Tanzania’s Coffee industry: Some food for thought

 

By 

Saumu Jumanne

Summary

·         Tanzania is a significant producer of coffee in Africa, but currently it has a smaller market share than other nations like Ethiopia and Uganda.

Recently, the chairperson Agriculture Council of Tanzania, Jacqueline Mkindi tweeted: “The Global coffee industry is thriving as its market size is projected to hit $151.92bn in 2028, up from $104.22bn in 2020, thanks to the rise in demand for specialty coffee. However, Uganda & Ethiopia are the only African countries that enjoy the market share. Food for thought”!

Yes, it’s certainly food for thought. Tanzania is a significant producer of coffee in Africa, but currently it has a smaller market share than other nations like Ethiopia and Uganda. Tanzania must make conscious efforts to enhance its market share in the global coffee market, which can reach $151.92 billion in 2028. After all, we have everything it takes to dominate the coffee market like adequate land and more people.

The Minister of Agriculture, Hon. Hussein Bashe recently addressed the issues facing the coffee trading system. He gave some clues as to why there is unsatisfactory performance in that subsector. Hon. Bashe noted that farmers were being underpaid and exploited by cooperatives through the present system.

The information provided on the prices of coffee didn’t amuse him, as he still noted that there were all signs that coffee farmers conned. Farmers having coffee of different quality and grades were all treated equally. This review of the trading system is a big step in ensuring that farmers are not exploited and thus receive fair compensation for their products.

As a nation, we must take a proactive approach to enhance our market share in the global coffee market by taking the necessary steps to improve the quality of our coffee, establish a strong brand, increase exports, diversify our coffee varieties, and invest in technology. We can position ourselves as a leading player in the global coffee industry.

To achieve this, we must first address the issues facing our coffee trading system. As highlighted by Agriculture Minister Hussein Bashe, farmers have been underpaid and exploited by cooperatives through the present system. That is unacceptable and needs immediate action. The decision to dispatch a team of experts to review the trading system and gather concerns from farmers is a step in the right direction.

We must improve the quality of our coffee while examining the trade mechanism. Specialty coffee is in high demand and has a higher price since it has a distinct and high-quality flavor. We can make our coffee of the finest quality by employing stringent quality control systems, investing in research & development, and training farmers on the best methods for growing and harvesting coffee.

We must also spend money on marketing and branding initiatives to develop a distinctive and recognizable brand that accurately reflects the caliber and originality of our coffee if we are to position ourselves as a premium product. That will enable us to stand out from the competition and attract more customers.

Additionally, in order to simplify exportation of our coffee, we must develop trade agreements with other nations and upgrade our logistics and transportation systems. With the aid of certifications, we will also be able to access new markets and attract more customers.

Along with taking these actions, we must also concentrate on expanding the kind of coffee we make. That will enable us to expand our markets and draw in additional customers. Likewise, if we invest in technology to raise the effectiveness and productivity of our coffee, we will be able to produce more coffee and expand our market share.

In conclusion, Tanzania may improve its market share in the global coffee industry and benefit from the growing demand for specialty coffee by adopting a proactive strategies and concentrating on those areas mentioned above. Let’s cooperate to take control of the coffee market since we have means to do it.