Sisal farmers push for modern processing factories

TANZANIA’s sisal industry is experiencing renewed momentum in global markets, but farmers warn that outdated processing infrastructure threatens to undermine the sector’s growth and income potential.

For years, sisal has remained one of country’s most resilient commercial crops, reinforced by favourable policies and stable pricing.

The global shift away from plastic-based products toward eco-friendly materials has further strengthened demand, with sisal increasingly used in footwear, roofing materials, carpets, ropes, bags and decorative items.

According to Sisal Market World, the global sisal market continues to grow as industries seek natural fibres for agricultural, industrial and consumer applications.

Last year, sisal accounted for more than 62 per cent of global agave-based fibre consumption, with approximately 1.2 million tonnes harvested worldwide.

Over 70 per cent of the output comes from Asia and Africa, where more than 40 countries cultivate the crop.

Despite this strong position, the sector faces longstanding challenges, including obsolete processing equipment, limited factory coverage and underutilised capacity, which hinder competitiveness, calling for urgent government and private sector investment to modernise factories and expand capacity.

Hayate organic farms Director and sisal farmer Mr Hassan Yakub Walatee, said outdated factories are costing farmers significant income.

“The challenge is affecting farmers heavily. Although the government is installing new machines, they are not enough to meet demand and most farmers cannot afford them,” he said.

According to him, establishing a modern sisal processing facility requires a minimum investment of 200,000 US dollars while fully equipped plants can cost up to 600,000 US dollars, placing them beyond the reach of most small-scale farmers.

As a result, modern processing is dominated by large companies, many of which only handle fibre from their own estates.

While small processing machines exist, farmers say they are unpopular due to excessive leaf cutting and poor fibre grading, which lower market value.

In remote areas lacking factories, traders have turned to small mobile machines to buy sisal in bulk from smallholder farmers, but these machines also compromise fibre quality.

To address the sector’s infrastructure gap, the government through the Tanzania Sisal Board (TSB) has begun constructing a modern processing plant in Taula Village, Handeni District.

The facility is expected to benefit more than 5,000 farmers by improving market access and offering better prices.

In addition, this project has so far attracted over 710m/- in investment and is projected to create at least 150 direct jobs, while stimulating broader economic activity through Small and Medium-sized Enterprises (SMEs) supplying goods and services to the plant.

During a recent site visit, TSB Board Vice-Chairperson, Prof Esther Dungumaro said the Handeni factory is among several initiatives aimed at reviving the sisal industry.

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“Tanga is the heart of this country’s sisal industry and we are determined to restore its former glory. Handeni is one of several districts where the board is constructing new processing facilities to support farmers and enhance production,” she said.

The Board also inspected the Kibaranga sisal plantation in Muheza District, where infrastructure upgrades are underway, as well as the Mruazi livestock farm.

Beyond factory shortages, farmers have raised concerns about grading integrity.

Some allege that a few factory workers deliberately downgrade fibre quality to reduce payouts.

Currently, first-grade sisal sells for about 4.4m/- per tonne, while second grade fetches around 4.1m/-, depending on international market conditions.

Roughly 90 per cent of Tanzania’s sisal exports go to Asia and Europe.

“Farmers know the quality of their crop. We nurture it from planting to harvest, but many cannot be present during processing. Without transparency, they risk being paid less,” Mr Walatee noted.

Some Agricultural Marketing Cooperative Society (AMCOS) have begun placing supervisors at factories to ensure fair grading and payment, though coverage remains limited.

Another farmer, who requested anonymity, said the high cost of modern factories has pushed some growers toward cheaper machines, but the resulting fibre is frequently downgraded due to leaf damage and discolouration.

“Processing a tonne of sisal into packaged fibre costs about 1.0 million shilling. Investors can recover their capital and operate sustainably. We are many, but factories are limited,” he said.

He also appealed for the provision of free sisal seedlings to boost production, arguing that increased output would expand government revenue through taxes.

With global pressure to replace plastics intensifying, analysts caution that delays in modernising country’s processing capacity may cause the country to lose ground to competitors capitalising on the booming green materials market.