The Tanzanian government has announced a series of measures aimed at stabilising the country’s cocoa industry after a steep decline in prices unsettled farmers and industry stakeholders.

Authorities say the price drop is largely driven by developments in the global cocoa market rather than domestic factors. However, officials are working with stakeholders to introduce strategies that could strengthen the crop’s competitiveness and secure better long-term returns for farmers.

Recent auctions show cocoa prices falling dramatically from around Sh32,000–Sh36,000 per kilogramme in previous seasons to about Sh5,540, far below the indicative price of Sh10,000.

Global Market Dynamics

According to officials from the Cereals and Other Produce Regulatory Authority (COPRA), the price slump is tied to international supply trends.

In the past two years, adverse weather and disease outbreaks reduced cocoa production in Ivory Coast and Ghana, the world’s largest cocoa producers. Buyers responded by stockpiling large volumes of cocoa beans in anticipation of prolonged shortages.

However, production in those countries later recovered, leaving global buyers with substantial inventories. The oversupply has since pushed market prices downward.

Tanzania’s Cocoa Expansion Plans

Despite the price volatility, Tanzania has been expanding cocoa production in recent years. National output increased from about 12,000 tonnes in 2023 to roughly 17,000 tonnes in 2025, and the government aims to raise production to 80,000 tonnes by 2030.

Cocoa farming is concentrated mainly in Mbeya, Morogoro, Tanga and Songwe regions, with smaller volumes produced in Kagera. Around 32,500 farmers currently grow the crop.

Five Measures to Strengthen the Industry

To support the sector, authorities and stakeholders have agreed on a set of measures designed to improve productivity and market access.

One priority is expanding cocoa cultivation through improved access to quality seedlings. Another key focus is improving bean quality to ensure Tanzanian cocoa remains competitive in international markets.

The government also plans to construct seven cocoa drying facilities before mid-year, with plans to increase the number to 20 facilities in the next financial year. These facilities are expected to help farmers meet international quality and environmental standards.

Other measures include promoting organic farming practices, encouraging contract farming arrangements between farmers and processors, and expanding local processing capacity to increase value addition within the country.

Push for Local Processing

Officials say developing domestic processing capacity is crucial to protecting farmers from volatile global commodity prices.

Construction of a cocoa processing plant has already begun in Rungwe District in Mbeya Region, while another facility is planned for Kyela District.

Farmers, however, say faster implementation of such projects is essential to help them cope with falling prices. Some producers have also raised concerns about ageing cocoa trees, noting that many plantations rely on trees that are 40 to 50 years old, well beyond the recommended replacement age.

Government officials say they will continue working with farmers, cooperatives and investors to stabilise the market and unlock the long-term potential of Tanzania’s cocoa industry.