KCU to double coffee collection to boost farmers’ livelihoods

BUKOBA: THE Kagera Cooperative Union (KCU 1990 Ltd) is aiming to more than double its coffee collection in the 2025/26 season in a move designed to enhance the livelihoods of farmers and contribute significantly to the national economy.

KCU Chairman, Mr Ressy Mashulano, announced that the union has set a target of collecting over 10 million kilogrammes of cherry coffee, a sharp rise from 4.9 million kilogrammes (kgs) gathered in the 2024/25 season.

The union collected 1.3 million kgs of organic coffee, against a target of 2.6 million kilogrammes.

“These efforts are critical to improving farmers’ welfare while boosting the national economy,” said Mr Mashulano.

“The goal is not only to increase production but also to support farmers in replacing aging, unproductive coffee trees. We are also introducing digital weighing scales and promoting the production of organic coffee.”

To finance these ambitions, KCU plans to secure a 27bn/- loan from the Tanzania Agricultural Development Bank (TADB), 20bn/- of which will be used to purchase coffee from farmers, and 7bn/- allocated for the construction of a new Lake Hotel.

During the 2024/25 season, KCU secured a 10.4bn/- loan from TADB and had, by March 30th this year, repaid 11bn/-, including interest.

As a proud member of the Fair-Trade Organisation (FTO), KCU has been leveraging the fair-trade premium at various Agricultural Marketing Cooperative Societies (AMCOS) to fund local development initiatives.

These include the construction of classrooms, health centres, and roads connecting rural areas to crop collection points.

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“Fair Trade is a global movement involving over 3,000 grassroots organisations across more than 70 countries. It ensures that coffee farmers receive a fair, stable price that covers the cost of sustainable production,” said Mr Mashulano.

He said that Fair Trade has helped maintain unity among members by guaranteeing secure pricing and added value through the premium, compared to the returns from conventional market sales.

“KCU has built strong, reliable partnerships with fully Fair Trade-certified buyers such as Twin Rapunzel, Café Direct, GEPA, Oxfam, Trade Fair Original, and Trade Aid Importer,” he added.

“Fair Trade Certified coffee promotes sustainable livelihoods, safe working conditions, environmental protection, and transparent supply chains.”

KCU (1990) Ltd is a voluntary association comprising 125 AMCOS, representing more than 60,000 smallholder farmers, most of whom engage in Robusta coffee farming.

Each AMCOS has about 500 members. Kagera Region remains one of Tanzania’s leading coffee producers, with annual output ranging between 40,000 and 60,000 metric tonnes, contributing approximately 50 per cent of the country’s total coffee production.

Coffee trade is now conducted via auctions, as direct farm-to-market sales have been banned to ensure transparency and better earnings for farmers.

In a broader effort to increase production, the government along with stakeholders including the Tanzania Coffee Board (TCB), Tanzania Coffee Research Institute (TACRI), Café Africa Tanzania, cooperative unions, and the private sector, is implementing a five-year strategic plan to raise coffee output from 78,000 metric tonnes to 300,000 metric tonnes.

The plan also includes the annual production of 20 million improved seedlings to rejuvenate the crop.