Regional Markets

Regional Markets for Local Development
National Microfinance Bank (NMB) and Savings and Credit Cooperatives (SACCOs),
provide the necessary loans. Regulatory authorities (central and regional government
agencies, extension services, local government and others) develop the laws, measures and
regulations for coffee. They are also the main bodies in charge of ensuring adequate implementation
of coffee-related legislation and regulation. The Tanzania Coffee Board (TCB)
is a group of coffee specialists involved in policy development and price monitoring. In
the past the marketing of coffee was controlled by the state, but today the price is formed
on the open market. The TCB monitors that the coffee farmers are not being exploited,
and sets annual minimum prices. Usually the cooperatives follow this price level, with
private buyers paying a slightly higher price. For the 2007/08 season, producer prices were
between 2.3 and 3 USD per kilogram, while for the 2009/10 season they were slightly
higher (between 2.4 and 3.5 USD per kilogram). The TCB also plays an important role in
ensuring that coffee standards are respected in national and international sales.
TechnoServe’s contribution
TechnoServe plays a big role in supporting the Arabica coffee value chain in the
Kilimanjaro region. Since 1968, TechnoServe has been working to address the challenge
of development with a different, business-oriented philosophy. It focuses on helping
people out of poverty and towards securing sustainable livelihood by connecting
them to valuable information and market opportunities. The organisation has remained
true to this vision and has continued to develop throughout the past four decades. In
2011, it was active in 29 countries worldwide, with half a million beneficiary households
reached (TechnoServe 2011).
In Kilimanjaro, TechnoServe supports the coffee value chain in several ways. It provides
business advisory activities, for example, trainings on quality coffee production
techniques (including planting, management, processing and marketing). It engages in
policy advocacy and lobbying. For example, TechnoServe advocates for policy changes,
such as a reduction in coffee taxes and levies, by working closely with the TCB. Their
effort is geared towards elevating the position of smallholders within the policy arena,
and safeguarding smallholder interests (especially in the fight for fair producer prices).
To assist the marketing efforts of the coffee growers associations, TechnoServe also
collects and disseminates market information. With this insight into market conditions,
smallholders can take informed decisions when and to whom they choose to
sell their coffee (e.g. to private buyers or to cooperatives). The organisation also helps
improve smallholder access to loans, by connecting farmers groups to financial institutions
(banks and SACCOs). The ability to offer a superior product of proven quality
is paramount for securing a strong position and good prices on the marketplace.
Demonstration plots are used to inform smallholders on the latest agronomic practises
and to attract more farmers to coffee cultivation. To improve quality, TechnoServe has
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