Teak: The jewel of Tanzania’s agricultural sector

TANZANIA: TEAK farming in Tanzania has emerged as a significant driver of foreign currency earnings, playing a crucial role in the country’s economy.

As one of the world’s leading producers of highquality teak wood, Tanzania leverages its rich natural resources to cater to a growing global demand.

This valuable commodity not only supports local livelihoods but also contributes substantially to the national economy through international trade.

By exploring the dynamics of the teak industry in Tanzania, we can better understand its impact on foreign currency earnings and its potential for future growth.

Tanzania’s economy is diverse and steadily growing, with agriculture playing a crucial role.

The country has experienced robust economic growth in recent years, driven by sectors such as services, manufacturing and mining, while aiming to diversify its economy to reduce reliance on agriculture.

The economy is classified as lower-middle-income, with a GDP that has been steadily increasing.

Key sectors contributing to GDP include services, industry and agriculture, while there has been significant investment in infrastructure, including roads, ports and energy projects, which supports economic growth and trade.

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Agriculture is the cornerstone of Tanzania’s economy, contributing around 25 per cent to the GDP and employing a large portion of the workforce.

It is critical for rural livelihoods and food security. Overall, while Tanzania’s economy is diversifying and growing, agriculture remains a central element, pivotal for employment and rural development.

“Teak wood is highly prized around the world for its durability, beauty and versatility. Its global demand is driven by several factors and uses,” says Suleiman Siyame, a small scale teak farmer in Kilombero district.

He says that teak wood is renowned for its natural oils and high silica content, which make it highly resistant to moisture, pests and decay, saying this makes it ideal for use in environments exposed to the elements, such as outdoor furniture and marine applications.

The rich, golden-brown colour and smooth grain of teak wood make it a popular choice for high-end furniture and interior design. Its appearance can improve with age, developing a desirable patina.

Siyame says teak farming in Tanzania represents a promising venture within the agricultural sector, offering numerous benefits and opportunities.

Tanzania Forestry Services manages 24 forest plantations for the supply of industrial raw materials for timber products.

These plantations supply an average of 1 million cubic meters of timber per year whereas the most planted species are pines (Pinus patula, P elliottii and P caribaea), cypress, eucalyptus and teak.

Here’s a comprehensive look at how teak farming is shaping up as a key player in Tanzania’s agricultural landscape: Economic Benefits Revenue Generation: Teak is a high-value hardwood known for its durability and resistance to pests, making it highly sought after in the global market.

This translates into significant revenue potential for farmers. Export Potential: Tanzania has favourable conditions for teak cultivation, positioning it well to tap into international markets.

The demand for teak in countries like India, China and the Middle East offers a lucrative export opportunity.

Tanzanian teak is primarily exported to several key international markets, including China, a major importer due to its high demand for timber in construction and furniture manufacturing.

It is also exported to India, which is known for its extensive use of teak in traditional woodworking and shipbuilding, India sources a significant amount of Tanzanian teak.

Local Tanzania teak also has a reliable market in the Middle East, where countries like the UAE and Saudi Arabia import teak for luxury furniture and interior design.

It is also exported to Europe in nations such as Germany, the Netherlands and the UK import teak for highquality furniture and flooring.

The United States imports import Tanzanian teak because there is a niche market for sustainably sourced teak, especially for outdoor furniture and decking.

“These markets are attracted to Tanzanian teak due to its durability, aesthetic appeal and sustainable harvesting practices,” says Elia Mndeme, the Resource Management Manager at Tanzania Forest Services Agency.

He says foreign earnings from teak exports in Tanzania are significant, as teak is a valuable hardwood known for its durability and resistance to weather, making it highly sought after in international markets.

Mr Mndeme says that Tanzania has substantial teak plantations, primarily established in the 20th century, which contribute to its export potential.

“The earnings from teak exports can vary based on factors such as global demand, pricing fluctuations and sustainable harvesting practices,” he says.

As international interest in sustainably sourced timber increases, Tanzania’s focus on responsible forestry management may enhance its export opportunities.

Additionally, trade agreements and market access can influence the volume and value of teak exports.

Mr Mndeme says that for the Financial Year 2023/2024, Tanzania exported teak worth 157, 900,000/- and a total of 21,345.231 cubic meters of standing trees were sold from both plantations, generating revenue of 13,426,176,180 from these auctions as of June 30th.

“Teak farming in Tanzania is increasingly recognised for its economic potential, offering sustainable timber production and contributing to local livelihoods,” concludes Mr Mndeme.

The country’s favourable climate and soil conditions support the growth of highquality teak, which can be harvested after about 20-30 years.

Moreover, responsible teak farming practices help in conserving biodiversity and promoting reforestation efforts.

As the global demand for teak rises, sustainable management becomes crucial for ensuring long-term benefits.