KILIMANJARO: FARMER Kilimanjaro Company (FAKICO) is set to more than double its coffee sales in this season after attracting some AMCOS and individual farmers.
The Kilimanjaro region-based firm announced that in the 2024/25 coffee season, which began three weeks ago, is projected to generate 2.6bn/-from selling 158 tonnes up from 1.2bn/- after selling 74.9 tonnes in the 2023/24 season
FAKICO General Manager Mr Gabriel Ollomi said their success after branching off from KNCU is attracting some AMCOS and farmers to sell their coffees through them.
“Our projection is based on the influx of more coffee farmers and AMCOs, who are drawn by our success and the incentives offered,” Mr Ollomi said during the company’s Annual General Meeting (AGM) held in Moshi over the weekend.
Mr Ollomi said the company is expected to earn a total of 700m/- from selling 62 tonnes of coffee domestically and 1.9bn/- from selling 96 tonnes internationally.
“These sales will not only boost farmers’ incomes but also contribute to the country’s economic development through the various taxes the company expects to pay,” he said.
The shareholders received a 952.3m/- in the 2023/24 season, which came after deducting all expenses from the 1.2bn/- accrued by the company.
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Additionally, FAKICO’s organic coffee sector struggled in the 2023/24 season due to several uncontrollable challenges.
“Technical issues caused delays in the curing process, affecting the timely market release of organic coffee, which is challenging for farmers who invest significant time and costs to produce this high-value coffee,” he said:
“We have started strategies to ensure that the organic coffee business is produced and handled as soon as possible so that farmers can benefit from organic coffee cultivation.”
In another development, the GM said that there have been delays in payment for shares floated to strengthen the company’s capital.
“FAKICO has distributed 2,268 shares worth 22.7m/-, but only 345 shares valued at 3.45m/-have been paid for.
“Many shareholders have yet to settle their payments and the board has brought this issue to the AGM for discussion to ensure the company’s future success,” he added.
Regarding future plans, Mr Ollomi mentioned the establishment of a coffee roasting unit to boost income.
“The company has secured a site for the project and is negotiating with financial institutions to secure funding for the coffee roasting venture,” he said.
FAKICO is a coffee-producing firm and involves in the cultivation, processing and marketing of coffee, leveraging the region’s renowned coffee-growing conditions to
produce high-quality beans.