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Tanzania’s Benchmark Coffee Grade Rises as Much as 18% at Sale

Tanzania’s benchmark coffee climbed as much as 18 percent at an auction yesterday after supplies of the grade dropped and global prices increased, the Tanzania Coffee Board said.

The benchmark Arabica AA sold for as much as $220 per 50-kilogram (110-pound) bag from $187 a week earlier, the board said today by e-mail from Moshi, in northern Tanzania. Supplies of the grade fell 17 percent to 5,526 bags, it said.

The grade sold for a minimum of $186 a bag from $170 last week, while the average price climbed to $191.42 from $178.35 a bag at the previous sale, the agency said.

The U.S., Japan and Germany are among the importers of Tanzania coffee, according to the board. Tanzania reaps its crop from April through August. Arabica accounts for 75 percent of the country’s output, while robusta accounts for the rest.

Supplies for all the coffee at the auction climbed 13 percent to 21,915 bags, while sales rose 25 percent to 21,315 bags, the agency said. The board offers its bags in 60-kilogram packages and costs in 50 kilograms.

Production for the current marketing season in the 12 months through June next year may climb to 61,012 metric tons from 32,045 tons because of a high-yield crop cycle and good weather, the board said in May.

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

Mild Coffee:
Grade             Offer   Sold      High      Low       Average
Arabica AA        5,526   5,277     220       186.80    191.42
Arabica A         4,438   4,295     203.40    185       188.46
Arabica AB          914     914     205.20    175       187.36
Arabica B         3,434   3,303     200.20    182.20    185.28
Arabica PB        1,318   1,164     196       180.20    186.90
Arabica C         1,094   1,075     181       156       169.23

Hard Coffee:
Robusta Organic   3,237   3,237     117       110       114.80

Unwashed Arabica:
Arabica Organic     959     959     150.80    145       148.95
Arabica FAQ        1,079  1,079     133.20    132       132.67

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