Tanzenia: Coffee factory mulls higher Green tea farmer prices

Factory mulls raising producer tea prices By Joas Kaijage.

Bukoba Kagera Tea Company (KTC) Ltd mulls raising producer prices for green tea in order to motivate farmers. The move comes amidst fears of slumped processing at the KTC factory.

With capacity for two million kilogrammes, the factory is projected to process about 890,000 kilogrammes only this year. According to KTC Executive Director Dr Peter Mgimba, the factory would not meet its target of at least processing one million kilogrammes this year because of low farmer morale.

Currently, the factory pays farmers Sh100 per kilogramme of green tea leaves without deducting transportation charges as in other regions but farmers are apparently still disenchanted. Dr Mgimba said training for farmers and higher producer price were in line with a number of other KTC interventions to boost production. Recently, KTC in collaboration with the Tanzania Small Hawkers Tea Development Association organised a course for tea extension officers and farmers at the UYOLE Agricultural Institute in Mbeya.

The chairperson of the Kagera Tea Farmers Association (KATEA) Mr James Rwegoshora said Kagera Region had only 178 hectares under tea cultivation after farmers abandoned about 100 hectares. Mr Rwegoshora said tea farms formerly covered 1225 hectares but most farms were abandoned after the factory was privatised in 2000. As a result Mr Rwegoshora said the farms have attracted both local and foreign investors under increasing attention also of local authorities that have started reallocating some of them.

Region: Tanzanian Coffee prices firm at Moshi aution

Oct 3
Tanzanian coffee prices firmed slightly at last week's auction as buyers sought to cover their positions ahead of a Muslim holiday, traders said on Wednesday. The Tanzania Coffee Board (TCB) said 46,150 60-kg bags were on offer on Thursday last week, with 44,984 sold. In the previous week's sale, 32,623 60-kg bags were offered for sale, with 16,926 sold.

Benchmark grade AA sold at $175-$129.40 per 50-kg bag, compared with $170.00-$130.00 per bag at the last auction. Grade A was bought at $170-$133 per 50-kg bag, compared with the previous week's $152.40-$129 per bag. "The quantities on offer were quite handsome. Generally, prices were very firm. It could be mainly (due to) shippers who are short of coffee," said Kennedy Keya, a trader with Dorman Tanzania.

"The quality is good. Prices may have been firm because there's no auction in Tanzania (this week) so many people are trying to cover their short positions." Tanzania largely produces arabica coffee but also grows robusta, thriving mostly in the northern, southern and western parts of the country in areas around Mount Kilimanjaro and Lake Victoria. The auction, held in Moshi took place on last week but TCB released the results on Wednesday.