Tanzenia: Coffee factory mulls higher Green tea farmer prices

Factory mulls raising producer tea prices By Joas Kaijage.

Bukoba Kagera Tea Company (KTC) Ltd mulls raising producer prices for green tea in order to motivate farmers. The move comes amidst fears of slumped processing at the KTC factory.

With capacity for two million kilogrammes, the factory is projected to process about 890,000 kilogrammes only this year. According to KTC Executive Director Dr Peter Mgimba, the factory would not meet its target of at least processing one million kilogrammes this year because of low farmer morale.

Currently, the factory pays farmers Sh100 per kilogramme of green tea leaves without deducting transportation charges as in other regions but farmers are apparently still disenchanted. Dr Mgimba said training for farmers and higher producer price were in line with a number of other KTC interventions to boost production. Recently, KTC in collaboration with the Tanzania Small Hawkers Tea Development Association organised a course for tea extension officers and farmers at the UYOLE Agricultural Institute in Mbeya.

The chairperson of the Kagera Tea Farmers Association (KATEA) Mr James Rwegoshora said Kagera Region had only 178 hectares under tea cultivation after farmers abandoned about 100 hectares. Mr Rwegoshora said tea farms formerly covered 1225 hectares but most farms were abandoned after the factory was privatised in 2000. As a result Mr Rwegoshora said the farms have attracted both local and foreign investors under increasing attention also of local authorities that have started reallocating some of them.