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Tanzania Coffee Annual report 2017

Published: 2024-11-17 Author: World Gafei

Last Updated: 2024/11/17, According to the forecast of FAS/ Dar es Salaam, the coffee production in Tanzania will increase from 1.05 million bags last year to 1.15 million bags in 2017 and 2018, mainly due to the biennial production cycle. Inventory is expected to decrease by 32000 bags compared with the previous year. The Tanzanian government (GOT) will continue to implement its coffee strategic plan to reach production by 2021

Abstract

According to FAS/ Dar es Salaam, coffee production in Tanzania will increase from 1.05 million bags last year to 1.15 million bags in 2017, mainly due to the biennial production cycle. Inventory is expected to decrease by 32000 bags compared with the previous year. The Tanzanian government (GOT) will continue to implement its coffee strategic plan to achieve the goal of doubling production by 2021.

Production

Tanzania has rich land resources, suitable altitude, temperature, rainfall and geological conditions, which are very suitable for the growth of high-quality Arabica coffee beans and Robusta coffee beans. The main growing areas of Arabica coffee beans are Mount Kilimanjaro, Arusha, Mbeya, Mbinza and Ruwama. Robusta coffee beans are mainly produced in the Cagella region, while other growing areas are Tanga, Iringa, Morogoro, Kighoma, Manila, Mwanza, Ruqua and Mara. There are three main production systems for coffee in Tanzania:

(1) Pure cultivation of coffee beans / smallholder farmers (mainly in the south)

(2) mixed cultivation of coffee and bananas / small farmers (mainly in the north and west)

(3) Household planting (less than 10% of total output)

The Government of Tanzania (GOT) continues to implement the strategic plan to double coffee bean production by 2021 to support the expansion of coffee production, which involves increasing the production of existing farms and promoting the opening of new farms in the private sector. In 2017, due to the biennial harvest, according to FAS/ Dar es Salaam, the annual production of coffee beans will increase from 1.05 million bags in 2016 / 2017 to 1.15 million bags.

The coffee industry in Tanzania is affected by several factors, including the lack of irrigation systems, the massive ageing of coffee trees and the instability of coffee prices, all of which have led to dramatic fluctuations in production. At the same time, it is also restricted by other factors, for example, many smallholder producers lack relevant agricultural practical experience, limited access to credit, lack of sufficient agricultural input capital, low input utilization rate and so on.

Consumption

According to the Tanzania Coffee Council (TCB), as the coffee drink culture is gradually rooted in urban and semi-urban areas, domestic coffee consumption is growing by an average of 1.5 to 2 per cent a year. The annual per capita coffee consumption is 0.06 kg, and the total national coffee production accounts for only 7% of the domestic consumption.

Inventory

Due to the increase in domestic consumption and exports, the end-of-term inventory of the 2017 hit 18 sales year is expected to be 32000 bags lower than that of the 2016 hit 17 sales year. Coffee stocks come from small farmers' cooperatives, farmers' groups, traders, exporters and large coffee growers.

Policy

As part of the country's Agricultural sector Development Strategy (ASDS), GOT launched the Coffee Industry Development Strategy (CIDS) in 2011. The overall goal of CIDS is to increase revenue throughout the value chain by improving coffee production and quality. By 2020, the production target will be increased from the current 50, 000 tons to 100000 tons. Specific actions to achieve this goal include the planting of new coffee varieties (200 million new seedlings by 2020), the expansion of farmland, organizational reform, increased fertilizer use, and the control of coffee diseases and pests. Through the combination of these measures, crop yields are expected to increase from the current 250 kg / ha (200 g / plant) to 600 kg / ha (450 g / plant).

Production, supply and distribution (PSD) table

Raw coffee beans

2015/2016

2016/2017

2017/2018

Market start time

July 2015

July 2016

July 2017

USDA official

The latest report

USDA official

The latest report

USDA official

The latest report

Planting area

Harvest area

Fruiting tree

An unfruitful tree

Total amount of coffee trees

Opening inventory

322

250

220

Arabica output

600

550

600

Robusta output

500

550

Other output

Total output

1100

1050

1150

Import of coffee beans

Import of coffee powder

Import of instant coffee

Total import volume

Total supply

1422

1300

1370

Coffee bean export volume

1100

1000

1100

Export volume of coffee powder

Export volume of instant coffee

Total export volume

1120

1030

1130

Domestic coffee powder consumption

Domestic instant coffee consumption

250

220

188

Total domestic consumption

1422

1300

1370

Final inventory

Total distribution

Area unit: 1000 ha; tree quantity unit: million; coffee quantity: 1000 bags (60kg/ bag)

Source: TCB, Global Trade Atlas (GTA), FAS / Dar es Salaam estimates

Notes about PSD

In 2017 and 2018, both production and exports were increased.

Domestic consumption and exports increased significantly compared with 2016 and 2017, while inventories declined in 2017 and 2018.

Sales

About 2/3 of the coffee in Tanzania is light Arabica coffee, and the rest is strong Arabica and Robusta. Coffee beans are widely grown in the north, west and south of the country and are sold centrally at Moshi auction houses. Light Mild Arabica coffee beans are processed by wet processing, while Robusta coffee beans are processed by dry processing. Pre-auction coffee sales are carried out through three channels:

a. Farm gate market

In this market, producers sell coffee to licensed coffee buyers, cooperatives, farmers' groups or associations. The coffee sold in this market is wet-processed and packed in parchment. Buyers dry and grind the purchased coffee beans to produce clean raw coffee beans.

b. Coffee auction

Coffee beans are sold by TCB to exporters at the Moss Coffee auction on Thursdays. Usually all transactions close within nine months. Sellers get a profit and buyers get a lot of coffee for export. Most famous exporters belong to roasters that sell coffee across borders. The price of this market generally depends on the price of Arabica coffee in New York futures market and Robusta coffee in London futures market. Most of the coffee sold in this market is crops brought by private coffee buyers and other farmers' organizations.

c. Direct export market

Upscale coffee producers who can establish direct contact with overseas buyers can sell coffee directly, bypassing the auction. The prerequisite for TCB to approve a sales contract is on the basis that the price offered by the buyer is higher than the seller's auction price for coffee.

Trade

The main export destinations of Tanzanian coffee are Japan, Italy, the United States, Germany, Belgium and Finland. Tanzania also exports soluble coffee, which is produced in a factory in Bukoba.

The main destination of raw bean export in Tanzania

Destination

2014/15

2015/16

2016/17

Quantity (ton)