Tanzania to sell it coffee to South African Market
Processed Coffee From Tanzania
Tanzania is soon expected to begin selling processed coffee to the South African Market. This new development is expected because Tanzania is currently encouraging its farmers and coffee growers to export their processed coffee. In the past, most Tanzanian farmers and exporters would sell raw coffee beans instead. However, a recent shift in coffee prices and trade laws has meant that processed coffee is more profitable. This has made the Tanzanian government more inclined to instead sell processed coffee at a higher price to neighboring countries, including South Africa. Exported processed coffee will fetch a higher price for Tanzanian sellers.
The Secretary for the Ministry of Trade and Investment in Tanzania has said that the government is working very closely with the private sector in order to penetrate into the South African Markets. This collaboration between the public and private sector is meant to increase the amount of processed coffee that is being exported from Tanzania. Thus, this increased supply will hopefully lower prices of processed coffee beans. And that lowered price will encourage consumers to instead purchase processed coffee from Tanzania.
Newly made agreements between the South African and Tanzanian governments have also set a precedent for this increased processed coffee production. A business agreement made by the two presidents from each government has encouraged bilateral economic cooperation between the two countries. The Tanzanian government is telling its coffee growers and exporters to produce coffee products that will meet international standards. Tanzanian processed coffee is said to exceed the quality of international coffee beans.
The country of Tanzania is said to be losing money when they are selling raw coffee abroad. International traders can purchase raw coffee from Tanzania at a fairly cheap price and then sell that raw coffee for exorbitant amounts in the international market. So through this new business agreement with other African countries, Tanzania hopes to increase the number of profits that it gets from its coffee production. Processed coffee can be sold at a higher price. So this will mean that for every pound of raw coffee that is processed, Tanzanian growers stand to earn more money. And this new business practice will not only benefit the coffee growers but anyone else working in the coffee industry in Tanzania as well. It is also set to benefit coffee consumers in South Africa, as they can purchase coffee for a cheaper price now.
Aside from encouraging the selling or processed coffee, Tanzania is also going to encourage its citizens to drink coffee that is produced locally. So the Tanzanian government has been distributing various coffee processing machines locally. This will make it easier for people in Tanzania to drink coffee that is produced from local farms.
Tanzania’s biggest export is coffee. The country exports as much as forty-thousand tons of raw coffee every year. And the coffee industry in Tanzania employs over two hundred thousand people. So the coffee industry in the country is pretty huge. And this new economic program set out by the government of Tanzania is going to encourage growth even more for the rest of the country’s coffee workers and growers.