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Case Studies
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How Tanzanian coffee farmers pushed for a better deal

2 March 2007

Tanzanian coffee Coffee is one of Tanzania’s major exports, generating more than US$60 million a year, particularly because Tanzania has the climate and altitude to produce specialty Arabica coffee that attracts premium world market prices.

Almost all of Tanzania's coffee is grown by 400,000 poor smallholder farmers, each owning less than five acres of land. Traditionally, these farmers have suffered through lack of access to international markets, meaning that their coffee was sold only through local markets into low-value added blended coffee manufacturing.

DFID is part of a group of donors who helped Kilicafe to work with 8,000 smallholder coffee farmers in northern Tanzania to help them increase the value of their coffee and to gain access to international coffee markets.

Kilicafe (Kilimanjaro Association of Speciality Coffee Growers - producers of Arabica Coffee) is supported by a grant of $80,000 from the BEST Advocacy Component (BEST AC) and training in advocacy from the University of Dar Es Salaam. With funding from DANIDA, DFID, the Netherlands Embassy and SIDA, BEST AC provides grants to improve the quality and effectiveness of private sector advocacy.

What has this achieved?

Tanzanian coffee farmers Kilicafe’s advocacy activities have already successfully removed nearly 3 percent of taxes and levies from the auction price which now are retained by the farmers – an increase of TSh2,806 per 60kg sack of coffee sold at auction.

Mrs Emmeline Swai, a retired agricultural extension officer and coffee grower with 650 trees on two acres of land at Roo village has seen her annual income jump after joining Kilicafe. Her extra income has helped her repair her house, and connect fresh water and electricity supplies to her home.

How does advocacy work?

With BEST-AC’s support, and on behalf of the 8,000 smallholder farmers that it represents, Kilicafe has been undertaking a detailed review of regulations governing the local coffee markets and advocating for improvements (such as advocating for greater competition amongst coffee buyers) in order to ensure that its members receive the fairest and most competitive price possible.

This means advocating on behalf of its members by talking with government officials and the Tanzania Coffee Board. Together with its advocacy activities, Kilicafe has successfully begun to sell its members coffee to international coffee buyers. Combining commercial services with well-considered advocacy activities means that Kilicafe is able to respond effectively to its members needs, and has seen a growth in membership throughout the course of the BEST-AC grant funding.

USAID story: Direct export of premium coffee from Tanzania
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Key facts

DFID is providing a total of £593,000 for the BEST AC programme. The 3.5 year programme started in Jan 2005 and will end in Jun 2008
Our assistance to Tanzania has risen from £80 million in 2003/04 to £110 million in 2006/07. Our plans are to further increase our level of assistance in Tanzania over the next few years.
Through its growth strategy(871 kb), DFID is implementing growth programmes(30 kb) that support the Government of Tanzania’s efforts to improve the business environment and stimulate economic growth for the benefit of the poor.