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Tanzania Agribusiness Report Q1 2014

Tanzania sugar and coffee industries forecast to benefit from strong investment backing and expand over the next few years

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2014-01-09 08:47:01 - Tanzania Agribusiness Report Q1 2014 - a new market research report on

We continue to favour the Tanzanian sugar and coffee industries over the medium term owing to their potential for growth on the back of strong investment in capacity. The grain industry in Tanzania will remain less competitive than other countries in the region, particularly South Africa and Zambia, and we see little potential for the country to become a major grain exporter.

Sugar production growth to 2016/17: 35.1% to 398,000 tonnes. This will come from increased investment in the sector as well as booming demand for local consumption on the back of growing confectionary and soft drinks demand in the country.

Corn consumption growth to 2017: 31.2% to 5.4mn tonnes. A combination of enhanced yields (contributing to lower prices) and rising living



standards is expected to drive corn consumption growth.

Coffee production growth to 2016/17: 125.8% to 1.2mn 60kg bags. Although this eye-catching growth can partly be attributed to base effects, the sector is benefiting from investment in disease-resistant trees, and from incentives to small producers.

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