The Bank of Tanzania (BoT) monthly economic review for July this year shows that bumper harvest in Brazil contributed largely to price decline, signaling a sharp fall to farmers’ earnings.
Similarly, the International Coffee Organisation (ICO) says the slowdown in economic growth in China and signs of an end to the quantitative easing programme in the USA exacerbated the weakness in the coffee market and contributed toward further price decreases.
Prices of its Arabica normally track the New York market while those of robusta take their cue from London. Tanzania, Africa’s fourth-largest coffee producer after Ethiopia, Uganda and Ivory Coast, produces mainly Arabica and some robusta coffee.
The BoT report shows major export commodities like cloves and gold recorded drastic decline in price at the global market. The fall in the price of cloves was largely on account of an increase in production in the Comoros.
According to the report, cloves’ export earnings fell to US$ 20.6 million (32.96bn/) in the year ending June compared to US$ 58.1 million (92.96bn/- ) of the corresponding period last year.
Although cotton export earnings shoot up to US$ 159.3 million (254.88bn/-) in the year ending June from US$ 87.6 million (140.16bn/-), its price declined on account of weak global demand from the textile manufacturers and expectations of an increase in global production.
However, tea prices increased during the period under review partly attributed to high demand in European and Middle East countries coupled with a fall in supplies due to cold weather, particularly in Kenya.
Tea export earnings in June increased to US$ 58.2 million from US$ 52.7 million. Likewise, the price of sisal rose largely on account of an increase in global demand. Furthermore, the prices of crude oil and white petroleum products fell largely due to an increase in oil production in the North Sea.
Although cotton export earnings shoot up to US$ 159.3 million (254.88bn/-) in the year ending June from US$ 87.6 million (140.16bn/-), its price declined on account of weak global demand from the textile manufacturers and expectations of an increase in global production.
However, tea prices increased during the period under review partly attributed to high demand in European and Middle East countries coupled with a fall in supplies due to cold weather, particularly in Kenya.
Tea export earnings in June increased to US$ 58.2 million from US$ 52.7 million. Likewise, the price of sisal rose largely on account of an increase in global demand. Furthermore, the prices of crude oil and white petroleum products fell largely due to an increase in oil production in the North Sea.
Source: Daily News, reported from Dar es Salaam, Tanzania
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