Tanzania has established a coffee fund in an effort to support farmers and boost production, an official said on Tuesday.

William Ole Nasha, Deputy Minister for Agriculture, Livestock and Fisheries, said farmers had started to benefit from the fund and that there had been an increase in coffee production.

He attributed the increased production to the country's better investment environment. "We are encouraging investors to come into our country," he added.

Ole Nasha said the government would continue to protect local coffee farmers and ensure markets for their final products.

He said the government was working on a program that will enable small-holder farmers to learn from the investor's farms in order to improve their yields.

"We have reviewed some coffee regulations with the aim of protecting local and small-holder farmers," he said, adding: "We are determined to make sure that coffee farmers enter into contract with bigger farming."

Coffee is Tanzania's largest export crop. On average each year the east African nation produces around 50,000 metric tons of coffee, of which approximately 70 percent is Arabica. Sales generate over 100 million U.S. dollars per year, according to data from Tanzania's Coffee Board.