Ugandan tea sees price surge at Mombasa auction amid calls for quality, innovation

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In a remarkable boost for Uganda's tea sector, 15 of 38 Ugandan tea brands achieved prices exceeding $1 per kilogram at Sale 35 of the Mombasa Tea Auction, signalling a robust recovery and renewed hope for farmers.

Just a year ago, Ugandan tea producers faced challenging times with an average price between $0.66 and $0.82 per kilogram, according to sector analysts. This price was far below the $1.20 per kilogram cost of production.

This week, however, there is a noticeable improvement, with the average price across brands climbing to $0.99 per kilogram, according to Tea Brokers East Africa Limited.

Leading the charge, Kabale tea fetched an impressive $1.41 per kilogram, followed closely by Kyamuhunga at $1.29 and Bwindi at $1.24, highlighting the growing global demand for Uganda's finest teas.

The need for quality

Farmers nationwide are emphasising the need for enhanced quality to secure better returns, viewing the auction results as a motivator to elevate production standards.

This comes alongside the government's long-awaited release of a fertiliser subsidy, as announced by the Uganda Tea Outgrowers Association (UTOA).

The subsidy, following years of lobbying, is already being applied by growers who anticipate significant improvements in tea quality and yields.

“Tea is a long-term venture,” said Wilson Mwesige, a dedicated tea farmer. “Any farmer planning to uproot it would be committing a crime.”

Mwesige's sentiment underscores the commitment required in the sector, where perseverance is key to reaping rewards. Echoing this resilience, Dick Dunstan Turinawe, another farmer, stressed personal responsibility in the value chain: “I choose to move on like a soldier, keeping hope alive and doing my best in the effort to raise tea quality at my level—the green leaf.”

Experts highlight technical practices as critical to boosting productivity. Rev. Baker Magaragariho Nyakaboko, a tea veteran with 28 years of experience, outlined key factors influencing yields: “The yield improves upon the increase of the plucking points and the canopy size.”

He explained that younger bushes, such as one-year-old plants post-pruning, require less fertiliser and yield less due to smaller size, while third-year fields with taller bushes and bigger canopies demand double the fertiliser to maximise potential.

Nyakaboko cautioned against pruning solely based on age, advising consideration of yield drops and bush height instead.

He noted regional differences, pointing out that Kyamuhunga's smaller bushes place it on a lower yield scale, whereas Buhweju's taller bushes could achieve higher yields with proper fertilisation.

Onesimus Matsiko, a tea sector expert and analyst, identified pruning and tipping as major weaknesses among smallholder farmers.

“Majority prune on the same height for several cycles, compromising capacity to generate healthy branches for good productivity,” Matsiko said.

He criticised the common practice of pruning too low to avoid early “kikakya” (overgrowth), which delays canopy closure and increases weeding costs while reducing output.

Drawing from his experience in Bushenyi and Buhweju, Matsiko observed that Buhweju fields were generally lower due to steep terrain, contrasting with taller bushes elsewhere.

Structural reforms needed

To address quality inconsistencies,  Fred Basiime advocated for structural reforms: “You need to create regional blocs, like in Tooro subregion, and put in place strong regulations for picking good tea.”

Fred, who recently spoke with a Nairobi tea broker, highlighted Uganda's challenges compared to its neighbours. “In Rwanda and Kenya, each sub-county has one tea factory, unlike here in Uganda, where competition for factory capacity leads to processors accepting poor quality,” he said.

This fragmentation, Basiime argued, tarnishes the sector's image and hinders farmers from delivering premium leaves.

As global markets shift away from traditional black tea toward specialty varieties like green, herbal, and organic teas, Ugandan stakeholders are urging adaptation to capture higher-value opportunities.

“There is a global demand shift,” said Kennedy Rwaboona, a seasoned tea farmer from Rukiga district. “We must innovate or be left behind.”

Rwaboona called for small-scale specialty processing units, innovative branding, and access to premium markets in Europe, Asia, and North America.

Supporting this view, Ashabahebwa emphasised the benefits of processing: “Processed teas fetch better prices. Kenya realised that. We must, too. Let's invest in value addition, not raw exports.”

Alex Amanya, a tea sector specialist at Solidaridad Uganda, provided insights on diversifying into orthodox and specialty teas.

Noting that Kenya's KTDA uses smaller machinery for such production, Amanya said: “For Ugandan people, anything that can give you between $3-5 is still okay than the 0.8 cents.”

He acknowledged the volatile market for orthodox tea but stressed the potential in cottage industries, where active marketing is essential.

“You need to keep marketing and telling your story,” Amanya advised, highlighting the need for teams handling manufacturing, logistics, and social media.

Citing pilot projects with overwhelming orders but insufficient machinery, he urged initial investments in a few factories to build local expertise: “With improved local knowledge on the business model, people will invest by themselves since it's low-cost. We need to utilise all angles and invest in machinery and capacity for the new alternatives.”