Japan’s appetite to consume coffee is working well in delight of Tanzania, raking massively from their exports to the East Asian country. Coffee is the country’s most significant largest export crop in the economy. The high population in Japan standing at around 127 million people, offers a wide market for the cash crop in the country. With a growth in demand, Tanzania needs to supply enough to satisfy the needs of the international market.
According to reports, during the 2017/18 coffee season the Government of Tanzania harvested $528,000 in revenue as the crop’s popularity continues to grow in the international market. This was a significant rise in considering the country produces 90 tonnes of the commodity, rising from 36 tonnes. The Government has plead to work with the farmers and their co-operatives to ensure the numbers continue going up without compromising the quality of the produce.
A number of strategies are set to be lined up to increase the tonnage in a bid to sell more. There is a lot of competition in the market and increase in tonnage could give the country some leverage to compete, as well as widen its market of sale. In 2016, it was speculated that coffee production in East Africa would fall, which would result in their figures on paper dropping as well.
One of the factors that led to a good performance for Tanzania’s coffee in 2017/18 season was good climate that facilitated the healthy growth of the crop. In the coming season of 2018/19, there’s some hope to increase the number of bags. Poor weather conditions have avidly affected the growth of the crops, and at times brought down losses for the farmers and the country as well.
With Ethiopia almost abandoning coffee for khat, East Africa’s coffee production could harm the regional GDP. On the other hand, it would work well in the market for some competitors who would identify gaps and fill them with their supply to earn more revenue.
Tanzania’s counterpart Kenya proves to be a major dealer in the coffee industry and keeps Tanzania on toes in the sector. Their competition has led to better farming practices to produce quality and better quantity to help boost their economic prowess in the region. Both produce Arabica which has been a fond to the international markets. Tanzania produces robusta as well which is gathers 30% of the total production.
Coffee supports close to 400,000 small holders in Tanzania who producer close to 90% of the country’s commodity. More revenue in the commodity will trickle down to more income for the farmers to better their economic status. They have been encouraged to practice better farming methods to achieve desirable results for themselves and Government.