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The state minister for Agriculture, Hon. Bwino Fred Kyakulaga, has reaffirmed the Government’s commitment to resolving the challenges facing Uganda’s tea industry While speaking at the 6th Africa Tea Convention and Exhibition, held from October 9-11, 2024, at the Kigali Conference and Exhibition Village in Rwanda.

Speaking at the 6th Africa Tea Convention and Exhibition, which will take place from October 9–11, 2024, at the Kigali Conference and Exhibition Village in Rwanda, State Minister for Agriculture Hon. Bwino Fred Kyakulaga reaffirmed the government’s commitment to resolving the issues facing Uganda’s tea industry.

Attendees participated in forums and exhibitions that showcased the latest trends and technological advancements in tea production, aiming to boost efficiency, quality, and sustainability.

In his address, at the convention, Kyakulaga outlined the Government’s recent initiatives to support the tea sector.

He noted that the ministry had finalised the National Organic Agriculture Policy, which promotes organic farming practices to improve both productivity and sustainability.

Additionally, he said the Government reviewed and validated a proposed Comprehensive Tea Policy, which, once implemented, will aim to improve tea production, quality, and regulation in Uganda.

“The Government is committed to finalising and implementing this policy to address the challenges in research, quality, and regulation in the tea industry,” Kyakulaga said. “We recognise the importance of tea not only as a key export but also as a tool for poverty alleviation, particularly in rural areas.”

The Minister emphasized that Uganda’s tea sector faces significant challenges, including fluctuating market prices, limited access to finance, and quality concerns.

However, he assured stakeholders that the Government is determined to address these issues. Kyakulaga pledged to engage with top government officials on the importance of tea in Uganda’s economic growth strategy, underscoring the sector’s potential to reduce poverty and provide livelihoods for hundreds of thousands of Ugandans.

The Uganda delegation also held sideline meetings with other key stakeholders, during which Kyakulaga reiterated the government’s commitment to expanding tea production and supporting tea farmers.

“The tea industry remains a priority for the Government,” Kyakulaga said. “We will continue to support tea expansion as part of our broader economic growth efforts.”

One of the key voices at the convention was Onesimus Matsiko, Chairman of the Uganda Tea Out growers Association (UTOA).

Matsiko highlighted the convention as a rare opportunity for Ugandan tea farmers to engage directly with government officials in a setting dedicated to tea.

“At home, farmers often struggle to get the attention of top decision-makers,” he said. “This convention provides the platform to have those critical conversations

The convention also provided insights into how tea sectors operate in other countries. In Kenya, for example, farmers sell their green leaf to factories owned by the Kenya Tea Development Agency (KTDA), which offers competitive prices and performance-based bonuses.

The KTDA factories, which are farmer-owned, dominate the market, ensuring that farmers receive timely payments and enjoy the benefits of collective ownership.

In Rwanda, while there are no farmer-owned factories, farmers work closely with tea factories through co-operatives, receiving strong government support. This partnership ensures that Rwandan tea farmers are paid well and on time.

Malawi, on the other hand, presents a different scenario. In Malawi, tea farmers sell to factories owned by plantation-based companies. Despite this structure, tea out grower associations have successfully negotiated better terms for farmers through collective bargaining.

However, a lack of regulation on tea quality has led to lower prices, and farmers often earn even less than their Ugandan counterparts.

In Uganda, the once-powerful Uganda Tea Growers Corporation (UTGC) has seen its influence wane, with UTGC factories now processing less than 40% of the green leaf from outgrowers.

As a result, investor-owned tea factories have taken a larger share of the market, reducing the influence of farmer-owned operations.

The Uganda Tea Outgrowers Association (UTOA) was formed in response to these challenges, seeking to represent the interests of smallholder farmers.

Despite the formation of UTOA, Matsiko acknowledged that many challenges remain. “We have some farmer-owned factory managers and governance structures that are resisting the role of UTOA, thinking they can continue to speak for farmers despite their failures to build enough factories to process the green leaf,” Matsiko said.

He also noted that some factories, as well as government and political leaders, actively oppose UTOA’s efforts to organize farmers.

One of the most pressing issues for tea farmers in Uganda is the marketing of green leaf. Matsiko stressed that having a reliable structure for negotiating prices and ensuring timely payments is crucial to the sustainability of tea farming.

“Right now, there’s no good combination of a fair price with timely payment,” he said. “Farmers often face a trade-off: accept a lower price for immediate payment or wait for an extended period to receive a better price.”

Matsiko suggested that Uganda’s tea outgrowers could form strategic partnerships with their counterparts in Malawi to lobby for international support and find collective solutions to the challenges they face.

Tea is a critical component of Uganda’s agricultural economy, supporting an estimated 100,000 households directly and providing approximately 150,000 jobs according to industry reports.

Additionally, industry reports indicate that around 1.5 million people indirectly depend on the sector for their livelihoods.

At full capacity, Uganda’s tea industry generates approximately sh296b ($80m) annually. With improved yields and better quality, industry experts believe this figure could rise to sh370b.