Call to Curb Illegal Exportation of Coffee, Tea Raw Materials

Tanzania Daily News (Dar es Salaam)

29 June 2011

MANUFACTURERS of various tea and coffee products on Wednesday called on the government to plug loopholes of illegal exportation of raw materials, the move would help to stabalise prices of the commodity.

The National Sales Manager of Afri Tea and Coffee Blenders (1963) limited Mr Ramadhan Katundu said at the 35th Dar es Salaam International Trade Fair (DITF), that the price increase of products was a result of illegal exportation of raw materials.

He said there was a growing black market for Tanzania’s raw coffee in Uganda leading to deficiencies for the local manufacturers and where it was available; the price was too high for the final products to compete in both local and international markets.

He said for example, his company was forced to postpone orders of their foreign clients due to deficiencies of raw materials for coffee.

He said also the volatility of power and increased tariffs were some of the major challenges making them to produce commodities sold at high costs, thus hindering their products to compete freely in both local and international markets.

He said for example, running diesel engines were the most expensive practice which has been contributing to weakening their production capacities.

He said there was growing demand for tea and coffee products in the regional markets especially in the East African Common market. Also in some European countries, China and other Far East countries were the emerging market.

He said production costs were being pushed up by excessive government levies on the local made products which reduce their competition ability in the market.

“Our products are of the best quality in the world only that their prices are high due to production costs. We appeal for government subsidies as way of promoting local industries,” he said.

He pleaded for the manufacturers and other stakeholders in the private sector to team up in the use of modern technologies to produce quality products which could meet both local and international standards.

“It is high time for Tanzanians to purchase local made products which are of high quality and standard to enhance their contributions into the national economy,” he added.

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