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.