According to the Tanzania Coffee Board (TCB), reduced supply and increased demand led to an increase in prices for Tanzania Arabica coffee prices at auction last week.
Prices of the country’s benchmark Grade AA Arabica, which is tracked through the New York Stock Exchange, were sold at auction last week for between USD 226.00 and USD 285.00 per bag, an increase from the previous week’s sale of between USD 212.80 and USD 270.00.
At the same time, Tanzania Grade A Arabica was sold for between USD 225.20 and USD 247.40 per bag, an increase from the previous week’s sale of between USD 216.20 and USD 245.00.
In its auction report, the TCB indicated that the overall average prices for mild Arabica at the Moshi exchange had increased since the last auction by USD 13.13 per 50 kg, which is above the terminal market by USD 11.18 per 50 kg.
Of the 12,132 bags of coffee that were offered for sale at the most recent auction, all were reportedly purchased.
The TCB has projected a bumper 2014/15 harvest, with production expected to increase from the 48,700 tons that were reported in the previous season to more than 55,000 tons for the current year.
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