected. Statistics show that coffee accounts for about 20 per cent of Tanzania's foreign exchange earnings and has been the mainstay of the country's agriculture-based economy since its introduction as a cash crop around 100 years ago.
The New York (NY C) March delivery were down by 2.80 cents/Lb US dollar (4,480/-) equivalent to 3.09/50 kgs US dollar (about 4,944/-) Freight on Board (FOB) and London International Financial Futures and Options Exchange (LIFFE) market. The March delivery was down by 15 US dollar (about 24,000/-) per metric tonne equivalent to 0.75/50 kgs US dollar (about 1,200/-) FOB compared with the auction held on January 17 this year.