TANZANIA – Tanzania has issued a one-month ultimatum to tea factory owners, demanding they settle outstanding debts owed to small-scale tea farmers amid efforts to revitalize the tea industry and boost production.
David Silinde, Tanzania’s Deputy Minister of Agriculture, delivered the ultimatum during the International Tea Day event.
He emphasized, “Until June 20 this year, all tea factory owners must pay all debts they owe smallholder farmers so that our farmers can benefit from the work they did throughout the season.”
The government is implementing a multifaceted strategy to address challenges within the tea industry. This strategy includes reviving abandoned tea farms and constructing seven new processing facilities specifically owned by small-scale farmers.
Additionally, plans are underway to install irrigation systems across tea plantations, enabling cultivation throughout the year.
Rukia Mwango, acting director of the Tea Board Tanzania (TBT), highlighted the government’s ongoing commitment to tea industry sustainability. Initiatives include funding the construction of new smallholder-owned factories and the revival of long-abandoned tea plantations.
Mustapha Umande, chair of the TBT board, emphasized the significance of tea cultivation for both individual livelihoods and the national economy. He reiterated the government’s dedication to elevating tea’s position as a leading Tanzanian crop.
The tea industry has faced hurdles in recent years, including declining prices and rising production costs, thus affecting its performance. However, Umande expressed gratitude for the government’s continued support through fertilizer subsidies and the promotion of irrigation practices.
In 2023, Tanzania launched its first-ever online tea auction platform, aiming to connect regional tea producers with global markets.
Furthermore, the country is establishing large-scale nurseries dedicated to cultivating 3.2 million climate-resistant tea cultivars. These new cultivars are designed for year-round cultivation and high yields, enabling farmers to replace aging tea bushes and enhance overall productivity and quality.
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