By Muhoozi Nelson Mandela
Ugandan tea prices have maintained stability at the Mombasa Tea Auction, with Sale No. 42, which closed recently, averaging $1.03 (sh3,900) per kilogram.
This represents a slight dip of 2 US cents compared to the previous week, but the overall performance continues to be encouraging for the tea sector.
Onesimus Matsiko, a prominent tea sector expert and farmer, highlighted that the industry is optimistic about the continued strength of Ugandan tea prices.
“We appreciate the fact that Ugandan tea prices have remained above the one-dollar mark for the fourth consecutive week. All primary grade teas have maintained this trend,” Matsiko said.
During Sale No. 41, 25 of the 41 factory marks averaged above one dollar. However, this week’s auction saw a slight drop, with 19 out of 33 factory marks selling above the dollar mark.
It is worth noting that the number of factory marks that sold during Sale No. 42 fell to 33, compared to 41 in the previous sale.
This decline is attributed to two key factors: some factories are intentionally selling their teas outside the Mombasa Auction, and green leaf production is decreasing. The latter is concerning because it comes during what should be a peak production season.
Matsiko said the decline in production is primarily due to the ongoing abandonment, cutting, and in some cases, uprooting of tea gardens across the country.
While many gardens are being abandoned or cut back to make way for other crops, there is a silver lining.
According to Matsiko, “Most gardens are simply abandoned or cut, which means they can regenerate once the value chain becomes economically viable again.”
However, he said fully uprooting tea gardens is a costly and difficult process, especially for mature tea plants.
“Newer plantations are more vulnerable, but in tea-growing regions like Buhweju, farmers are still optimistic. They are actively seeking tea seedlings to replenish their fields, which remain ideal for tea cultivation,” he said.
Despite the challenges, the Ugandan tea sector continues to demonstrate resilience, with hopes that production and prices will rebound in the coming months as conditions improve according to Matsiko.
