Tanzania Harvest Update 2023

Good Quality Expected Across the Board

For the Arabica crop, the volume is expected to be larger than last year. “Sucafina in Tanzania has been investing in partner AMCOS over the past 12 months, and we’ve helped them renovate their processing machinery,” says Rafael Bakarat, Supply Chain Coordinator at Sucafina in Tanzania. These efforts have helped partner AMCOS improve the overall quality of their coffees and garner higher market prices.

The Robusta harvest is expected to pick up in volume over the next 2-4 weeks, Ross says. “Quality is looking good, but overall yield is down due to natural crop cycles in the region.” Thanks to good rains at just the right time, we are expecting the screen size yield to be higher than usual.

Changing Prices Impact Profitability

Farmers of both Arabica and Robusta coffee in Tanzania depend on coffee production for a significant portion of their income. Prices and demand have been very volatile this year, Ross reports, and that volatility may cause issues for farmer profitability, which affects how much they can reinvest in their farms for the coming years.

One of the key challenges that coffee farmers face each year is access to capital, especially at the beginning of the growing season. Farmers are low on cash but need capital to buy inputs or make needed farm improvements. Since they are unable to access capital through traditional banking due to a lack of credit history, farmers turn to unofficial lenders. These unofficial lenders often agree to lend farmers money in exchange for a portion of their harvested coffee at a pre-determined price. This means that farmers are often unable to take advantage of high market prices at harvest time because they have already pledged their coffee at a set price.

For Robusta, the London market achieved record highs, which also means record prices for Tanzanian Robusta suppliers. However, at the same time, the situation is challenging on the demand side. Inflation, high London market, high-interest rates and an inverted market structure means a higher cost of carry and a lower incentive to stockpile coffee.

For Arabica production, a falling New York C market means that farmers are getting lower prices for their coffees amid rising costs for food, fuel and other supplies. “By working with our partner AMCOS to increase capacity and quality, AMCOS are now able to get higher prices for their quality coffees. These price premiums are passed on to member farmers who can continue investing in their families and their farms,” Rafael says

One change for Arabica since last season is a new “coffee development levy” added by the Tanzania Coffee Board. This new tax is intended to fund additional seedling production. The seedlings haven’t been distributed yet but “we are hopeful that we will see an increase in volume over the next few years as those trees mature and produce a larger harvest,” Ross says. The tax is projected to bring in 6 million USD this year.

Sustainability Initiatives Build the Foundation for Future Success

Sucafina in Tanzania is working with farmers to ensure the sustainability of coffee production within the country. This year, we’ve helped a number of farming partners gain Rainforest Alliance certifications to access new markets. They’re also in the process of getting their entire supply chain IMPACT verified, says Andrew Makoye, Certification and Sustainability Manager with Sucafina in Tanzania. “With IMPACT verification, farmers will be able to reach new markets while also focusing on the five IMPACT pillars: human rights, deforestation, carbon emissions, living income and regenerative agriculture. We expect that IMPACT-verified coffees will be available from Tanzania this season,” Andrew says.

One project Sucafina in Tanzania has been investing in is a loyalty program in partnership with Technoserve that supports AMCOS and incentivizes higher engagement and cherry delivery from farmers. Farmers who engage with agronomists, trainings and apply new techniques to their farms are able to access more support and investment. The loyalty program is now in full swing at 8 AMCOSs with another 6 AMCOS being added this season.  

Sucafina in Tanzania is also working with AMCOS to increase digitalization and traceability in our supply chains. AMCOS staff are getting trained in CropIn, a digitalization tool that enables collection centers to track parchment and cherry deliveries from each farmer. CropIn not only makes coffees completely traceable to individual farmers, but it also enhances other projects like loyalty programs and farmer bankability by making it easier to track the exact size and price of each delivery from each farmer. With CropIn making our supply chains more traceable, our certified coffees will fulfill new EU regulations for deforestation-free supply chains by showing full visibility from the farm level.

In another productivity-oriented project, farmers working with our partner AMCOS can get soil testing through Sucafina in Tanzania and Technoserve. With a better understanding of their soil needs, farmers can more accurately apply fertilizer and other inputs needed for healthy trees. Soil testing can save them money as they learn exactly what inputs (and what quantities) are needed for optimal tree health.

Sucafina sales offices are also contributing to farmer success in Tanzania. With contributions from roasters in Sucafina NV and Sucafina North America in 2021/2022, Sucafina in Tanzania is building a new seedling nursery in Mbinga. Approximately 20,000 seedlings will be distributed to farmers at partner AMCOS. These seedlings will revitalize rootstock and increase yields.

The harvest in Tanzania will soon be in full swing. We expect coffee to begin shipping in September for Robusta and October for Arabica. Now is the perfect time to start planning your Tanzanian purchases. Sucafina in Tanzania is sourcing a full range of coffees from IMPACT verified to farmer-level traceable lots. Get in touch with your trader today to prebook.