Report Highlights: 

FAS/Nairobi forecasts an increase in Tanzania’s coffee production in the marketing year (MY) 2014/2015 to 1.15 million bags attributed to the biennial bearing cycle. The Government of Tanzania (GOT) has put in place a strategic plan whose key objective is to double production by 2021. Exports in MY 2014/2015 are expected to hit a record high of 975 thousand bags.

Production: 

Tanzania produces both Robusta and Arabica coffees. The Arabicas are grown on the slopes of Mount Kilimanjaro and Mount Meru in the northern region, and in the Highlands of Mbeya and Ruvuma in the southern region. Robusta coffees on the other hand are grown along Lake Victoria in the western region. Currently, both Arabicas and Robustas account for near equal proportions. Harvesting occurs in the months of July to December in the northern and southern regions and in May to October in the western region. Coffee is grown both in banana intercrop and pure stand systems. 

During the MY2012-13, the country produced 1.2 million bags, a record crop in more than 50 years. Production dropped to 800 thousand bags in MY 2013/2014 due to biennial bearing cycle. FAS/Nairobi forecasts that production will increase to 1.15 million bags in the MY 2014/2015. Improved global prices, government-supported expansion and rehabilitation programs, and good weather account for the expected increase in production. 

Consumption: 

Tanzania Coffee Board (TCB) estimates domestic coffee consumption at about 7 percent of the national production. Like in the other Eastern Africa countries, domestic consumption growth has been generally constrained by the tea drinking culture and low disposable incomes. However, coffee consumption is on increase in the urban areas among the middle income groups. 

Stocks: 

All coffee stocks are held by the private sector including farmers, co-operatives, millers and traders. 

Policy: 

GOT’s ten year strategic plan (2011-2021) aims at increasing both productivity in existing farms and facilitating the private sector to put up new farms. According to the plan, area under coffee will be increased by at least 10,000 hectares by 2021 while existing farms will be progressively replanted with improved varieties. The plan also aspires to improve quality, and diversify export markets. 

Marketing: 

Coffee Marketing in Tanzania goes through three main channels: 

• Internal market – where farmers sell cherry or parchment at farm gate to private coffee buyers, farmer groups and cooperatives. 

• Auctions at Moshi that are conducted every week on Thursdays during the season (usually 9 months). 

• Direct export by growers of premium top grade coffees enabling growers to establish long term relationship with roasters and international traders. 

Trade: 

Japan, Italy, Germany and the United States are the lead export destinations for Tanzanian coffee. Due to the diversity of the production regions, export shipments are undertaken all the year round through the major ports of Dar es Salaam and Tanga. Most of the Kenya based main international coffee traders are represented in the country