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Badilisha Lugha KISWAHILI

Tanzania coffee prices rise as supplies dwindle

6th December 2012
Arabica Coffee

Coffee prices in Tanzania rose at auction last week as supplies fell, the Tanzania Coffee Board (TCB) said yesterday.

State-run regulator TCB said 28,697, 60-kg sachets were offered at the sale with 20,003 bags sold. A total of 34,266 60-kg sachets were up for sale in the previous auction, with 25,826 bags sold, it said.

"Overall average prices at the Moshi exchange were up by $1.25 per 50 Kg for mild Arabica and Robusta were up by $12.70 per 50 Kg compared to the last auction," the board said in its

"Average prices were below the terminal market by $9.39 per 50 kg for mild Arabica while Robusta were above the terminal market by $19.25 per 50 kg."

Tanzania produces mainly Arabica and some Robusta coffee.
Prices of its Arabica normally track the New York market, while those of Robusta take direction from London.
Coffee is packed in 60-kg bags but is sold as 50-kg bags.
Market participants said strong demand for coffee from exporters was expected to push prices higher in the coming auctions.

"Traders are scrambling for high quality coffee at the moment, especially Robusta beans which are in short supply at the auction," said a trader at a coffee-exporting company in the northern

Benchmark grade AA sold at $147.00-$170.20 per bag, down from $144.20-$176.00 per bag previously. The average price was $149.21 per bag, slightly down from $149.52 previously. 

Grade A fetched $147.00-$151.20 per bag, down from $142.00-$157.00 per bag previously and got an average price of $148.04, up from $147.48 previously.

The TCB expected the 2012/13 (June/April) crop to rise to 55,000 tonnes in the continent's fourth-largest coffee grower from 32,000 tonnes in the previous season.   The next auction will be held on Dec. 6.