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Tanzania: Coffee growers in Tarime get bank assistance


By Mugni Jacob

June 18, 2012

Coffee farmers in Tarime District, Mara region have every reason to smile because they can now get any amount of money they want, thanks to the National Microfinance Bank (NMB) for introducing Warehouse Receipt System of Financing (WHRF).

WHRF enables farmers to use coffee as collateral to get part of their payment from the bank pending good prices of the cash crop.

So far there are 10 Agriculture Marketing Cooperatives Societies (AMCOS) line up to benefit from the bank system during this year's coffee buying season that runs from May to March next year.

Each society has an average of 300 members engaging in coffee farming activities in different rural villages of the Northern Tarime District, Mara Region. "This is a good system because it helps a farmer to sell coffee at the auction, hence enjoy the highest price offered by the world market ", Secretary of Bungerere Agriculture Marketing Cooperatives Society Mr Elias Masa says.

Bungurere is one of the societies benefiting from the system introduced in Tarime coffee growing villages by the bank last year. The Bank says that it intends to give the societies 800 ml/- to buy coffee from their members and neighbouring coffee farmers this season.

"We have already allocated 365ml/- to give four societies and they will start getting advance of the money any time from now for mobilization, but the aim is to provide 800 ml/- to 10 societies", NMB Lake Zone Value Chain Agribusiness Manager Mr Samwel Mshote disclosed here late last week.

This will be the second time for the bank to give the societies millions of money to buy coffee in Tarime, a move which is also creating a stiff competition among coffee buyers in the area. "Last year we provided 500m/- to seven societies but only 200m/- was spent due to a number of challenges and we are doing everything possible to address the challenges so that they can now use the whole money and make good income ", the bank official said.

Mr Mshote was speaking to this reporter in Tarime on Friday shortly after facilitating a crucial seminar organized by the bank to educate leaders of the societies on how utilize WHRF for the own goods. He told the seminar that the bank provides payment depending on world market price which keeps on fluctuating on little margin from season to season.

"Aim is to support famers enjoy world market price and the bank will continue to provide education to ensure that this system (WHRF) functions well and benefit farmers", Mr Mshote said. He praised Bungurere society for recording impressive performance last season. "Bungurere is now our role model inside Lake Zone and beyond and it is good coffee buying societies have increased from seven to 10", Mr Mshote told the seminar.

The list of other Agriculture Marketing Cooperative Societies set to benefit from the system this season included Kangariani, Itiryo, Gorong'a, Muriba, Mori, Mogabiri, Nyantira and Mbogi. The participants discussed and laid out strategies against challenges that emerged and faced the exercise societies last season during the seminar. Authorities in Tarime have welcomed the system calling the societies to pursue coffee buying business with some seriousness.

"This is a golden chance for Tarime coffee farmers. It has never happened for famers to get money in advance. We must work hard keeping in mind that coffee buying has stiff competition", a senior official from Tarime District Commissioner's Office Mr Jonathan Machango said when closing the one- day seminar that was also attended by district regional senior cooperatives officials.

Tarime NMB Branch Manager Mr Amos Mubusi urged the societies to strive for outstanding performance during this season pledging full cooperation. "We are expecting that things will go well this season. Let us work together and use the money to improve our economy", Mr Mubusi told the seminar.

Tarime is the leading producer of coffee in Mara Region. Buyers have been flocking into Tarime to buy the cash crop in the area in the recent years. The Tanzania Coffee Board (TCB) is keeping close tabs on the behaviour of coffee buyers, a move that has also helped to sustain pricing of the cash crop in the area in the recent years.

TCB immediate plan is to transform Tarime coffee into fully washed Arabica in an effort to make farmers enjoy the fruits of cultivating the cash crop , according to its Director General Engineer Adolph Kumburu. Majority of farmers who in the past abandoned their coffee farms citing poor price have also resumed cultivating the cash crop with some seriousness in the area. Large part of Tarime district is suitable for coffee growing.

Officials estimate that there are around 8,000 coffee farmers in Tarime but poor rural roads and communication infrastructure is cited to be one of the biggest challenges facing development of coffee sector in the area. Farmers in Tarime coffee growing zones are forced to cross the border in the neighbouring Kenya to make calls by using Kenyan Safaricom network. While many rural roads are impassable especially during rain seasons.

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