Coffee Annual Report

An Expert's View about Food , Beverages and Tobacco in Tanzania

Last updated: 11 Jul 2011

Under the Tanzania coffee development strategy, launched in December 2010, the Government of Tanzania (GOT) plans to double coffee production from the present average of 833,000 60 kilogram bags to 1.7 million 60 kilogram bags by 2020.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 6/10/2011 GAIN Report Number: Tanzania Coffee Annual Tanzania Coffee Annual Report Approved By: Souleymane Diaby Prepared By: Souleymane Diaby and Carol N. Kamau Report Highlights: Under the Tanzania coffee development strategy, launched in December 2010, the Government of Tanzania (GOT) plans to double coffee production from the present average of 833,000 60 kilogram bags to 1.7 million 60 kilogram bags by 2020. FAS/Nairobi projects Tanzania coffee production in Marketing Year (MY) 2012 (July 2011 to June 2012) to decline by 20 percent from the previous year in line with the general biannual production cycle. Commodities: Coffee, Green Production: FAS/Nairobi generated the estimates and forecasts in the graph and table below in this report based on the best data available from the government and private sector sources. The government of Tanzania?s goal of doubling production is projected to be reached by increasing yields through improved agronomic practices, additional inputs, and replacement plantings of disease resistant trees, as well as an expansion of planted area. Data Sources: 1961-2009: USDA 2010: Tanzania Coffee Board 2011-2012: FAS/Nairobi Consumption: Domestic coffee consumption remains low as Tanzanians prefer tea to coffee. Industry sources report annual per capita coffee consumption at 0.06 kilograms. Trade: Japan and the European Union are the main destinations for Tanzanian coffee exports. Arabica coffee comprised 70 percent of total exports in MY 2011, largely exported to Japan and Italy. Tanzania Coffee Export Destinations in 60 kilogram bags Coffee Year 2009/2010 2010/2011 Destination Arabica Robusta Total Destination Arabica Robusta Total 210,222 Japan 90,095 300,317 Japan 177,543 76,090 253,633 Italy 74,433 31,900 106,333 Italy 113,575 48,675 162,250 Germany 64,878 27,805 92,683 Belgium 84,385 36,165 120,550 Belgium 43,470 18,630 62,100 United States 45,710 19,590 65,300 United States 38,337 16,430 54,767 Germany 58,975 25,275 84,250 Total 431,340 184,860 616,200 Total 480,188 205,795 685,983 Data Source: Tanzania Coffee Board Stocks: Processors, exporters and distributors hold most of the stocks. Policy: The Tanzanian coffee industry faces a number of challenges, including stagnant production, poor agricultural practices, low use of inputs, and pests and diseases. To address these challenges, the government of Tanzania launched the Tanzania Coffee Development Strategy (2011-2016). The new strategy aligns with key national policy initiatives including, MKUKUTA (Tanzania?s growth and poverty reduction strategy), Agricultural Sector Development Strategy, Agricultural Sector Development Program, and ?Kilimo Kwanza? (the ?agriculture first? strategy). The Tanzania Coffee Development Strategy identified five priority areas: production; quality; business environment and policy framework; farmer incomes and prices; and value addition. The ultimate goal of the initiative is to double coffee production by 2020 and to improve the quality of Tanzanian coffee. Production, Supply and Demand Data Statistics: Coffee, Green Tanzania, U 2009/2010 2010/2011 2011/2012 nited Republic of Market Year Begin: Market Year Begin: Market Year Begin: Jul 2009 Jul 2010 Jul 2011 USDA New USDA New USDA New Official Post Official Post Official Post Area Planted 0 200 0 200 200 Area Harvested 0 0 0 0 0 Bearing Trees 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 Total Tree Population 0 0 0 0 0 Beginning Stocks 69 69 14 14 212 Arabica Production 620 421 650 654 525 Robusta Production 300 185 350 280 225 Other Production 0 0 0 0 0 Total Production 920 606 1,000 934 750 Bean Imports 0 0 0 0 0 Roast & Ground Imports 0 0 0 0 0 Soluble Imports 0 0 0 0 0 Total Imports 0 0 0 0 0 Total Supply 989 675 1,014 948 962 Bean Exports 870 616 875 686 700 Rst-Grnd Exp. 0 0 0 0 0 Soluble Exports 5 5 5 5 5 Total Exports 875 621 880 691 705 Rst,Ground Dom. Consum 100 40 100 45 45 Soluble Dom. Cons. 0 0 0 0 0 Domestic Use 100 40 100 45 45 Ending Stocks 14 14 34 212 212 Total Distribution 989 675 1,014 948 962 1000 HA, MILLION TREES, 1000 60 KG BAGS
Posted: 10 July 2011, last updated 11 July 2011

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