Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Tanzania: Demand for Arabica Coffee Pushes Up PricesMonday, October 06, 2014 > 11:00:13
STRONG demand for Arabica coffee pushed up prices at Moshi auction, the positive situation for increased farmers' earnings.
However, according to the Tanzania Coffee Board (TCB), the growers' rejection of low bids suspended the auction for robusta coffee. The auction results published by the TCB shows that grade AA Arabica sold fetched 193 and 243 US dollars per bag, compared with 180 and 253 US dollars per bag at the previous session. Similarly, the overall average price of all the Arabica coffee grades increased compared to the previous week's sale.
The overall average prices at the Moshi exchange were up by 1.76 US dollar per 50 kg when compared to the previous auction. In the auction, a total of 15,663 bags were offered at the latest sale and that 13,842 bags were purchased.
At the previous sale, a total of 19,576 60-kg bags had been offered for sale, with 18,648 bags sold. East African coffee is normally packed in 60-kg bags, but the prices are quoted for quantities of 50 kg.
The coffee regulator says it expects a bumper 2014/15 harvest, with production seen exceeding 55,000 tonnes from about 48,700 tonnes in the previous season.
The next auction will be held on Oct. 2. BG Group exits Tanzania Block 3 gas licence. Being the fourth-largest coffee producer behind Ethiopia, Uganda and Ivory Coast, Tanzania produces mainly Arabica and some robusta coffee. Prices of its Arabica normally track the New York market while those of robusta take their cue from London.