23 October 2018

Tanzania: Kagera Coffee Price Tipped to Rise

Photo: Daily Monitor
A farmer picks coffee beans (file photo).

KAGERA's coffee farmers have been advised to increase output and seize the opportunity of favourable environment that pushes price north.

The Tanzania Economic Diplomacy Elevation Foundation (TEDEF) Chairman, Dr Tresphory Kyaruzi said after assessing the government intention to promote coffee prices in the region that the situation was appealing for raising the beans production.

"TEDEF is looking for the best way possible to help bring investors who can build industries and help coffee growers to add value to their produces," Dr Kyaruzi said.

The chairman told the 'Daily News' that this was the high time for farmers to capitalise on the government's decision banning cooperative union's exploitation by buying coffee on loans and pay them after waiting for ages.

He said perfecting the market was an important step that will as well serve as a tangible solution for coffee smuggling that has engulfed Kagera for long time.

The Chairman said warehouse receipt system for Kagera coffee farmers will enable them to get better price and a platform to maximise selling price and under one voice.

Similar system, Dr Kyaruzi said, has worked well in other regions that are growing coffee namely Kilimanjaro and Ruvuma.

"Farmers will be paid instantly under warehouse receipt system... instead of selling coffee on loans to the cooperative unions," he said.

The Chairman suggested that the unions should look for alternative ways of generating income to meet their running costs than relying on deducting farmers' money.

TEDEF will apply economic diplomacy to search for good coffee market in a bid to improve family income and national forex earning while creating employment.

Putting aside the fact that farmers didn't get their dues on time, cooperative unions in Kagera in most cases procure at lower price which motivated other buyers to also lower prices.

The trend in most case discourages coffee growers to increase production and on the other hand motivates smuggling to some neighbouring countries.

In his official tour of Kagera Region early this month, Prime Minister Kassim Majaliwa warned unfaithful government officials for corrupting coffee trading and participate in cross-border smuggling.

The Premier also ordered that next coffee season the auction will take place in Kagera instead of Moshi, Kilimanjaro thus cutting down unnecessary overheads.

Kagera produces some 30 per cent of total country coffee output. Coffee accounts for about five per cent of the country's total exports by value.

The coffee industry provides direct income to about 400,000 smallholders who produce 90 per cent of the Tanzania's coffee, according to Coffee Board.

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