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Tanzania Benchmark Coffee Grade Price Rises 3% at Auction

Nov. 21 (Bloomberg) -- Tanzania’s benchmark coffee grade advanced 3 percent at an auction on Nov. 17 after supplies fell and global prices improved, the Tanzania Coffee Board said.

The average price for the benchmark AA climbed to $292.79 per 50 kilograms (110 pounds), from $284.22 a week earlier, the board said today by e-mail from Moshi, in northern Tanzania.

The grade sold for as much as $321 per 50 kilograms compared with $341.60 a week earlier, while supplies fell 16 percent to 5,764 60-kilogram bags, it said.

The average price for mild arabicas sold at the auction advanced by $7.82 per 50 kilograms, while those for robusta rose by $4.71 after prices increased in New York and London and supplies fell, the board said.

Total supplies at the 12th auction of the 2011-12 season fell 19 percent to 18,391 bags compared with a week earlier, the board said. Sales at the auction retreated 20 percent to 16,806 bags from 21,090 bags, the agency said. Tanzania prices its coffee per 50 kilograms while offers and sales are in 60-kilogram bags.

The country reaps its crop from April through August. Arabica accounts for 75 percent of the country’s output, while robusta makes up the rest.

The following are details of the Nov. 17 auction in U.S. dollars for a 50-kilogram bag for the good grades:

Grade            Offer   Sold      High      Low       Average
Arabica AA       5,764   5,027     321       275       292.79
Arabica A        3,583   3,572     302       274.60    289.61
Arabica AB       2,960   2,283     302       282       291.85
Arabica B        2,923   2,859     299       268       285.61
Arabica PB       1,855   1,698     303.20    260       282.70
Arabica C        1,597   1,522     270       217       252.23
Robusta Organic  1,277   1,277     102       100       100.43

Unwashed Arabica
Arabica Organic      9       9     130       130       130

To contact the reporter on this story: Fred Ojambo in Kampala at

To contact the editor responsible for this story: Antony Sguazzin at

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