Tanzania: The land of Kilimanjaro Home of Fine Coffees. Primus Kimaryo Ag Director General Tanzania Coffee Board
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1 Tanzania: The land of Kilimanjaro Home of Fine Coffees Primus Kimaryo Ag Director General Tanzania Coffee Board 14th AFCA C&E Dar Es Salaam, Feb 2016
2 TANZANIA: The land of mt. Kilimanjaro Home to Mt. Kilimanjaro, the snow-caped peak of Africa Home of the fine African coffees Home of the world s most unique natural wonders and national parks
3 INTRODUCTION Tanzania The largest East African country with 52% of the land of EAC Producer of both Arabica and Robusta coffees History of Coffee in Tanzania Coffee was firstly introduced in Kilimanjaro (Kilema) by Catholic Missionaries in the year Some of the original coffee trees are still growing to date. Botanical Variety Grown Arabica: Bourbon and Kent. Robusta: Erecta and Nganda 3
4 TANZANIA COFFEE PROFILE Economic Importance Coffee is grown by about 450,000 small holders who contribute 90% of the total coffee production. The remaining 10% comes form the estate farms. Coffee provide income to estimated 2.4 million Tanzanians which is about 6% of the country population. Coffee contribute about 24% of agricultural GPD For 2014/15 season coffee earned about USD 160 million Areas Under Coffee Production Total area under coffee is 220,000 hectors for both Arabica and Robusta. Altitude Robusta meters above sea level Arabica 1,000-2,200 meters above sea level
5 COFFEE REGIONS Tanzania s coffee grows mainly round the borders of the Republic There are 13 regions with favourable climate conditions for coffee, both Arabica and robusta. Both qualities are highly regarded in the international markets.
6 COFFEE PRODUCTION Average production around 50,000 tons (800,000 bags). This season 2015/16 estimated production 1.03 mio bags Arabica production figures show that there is shift in production areas from traditional northern regions to the southern and western regions.
7 COFFEE PRODUCTION 80,000 ARABICA 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 ROBUSTA TOTAL PROD
8 COFFEE PRODUCTION Tanzania Coffee Production 80,000 70,000 Clean coffee (tons) 60,000 50,000 40,000 30,000 20,000 Actual production 10,000 Moving Average -
9 CURRENT BREW ON PRODUCTION Increase yields and export availability of sustainably grown coffee Implementation of 10 yrs coffee development strategies (2011/2021) Development of a National Sustainability Curriculum which focus on Harmonizing Extension Materials.
10 CURRENT BREW ON PRODUCTION The National Coffee Strategy calls for the increase of production and exports to 100,000 tons by With some investment and focused effort, this could easily be achieved. This would represent an additional annual revenue for the economy of US$ 200 million, and create significant new employment. There is the potential to place significant additional quantities without reducing relative prices.
11 CURRENT BREW ON PRODUCTION Renovation and rehabilitation of farms by the use of improved seedlings developed by TACRI Stakeholders have established a trust fund to solve the problem of sector financing and availability of inputs. Establishment of stakeholder forums at zonal and national level Support from development partners (CPT, CAFÉ AFRICA, EU, HNRS, AFCA, USAID, IDH, etc
12
13 TANZANIA MARKETING SYSTEM There are three marketing system in Tanzania Farm Gate market farmer sales the raw coffee, ungraded and unprocessed. (parchment for arabica and dry cherry for robusta) to the licenced coffee buyers and cooperatives. Auction market this is the market where licenced exporters buys coffee for export market (55% of coffee exports) Direct export market whereby growers can sale directly to roasters outside the country (45% of exports
14 COFFEE MARKETING COOPs FARMER GROUPS 27% 44% Private Companies 25% Estates COFFEE Auction 4%
15 TANZANIA MARKETING SYSTEM The AUCTION Done every Thursday of the week Coffee is sold by way of catalogue Transparent and more efficient The ports of exit are DSM and Tanga
16 ARABICA PRICE TREND 2015/16 Arabica - MCE
17 ROBUSTA PRICE TREND 2015/16 Robusta-MCE
18 MARKET SITUATION The country offers variety of coffee profiles to suit most flavours. The Volcanic Kilimanjaro, Magical Mbinga, Mbeya and Kigoma coffees With round body and balanced acidity, Tanzania coffee can be used as single origin. No need for blending More can be achieved once we sort out the main challenge: Consistence in quality and volumes.
19 Tanzania Coffee Exports per type (kg) 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000, / /12 MILD ARABICA 2012/13 HARD ARABICA 2013/ /15 ROBUSTA SOLUBLE
20 Tanzania Coffee Exports per type (kg)2015/16 Na Country Japan Germany Italy Belgium United States South Korea Israel Russia South Africa Finland Australia Morocco Others Total Percentage 44.63% 13.91% 8.37% 7.74% 5.36% 3.71% 2.30% 2.28% 1.98% 1.85% 1.29% 1.16% 5.42% 100%
21 TANZANIA S COMPARATIVE ADVANTAGE 1. Suitable land for expansion with favourable climate - a better opportunity for investment 2. Three ports of exit: Dar es salaam, Tanga and Mtwara - potential to provide service for six landlocked countries of Malawi, Zambia, DRC, Burundi, Rwanda and Uganda. 3. Traders can source directly from growers 4. Political stability
22 TANZANIA S COMPARATIVE ADVANTAGE 1. There is potential for value addition from modernising processing techniques, including for the robusta areas in the West. 2. If the Government and Development partners will continue joining with the industry to realise the potential, it could yield in the coming 3 5 years significant dividends for the country and its coffee farmers, and rural communities.
23 Way forward 1. Fine coffee comes from the deep desire to impact the lives of the growers. 2. Coffee can transform the economies of our countries and realize the desired potential if the business and partnerships between the Government and Development partners will continue to work together thereby yielding significant divided in the shortest time possible
24 ASANTE SANA
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