TBT & TSHTDA
ASSESSMENT OF FACTORS HINDERING REHABILITATION OF ABANDONED AND
POORLY MANAGED TEA FARMS IN LUSHOTO DISTRICT
CONDUCTED BY
T.C. NDUNGURU, F. KAVIA & H. SHEMZIGWA
SEPTEMBER, 2009
1.0 Introduction
Lushoto District is situated in the northern part of Tanga Region within 4 o 25’ – 4o 55’latitude
south of Equator and 30o 10’ – 38o 35’ Longitude east of Greenwich. The District has an area of
3,500 km2 and accounts for about 12.8% of Tanga Region. It borders with Korogwe District in
the south and Mkinga District further east, Same District of Kilimanjaro Region in the
northwest, and Republic of Kenya in the northeast. Almost 68% (240,000 ha.) of the district is
arable land suitable for agricultural production and the sector employs about 86.7% of the working
district population (Lushoto District Profile, Vol. IV; NBS 2004, p62). Tea is one of the cash crops of
economic importance in District grown by estates and smallholder farmers mainly in the high lands.
Tea Board of Tanzania (TBT) and Tanzania Smallholder Tea Development Agency (TSHTDA)
conducted an assessment to determine factors that hinder rehabilitation of poorly managed
and abandoned tea farms amongst tea smallholder farmers in Lushoto District. The assessment
was done following the continued tendency of famers to abandon the farms despite rigorous
campaigns being conducted by various Tea Stakeholders for rehabilitation
The first rehabilitation campaign of abandoned and poorly managed tea farms in Lushoto was
conducted between 30th October, 2008 and 5th November 2008. During the campaign it was
found that a total of 862 tea farms had been abandoned or were poorly managed. The District
Commissioner Hon. Sophia Mjema, directed the farm owners to rehabilitate the farms by
December 2008. The evaluation to determine response of this directive was conducted by TBT
and TSHTDA in January 2009. The evaluation result revealed that 543 (63%) of the abandoned
or poorly managed tea farms were rehabilitated. However, after this, the program of
rehabilitation slowed down leaving a good number of the tea farms either abandoned or poorly
managed. Astonishingly, even some of the recently rehabilitated farms have been abandoned.
This called for a critical examination of the factors that hinder rehabilitation of the tea farms in
the District, and making the whole issue unsustainable.
Picture 1: A tea farm which has recently been pruned and weeded
2.0 Problem statement
Rehabilitation campaigns of abandoned and poorly managed tea farms is faced with a number
of constraints, which call for immediate interventions
3.0 Objective of the assessment
 To identify strengths of tea cultivation by smallholder famers in Lushoto
 To identify weaknesses of tea cultivation in Lushoto which need to be addressed
 To identify opportunities which small holder farmers need to capitalize and get intended
benefit of tea cultivation
 To identify threats (constraints) which hinders rehabilitation of tea farms

To come out with a proposal on how to solve the identified challenges
4.0 Methodology
Focus Group Discussion (FDG) was held using Village Tea Committees (VTC) in 21 purposive selected tea
growing villages in the District. Selection of the villages was done in collaboration with Usambara Tea
Growing Association (UTEGA), Area Extension Manager of Tea Research Institute of Tanzania (TRIT) and
District Agricultural and Livestock Officer (DALDO). The investigation team was composed of staff from
TBT and TSHTDA. The Participatory Rural Approach (PRA) tools were used in prioritizing the constraints
outlined by VTCs. Twenty one VTCs were visited and interviewed on the factors affecting rehabilitation
of tea farms in their respective villages and preference on various crops. Then, Strengths, Weaknesses,
Opportunities and Threats (SWOT) analysis was done. The PRA tools used were; constraints pair wise
matrix ranking and cash crop matrix ranking..
5.0 Results and Discussion
5.1 SWOT Analysis
5.1.1 Identified Strengths of tea cultivation
5.1.1.1 A room for increased tea productivity
There is a room for increased tea productivity through farm consolidation and gap in-filling by the use of
improved planting materials produced by TSHTDA under Government input subsidies, District
Agricultural Development Program Support (DADPS) and TRIT, and by adhering to good agronomic
practices (GAP).
5.1.1.2 Presence of abandoned tea farms which can be rehabilitated
There are a number of tea farms which have been abandoned but they are potential for rehabilitation.
Upon rehabilitation of these farms, production and productivity of smallholder farmers in the District
will be improved.
Picture 2: An abandoned tea farm which has rendered the land idle and unproductive
5.1.2. Identified weaknesses of tea cultivation
5.1.2.1 Old age of some of the farm owners
Tea is a labour intensive crop requiring energetic manpower. Old people being less energetic
are not capable of undertaking the farm activities as per requirement. Worse still, the energetic
young men are more pre-occupied by quick income generating activities like cultivation of
horticultural crops and selling labour in tea estates and factories.
Picture 3: Abandoned tea farms whose owner is too old to attend
5.1.2.2 Lack of basic tea management skills
Lack of skills and knowledge among the smallholder farmers in good agricultural practices
(GAP) like proper weeding, infilling, fertilizer application and good plucking standards has
resulted to high death rates of tea bushes currently estimated at 40 - 60% vacancy (TRIT
annual Report 2008), poor bush establishment, low tea productivity, and ultimately uneconomical and frustrating tea business.
Picture 4: A weedy farm with poor bush establishment and conspicuous vacancies, intercropped with maize crop
5.1.3 Identified opportunities of tea cultivation
There are opportunities which farmers in Lushoto could utilize in order to make tea cultivation a
sustainable and profitable business.
5.1.3.1 Presence of high green leaf processing capacities
Lushoto District has two green leaf processing factories with a combined capacity of processing 4000
tons of made tea per annum. The factories are Mponde Tea Factory (processing capacity of 3000tons
per annum) and Herkulu factory (processing capacity of 1000tons per annum). Currently the district
produces hardly 2000 tons made tea per annum. Thus, small holder famers can increase green leaf
production in order to utilize fully the factories.
5.1.3.2 Government support in nursery establishment
Smallholders in Lushoto district could make use of the government Agricultural Subsidy Support
implemented by TSHTDA. They can also make use of DADPS and support from private institutions like
TRIT to establish tea nurseries intended to produce high yielding clonal materials. The clonal materials
are essential both for in-filling programs and planting in new areas as strategies of improving production
and productivity and hence increase household income.
Picture 5: Nursery group supported by TSHTDA in a group picture with the area extension officer (seated centre),
Mr. Shemzigwa
5.1.3.2 Favorable weather conditions for tea cultivation
Lushoto District generally has a bimodal pattern of rainfall, with short rains from October to December
and long rains from March to June. The short rains are less reliable than the long rains. The highlands get
an average of 800 – 2000mm rainfall per annum and the lowlands get about 500 – 800mm per year. The
district is also blessed with good soils and favorable temperatures, ideal for tea cultivation.
5.1.4 Identified threats (constraints) affecting rehabilitation
The VTC respondents mentioned the main threats (constraints) affecting rehabilitation of poorly
managed or abandoned tea farms as; Low price of green leaf as compared to production costs,
high costs of agricultural inputs (particularly fertilizers and herbicides), delayed payments of
green leaf, lack of labour for smallholder tea farmers, poor payment system, biased fertilizer
loan schemes, presence of high paying horticultural crops and lack of transparency regarding
the Mponde factory/UTEGA shares and dividend. Then, the pair wise matrix ranking was done
using the mentioned constraints to determine the total score and ranks of each constraint. The
result revealed that low price of green leaf ranked the highest followed by high cost of
agricultural inputs while lack of labor ranked the last in the analysis (Table 3).
Table 1: Rehabilitation constraints Pair Wise Matrix ranking
S/N
Constraints
Scoring
1 2 3 4
5
6
7
8
1
2
Presence
of
high
horticultural crops
Lack of labour
paying
3
Poor payment system
4
Low Price of green leaf
5
Delayed payments of green leaf
6
High costs of agricultural inputs
7
Biased fertilizer loan schemes,
8
Lack of transparency on shares
1
Total
Rank
1
4
1
6
1
8
4
3
3
4
5
6
7
8
0
5
4
3
6
6
8
2
4
4
4
4
4
8
1
6
5
8
2
4
6
6
7
2
7
2
4
4
3
5.1.4.1 Low price of green leaf
Low green leaf price ranks first in the pair wise Matrix Ranking (Table 3). Currently, the price of
green leaf stands at Tshs 130/= per kg. The VTC respondents were of the opinion that the price
does not meet the production costs of green leaf. Most of the respondents suggested a price
ranging from Tshs 200 to 300/= per kg of green leaf. However, due to lack of awareness, for
some few respondents, they suggested a price of green leaf to range from Tshs 500 to 1,000/=.
After discussion with the interviewing team on the market prices of made tea, they admitted that
their suggestions were just mere speculations.
The gross margin analysis (Table 2, appendix 1, 2 and 3), shows clearly that the break even
point (BEP) occurs when green leaf price per kg is Tshs 113.70/=, 156.80/= and 155.68/= for
the scenario one, scenario 2 and scenario 3 respectively. The margin is on the negative side
when fertilizer is not subsidized both at the price of Tshs 130 and 150/= per kg. For a farmer to
earn a monthly minimum wage of Tshs 72,800/= as per TPAWU agreement, has to be paid
Tshs 347.7/=, 388.6/= and 280.7/= for scenario 1, scenario 2 and scenario 3 respectively. This
implies that, farmers need to improve and increase productivity from 800 to 1,500 kg made tea
per ha per annum to maximize profit.
Table 2: Gross Margin Analysis
Price
(Tshs/kg g/leaf)
Scenario 1
(Gross profit margin or
loss /ha /month)
Scenario 2
(Gross profit margin or loss
/ha /month)
130
5,172
150
11,385
180
20,705
200
26,919
Break Even Point
113.36
2
156.80
155.68
Earning Minimum Wage as per TPAWU
347.70
72,804
388.60
280.70
NB:
Scenario 3
(Gross profit margin or loss /ha
/month)
-8,328
-2,115
7,205
13,419
-14,958
-3,308
14,167
25,817
-2
1
72,756
72,825
Scenario 1 - Subsidized fertilizer sold at Tshs 23,000/=/bag (productivity of 800kgMT/ha/annum)
Scenario 2 – Fertilizer sold at market price of Tshs 50,000/=/bag (productivity of 800kgMT/ha/annum)
Scenario 2 – Ideal farm management conditions (productivity of 1,500kgMT/ha/annum)
5.1.4.2 High costs of agricultural inputs
In the pair wise matrix ranking, high costs of agricultural inputs rank the second. Currently, one
bag of NPK 25:5:5 is sold at Tshs 50,000/=. As a result of high costs of agricultural inputs, most
of the small holder famers do not apply fertilizers in their tea farms. Consequently, tea plants in
many farms show nutrient deficiency symptoms like yellow coloration of leaves which depict the
deficiency of Nitrogen. Also, most of the farms are very weedy due poor weeding. None
application of fertilizers and poor weeding of the tea farms have resulted to low tea production
and productivity, and high death rates of tea plants.
Picture 6: Poorly managed tea farm with conspicuous N deficiency symptoms
5.1.4.3 Presence of competitive high paying horticultural crops
In the constraints pair wise matrix ranking (Table 3), cultivation of high paying alternative crops
especially horticultural crops ranked third. The VTC respondents acknowledged that the returns
obtained from cultivation of horticultural crops namely cabbages, onions, carrots, pepper and
cucumber is high than the returns obtained from tea. Its good soils, fertile soils and good
transport connections have given the District cooperative ecological and economic advantages
in the production of horticultural crops. In crop pair wise matrix ranking table (Table 4), cabbage
ranked first as the crop which generates more income as compared to other crops, while Tea
ranked forth. Thus, smallholder famers are more pre-occupied by the horticultural crops and
attend less to the tea farms.
Table 3: Cash Crop Pair Wise Matrix ranking
S/N
Cash crops
1
Tea
2
Cabbage
3
Pepper
4
Onion
5
Cucumber
6
Tomatoes
7
Irish potatoes
8
Carrots
Total
Rank
1
4
4
2
2
7
1
6
7
8
1
7
6
4
4
5
3
6
7
8
0
8
6
6
6
2
8
2
6
3
5
Scoring
1 2 3
4
5
6
7
8
2
1
4
1
6
1
2
2
2
2
4
3
4
Weather condition in Lushoto favors cultivation of these crops especially in the valley bottoms
as shown in the pictures below
Picture 8: Flourishing horticultural crops as captured in different valley bottoms in Lushoto district
5.1.4.4 Lack of transparency regarding the shares and dividend
Mponde Tea Factory is owned by Lushoto Tea company (50% shares) and Usambara Tea
Growers Association – UTEGA (50% shares). Famers who actually form UTEGA are not well
informed on the implication of shares they own through UTEGA. The key questions raised by
the respondents were that ‘’ if we own 50% shares, how much dividend is given to UTEGA
annually? What is the fate of the money?” This constraint also ranked third in the pair wise
matrix ranking.
5.1.4.5 Biased fertilizer loan schemes
Mponde tea estate in collaboration with UTEGA provides fertilizer loans at a subsidized price for
only two schemes. The schemes are Mponde and Balangai. The subsidized price for NPK
25:5:5 fertilizer stands at Tshs 23,000/= per bag, while the market price stands at around Tshs
50,000/=. Smallholder farmers from other schemes are not covered by the system although they
sell their green leaf to the same factory. This discourages farmers from the uncovered schemes.
5.1.4.6 Delayed payments of green leaf
Mponde Tea Estate has two green leaf payment systems based on the location of the
smallholder farmers. Tea small holder farmers from Bumbuli, Mazumbai and Nkuzu schemes
are paid twice per month. This is mainly due the fact that these schemes are located near
Herkulu estate which buys leaf from the same smallholder tea farmers and pay them twice per
month. On the other hand, smallholder farmers from Mponde and Balangai schemes are paid
once per month. The payment is effected towards the end of the month following the month by
which the green leaf was sold. Farmers from the two schemes were found to be frustrated and
discouraged by the system.
5.1.4.7 Lack of labour for smallholder tea farmers
This is mainly due to high plucking rate which attract labour to work in the estate farms.
Currently, the plucking rate at Herkulu estate stands at Tshs 60/= per kg of plucked leaf. The
high plucking rate offered has significant negative impacts to smallholder farmers; foremost, all
the potential labour force is motivated to work in estate farms. Small holder farms are not able to
pay that rate, hence, run short of labour force. Secondly, the rate attracts even small holder
farmers to work in the estates at the expense of abandoning their own farms. This is a serious
problem for Balangai scheme.
5.1.4.8 Poor payment system
The payment system of green leaf advances as follows; The Village Tea Committee treasurer
prepares the list of small holder farmers which details the amount of green leaf each farmer sold
for the month. The figure for the total amount of green leaf (in kgs) sold for the month is sent to
the factory. The factory reconciles the figure with daily delivery of the leaf in the month and upon
approval of the figure, the factory deducts the entire loan the village owes (e.g. fertilizer loan,
chemical etc) and the balance is deposited to the bank account of the particular village. Then,
the VTC is notified, which upon receipt of the information, prepares the payroll and announce
the pay day. The VTC then collects the money from the bank on the specified day for payment.
The system has the following constraints frustrating farmers. Firstly, the cost incurred by the
VTC for collecting money from bank is borne by the committee itself. Secondly, the payroll is
prepared by village treasurers who do not have the necessary skills and tools for the work.
Lastly, there is no auditing to check for correctness of the payment at the village level.
6.0 Recommendations and way forward
It is evident from the result of this study that tea is no longer given top priority as compared to
other cash crops in Lushoto District. Small holder farmers give more important to fast income
generating horticultural crops especially cabbage and tomatoes. They are also more preoccupied by horticultural crop cultivation and spend less time to tea crop as shown in the cash
crop pair wise matrix. Tea stake holders therefore, need to play their part to address major
challenges identified and reverse the situation. Based on the results obtained the following
recommendations are made;
6.1 To convene District Tea Stakeholder Meeting
Key District tea stakeholders particularly tea processors, farmers’ representatives (UTEGA) and
District Councils need to convene a meeting to address various challenges affecting tea industry
in the District. Tea Board of Tanzania, TSHTDA and TASTGA should be involved in the
meeting. The meeting should deliberate among other issues:-
 The green leaf price.
The current prices of Tshs 130/= per kg green does not pay back the production costs
and is far below the monthly wages as per TPWU agreement. There is a need to
consider increase the price to at least Tshs 180/= per kg of green leaf to enable
smallholder farmers meet production costs and remain with a balance for their house
hold use. The low economic return of their investments in tea is actually one of the
biggest factors frustrating them.
 Payment system
During the meeting, proper payment system should be designed and auditing system
established by which, the payroll should preferably be prepared by MTE in collaboration
with UTEGA, and after effecting payments at village level, the signature list should be
kept for auditing and further reference in case a need arises. The meeting should also
agree on the appropriate time to effect payment of green leaf.
 Subsidized agricultural inputs
The meeting should come up and agree on a work plan on the scope of subsidized
agricultural inputs particularly fertilizers to avoid complaints among farmers.
 Lack of transparency regarding the shares and dividend
The meeting should also discuss share ownership at length and key questions raised by
the respondents on the expenditure of dividends should be answered.
 District Strategic plan on increased tea productivity
The meeting should also come up with strategic plan mainly focusing on rehabilitation of
poorly managed and abandoned tea farms in the District. The plan should be owned
and implemented at district level so as to make the program sustainable.
6.2 Emphasis on in-filling programs
 TSHTDA which is currently doing its best in the production of improved planting
materials in the district should make sure that all the mature plants in the nurseries are
transplanted. More priority should be given to in-filling programs in order to increase
productivity per unit area. It is only through improvement of productivity of tea per area
which will offset the cost of production and increase profit margin to smallholder tea
famers.
 Upon rehabilitation of smallholder tea farms, TSHTDA may advise the government to
consider and provide fertilizer subsidies to smallholder farmers in addition to the
subsidies given for improved planting materials.
6.3 Emphasis on rehabilitation programs
 TBT needs to liaise with the District Councils on re-enforcing laws regarding
abandonment of tea farms. Stern measures need to be taken against farmers who have
abandoned their tea farms.
7.0 Conclusion
There is a great potential of rehabilitating abandoned and poorly managed tea farms in Lushoto
District. However, for the exercise to be successful, the major constraints namely; low price of
green leaf and high costs of agricultural inputs need to be addressed first. The rigorous efforts
so far taken by key stakeholders in addressing these challenges ought to be continued and
supported by all the stakeholders including farmers. Rehabilitation of small holder tea farms and
adherence to good tea crop management standards by smallholder farmers on one hand, and
paying competitive price of green leaf by tea processors on the other hand is the only way of
increasing tea production and productivity, and making tea crop at the top of the priority order
of importance in the district. With increased income, tea will consequently attract more farmers
to invest in it and rehabilitate the abandoned and poorly managed tea farms. “It can be done,
play your part”