Global coffee price rally unlocks new opportunities for Tanzania

The sustained price rally, now in its third year, is attributed to climate-related disruptions in major producing countries and rising global demand.

For Tanzania, the favourable market comes alongside a sharp rise in production, which increased from 50.53 million kilogrammes in 2024/25 to 76.47 million kilogrammes in 2025/26.

According to Tanzania Coffee Board director general Primus Kimaryo, Ruvuma, Songwe, Arusha, Mbeya and Kilimanjaro remain the leading Arabica-producing regions.

He said Ruvuma and Songwe alone account for 77.4 per cent of national Arabica output, while about 92 per cent of total coffee production in 2025/26 was sold through direct export channels, generating $413 million.

Mr Kimaryo said efforts are underway to ensure Tanzania benefits further from rising global prices by improving competitiveness, enhancing quality and expanding market access.

He added that the government is also promoting domestic coffee consumption to reduce reliance on exports, while strengthening marketing systems to improve transparency and efficiency.

Tanzania Coffee Board chairperson Prof Aurelia Kamuzora said the country must go beyond production and invest in value addition across the coffee value chain.

She said the board is training young people to participate in coffee-related businesses, including seedling production, processing and marketing.

“A single coffee seedling can sell between Sh200 and Sh1,500 depending on quality. This presents a significant income opportunity for youth,” she said.

She added that the government is supporting youth participation through programmes such as Building a Better Tomorrow (BBT), including allocating land and irrigation support for coffee farming.

According to the Ministry of Agriculture, Tanzania targets 85,000 tonnes of coffee production in the 2026/27 financial year, supported by training programmes for farmers and extension officers.