TANZANIA TEA INDUSTRY

CURRENT STATUS & FUTURE

PROSPECTS
 Overview of Tea Industry in Tanzania
• Planted area – 22,721.55ha
– Estates Subsector - 11,272.10 ha
– Smallholders subsector - 11,449.45 ha
• Tea processing
- 19 factories owned by large scale farmers
- 4 factories jointly owned with S.H/farmers
- Av. MT production 33,000 tons/annum
• Tea Blending and packing
- 9 factories owned by private companies
- Av. Local sales 5,000 tons/annum
Av. Foreign Exchange Earnings –over USD 50m annually
 ESTATES VS S/H. FARMERS MADE TEA PRODUCTION TREND 2007/8 –
2013/14

37,500,000

32,500,000
MADE TEA PRODUCTION (KGS)

27,500,000

22,500,000

17,500,000

12,500,000

7,500,000

2,500,000

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014

ESTATES 22518009 22443091 23080394 21347655 19836062 22725627 22933216
S.H FARM- 10179827 9565009 9719224 10349130 11614391 10974439 10599252.3
ERS
TOTAL 32697836 32008100 32799618 31696785 31450453 33700066 33532468.3
 PROJECTIONS FOR MADE TEA PRODUCTION (TONS) 2014 - 2023

55,000

45,000

35,000
QUANTITIES (TONS)

25,000

15,000

5,000

2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023

ES- 23000 25000 26000 26500 27500 28000 28500 29000 29500
TATES
S/H. 12000 13000 14000 16000 16500 17000 17500 19000 19500
FARM-
ERS
TOTAL 35000 38000 40000 42500 44000 45000 46000 48000 49000
 MADE TEA EXPORT TREND 2007/08 - 2013/14
65,000

55,000
QUANTITIES OF MADE TEA EXPORTED (TONS)

45,000

35,000

25,000

15,000

5,000

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014

Volume 26943 22606 28064 25972 27597 28064.057 23925.135
(tons)
Earn- 37177 35894 56001 43840 52721 58227.434 45171.885
ings
(USD)
'000'
Aver- 1.37983891919 1.58780854640 1.99547462941 1.68797166178 1.91038881037 2.07480458010 1.88805141538
age 979 361 847 962 794 757 386
Prices
(US $/
kg)
 MADE TEA EXPORT & LOCAL SALES PROJECTION (TONS) 2014 - 2023

55,000

45,000
QUANTITIES (TONS)

35,000

25,000

15,000

5,000

2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023

EXPORT 28000 28500 30000 32000 33000 34000 34000 34500 35000
LOCAL SALES 7000 9500 10000 10500 11000 11000 12000 13500 14000
TOTAL 35000 38000 40000 42500 44000 45000 46000 48000 49000
 PRICES FOR DIRECT EXPORT, MOMBASA AUCTION & LOCAL SALES (USD/KG)

4.75

4.25

3.75

3.25

2.75
PRICES (USD/KG)

2.25

1.75

1.25

0.75

0.25
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014
EXPORT 1.38 1.59 2 1.69 1.91 2.07 1.89
MOM- 1.15 1.5 1.55 1.52 1.38 1.64 1.57
BASA
AUCT.
LOCAL 4.321656692721 3.601454480286 3.916648448915 3.343828843443 3.731580832261 4.294602411381 4.301478677507
SALES 06 74 37 34 05 43 67
 INITIATIVES UNDERTAKEN
• Launching of Tea industry strategy (2012/13-2022/23),
envisage; Double tea productivity & Focus on quality
• Government subsidies on improved clonal planting
materials; TSHTDA- 45m & TRIT-70m
• Partnership between private Estates & The Government
of Tanzania; aims at;
– Double tea production to some estates in Southern
Highlands
– Improve productivity for the participating smallholder
in an area of 6,000ha
• Introduction of Green Leaf Pricing Mechanism
– Based on Cost sharing & final market price
– Introduce first and Second payment system
– Improve quality
CONCLUSION • Planted area to increase to
25,000ha by 2022/23
• Made tea volume to increase to
over 50,000 tons by 2022/23
• Local sale volume to increase to
over 20% by 2022/23
FUTURE • Export sales to constitute less
than the current 85%
PROSPECTS
• Quality of tea to increase from
“low to medium” to high
• Average Annual Income to
increase to over USD 100m
THANK YOU