Quality, promotional campaigns keep coffee prices stable

Improved quality of Tanzanian coffee and well organised promotional strategies in search of new markets has helped the country’s cash crop maintain stable price despite global market fluctuations.

Tanzania Coffee Board’s (TCB) Director of Coffee Quality and Promotions Primus Kimaryo told the 'Daily News' in a telephone interview from Moshi yesterday that the recent price improvement of coffee at Moshi Exchange was a result of both internal and external factors.

“Newly established markets particularly in Japan and other Far East countries, enhanced quality and excellent promotional packages are some of the factors that contributed to the crop’s price stability in recent weeks,” he said.

Similarly, good coffee harvests last season has created business confidence for stable supply of the commodity at the Moshi Exchange despite the fluctuations experienced in other regional and global markets.

The auction results for the market conducted last Thursday show that overall average price at Moshi exchange were up by 2.96 US dollars (about 5,738/-) per 50 Kilogrammes of Mild Arabica and Robusta were up by 1.54 US dollars (2,464/-) per 50 Kgs compared to the previous auction.

Also the average prices were above the terminal market by 10.99 US dollars (17,584/-) per 50 Kilogrammes for Mild Arabica and Robusta were above the terminal market by 17.62 US dollars (27,192/-) per 50 Kgs. However, the amount of coffee offered was 31,923 bags, with only 22,518 bags sold.

According to the International Coffee Organisation (ICO), coffee prices continued to slide in August, despite a brief bounce at the beginning of the month of September. The monthly average of the ICO composite indicator price dropped to its lowest level in nearly four years, as did the monthly averages of the three Arabica group indicators.

The total exports in July 2013 reached 9.1 million bags, 6.6 per cent less than the level for July 2012, but total exports for the first ten months of the coffee year are still up 3.6 per cent at 94.5 million bags.

Most of this increase can be attributed to strong growth in exporting countries and emerging markets, which grew by 2.5 per cent and 4.7 per cent, respectively. Consumption in traditional coffee‐consuming countries grew by modestly at one per cent compared to 2011.

Source: Daily News, reported by Sebastian Mrindoko, from Dar es Salaam, Tanzania

 

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