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Tanzania's coffee sector: constraints and challenges

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  • John Baffes

    (The World Bank, Washington DC, USA)

Abstract

During the early 1990s, Tanzania embarked in a major reform programme at both macro and sectoral levels. Reforms in agriculture figured prominently, especially in the export crop sectors which during the 1990s accounted for almost two thirds of total merchandize exports. This paper surveys the policy reforms and their impact on the coffee sector, Tanzania's largest export crop. By most accounts, the outcome of reforms has been mixed. While producers' share of export prices increased, official statistics show no supply response. Coffee processing capacity, marketing efficiency, and investment in new plantings increased. Despite the reforms, several issues must are still outstanding. Taxes should be consolidated, lowered, and rationalized. Licensing procedures need to be re-examined. The coffee auction should be voluntary so the costs of vertically integrated exporters will be reduced and cross-border trade will be enhanced. The power of the board and the relevant ministries ought to be substantially reduced and their respective roles clearly defined. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • John Baffes, 2005. "Tanzania's coffee sector: constraints and challenges," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(1), pages 21-43.
  • Handle: RePEc:wly:jintdv:v:17:y:2005:i:1:p:21-43
    DOI: 10.1002/jid.1130
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    File URL: http://hdl.handle.net/10.1002/jid.1130
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    References listed on IDEAS

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    1. Winter-Nelson, Alex & Temu, Anna, 2002. "Institutional Adjustment and Transaction Costs: Product and Inputs Markets in the Tanzanian Coffee System," World Development, Elsevier, vol. 30(4), pages 561-574, April.
    2. John Baffes, 2004. "Tanzania's Cotton Sector: Reforms, Constraints and Challenges," Development Policy Review, Overseas Development Institute, vol. 22(1), pages 75-96, January.
    3. Akiyama, Takamasa & Baffes, John & Larson, Donald F. & Varangis, Panos, 2003. "Commodity market reform in Africa: some recent experience," Economic Systems, Elsevier, vol. 27(1), pages 83-115, March.
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    1. Akiyama, Takamasa & Baffes, John & Larson, Donald F. & Varangis, Panos, 2003. "Commodity market reform in Africa: some recent experience," Economic Systems, Elsevier, vol. 27(1), pages 83-115, March.
    2. Mofya-Mukuka, Rhoda & Abdulai, Awudu, 2013. "Policy reforms and asymmetric price transmission in the Zambian and Tanzanian coffee markets," Economic Modelling, Elsevier, vol. 35(C), pages 786-795.
    3. Walkenhorst, Peter, 2005. "Trade Policy Developments in Tanzania: The Challenge of Global and Regional Integration," MPRA Paper 23399, University Library of Munich, Germany.
    4. Baffes, John, 2006. "Restructuring Uganda's coffee industry : why going back to the basics matters," Policy Research Working Paper Series 4020, The World Bank.
    5. Firdu Gemech & John Struthers, 2007. "Coffee price volatility in Ethiopia: effects of market reform programmes," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(8), pages 1131-1142.
    6. Poulton, Colin & Gibbon, Peter & Hanyani-Mlambo, Benjamine & Kydd, Jonathan & Maro, Wilbald & Larsen, Marianne Nylandsted & Osorio, Afonso & Tschirley, David & Zulu, Ballard, 2004. "Competition and Coordination in Liberalized African Cotton Market Systems," World Development, Elsevier, vol. 32(3), pages 519-536, March.

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