Govt plans tea sector overhaul ‘quality-first’ model

DODOMA: THE government is prepar- ing to implement significant reforms in Tanzania’s tea industry, shifting focus towards a “quality-first” strategy that prioritises high-grade production over bulk output.

This initiative will be an- chored on the NO-SC mod- el—No Objection, Standard Compliance—to ensure that only teas meeting strict global standards are allowed to reach the market.

Minister for Agriculture, Mr Hussein Bashe announced the reform plans yesterday in Dodoma, stating that the move is aimed at repositioning Tanzanian tea in the global value chain after years of stagnation marked by low export earnings, poor quality control and outdated processing infra- structure.

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“This is a turning point,” Mr Bashe said during the opening of the Tea Board of Tanzania (TBT) Annual General Meeting, which also welcomed the new board led by Mr Abdulmajid Nsekela, a seasoned banker and Managing Di- rector of CRDB Bank.

“We are no longer chasing volume for its own sake. Our mission now is to build a premium brand for Tanza- nian tea that attracts better prices and secures the trust of international buyers.”

Under the NO-SC model, tea producers and processors will undergo rigorous quality checks before receiving market clearance.

The government will also begin certifying farmers to ensure standard compliance and help reduce costs they currently bear.

Mr Bashe said that Tanzania plans to adopt aspects of Kenya’s model, where smallholder farmers co-own processing factories, enabling them to add value and directly sell black tea.

“Farmers can employ skilled personnel to manage their factories, and we’re ready to assist,” he said. “Currently, the main market for smallholders is estate owners. If the estate fails, so do the farmers. We must break away from this outdated system.”

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The reforms come amid growing calls from stakeholders to modernise the sector and ensure smallholder farmers benefit more from their produce, ultimately boosting both quality and output.

The minister also tasked the new board to review the tea sector’s structure and offer recommendations for a complete turnaround.

“The main challenge is the structure and lack of transparency. Everyone seems to operate in isolation,” he noted.

“We have no data showing which inputs were used to arrive at the current price of 360/- per kilo, whether from farmers or factories.”

Mr Bashe urged stakeholders to partner with the government and TBT to advance the reform agenda, stressing that regulators must now act as sector facilitators rather than enforcers.

The minister also called on Mohamed Enterprises Tanzania Limited (METL) to engage with the board to resolve issues surrounding the closure of its factory and tea estate in Rungwe.

He was also firm with companies that owe farmers payments for green leaf deliveries exceeding three months.

“Either you pay them, or exit the sector,” he said, pointing directly at DL Group. To support irrigation efforts, the government is ready to assist firms or cooperatives planning viable irrigation schemes.

The government is prepared to subsidise fertiliser costs by up to 50 per cent below the factory price

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