LACK of access to market information and ineffective functioning of cooperative unions have been cited as among challenges facing coffee farmers in the country.
Others include delayed payments and early closure of the coffee marketing season and poor harvest handling.
This was revealed in a report titled “Investigative research on coffee smuggling in Kagera Region”, which was conducted by the Agricultural Non State Actors Forum (ANSAF), in collaboration with a team of experts from the Kagera Regional Commissioner’s office.
According to the report, most of the farmers were ignorant about the cooperative system and had no powers to influence coffee prices.
It pointed out that more education was needed to educate the farmers on the issues. Many deductions are made by cooperative unions to cover overhead costs.
The Kagera Cooperative Union (KCU) charges 618/- from each kilogramme as head costs while the Karagwe District Cooperative Union (KDCU), charges 813/- per kilogramme while Tanzania Coffee Board (TCB) charges 1/- on total sales as head costs.
Cooperative Unions pay about 1126/- for a kilogramme of coffee.
Due to its proximity to a neighbouring country, much of the coffee was being smuggled through “panya routes”, the report says, adding that while 25 per cent of the coffee is sold through the formal system (cooperative unions) in Kyerwa District, about 66 per cent of the crop was sold through the informal sector.
