Value chain analysis for coffee in Tanzania: a case study of association of Kilimanjaro specialty coffee growers at Mbeya chapter, Tanzania

Loading...
Thumbnail Image

Date

2008

Journal Title

Journal ISSN

Volume Title

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

Citation