About Cotacof - Sucafina in Tanzania

About Cotacof & Sucastainability - Sucafina in Tanzania

Coffee has been a central part of the Tanzanian culture and economy since the 16th century. Though its role has changed over the last four centuries, coffee today generates approximately 5% (about $100 million) of the country’s export revenue and employs - directly and indirectly - 6% of the population (about 2.4 million people), including 450,000+ smallholder farmers.

Sucafina, as Cotacof and Sucastainability, has made major investments in Tanzania’s coffee sector, sourcing coffee via auctions, parchment purchases and direct exports. To better serve the country's smallholder farmers and to meet rising demand from roasters, the company aims to continue to increase its share of certified and sustainable coffee purchases to 44%.

In a competitive market, growth will come from improving coffee margins through better quality, certification premiums and sustainability assurances. Achieving this requires long-term partnerships with Agricultural Marketing Cooperative Societies (AMCOS) and investments in coffee quality, coffee volume, sustainable practices and, most importantly, the smallholder farmers who are the lifeblood of the industry.

Serving Smallholders, Investing in the Coffee Sector

In Tanzania, Agricultural Marketing Cooperative Societies (AMCOS) are designed to help address persistent challenges in the coffee sector, including low farmgate prices, supply chain inefficiencies and limited access to inputs and financing. However, many AMCOS in Tanzania face internal constraints that hinder their capacity to support smallholder farmers. 

To meet its sustainability goals, Sucafina must build long-term partnerships with AMCOS and invest in improving coffee quality, volume and sustainable practices. A large part of Sucastainability's role covers just this area. However, there are often challenges of working through AMCOS rather than directly with farmers. Key challenges include:

Management and governance structures within some AMCOS may limit their ability to support member services or optimize market access.

Certification requirements can be difficult to meet due to varying levels of access to training, resources and technical support.

Access to finance remains a challenge, which can affect the availability of inputs, equipment, and services for members.

Infrastructure and processing capacity vary, which can influence coffee quality and efficiency during post-harvest handling.

Despite these challenges, Sucastainability, working hand in hand with Cotacof, remains committed to expanding sustainable sourcing in Tanzania. Scaling impact while managing risk will require continued investment in AMCOS to enhance quality, productivity, and market access. 

In order to achieve these goals, Sucastainability has worked with a number of internal and international partners to develop an innovative Loyalty Program.  

Our Loyalty Program

In collaboration with partners and stakeholders, including CASA TAF, we've developed a tiered loyalty program for AMCOS. The model allows cooperatives to advance through levels based on progress in key areas such as financial stability, market engagement, governance, operational efficiency and consistent sourcing partnership. As AMCOS move up the tiers, they gain access to additional benefits, creating incentives for continuous improvement.

In brief:

The DE (Direct export) tier is the starting point: Sucafina and the AMCOS create a connection, establish relationships for direct export and create opportunities for sales of higher quality coffee. 

The Bronze tier focuses on certification: Sucafina helps the AMCOS achieve certification and collects data on  production using digital farmer engagement tools. This data helps to improve AMCOS' access to bank financing and guides extension efforts to ensure compliance with social and environmental standards. 

The Silver tier aims to improve quality: in addition to Bronze benefits, AMCOS are eligible to access a revolving fund for purchasing pulpers and technical support to manage wet mill operations effectively, thereby increasing the quantity of higher-value CPU-processed coffee they produce. 

The Gold tier concentrates on driving yield growth: Gold tier AMCOS, already certified and producing a high proportion of CPU-processed coffee, benefit from additional yield development programmes to increase the volumes of their higher-margin coffee. For Gold AMCOS, programming is tailored to specific needs, identifying primary levers for increasing yields and improving livelihoods.

_{Source: 2024, CASA Technical Assistance Facility Inclusive Business Case Study: Sucafina}

Our Operations

• Sucafina is one of the largest exporters in Tanzania
• Arabica Parchment buying & Direct Export working with 20+ AMCOS along with small local private suppliers representing over 9,500 farmers
• Dar es Salaam warehouse storage of 100,000 bags & processing capability of 300,000 bags annually
• Upcountry warehouses in Mbeya & Mbinga help to preserve quality
• Range of Qualities & Certifications available, including Rainforest Alliance, Fairtrade, C.A.F.E. Practices and IMPACT Verified

Sustainability

In addition to the Loyalty Program, Cotacof and Sucastainability invest in a wide range of sustainability initiatives, furthering our purpose of: creating opportunities to improve lives. These include: 

• Measuring our carbon footprint
• Tracking and mitigating deforestation
• Measuring soil health and providing feedback and support to producers
• Digitalisation of the supply chain
• Farmer Training in Quality and Best Practices
• Certification Support & Training
• Capacity building, EHS standards & governance to small AMCOS
• Microfinancing for CPU rehabilitation & maintenance
• Coffee tree rejuvenation, including intercropping and distribution of high-quality seedlings to small-holder farmers within our partner cooperatives to help reverse the trend of diminishing yields.

Learn more by watching the video below. 

About Sucafina

Sucafina is a multinational coffee merchant, founded in 1977 and based in Geneva, Switzerland, with a family tradition in commodities that stretches back to 1905. Today, we redefine sustainability in coffee, connecting farmers to the world with a traceable Green sourcing, premium Instant solutions and tailored Roasted offerings for private-label and out-of-home markets. United by innovation and purpose, these business units deliver transformative solutions that shape the future of coffee on a global scale.

Interested in learning more about our operations in Tanzania or Sucafina generally? Contact us!