Tanzania’s potential to reclaim top coffee producer status

DAR ES SALAAM: TANZANIA is well-positioned to rise among the elite coffee producers on the global stage.

However, according to the 2023/24 statistics, the country no longer ranks among the top ten coffee producers-a notable shift considering its historical prominence.

In contrast, Ethiopia and Uganda are the only African nations within the top ten globally.

Ethiopia is Africa’s leading coffee producer and exporter, with its coffee deeply embedded in its culture.

The country is renowned for its diverse range of coffee beans. Uganda, known for its Robusta coffee, stands out for its wine-like acidity and chocolate notes.

Tanzania, by comparison, is celebrated for its high-quality Arabica coffee, cultivated in regions such as Kilimanjaro, Arusha, Mbeya, Ruvuma and Kagera and also produces significant amounts of Robusta.

Other notable coffee producers include Côte d’Ivoire, Kenya, Madagascar, Rwanda, Cameroon, the Democratic Republic of the Congo and Guinea.

Coffee producers In response to these challenges, Tanzania recently hosted an international coffee conference in Dar es Salaam, the nation’s commercial hub, over the weekend.

Led by President Samia Suluhu Hassan, the event brought together key government leaders and industry experts, highlighting the country’s growing importance in the global coffee market.

The potential for growth in Tanzania’s coffee industry Recent reports, including a 2019 paper by REPOA, suggest an upward trend in Tanzania’s coffee production.

For the market year 2024/25, a production increase of about 7.0 per cent is anticipated, reaching roughly 1.5 million 60-kilogram bags (around 90,000 metric tonnes).

This growth can be attributed to the effective restoration of ageing plantations and consistent demand from major buyers, notably the European Union.

The Tanzanian government, through the Tanzania Coffee Board (TCB), has been proactive in revitalising the sector.

As of November 2023, 13 million enhanced seedlings had been distributed to farmers, with a target of 25 million by the end of 2025. These initiatives aim to restore existing plantations and increase total output.

The Fitch Solutions database (BMI) provides insights into coffee production trends in Tanzania, forecasting a production of 1.40 million 60kg bags for the 2025/26 crop, marking a year-on-year increase of 3.7 per cent This follows a substantial rise of 20.5 per cent, reaching 1.35 million 60kg bags in 2023/24.

Innovative partnerships and advancements in research In April 2024, Cisco, a global technology company, partnered with Tanzanian coffee producers to improve yields using the Internet of Things (IoT).

This collaboration, which will involve yieldboosting sensors to monitor coffee farm growth, is expected to enhance productivity in the sector.

The Tanzania Coffee Research Institute has also made significant strides by developing four drought-resistant Arabica coffee varieties.

Pending certification by the Tanzania Official Seed Certification Institute (TOSCI), these varieties are expected to be launched in the next season.

These innovations, coupled with increasing demand, have contributed to Tanzania’s coffee production reaching a record 85,000 metric tonnes, solidifying its status as a major exporter to the European Union.

In November 2024, the TCB announced a new initiative to boost domestic coffee consumption from the current 7.0 per cent to over 15 per cent of total output by 2025/26.

The government plans to achieve this through investments in mobile coffee shops.

While previous attempts have faced challenges, this new push represents a critical step toward expanding domestic demand.

Strategic actions for revitalisation and future growth Tanzania has the potential to rise from the 18th position to within the top five coffee producers in Africa.

Achieving this would improve the livelihoods of coffee farmers by ensuring fair prices for their crops and stimulate increased production.

Moreover, it could serve as a powerful incentive for young people to engage in the agricultural sector, helping to tackle youth unemployment.

As a researcher and expert in promoting agricultural production, I believe several key areas need to be addressed to position Tanzania as a leader in coffee production: Value Addition It’s crucial to boost Tanzania’s coffee exports by focusing on value addition at multiple levels of the coffee value chain.

Improving coffee quality through better farming practices, processing, grading and specialty coffee development is essential.

Additionally, alignment with global certification standards will ensure competitiveness.

Roasting and Packaging Rather than continue exporting raw coffee, Tanzania should invest in local roasting and packaging.

By doing so, Tanzanian coffee can be sold globally under a recognisable brand, ensuring higher value for the country’s exports.

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Global Marketing Through the Tanzania Coffee Board, a strategy should be developed to promote Tanzanian coffee brands on international e-commerce platforms like Amazon and Alibaba.

Direct relationships with buyers, roasters and cafes should be cultivated to bypass intermediaries.

Leveraging social media and influencer marketing will help highlight the unique qualities of Tanzanian coffee regions, such as Kilimanjaro, Mbeya, Arusha and Kagera.

Strengthening Cooperatives and SMEs Supporting coffee cooperatives and small-scale producers in accessing finance for processing equipment, training and marketing is crucial.

Encouraging partnerships between farmers, exporters and global coffee brands will help enhance the sector’s competitiveness.

Improved Infrastructure To ensure Tanzanian coffee is competitive in the global market, enhancing logistics and export infrastructure is essential.

This includes improving warehousing, transportation and port facilities to preserve the quality of the beans and reduce delays in delivery.

Policy and Investment Collaboration Government policies and private sector investments need to work together to boost value-added coffee businesses.

By focusing on quality improvement, roasting, specialty products and digital marketing, Tanzania can improve its position in the global coffee market.

Addressing structural obstacles Discussions with coffee outlet owners in the UK, France and Germany indicate that Tanzania’s potential to increase its global market share hinges on overcoming key structural challenges.

These include outdated plantations, inefficient fertilisation, limited financial resources and weak policy frameworks.

Overcoming these obstacles is vital for unlocking the sector’s growth potential. While coffee exports remain strong, domestic demand is expected to grow slowly in the coming years.

For Tanzania to capture a larger share of the global coffee market, strategic actions must be taken at all levels, from production to marketing and trade policies.

Enhancing the quality and productivity of coffee, improving value addition and processing, strengthening supply chains and infrastructure and promoting global branding will be key to success.

If these strategies are successfully implemented, Tanzania can strengthen its position in the global coffee market, boost export earnings, create jobs and reduce youth SOURCE: USDA: Foreign Agriculture Service, 2024 unemployment.