Farmer-owned tea factory opens global markets for locals

DODOMA: Local tea processors in Tanga have secured foreign markets in Asia, Europe and America following the establishment of Tanzania’s first smallholder farmer-owned factory, Sakare Specialty Tea Company (SSTC), which has significantly improved the crop’s value chain and increased its value on the global market.

Prior to the establishment of the factory, tea farmers from Bumbuli and Bungu were earning only US$0.15 per kilogramme of green leaf (raw material).

Following the establishment of the factory, however, farmers are generating revenue of at least US$4 per kilogramme of processed tea, according to a latest report.

Speaking at a side event organised by CARE Tanzania during the just-concluded 2026 National and International Nane Nane Exhibition in Dodoma, KAZI Yetu Chief Executive Officer said tea is among the most vulnerable crops, and establishing a factory closer to farmers has helped reduce post-harvest losses.

The side event was held under the theme “Beyond Savings: Building Competitive Agricultural Value Chains through Public-Private Partnerships,” bringing together participants from the public and private sectors to discuss challenges and ways of enabling farmers to become fully engaged in the entire agricultural value chain.

During the discussion, Ms Tahira said local tea processors, who own a 99 per cent stake in SSTC through their AMCOS, had managed to secure markets in Germany, the United Kingdom (UK), France, the United States (US) and Qatar at competitive prices.

She said the development had significantly improved the livelihoods of local communities while creating employment opportunities in the areas where the tea is produced and processed.

“To help more farmers, the Public-Private Partnership (PPP) approach is crucial. We need this kind of approach to be used to improve infrastructure and enhance agricultural value chains,” the KAZI Yetu CEO said.

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SSTC was established in 2023 through a collaboration between CARE Tanzania and KAZI Yetu, with support from Bloomberg Philanthropies, to become Tanzania’s first smallholder farmer-owned specialty tea factory processing orthodox (whole-leaf) black, green and specialty teas on-site.

Representing tea farmers from Bumbuli District at the event, Ms Ester Elia said the establishment of the factory had transformed their savings groups by enabling them to engage directly in the agricultural value chain.

Under AMCOS, she said, farmers had engaged in tea cultivation and were now selling their produce at better prices because the factory is located close to the farms, helping to reduce post-harvest losses.

“My life has improved. I own a modern house and have been able to venture into other businesses,” she said.

The Sokoine University Graduate Entrepreneurs Cooperative (SUGECO) Director General, Revocatus Kimario, said strong farmer associations were crucial because they gave farmers a collective voice.

He said smallholder farmers were currently facing various challenges related to climate change and post-harvest losses, adding that when they were organised into strong associations and effectively engaged throughout the agricultural value chain, they could overcome many of the challenges facing their businesses.