Country Context
Coffee in Tanzania has always been split: Robusta in the northwest, centered in Kagera around Lake Victoria, and Arabica further east and south, from the slopes of Kilimanjaro down through the southern highlands of Mbeya and Mbinga. This dual structure, rooted in colonial-era plantings, shaped the way coffee moved through the country for decades—most notably through the centralized Moshi Coffee Auction, where all coffee had to be sold until 2018, perpetuating a bottleneck that forced farmers to travel long distances and limited their agency in marketing.
That year, the government dismantled the centralized auction and shifted to a regional model, while also prohibiting private exporters from buying cherry or parchment directly from farmers. Estates and Agricultural Marketing Co-operative Societies (AMCOS) became the only legal channels for smallholder coffee to reach market. For farmers—who produce more than 90% of Tanzania’s coffee—this was disruptive but also catalytic, pushing them into AMCOS that, by design, run lean and pass premiums back to members rather than administrators.
Processing, though, remains uneven. In the north, most coffee is delivered as Home Processed (HP) parchment—washed and dried at the household level—making quality and consistency harder to control. Kilimanjaro’s prominence has slipped: once more than half of Tanzania’s Arabica, by 2020 it accounted for less than one-fifth, as old trees, aging farmers, low premiums, and estate-friendly regulations eroded smallholder output. The Kilimanjaro Smallholder Revival Project, funded by the EU and local partners, is working to replant, re-engage younger farmers, and preserve the cultivars and profiles that made the region renowned.
In the south, by contrast, AMCOS more often purchase cherry and manage central wet mills, giving them greater control over fermentation, drying, and storage. Over the past two decades, this has expanded quality and diversity, positioning the southern highlands as the country’s most dynamic source.
Institutionally, reforms continue. The Tanzania Mercantile Exchange (TMX) is preparing to work alongside the Moshi Coffee Exchange, with the goal of improving price discovery and transparency in a system still adjusting to its decentralized model.
