Value Addition Brings Hope to Kigezi Tea Farmers Facing Low Prices

Tea farmers in Uganda’s southwestern regions, including Bushenyi, Kanungu, Kisoro, and Kabale, are grappling with volatile earnings due to low global prices for raw tea. Despite Uganda’s significant tea exports, which generate millions annually, farmers often receive prices far below their production costs. This challenge is largely attributed to the country’s reliance on exporting bulk tea through the Mombasa auction, where Ugandan tea is frequently categorized as low-value blending material.

While some premium grades from the Kigezi region have seen improved quality and auction prices, Uganda still lags behind competitors like Kenya and Rwanda, who command higher returns for their processed teas. With the local consumption of tea hovering around a mere 3%, the nation’s heavy dependence on raw exports limits its potential for higher earnings. The weak performance in specialty markets, such as Orthodox tea, has led some farmers to abandon tea cultivation altogether in favour of other crops.

However, a shift towards value addition is beginning to emerge, offering a potential lifeline. Companies like Yildi Enterprise Limited in Kabale District are now producing blended teas, including herbal and masala varieties, targeting both domestic and international consumers. These value-added products aim to enhance the competitiveness of Kigezi tea by offering unique flavours and potential medicinal benefits.

Despite these positive developments, challenges such as a limited supply of raw herbal ingredients, factory space constraints, and high taxation hinder expansion. Industry stakeholders emphasize that value addition is crucial for improving farmer incomes and strengthening Uganda’s position in the global tea market. Local leaders have expressed support for these initiatives, recognizing their alignment with national economic development goals and pledging to seek government assistance to foster growth in the sector.

Source: Daily Monitor (Uganda)