Tanzania's arabica coffee prices rose at auction this week, taking their cue from markets in New York, as traders said on Friday they expect demand to keep prices high over the coming weeks. Tanzania mainly produces arabica coffee and grows some robusta coffee. Prices of its arabica normally track the New York market while those of robusta take their cue from London.
Tanzania, Africa's fourth-largest coffee producer after Ethiopia, Uganda and Ivory Coast, produces mainly arabica and some robusta coffee. Traders said coffee prices in Tanzania were likely to remain high in the weeks ahead, buoyed by high demand for the commodity. "A good supply of coffee at the weekly auctions is around 20,000 bags, but now we are seeing up to 30,000 coffee bags supplied in a week. This is an indication of the prevailing strong demand for coffee," said a trader at coffee exporting company in Tanzania.
"Provided there is no major price slump at the world market, coffee prices should remain high in Tanzania over the coming weeks and months." State-run TCB said 26,311 60-kg bags were offered at the latest sale, of which 24,801 bags were purchased. At the previous sale, a total of 32,435 60-kg bags had been offered and 28,595 bags sold.
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