By Muhoozi Nelson Mandela
The plight of tea farmers continues to deepen as the latest Mombasa auction results highlight significant disparities in tea prices across East Africa.
During last week’s auction (Sale No. 29 of 2024), Uganda’s teas fetched an average of $0.79 per kilogram, contrasting with the $2.20 per kilogram for Kenyan teas and $2.59 per kilogram for Rwandan tea.
Tanzanian teas fetched $0.64 per kilogram.
According to the Tea Market Report from the Tea Brokers East Africa Limited analysis, global demand for tea remains depressed, with 58% of teas remaining unsold.
Despite this downturn, higher quality teas from Kenya’s Kenya Tea Development Agency (KTDA) saw 72% of their stock unsold, while Uganda had only 15% unsold. On the other hand, Rwanda, known for its high-quality teas, had just 12% unsold.
According to Onesimus Matsiko, chairperson of the Uganda Tea Outgrowers Association (UTOA), this indicates that while Ugandan teas are absorbed more readily, they do so at unsustainably low prices.
Quality issues
Matsiko said the root of Uganda’s struggle lies in the quality and yield of its tea.
He highlighted the dire need for government intervention in the form of subsidized fertilizer.
“At $0.79 per kilogram, Ugandan tea cannot afford even a 50% contribution to the fertilizer price,” he explained.
“The government should provide a bailout of sh40 billion for one season to rejuvenate the tea industry.”
Peter Byaruhanga, a seasoned tea farmer, said the gap in quality is glaring when comparing Uganda with its neighbors.
“The lesson for Uganda is that there is need to optimize yields and improve quality to secure better prices and maintain market absorption,” he said.
Byaruhanga said productivity in tea increases with fertilizer application and noted that “In this crisis where a tea farmer in the West is hardly getting sh200 and paying pluckers sh120, and a farmer remaining with sh80, surely the current tea prices are affecting a tea farmer.”
“It would be of great relief if government intervenes to rescue this situation by supporting tea farmers with fertilizers. Secondly, we need to re-organise our tea sector by reviving the tea board to be vibrant,” he added.
According to Byaruhanga, in 1986 tea productivity was 3 million Kilograms, noting that now its 60 million kilograms. He said this current production level means that if the tea sector is supported, it can earn serious foreign exchange to the country.
Matsiko lamented the current state of Uganda’s tea industry.
“Ugandan teas will continue to go for nothing until we either wake up or continue on our natural path of abandonment and uprooting,” he warns.
Matsiko criticizes the government for a lack of strategic direction and policy support.
He also points to a breakdown in communication and collaboration between farmers, factories, and pluckers.
“Farmers have become beholden to pluckers who prioritize quantity over quality, leading to a decline in Ugandan tea’s reputation,” he notes.
Declining farmgate prices
Masiko said the impact of tea issues is evident in the farmgate price received by farmers for their tea leaves.
“This drastic drop has forced some farmers to abandon their crops or switch to maize cultivation. A few are attempting to salvage their livelihoods by partnering with factories that offer slightly better prices for higher quality leaves,” he said.
In some regions, prices have plummeted to between sh120 and sh150 ($0.03-$0.04) per kilogram, down from sh200 last month.
President Museveni promises intervention
In a recent national address on July 20, 2024, President Museveni acknowledged the challenges facing the tea sector.
He promised to engage with tea growers to discuss impactful interventions.
The consensus among industry stakeholders is that urgent and strategic action is needed. The farmers said government support, particularly in providing subsidized fertilizer, is one of the most impactful interventions.
