DAR ES SALAAM, Feb 11 (NNN-DAILYNEWS) — TANZANIA’S market share in Africa’s coffee industry has grown by an impressive 71 per cent over the past three years, highlighting the country’s increasing competitiveness and rising prominence in the sector.
The nation’s market share has doubled to 240 million US dollars (620.4bn/-) from 140 million US dollars (361.9bn/-) recorded three years ago.
This growth has been driven by a 55 per cent increase in coffee production, rising from 55,000 tonnes to 85,000 tonnes per year, alongside improved prices for farmers.
Minister for Agriculture, Hussein Bashe said that the surge attributed the remarkable progress to enhanced efforts in coffee farming and market strategies.
“We have made significant progress in this crop over the past three years. During this time, farmers’ prices have consistently improved and production has steadily increased,” he said through a voice note to the media, addressing the public on the upcoming G25 African Coffee Summit to be held in Dar es Salaam next week.
Africa’s total coffee market is valued at 2.5 billion US dollars, contributing to the global coffee trade, which is worth 500 billion US dollars.
The Minister stressed the importance of value addition in the coffee trade, saying that African nations often export raw coffee beans while importing processed coffee at significantly higher costs, which limits potential revenue.
“For example, we sell raw coffee for an average of four dollars but import processed coffee for nearly 20 dollars,” he said.
The minister said that this summit provides a crucial opportunity for African nations to rethink their approach to the coffee trade.
“This is a vital chance for African nations to conduct business among them, enhance the value of our crops and establish a market within the continent. By processing coffee locally, we can increase its value and retain more benefits within Africa,” he said.
The country is now well positioned to capitalise on its organic coffee, particularly the Arabica variety, which is used in various industries, including alcohol and perfume production.
An Economist-cum-Investment Banker, Dr Hildebrand Shayo, said if the country aligns its strategy with international standards, it could significantly expand its coffee marketing, tax base, create jobs and attract more youth into farming.
“Our coffee is organic and if the government complies with international standards, we will see increased output and a wider tax base,” Dr Shayo said.
“With the right marketing strategy, especially for Arabica coffee, the country will reap more benefits and create wealth for farmers, particularly the youth.”
Worldwide, only 50 countries produce coffee, half of them from Africa. The world has 195 countries. In addition, coffee is the fourth most traded commodity after oil, gold and natural gas.
Thus, the 25 African coffee-producing countries are scheduled to attend Dar es Salaam’s G25 African Coffee Summit. The meeting will bring together heads of state, ministers, coffee authorities and other stakeholders.
Over 1,000 participants are expected to attend the event with this year’s theme “unlocking employment opportunities for Youth through the regeneration of the African Coffee Industry”
Moreover, the summit aims to develop strategies to transform Africa’s coffee sector, focusing on youth and women employment, public private funding, financial support for farmers, regional Centres of Excellence and harmonising African coffee standards to boost intra African coffee trade.
In Africa, Tanzania is one of the top five coffee producers. It typically ranks 4th or 5th, with Ethiopia, Uganda and Ivory Coast generally leading the list in terms of production.
Tanzania’s coffee is primarily produced in Kilimanjaro, Arusha, Ruvuma and Mbeya – mainly Arabica and Robusta varieties. — NNN-DAILYNEWS
