Tea sector targets stronger export growth

DAR ES SALAAM: TANZANIA’S tea sector is eyeing stronger growth this year, buoyed by rising global demand, higher prices and renewed export opportunities.

Tea Board Tanzania (TBT) Director General, Ms Beatrice Banzi said in Dar es Salaam on Thursday that last financial year, the tea sector earned more than 40 million US dollars.

She said with expanded production and favourable markets, revenues are expected to rise to between 46 and 56 million US dollars this year.

“We expect earnings to increase significantly this year because demand is high, prices are stable, more factories are resuming operations and some producers are already selling tea at 2.5 US dollar per kilogram, which is a big achievement for the sector,” said Ms Banzi.

She said exports continue to dominate Tanzania’s tea trade, accounting for about 85 per cent of total production, with the remaining 15 per cent consumed domestically.

This year’s harvest is forecast to exceed 70,000 tonnes, up from 22,667 tonnes last year, thanks to efforts to train farmers on the use of fertilisers and modern tools to boost productivity as well as the global new market.

Ms Banzi said that the sector has enormous potential if value addition is strengthened along the entire supply chain.

“Some factories are already adding value and selling packaged tea in supermarkets at premium prices. Farmers should seize this opportunity to fully benefit from the tea value chain because tea is paying,” she said.

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The TBT Marketing Manager, Mr Suleyman Chillo, said regional and international markets are showing renewed interest in Tanzanian tea.

“Sudan has been a major buyer of our tea since the 1970s. After years of absence, recent talks between TTB and the Sudanese ambassador in Tanzania are paving the way for renewed trade ties,” he said.

Sudan alone demands about 70,000 tonnes of tea per year, underlining the need for increased investment in production and processing.

“The demand is higher than our current output. Investors should take advantage of opportunities in packaging, processing and large-scale production. Our tea has been tested in new markets such as Qatar, Dubai and Russia and buyers are eager to take as much as we can supply,” Mr Chillo added.

The TBT Acting Director of Regulatory Services, Mr Mbushunoti Mindoi said Industry production rose from 20,952 tonnes in 2023/24 to 22,667 tonnes in 2024/25, reflecting growth of more than 5 per cent.

Prices also improved, rising from 0.98 US dollar per kg in 2023/24 to 1.25 US dollar in 2024/25. With stronger markets, rising productivity and renewed bilateral trade ties, the tea sector looks set to deliver higher earnings and cement its role as one of the country’s most profitable agricultural industries.

During a campaign rally, Chama Cha Mapinduzi (CCM) presidential running mate, Dr Emmanuel Nchimbi pledged to revive tea factories in Iringa and Njombe, promising to restore the sector’s contribution to the regional economy.

He said the move would create jobs, boost incomes for smallholder farmers and strengthen Tanzania’s position in the global tea market. Dr Nchimbi highlighted that tea remains one of the country’s most valuable cash crops, but years of underinvestment and factory closures had limited its potential.