Export demand lifts arabica coffee prices

TANZANIA’S average arabica coffee prices rose at the Moshi-based auction last week, buoyed by strong demand from exporters and higher New York markets, the regulator Tanzania Coffee Board (TCB) said on Wednesday.

The country is Africa’s fourth-largest coffee producer after Ethiopia, Uganda and Ivory Coast. It produces mainly arabica and some robusta coffee.

Prices of Tanzania’s arabica normally track the New York market while those of robusta take their cue from London. TCB said benchmark grade AA arabica sold at auction last Thursday fetched $232-$294 per bag, up from $226-$285 at the previous week’s sale.

Grade A fetched $223.80- $254.00 per bag, up from $225.20-$247.40. “Overall average prices at the Moshi exchange were up by $0.62 per 50 kg for mild arabica compared to the last auction,” the board said in its auction report.

“Average prices were above the terminal market by $10.09 per 50 kg.” The TCB said 22,129 bags were offered at the latest sale and 22,081 bags were purchased.

At the previous auction, 12,132 60-kg bags were offered for sale and all were sold. East African coffee is normally packed in 60-kg bags, but the prices are quoted for quantities of 50 kg.

The coffee regulator says it expects a bumper 2014/15 harvest, with production seen exceeding 55,000 tonnes from about 48,700 tonnes in the previous season

SOURCE: DAILY NEWS

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