Environment Development

Fair trade led to introduction of organic coffee production to Kagera Co-operative Union Ltd via Export Promotion of organic products from Africa(EPOPA) programme assisted by SIDA.Through the contacts in the Netherlands,KCU Ltd got connected to Agro Eco consultancy in 1998/99 to establish the organic coffee project within some primary societies under KCU Ltd.

This fair trade engineered chances which made KCU Ltd the first organic Robusta producer/Exporter in Tanzania under fair trade terms.

Organic project take off would not have been possible without payment of an organic differential to organic coffee producers from the fair trade reserves.

This was necessary to motivate the project members during the conversion period, when the organic project coffee(in conversion) was being sold only as normal fair trade coffee.KCU still uses the fair trade reserves to mobilize the new primary societies to comply with organic production requirements.

Today we are still selling almost 800 tons of organic coffee to the fair trade market earning an organic differential of about 30 cts per lb and 20 cts for the fair trade premium.

It is important to note that the organic differential will not be felt if the base price is left to be controlled by the market forces.

Fair trade sets a base line (the minimum price) that can be paid to small producer in order that cost of production may be recovered.

Thanks to solidaridad who partly financed the organic/Utz part of our production for facilitation of professionalism in orgin, transparency,traceability and quality.

Nevertheless this assistance will be fruits only if the organic/Utz coffee will be sold to the fair trade market. Short of that production and compliance costs will not be recovered.

The struggle to protect natural environment is there to remain as KCU strategy is to make such protection part and parcel of the integrated farm management. Oxfam Belgium has also opted to be partner in the KCU efforts to produce coffee under the organic project arrangements.

Eighteen primary cooperative societies out of the total 125 societies of KCU Ltd are already under the programme with IMO as certifiers. The programme will assist KCU Ltd members not to think fair only to people but also to the environment.







TANICA staff packing instant cofee ready for distribution