Transcript Tanzania tea industry: current status and future prospects

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