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Tanzania to Implement Coffee Auction System
Recently, Tanzania's Minister of Agriculture, Charles Tizeba, announced that starting from July, Tanzania's coffee growers and coffee supply and marketing cooperatives will only be able to sell coffee through annual coffee auctions supervised by the Tanzania Coffee Board. Tizeba explained that auctioning coffee through official channels will help enhance the competitiveness of Tanzanian coffee in the global coffee market and will effectively prevent individual coffee growers from rampant smuggling of coffee to neighboring countries.
Tizeba introduced that Tanzania's annual coffee auction this year will be held in July in the Moshi region. Future annual coffee auctions will be properly planned to ensure that coffee growers and coffee supply and marketing cooperatives receive corresponding returns at reasonable market prices.
Tizeba stated that Tanzania is the fourth-largest coffee-producing country in Africa, after Ethiopia, Côte d'Ivoire, and Uganda. Tanzania's annual coffee production ranges from 46,000 to 60,000 tons, with the Kagera region alone producing approximately 12,131 tons of coffee annually.
According to Tizeba, coffee is one of Tanzania's main sources of income, with coffee exports accounting for about 5% of Tanzania's total export value. Coffee prices are approximately $0.5 per kilogram, with annual exports reaching $100 million. However, over the past 10 years, coffee production has declined, and the government plans to promote the sales and development of Tanzanian coffee by introducing disease-resistant coffee varieties and establishing a conservation bank for rare coffee varieties.
According to relevant media reports, due to significant price fluctuations in Tanzanian coffee, one-third of the coffee is illegally sold in Uganda each year. In addition to Uganda, farmers from Tanzania's Kilimanjaro and Arusha regions also smuggle coffee to Kenya for illegal sales.
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