agriculture 11 April 2026 Daily Monitor (Uganda)
Uganda Tea Farmers Demand Urgent Reforms to Revive Declining Sector
Uganda Tea Association leaders are urging government action on working capital, logistics, and mechanization to boost tea production after years of market shocks reduced output from 60 to 40 million kilograms annually. Officials highlight a Shs310 billion intervention plan, including fertilizer subsidies and processor bailouts, to enhance quality and market access. Source: https://www.monitor.co.ug/uganda/news/national/farmers-push-for-reforms-to-boost-tea-production-5419972
Uganda’s tea industry is showing signs of recovery but faces ongoing hurdles from global conflicts and high costs. The Uganda Tea Association (UTA) held its first industry retreat in Fort Portal City, where Chairperson Ashabaahebwa Victoria outlined the sector’s struggles.
Production has fallen sharply from over 60 million kilograms to about 40 million annually, with prices dropping to $0.50 per kilogram during the crisis triggered by the Russia-Ukraine war and Middle East instability. Factories faced closures and downsizing as cash flow dried up.
UTA pushed government for support in 2023, leading to President Museveni’s pledge of Shs152 billion in working capital and fertilizer subsidies. Victoria called for swift release of these funds to keep factories buying green leaf from farmers, preventing further value chain breakdowns.
The association represents 22 companies with 36 factories and is crafting a five-year plan targeting financing, logistics, market access, and value addition. They aim to move beyond bulk auction exports via direct buyer links, partnering with Diamond Trust Bank for tailored financing.
DTB’s Kaziro Kyambadde noted tea’s $85 million export value could grow with better support, drawing from Kenyan models. Recovery signs include 20% price rises in 2025, outpacing regional peers, and strong Mombasa auction demand absorbing 90% of Uganda’s tea.
Challenges persist with high costs, labor shortages, poor roads, and credit access. UTA seeks regulations, mechanization, and improved logistics. Kayonza Growers Tea Factory’s Grace Kyomugisha stressed pairing Shs26 billion fertilizer aid with the Shs152 billion bailout for processing capacity.
State Minister for Agriculture Bwino Fred Kyakulaga announced a Shs310 billion plan: Shs46 billion yearly for fertilizers, Shs152 billion for processors, and Shs112 billion for seedling debts. Consultations spanned Tooro, Ankole, and West Nile regions.
The minister emphasized player discipline on quality standards like ‘two leaves and a bud’ and plans for a national commodity exchange to enable direct trade alongside Mombasa auctions.