MIDTERM EVALUATION REPORT OF THE
TANZANIA COFFEE INDUSTRY DEVELOPMENT STRATEGY
2011-2021
PRESENTED AT THE NATIONAL
STAKEHOLDERS COFFEE CONFERRENCE,
MOROGORO, 18TH-19TH. MAY, 2017
BY
DAVID GONGWE MHANDO
NTENGUA S.Y. MDOE
BACAS. SOKOINE UNIVERSITY OF AGRICULTURE
Menu

Introduction

Approach and methodology of the Evaluation

Findings of the Evaluation

Conclusion

Recommendation (way forward)
Introduction

Coffee is one of Tanzania’s primary agricultural export
crop representing about 5% percent of total exports.

More than 90% of coffee produced in Tanzania originates
from smallholder farmers.

Coffee industry provides direct income to more than
400,000 families and benefits 2.4 million Tanzanians.

Average yearly production in Tanzania has stagnated at a
level of about 50,000 metric tons over the past 35 year.
Trend in Coffee production in Tanzania

The trend of Coffee production has not been consistent.

Please note 2015/16) is metric tons = 60, 188 and not (75,000)
Trend in overall coffee production in Tanzania, 2011/12-2015/16
Introduction

To address the coffee industry
constraints
the Tanzania Coffee
Industry Development Strategy for the development of the coffee
sector (2011-2021) was established to:
i.
Increase production volumes 50,000 tons to reach 100,000 tons by
year 2021
ii.
Increasing in quality from 35% premium to at least 70% of the total
production.
iii.
Improving farmers’ share of net FOB price to at least 70% by 2021

Four strategic thrusts were planned to be carried ( i) increased
productivity and production (ii) improved efficiency of the value
chain (iii) improved quality and (iv) explore new markets including
development of sustainable coffee
Introduction: TOR

To assess the progress made in the implementation of the planned activities mid-term
evaluation was commissioned to the Bureau of Agricultural Consultancy and Advisory
Services (BACAS) to:
i.
identify
how
strength
and
opportunities
have
been
(under)
utilized
in
the
implementation of the strategy
ii.
design/develop and recommend appropriate intervention
iii.
propose ways national targets could be identified and translated into Zonal, Regional and
District targets
iv.
propose Public Private Partnerships models in the implementation of the strategic thrusts
at various levels in the coffee sector
v.
To identify where changes should take place in terms of goals, targets, funding, etc and
vi.
recommend the way forward
Approach and Methodology of the
Evaluation

Study approach composed of three major phases namely
desk review, stakeholder consultations and field survey.

Survey was conducted in five coffee growing districts in
Tanzania;

Mbinga district in Ruvuma region,

Mbozi district in Songwe Region,

Tarime district in Mara region,

Karagwe and Kyerwa districts in Kagera region
Study Areas

Study villages
Findings: Status of implementation of planned
activities

Summary of status of implementation of the Tanzania Coffee Industry
Development Strategy
 Some
of the findings from the
field
 (coffee
farmers/producers)
Land under coffee production
Land under coffee production among the
respondents averaged 2.16 acres with a
minimum and max. of 0.25 and 54 acres
respectively
 The sample households 35% reported that they
expanded land under coffee in the past five
years.
 Only 5% of the sampled farmers reported
reduction of land under coffee the past five
years (%)
 Despite shortage of land in the traditional
coffee growing areas, new land for coffee has
been opened. In 2015/16, for example, 67 and
18,666 hectares have been opened in Karagwe
and Kyerwa districts respectively

Coffee output and productivity

Coffee output per household and yield per hectare varied
significantly among household and across the districts.

The yield for coffee across the three sample districts that grow
Arabica coffee are far below the average yield of 2,500 kg (2.5 tons)
per hectare in Brazil.

Coffee yield per hectare in 2015/16 farming season
District
Average yield (kg/ha)
Average output (kg/household)
Tarime
405.78 kg/ha
150.34
Mbinga
554.98 kg/ha
436.64
Mbozi
422.25 kg/ha
437.46
Karagwe
539.68 Kg/ha
397.98
Kyerwa
731.80 kg/ha
440.35
Improving coffee productivity and production

New disease resistant coffee varieties was developed and efforts have been made to
multiply and distribute them to famers (38,319,177 seedlings)

Findings shows about (>70%) of the farmers grow and prefer to grow the old coffee
varieties.
Proportion (%) of sample households that have grown old and new coffee varieties
Coffee variety preferred by famers (% farmers preferring the variety)
Reasons for preference of old coffee varieties

Some of the reason for preference of old varieties includes:
i.
Seedlings of old varieties are readily available compared to new varieties
ii.
Old varieties are already established and not affected by climate change
iii.
Some of the farmers are Unaware of new varieties
iv.
No land for expansion/no capital to establish new farm
v.
Easy to manage (no need of irrigation)

On the other hand, farmers who preferred growing new coffee varieties
gave only two reasons that they are high yielding (80%) and that they are
diseases tolerant (20%)
Use of quality inputs, improved husbandry
practices and extension services





Agrochemicals (fertilizers, pesticides and herbicides)
and manure were largely used in Mbozi and Mbinga
Very few coffee farmers practiced simple but
important husbandry practices like mulching and
timely pruning
None of the farmers in Kyerwa reported use of
inorganic fertilizer.
Farmers who reported to have an agricultural
extension agent in their locality varied from 56.7% in
Karagwe district to 82.6% in Mbozi district (Mostly
NGOs)
About 48.4% of the sample households reported to be
visited at least twice a year
 Challenges
Encountered
During Implementation of
the Strategy
Critical Weaknesses and Challenges Encountered in the
Implementation -Increase Production and Productivity

Meager resources received by TCB from the government -Little can be done
to regulate and supervise effectively the activities

Lack of budget for implementation of the strategy.

Coffee industry suffers and fails to increase its production because it is one
of the most taxable crop in Tanzania.

Climate change has affected coffee farmers, failure to irrigate in most areas.

There is a failure to complete farmer’s registration process, and that
jeopardizes the strategy

Lack of ownership of the strategy as some of the District Executive Director
are newly appointed and have never heard of it
Critical Weaknesses and Challenges Encountered in
the Implementation -Increase production and
Productivity

The government has failed to fund the research on coffee.

Lack of monitoring of the strategy

The strategy was launched without data on production costs of the
farmers and/or unaware of number of coffee trees in the country.

High interest rates for loans (20%), with fluctuating prices, make farmers
hesitate to take loans from the commercial banks

Some of inputs stockiest sell fake agricultural inputs which increase costs
of production and discourage farmers in their production endeavor.

Climate change, increase water usage has resulted into water conflicts
between investors who would like to use the same for irrigation and
other users
Critical Weaknesses and Challenges Encountered in the
Implementation -Increase production and Productivity

The government and its institutions have failed to play their crucial role of
being the last resort buyers and rescue the farmers when the price falls
below

Investors have complained about the current policy framework which
affects investment

Farmers have continued producing coffee from the old coffee trees, some
inherited from their parents.

Failure of the cooperatives to support farmers during production by
distributing agricultural inputs on loan basis and/or supporting farmers in
purchasing inputs; this has created a gap for NGOs which support farmers
Weaknesses and Challenges in the Implementation of
Strategic thrust 2: improve efficiency in the coffee
value chain

Although Rules and regulations of Tanzania coffee industry
prohibits ownership of more than one license, traders have
opened sisters companies

Middlemen take advantage of the farmers ‘problems and collect
coffee from farmers at lower prices.

Unsustainability of most of the farmers groups

High costs associated with transporting coffee by road, instead of
using railways network

Farmers are not benefiting by selling cherries to private
traders/cooperatives, unless they are paid into 3 installments
Weaknesses and Challenges Encountered in the Implementation of
Strategic thrust 3: Support Overall Coffee Quality Improvement

Coffee trade as well as its price are highly determined by
its quality, however, traders pay uniform (blanket) prices
to farmers regardless of the quality

Low use of CPU among small holders coffee farmers

Shortage of water in some coffee producing areas, affect
quality and possibility of irrigation

Certification of coffee is done outside Tanzania which
makes it expensive for small scale farmers

Dependency on the foreign experts
Coffee processing, drying, storage and quality assurance

Major constrains in processing and quality assurance
Weaknesses and Challenges Encountered in the
Implementation of Strategic thrust 4: Exploring new
market opportunities including development of
sustainable coffee

Some traders purchases coffee regardless of the quality (Blanket
Prices)

High costs of certification discourage farmers to join these programs

Coffee marketing is dominated by multinational companies

direct sale has been misused and has affected competition at the
auction

There is a failure to increase the number of participants at the auction

Most of the local exporters fail to enter the auction because of failing
to meet some of the conditionalities set by the Government

Some efforts done by stakeholders
to rescue the situation…
Efforts made by coffee stakeholders to
ensure production of quality coffee
among coffee farmers in Tanzania

Both public and private sectors have collaborated
in training farmers on good agricultural practice

In
some
incidences,
coffee
prices
are
determined by its quality.

Farmers
are
supported
to
join
various
certifications such as RFA and café practice.
Efforts made to improve efficiency in the coffee
value chain

Stakeholders have built the spirit of collaboration in implementation of
value chain activities.

Public and Private sector actors have teamed up in shared functions of the
coffee sector
i.
extension services
ii.
agricultural inputs
iii.
seedlings

Commercial banks offering training to farmers, cooperatives, councils, TCB

TCB sets indicative prices to be paid to farmers in order to protect farmers
from unfair practices.

Initiating the process of tax harmonization at local government and national
levels
Efforts made by coffee stakeholders to increase domestic
consumption and exploring new markets abroad

Farmers groups have been licensed by Tanzania Coffee Board to
collect coffee from their members and sell at the auction

Availability of various certifications schemes ensures higher
prices and sustainability.

Participation on various exhibitions outside Tanzania

TCB has explored internal market for coffee through street
vendors in Tanga, Dar Es Salaam, Arusha regions

Local traders have invested at building capacity of the local
roasting industry

Initiation of Local coffee shops; DAE in Mbinga; KNCU café in
Moshi
Summary of the findings of performance of each strategic
thrust using KPI’s

Strategic thrust 1: Increase production and productivity;

Average Coffee yield at the national level increases to reach at
least 45 kgs of clean coffee her hectares by 2012 (+100 increase

This KIP has not been achieved. Records indicate that coffee
yield remained 400 grams of parchment coffee per tree which
is the lowest

At least 10,000 hectares of new coffee farmers farms were
planted by 2012

This KIP has not been achieved. There are limited data on the
number of new coffee farmers
Summary of the findings of performance of
each strategic thrust using KPI’s

Strategic thrust 2: improve efficiency of the value chain:

By 2012 the average time needed to move the coffee from farm gate to FOB
is reduced from current 3 months to less than 2 months

The time needed to move coffee from farm gate to FOB has remained 3
months as before.

By 2021 the average share of transaction costs from farm gate to FOB will
be reduced from the current 35% to 25%

Coffee is transported by roads which are affected by changes of oil
prices as well as other logistic challenges
Strategic Thrust 3 Support of the Overall Coffee Quality
Improvement

Strategic Thrust 3 Support of the Overall Coffee Quality
Improvement:

By 2021 a minimum of 70% of the coffee produced in Tanzania will be
of classes 1-7 (according to Tanzania classification)

In 2016/17, only 40% of coffee produced from Tanzania was classes
1-7.

By 2021 a minimum of 75% of the Arabica coffee produced in Tanzania
will be processed through CPU

Currently, 45 % of Arabica coffee produced in Tanzania is
processed through CPU.
Strategic Thrust 4: Exploring New Market Opportunities
including the Development of Sustainable Coffee

By 2021 a minimum of 50% of the coffee produced in Tanzania will be
“sustainable (e.g, UTS, 4C, FLO, Rainforest, organic

This KPI might not be achieved because of the challenges associated with
certification among the farmers: higher costs involved, higher
requirements and demand of certification and time involved

By 2021 domestic consumption increased in Tanzania and reaches at least
10,000 tons (equivalent of clean coffee)

TCB indicated that domestic consumption has decreased from 7% to 4.8%
in 2016/17 coffee season, and there is no indication that consumption will
increase
Conclusion

Most of the intended activates were not fully implemented,
partly, due to lack of finance.

Coffee production and productivity has remained low
because of low use of agricultural inputs and failure of the
farmers to practice even simple coffee husbandry
practices.

Most of the farmers have not yet started to use improved
varieties which would increase their production level and
reduce costs of production.

Coffee marketing environment (prices and practices) does
not encourage farmers to work hard and improve quality
and quantity

Recommendations….
Recommendations:- Strategic thrust 1: Increase production
and productivity

The Government should take appropriate measures to revive the crop e.g
extension officers

The Government, using its councils which collect cess from coffee sales,
should reinvest in coffee production.

i.
The government should start funding research on coffee
To complete farmers ‘registration exercises this will help to establish their
inputs requirements,
ii.
capacity for extension services and project the production

Seedlings are to be available to farmers/producers at all time

Stakeholders should reduce dependence on rain and use available water for
irrigation as the case of Mbozi district.
Recommendations Strategic
production and productivity

thrust
1:
Increase
TaCRI should deal with research while other
activities (production and distribution) should be
done by private companies/government agencies.

The Government should think of establishing the
coffee price stabilization funds to assist the
producers when whenever the price falls and
sustain farmers to continue with production.

Councils should re-investing in coffee production
infrastructure such as irrigation…
Recommendations: Strategic thrust 2: improve efficiency
of the value chain

Local traders should be given incentives to participate at the auctions
and thus, increase competition and prices

The government should consult the stakeholders in all matters that
affect the industry.

The use of railways for transporting coffee
will lower transaction
costs

The government should improving cooperative governance

Government should subsidize agricultural inputs used by coffee
farmers as the case of food crops

The government and others stakeholders should collaborate to create
the needed skilled personnel's (Diploma/degree in coffee at SUA,
e.t.c)
Recommendations: Strategic Thrust 3: Support on the
Overall Coffee quality improvement

Stakeholders should strengerning collaboration in implementation of
shared functions. This could be done by collaboration:
i.
NGOs,
ii.
farmers groups,
iii.
cooperatives and district councils

Coffee marketing should be based on the quality

Trick traders should not be allowed to operate in all nodes/level of the
chain (purchasing coffee from fame gate to the auction)
Recommendations: Strategic Thrust 4: Explore New
Opportunities including the Development of Sustainable Coffee

Market
Tanzania must strive to supply and maintain both quality and quantity of our
coffee

Campaigns should be conducted at universities and the public to encourage
local coffee consumption.

The government and stakeholders should rethink of increasing coffee prices
through the auction by increasing the number of buyers at the auction

Bringing certification experts in Tanzania to train local expert in certification
of coffee.

Improving market information and analysis for farmers

The creation of a Kilimanjaro Brand will enable Tanzanian coffee to be
consumed as single origin
Translation of national Targets to Zonal….
Northern Zone:

Gap filling using new coffee varieties

support youth who are interested in coffee production

Mobilise farmers groups to initiate nurseries as focal point for distribution of
new varieties
Southern Zone

Utilise available water in the Matengo highlands for irrigating coffee when
there is shortage of rainfall

Distribution of new varieties for gap filling
Western Zone

There is potential for increasing coffee production by distribution of new
varieties

Control coffee smuggling along the Ugandan and Tanzanian borders
End