SOLUTION TO THE COFFEE CRISIS...

THE COFFEE CRISIS…

The coffee sector in Tanzania and throughout sub-Saharan Africa has collapsed due to a structural over-supply of coffee on the world market which has resulted in dramatic decreases in the world prices of coffee. In fact, over the last seven years, coffee prices have decreased by over 70%, reaching their lowest 30-year low in 2002/2003. ( see graph 1 below)

Graph 1) World market coffee prices (1989-2003) ($US/Ib)

As a direct result, millions of coffee farmers in Tanzania and across sub-Saharan Africa have been thrown deeper into poverty as the low world price does not allow coffee farmers to profitably produce and market their coffee.

The solution to help coffee farmers break-free from the vicious trap cycle of the world market is to help farmers process (roast & grind) and market their own coffee directly, thereby significantly adding-value to the coffee and significantly increasing their income in the process.

This pilot project is an initiative aimed at achieving this objective. The coffee is grown and processed by the farmer and marketed through this initiative. All sales proceeds – minus marketing costs - are then equitably redistributed directly to the respective farmer.

If the market in Tanzania responds favorably to this pilot project, then this initiative will be replicated on a larger scale in Tanzania, and can (hopefully) serve as a practical example and as a solution to revive the coffee sector in both Tanzania and in other coffee growing countries across sub-Saharan Africa.

Thank you for supporting the coffee farmers of West Usambara, Tanzania through this pilot project and to help contribute to the revival of the coffee sector in Tanzania.

For more information on this initiative, please contact:

Arya A. Tajdin

Executive Director

Yajna Centre

Dar es Salaam, Tanzania

Email: arya@yajnacentre.com