Dar coffee defies competition, command demand

Despite the stiff competitions by the world’s largest producers, Tanzania coffee continues to command high demand in the traditional markets, thanks to its unique features.

Locally produced coffee enjoys the natural advantage by becoming the first to enter in the world market in July every year, compared to its competitors which enter in October. 

The Tanzania Coffee Board (TCB) Director of Coffee Quality and Promotions, Mr Primus Kimaryo, announcing commencement of coffee buying season for 2013/14, said: “Tanzanian coffee falls in the Columbian coffee category that commands the premium in the traditional markets despite the fluctuating prices.”

He said the deteriorating prices in the traditional markets like Portugal, Italy and Spain is largely contributed by the economic recession that recently hit the euro zone. 

Mr Kimaryo said that the challenges posed in the traditional markets are being addressed attentively, particularly by promoting the fast emerging markets in the East of Saudi Arabia, Korea, Dubai and China.

The move was not only significant in the period under review where local output is expected to reach 45 metric tonnes of coffee countrywide, but also would help in boosting farmers’ revenues. 

Mr Kimaryo added that the large scale coffee producers enjoy economies of scale by producing at low cost of 0.65 US dollars per kilogramme and sell at around 3 US dollars.

“This is largely determined by technology, systems and areas where production takes place,” he remarked. According to TCB, the new coffee buying seasons for the four zones of the Northern, Mbeya, Kigoma, Mara, Kagera and Ruvuma will commence between May and July, depending on the region. 

The board’s notice directed private buyers to ensure coffee buying posts are inspected and approved by the respective District Coffee Inspectors and the weighing scales by the respective authority.
Source: The Daily News, reported from Dar es Salaam

 
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