- The Bank of Tanzania (BoT) has announced a decrease in the world commodity prices for coffee due to increased supply, following higher harvests in major exporting countries.
Dar es Salaam. Coffee prices continued to decrease in the world market on annual basis, a new report has revealed.
The Bank of Tanzania (BoT) Monthly Economic Review for March 2019 showed that coffee experienced at least 10 per cent decrease in the world market in February.
The report shows that Robusta coffee prices were down by 15.3 per cent to $1.83 per kilo in February 2019, from $2.16 in February 2018 while Arabica Coffee prices fell by 10 per cent to $2.89 from $3.21.
According to reports, the decline in price of coffee was mainly explained by carried over stocks and high production in Brazil and Vietnam.
Brazil remains the largest coffee exporting nation. However, Vietnam tripled its exports between 1995 and 1999 and became a major producer of Robusta seeds. Another bulk producer is Indonesia.
Consequently, month on month Arabica coffee prices were stable at $2.83 in February while Robusta coffee prices were up by 0.58 per cent to $1.73 from $1.72 on the period under review.
The last auction results held on January 17, 2019 by Tanzania Coffee Board (TCB) in the Moshi Coffee Exchange show that, the average price for 50 kilo bag of coffee depend on grades ranges between $ 135.0 for grade AA and $75.8 for grade C.
Amount offered in the auction was 23,695 bags of which 19,159 bags was sold. Overall average prices at Moshi exchange were down by $3.79 for 50 kilo bag for mild Arabica compared to the last auction held on January 10, 2019.