Tanzanian coffee prices hit the highest levels of the season this week with demand for the crop far outstripping supply, traders said on Friday. State-run Tanzania Coffee Board said 4,579 60-kg bags were offered for sale, with 4,147 bags sold. At the last auction 3,825 60-kg bags were up for sale and 3,718 bags sold.
Benchmark grade AA sold at $132.00-$260.80 per bag, compared with $126.00-$252.80 per bag at the last auction and fetched an average price of $244.98 per bag, up from $233.33 previously. "These are the highest prices so far this season because of a severe crop shortage," said Vincent Shirima, managing director of Rombo Millers.
Grade A fetched $129.60-$213.00 per bag, from $126.00-$211.00 per bag at the previous sale and got an average price of $206.25 compared with $199.70 at the last auction. East African coffee is normally packed in 60-kg bags but the prices are quoted for quantities of 50 kg. Buyers and analysts said coffee prices would continue to rise at the few remaining auctions of the season.