TANZANIA – Tanzania’s Sakare Specialty Tea Company has officially been inaugurated in the Bungu Tanga region, bringing a revival to the country’s tea sector.
The facility is set to revolutionize Tanzanian tea cultivation, processing, and marketing, marking a significant stride in agricultural value-addition and industry marketing practices.
Kazi Yetu Limited CEO, Linus Ndongwe, commended the launch, recognizing its potential to enhance value addition, job creation, and the quality of farmers’ lives, thereby increasing competitiveness in the global market.
Tanzania’s agriculture minister, Mr. Hussein Bashe, while attending the launch outlined the transformative measures during the launch event, emphasizing the SSTC’s pivotal role in reshaping tea cultivation, processing, and marketing practices in the country.
According to Mr. Bashe, Tanzania is introducing comprehensive strategies aimed at enhancing domestic auctions and promoting value addition for locally grown tea by small-scale farmers.
The government’s strategy includes strengthening domestic auctions, with all large-scale growers mandated to trade at the Dar es Salaam Tea Market, irrespective of their international stock exchange registrations.
“Non-compliance with this directive would prompt companies to cease operations in the country,” stated Mr. Bashe
He highlighted the significance of prioritizing domestic tea auctions, citing average prices at the Mombasa Auction and the Dar es Salaam Market.
Last month, the country held its first ever tea auction in Dar es Salaam, a move that is expected to increase fortune for the country’s tea subsector.
The auction platform features both Direct Market and Auction mechanisms in an effort to foster transparency and ensure fair pricing, thus protecting the interests of the hardworking farmers.
On average, tea traded at the Mombasa auction fetched an average of US$0.7 per kilo while the lowest grade traded at the Dar es Salaam market garnered US$0.9 per kilo.
Despite recording a price of Sh366 (US$2.37) per kilo at the Dar es Salaam Market, the minister expressed dissatisfaction and pledged to address challenges affecting tea prices in the nation.
Addressing concerns of an influx of tea from neighbouring countries, Mr. Bashe pledged collaboration with the Ministry of Finance to eliminate tea from the list of directly imported agricultural produce, ensuring protection akin to that provided for sugar.
The minister directed the Korogwe District Commissioner to engage citizens in discussions about relocation for compensation to facilitate the expansion of the SSTC.
By owning 715 hectares, farmers will contribute to domestic consumption and exports, cultivating black tea specifically for trading at the Dar es Salaam Tea Market.
Mr. Bashe revealed that the government had secured funding for the Programme-for-Results (P4R) project, with plans to establish five additional value-addition factories for small-scale tea growers. Anticipating operations by June 2024, the government aims to source technology from India for these new facilities.
Mustafa Umande, Chairman of the Tea Board of Tanzania (TBT), acknowledged the sector’s challenges, including declining prices and rising production costs.
“Efforts are underway to boost tea consumption, with the government distributing free tea seedlings and fertilizers to farmers,” he stated.
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