Traditional exports performance up despite fall in crops
The value of traditional exports increased by USD189mn in the year ending April 2013 from a decline of USD11.3m in the year ending April 2012 and it was largely driven by volumes as unit export prices recorded a decline for most crops.
This was said by the Bank of Tanzania (BoT) in its May monthly economic review released over the weekend.
The review said the performance was on account of favourable weather conditions coupled with good price in the preceding years that led to a substantial increase in the production of coffee, cotton and cashew nuts.
But the review also revealed that World market prices for most agricultural and non-agricultural commodities recorded declines during April 2013.
For example the price of cotton declined mainly due to a fall in demand for cotton from China, India and Pakistan.
The price of coffee (Robusta) declined largely due to increased supply from Brazil and Vietnam, while the price of coffee (Arabica) remained unchanged.
Tea prices declined largely due to supply factors following favourable weather condition in major tea growing countries like Kenya, Australia and India.
With the exception of gold, all other non-traditional exports increased with value of exports amounting to USD4,011.1m in the year ending April 2013 compared with USD 3,908m recorded in the corresponding period in 2012.
Much of the increase was recorded in manufactured goods which amounted to USD1,053.6m compared to USD886.1m recorded during the year ending April 2012.
The underperformance of gold is associated with fall in export volume to 37.0 metric tons compared to 39.3 metric tons in the preceding period. Despite that, gold and manufactured goods accounted for the largest share of non-traditional exports.
Driven by travel and transportation which accounted for over 80 percent during the year ending April 2013, service receipts increased by 15.3 percent to USD2, 757.7m compared with the amount recorded in the same period in the preceding year.