Uganda exports more tea at auction
Workers harvest tea at a farm. Uganda has outshined other regional tea exporting countries when it posted 850,000 60 kilogramme bags in the March auction in Mombasa. FILE PHOTO
What you need to know:
One of Uganda’s traditional export commodities, tea, has had a boost in both production and export, posting 850,000 60 kilogramme bags in the March auction. This was 100,000 bags more than was sold around the same time the previous year, Dorothy Nakaweesi writes.
Uganda outshined other regional tea exporting countries when it posted better crop at the latest Mombasa auction.
Experts have attributed this performance to the recent rains in the country which has been distributed in all the major tea growing areas.
Auction results
According to the report from the East African Tea Export Auctions held March 11 to 13, a total of 6.2 million 60 kilogramme bags were auctioned.
Uganda sold 850,000 60 kilogramme bags up from 785,000 60 kilogramme bags offered around the same time the previous year.
“Uganda sold 7 per cent more tea compared to what it sold around the previous time last year,” the report said.
Factors
In an interview with Prosper Magazine about this performance, the executive secretary of Uganda Tea Association (UTA), Mr George William Ssekitooleko, said: “So long as the rains have no hailstorms, production will always increase and this is what we have witnessed.”
He said the country expects a good and improved production and this will certainly be translated into the exports.
“Our projection for this year is an extra 2 million 60 kilogramme bags from last year’s annual 60 million 60 kilogramme bags,” he said.
Tea is one of Uganda’s traditional export commodities supporting more than 62,000 people and more than 500,000 dependants. Annually, Uganda earns about $90 - 100 million (around Shs324b – Shs360b )in the export of tea. Over the years, tea production in Uganda has unsteadily increased.
Europe, Kenya, the Middle East, Russia, and America are the major export destinations for Uganda’s tea.
Kenya declines
Kenya the region’s market leader suffered a decline when it posted 4.8 million 60 kilogramme bags down from 6.7 million 60 kilogramme bags it exported around the same period the previous year. This indicated a 39 per cent decline.
According to the auction report, the dry spell is taking a toll on Kenya’s production and this has been translated into the exports.
Kenya, Uganda, Tanzania, Rwanda, Burundi, DR Congo and Mozambique participated in the auction. Again, just like in January and February Malawi and Madagascar did not offer product on the market. Only Mozambique joined the rest.
Development
Uganda is destined for a breakthrough into direct tea exports to Iran; a development experts say will brand the country.
According to information from Uganda Export Promotion Board, direct buyers of Ugandan tea have been identified from Iran and plans to make this happen are in advanced stages.
