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Tanzanian Coffee Output May Increase with Subsidies

CoffCoffee in Mount Kilimanjaroee output from Tanzania, which harvests many of its beans in the Kilimanjaro region, is expected to increase, as the government announced last weekend that it will extend subsidies to coffee farmers. The move is designed to take advantage of high coffee prices due to a surge in worldwide demand.

According to a report from Tanzania’s The Citizen, coffee exports are expected to generate approximately $174 million, which is nearly double what exports of the crop have generated in recent years, despite stagnant production levels.

The subsidy will involve more government supervision of farm operations, expansions and marketing. It could also open up new land in Tanzania for coffee farming. Currently, Tanzania has 13 growing regions, three of which produce Robusta beans, while the remaining 10 produce Arabica beans.

 

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