TANZANIA TEA INDUSTRY CURRENT STATUS & FUTURE PROSPECTS Overview of Tea Industry in Tanzania • Planted area – 22,721.55ha – Estates Subsector - 11,272.10 ha – Smallholders subsector - 11,449.45 ha • Tea processing - 19 factories owned by large scale farmers - 4 factories jointly owned with S.H/farmers - Av. MT production 33,000 tons/annum • Tea Blending and packing - 9 factories owned by private companies - Av. Local sales 5,000 tons/annum Av. Foreign Exchange Earnings –over USD 50m annually ESTATES VS S/H. FARMERS MADE TEA PRODUCTION TREND 2007/8 – 2013/14 MADE TEA PRODUCTION (KGS) 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 ESTATES 22,518,009 22,443,091 23,080,394 21,347,655 19,836,062 22,725,627 22,933,216 S.H FARMERS 10,179,827 9,565,009 9,719,224 10,349,130 11,614,391 10,974,439 10,599,252 TOTAL 32,697,836 32,008,100 32,799,618 31,696,785 31,450,453 33,700,066 33,532,468 PROJECTIONS FOR MADE TEA PRODUCTION (TONS) 2014 - 2023 60,000 QUANTITIES (TONS) 50,000 40,000 30,000 20,000 10,000 - 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 ESTATES 23,000 25,000 26,000 26,500 27,500 28,000 28,500 29,000 29,500 S/H. FARMERS 12,000 13,000 14,000 16,000 16,500 17,000 17,500 19,000 19,500 TOTAL 35,000 38,000 40,000 42,500 44,000 45,000 46,000 48,000 49,000 MADE TEA EXPORT TREND 2007/08 - 2013/14 QUANTITIES OF MADE TEA EXPORTED (TONS) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Volume (tons) Earnings (USD) '000' Average Prices (US $/kg) 2007/2008 26,943 2008/2009 22,606 2009/2010 28,064 2010/2011 25,972 2011/2012 27,597 2012/2013 28,064 2013/2014 23,925 37,177 35,894 56,001 43,840 52,721 58,227 45,172 1.38 1.59 2.00 1.69 1.91 2.07 1.89 MADE TEA EXPORT & LOCAL SALES PROJECTION (TONS) 2014 - 2023 60,000 QUANTITIES (TONS) 50,000 40,000 30,000 20,000 10,000 - 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 EXPORT 28,000 28,500 30,000 32,000 33,000 34,000 34,000 34,500 35,000 LOCAL SALES 7,000 9,500 10,000 10,500 11,000 11,000 12,000 13,500 14,000 TOTAL 35,000 38,000 40,000 42,500 44,000 45,000 46,000 48,000 49,000 PRICES FOR DIRECT EXPORT, MOMBASA AUCTION & LOCAL SALES (USD/KG) 5.00 4.50 4.00 PRICES (USD/KG) 3.50 3.00 2.50 2.00 1.50 1.00 0.50 - 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 EXPORT 1.38 1.59 2.00 1.69 1.91 2.07 1.89 MOMBASA AUCT. 1.15 1.50 1.55 1.52 1.38 1.64 1.57 LOCAL SALES 4.32 3.60 3.92 3.34 3.73 4.29 4.30 INITIATIVES UNDERTAKEN • Launching of Tea industry strategy (2012/13-2022/23), envisage; Double tea productivity & Focus on quality • Government subsidies on improved clonal planting materials; TSHTDA- 45m & TRIT-70m • Partnership between private Estates & The Government of Tanzania; aims at; – Double tea production to some estates in Southern Highlands – Improve productivity for the participating smallholder in an area of 6,000ha • Introduction of Green Leaf Pricing Mechanism – Based on Cost sharing & final market price – Introduce first and Second payment system – Improve quality CONCLUSION • Planted area to increase to • • FUTURE PROSPECTS • • • 25,000ha by 2022/23 Made tea volume to increase to over 50,000 tons by 2022/23 Local sale volume to increase to over 20% by 2022/23 Export sales to constitute less than the current 85% Quality of tea to increase from “low to medium” to high Average Annual Income to increase to over USD 100m THANK YOU
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