Tanzania Coffee Industry
Development Strategy (2011-2021)
PRESENTATION
;
AT AFCA 2013 KAMPALA
ADOLPH A. KUMBURU
TANZANIA COFFEE BOARD
Coffee growing regions in tanzania
FUNCTIONS OF THE TANZANIA
COFFEE BOARD
Tanzania Coffee Board (TCB) is a government institution
established by Act no. 23 of the parliament in 2001
The TCB has two Basic functions:
Promotion
Advisory
Representation
Information
disemmination
Regulatory
Supervisory
Monitoring
Co-ordination
CONTENTS
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Why sector strategy?
Strategy participatory development process
The strategy: logic of intervention
Quantitative objectives
Four strategic thrusts to reach the objective
Problem analysis
Intervention Strategy
Impact scenario (summary)
Why sector strategy?
Problem oriented (not program oriented –
every organization tends to follow their own
agendas)
 Allow to bring sustainable « sector change »
(unlike individual action tackling problems in
a single dimension)
 Bring under the same « roof » actors of very
different natures unlikely to cooperate
otherwise (private, public, research etc.)

Strategy participatory development
process
National Coffee Conference decides to develop a coffee sector strategy
(December 2009)
National and local consultation with all actors of the value chain (TFC
meetings + 8 zonal meetings gathering about 600 stakeholders from 28
districts)
First draft validated by NCC in May 2011
Presentation/Adoption of the document by Government May 2012
Implementation
Key principles observed when
developping the strategy
Process vs. Output -> bringing people
together is as important as the final
product
 Being pragmatic (vs.wishlist) -> need to
be both ambitious and realistic
 Linking with future implementation ->
concrete actions and implementation
plan

The strategy: logic of intervention
The strategy
VISION
 “The Tanzanian coffee industry aims to build a
long term sustainable and profitable coffee
industry to all stakeholders, producing
internationally recognized high quality Arabica
and Robusta coffees and making a significant
contribution to macro-economic stability, poverty
reduction and improved Tanzanian livelihoods.”
 OBJECTIVE
 “To increase national coffee production and
quality so as to improve incomes for the entire
value chain, particularly coffee farmers.”

Quantitative objectives

Increased annual clean coffee production from the
present average of 50,000 tons to at least 80,000 tons
by year 2016 and 100,000 tons by year 2021

Improved coffee quality demonstrated by an increase in
the share of coffee sold with price premiums on export
markets, from the present 35% of the total volume to at
least 70% by year 2021

Farmers’ share of the net FOB price on coffee exports is
improved to reach at least 75% by year 2021
Four strategic thrusts to reach the
objective
Strategic thrust 1: Increase coffee productivity and
overall production
Indicators of success

Average coffee yield at the national level increases to
reach at least 450 kgs of clean coffee per hectare by
year 2021 (+100% increase)

At least 10,000 hectares of new coffee farms are
planted by year 2021
Problem analysis
Main problem of Tanzania is low yields, about 225 kgs of
clean coffee per hectare as an average
Robusta = 500 kgs/ha (Vietnam produces 5 times more)
Arabica= 170 kgs/ha (Brazil produces 7 times more)
At this level of productivity coffee farming cannot be
profitable, currently Tanzania coffee production is not
economically sustainable
Gap analyis: what is already being
done? What is missing?
TaCRI has already a theoretical capacity of
maximum 15 M. improved seedlings per year
 How to link with on farm replanting and
efficient nursery management? (Survival rate)
 For dissemination of GAP and sustainable coffee
production, possibility to capitalize on successes
from NGO projects and upscale their approach
(Technoserve, Neumann, Sustainable Harvest
etc…)

ST1: Intervention Strategy
Increased
production
+50 000 t
Strategy Objectives
Indicators
Programs/
Activities
Rejuvenation of 10
M. coffee trees
(replanting)
Increased
productivity
(+100%)
Increased area
(+ 10 000 ha)
Dissemination of
Good Agricultural
Practices
Inputs (possible
incentives to
rejuvenation)
Four strategic thrusts to reach the
objective
Strategic thrust 2: Improve efficiency of the value
chain
Indicators of success
 By 2016 the Average share of transaction costs from
Farm-gate to FOB is reduced from the current 35% to
25%

By 2016 the average time needed to move the coffee
form farm-gate to FOB is reduced from the current
average 3 months to 2 months
Problem analysis
Tanzania coffee value chain currently suffers
from:
Loss of value (internal marketing, transport, unecessary
intermediaries, taxation, hassles, some poorly managed
cooperatives,repeated grading/sorting/bulking , sisal bags etc.)
Slow
transfer of coffee from one stage to
another (high cost of capital financing, price risk, quality
deterioration, loss of opportunities on international markets)
-> It is always the farmer who ultimately pays
for transaction costs
Gap analyis: What is already being done?
What is missing?
Consultation organized by government / TCB
 Recent evolutions in regulations and taxation
framework at national level
 Some improvements at district level

-> How to mainstream these initiatives into an
overall coherent and enabling regulatory
framework
ST2: Intervention Strategy
Increased FG
price to 75% of
FOB
Strategy Objectives
Indicators
Programs/
Activities
Attractive
regulatory
framework
Rejuvenation
of 10 M. coffee
trees
(replanting)
Increased
speed of coffee
flow
Improved
internal
marketing
Increased
transparency/g
overnance
(price
information
etc.)
Four strategic thrusts to reach the
objective
Strategic thrust 3: Support overall coffee quality
improvement
Indicators of success

By 2021 a minimum of 70% of the coffee produced in
Tanzania is of grade 1-7

By 2021 a minimum of 75% of the Arabica coffee produced
in Tanzania is processed through CPU
Problem analysis
Sundried coffee or hand pulped coffee are not
necessarily inferior to CPU washed
 Management of the process is however much more
complicated and requires delicate care and know
how
 In Tanzania, about 90% of the coffee is currently
home processed (Hans R. Neumann Stiftung)
 Inconsistent and heterogeneous quality because of
deficient post harvest practices
 Tanzanian coffees used in blends rather than single
origin coffees.

Gap analyis: What is already being
done? What is missing?
Existing CPUs throughout the country (about 10% of the
production is fully washed)
 Some CPUs could be rehabilitated
 Possibility to capitalize on work done by private sector
and NGO projects(Sustainable Harvest, Neumann,
Technoserve)

-> How to effectively create incentive for farmers to
improve harvest / post- harvest practices?
-> How to upgrade the national CPU capacity in a
sustainable manner (no CPUs abandonned after a few
years)
ST3: Intervention Strategy
Price premiums
for 70% of the
coffee
produced
Strategy Objectives
Indicators
Programs/
Activities
70% of the
coffee is of
grades 1-7
Improve overall
harvest / post
harvest
practices
(Training)
Improve
Robusta quality
and promote
mobile hulling
75% of the
Arabica is
processed
through CPU
Build/rehabilitate
300 CPUs
Four strategic thrusts to reach the
objective
Strategic thrust 4: Support the promotion of
Tanzanian coffees abroad and
explore new market opportunities
including sustainable coffees
Indicators of success
 By 2021 a minimum of 50% of the coffee produced in
Tanzania is “sustainable” (UTZ, 4C, FLO, Rainforest,
Organic)
 By 2021 domestic consumption is increased in Tanzania
and reaches at least 10% of the production
Problem analysis
Need to mainstream sustainability issues in
general coffee practices
 Sustainable coffee represent also a growing
market and large players are committing to source
almost exclusively from sustainable producers
 Generally, external marketing need to take into
account the growth on emerging markets and the
« branding » aspect of Tanzanian coffee
 Possible development of domestic market

Sustainability
Not only certifications/verifications/code of
conduct
 Start with GAP

-> who pays the cost?
-> will there be premiums?
-> what certifications/verifications/code of conduct
should be promoted?
Gap analyis: What is already being
done? What is missing?
Sustainability: UTZ mainly with large estates
 Sustainability: Some initiatives for GAP (NGOs)
 External marketing: mainly private sector but as well TCB
(EAFCA, other forums)

-> No clear indications on which
certification/verification/code of conduct promoting
nationally
-> Should Tanzania be developped as a « brand » or is
something that comes in an organic manner?
ST4: Intervention Strategy
promotion abroad and explore
new markets including
sustainable coffees
Strategy Objectives
Indicators
Programs/
Activities
50% of the coffee
produced in Tanzania is
“sustainable” (UTZ, 4C,
FLO, Rainforest,
Organic)
Develop Tanzania
Brand and promote
Tanzania’s origin on
export markets
Adherence to
environmental
and social
responsibility
standards
Domestic
consumption
increased to at least
10% of the production
Promote domestic
consumption and
production of
roasted and ground
coffees
Impact scenario (summary)
If the coffee strategy is implemented:
 Additional revenues of at least +150 M. $US per year
(+223 M. $US at current price)
 250 M. $US generated annually by the coffee industry (335
M. $US at current price)
 75% redistributed to coffee farmers. It will almost double
(+95% increase) the coffee incomes for 400,000
households
-> Reduction of poverty and sustainable capacity for self
improvement of the coffee industry
AHSANTE SANA
PRESENTATION BY
TANZANIA COFFEE BOARD
Contact:
DIRECTOR GENERAL
P.O Box 732, MOSHI
info@coffeeboard.or.tz
www.coffeeboard.or.tz