Value chain analysis for coffee in Tanzania: a case study of association of Kilimanjaro specialty coffee growers at Mbeya chapter, Tanzania
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Date
2008
Authors
Journal Title
Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
Coffee has been a mainstay of Tanzania’s agriculture based economy since its introduction
as a cash crop about 100 years ago. It contributes between 15-17 percent of the total GDP.
However in the mid 1990s the industry has fallen into steady decline. In 1994 there was
coffee liberazation whose immediate effect include increased in the nominal prices for
coffee. In 2003, new regulations were enacted allowing for direct export of coffee. This
has had a very big impact in the participation of the private sector in the coffee industry
where farmers have a wide range of choices for markets. Coffee has the merit that the
value chain is relatively simple but highly concentrated at the processing stage. The value
chain analysis extends traditional supply chain analysis by locating value to each stage of
the chain. The value of coffee has been increasing upwards of the market chain from the
producers to the final consumers in Europe. This shows that roasters get higher percentage
of retail coffee price leaving the producers receiving low price sometimes below
production costs.
The explanation of declining producer shares is that processing, marketing and distribution
costs incurred in the consuming countries have tended to increase over time while
production costs in the countries of origin have declined. This study show how
KILICAFE, which is an association of farmer business groups in the Arabica producing
regions of the North and South of the country with technical assistance from TechnoServe,
has promoted the production and processing of high quality specialty coffee to improve its
access to international and local markets in order to boost the incomes of its members. It
also shows the main actors in Tanzania coffee value chain and KILICAFE coffee value
chain, and describes the role of each key actor along the chain. It also shows how
KILICAFE chain differs from alternative coffee channels.
Description
Dissertation
Keywords
Coffee, Tanzania, Kilimanjaro, Mbeya, Cash crop