Dar es Salaam – Today marks a significant milestone for Tanzania's agricultural sector with the launch of its first tea auction, taking place at Millennium Towers. This historic event is anticipated to catalyze a major transformation within the nation's tea industry.
A total of 57 tonnes of tea will be put up for trade, signaling a promising boost to the utilization and functionality of the Dar es Salaam and Tanga ports. The auction promises to usher in a new level of transparency in tea trading practices.
Agriculture permanent secretary Gerald Mweli will be in attendance, offering reassurance to stakeholders regarding the equity of auctioning and pricing mechanisms.
The ripple effect of the auction is set to benefit the entire value chain, from tea growers to transporters, boosting interest in tea cultivation and improving both production and quality of the crop.
The use of Dar es Salaam and Tanga Ports for the transportation of auctioned tea is also expected to enhance government revenue and generate job opportunities.
TBT's commendation extends to President Samia Suluhu Hassan for her support in agricultural transformation, and Kipeja acknowledges the Ministry of Agriculture's role in the sector's prosperity.
Contracts between ten processors and brokers have been secured, with negotiations ongoing for seven more. Nine buyers are registered to participate, following successful mock auctions that involved key industry players.
In a recent budget presentation, Agriculture Minister Hussein Bashe disclosed the country's tea production and revenue figures, highlighting a strategic ten-year plan aimed at increasing both the quantity and quality of Tanzania's tea, as well as promoting research and development.
Tabling his docket’s 2023/24 budget in Dodoma, Agriculture Minister Hussein Bashe outlined the country’s tea production trend in recent years in tonnes and their respective years of harvest in brackets as; 23,187 tonnes (2019/20), 24,077 tonnes (2020/21), 23,202 tonnes (2021/22) and 7,875 tonnes (2022/23).
He respectively disclosed revenue collected and respective years in brackets as; 34.248 million USD (2019/20), 39.011 million USD (2020/21), 34.589 million USD (2021/22), and 12.24 million USD (2022/23).
“The strategy aims at increasing production from 33,000 tonnes of dry tea to 90,000 tonnes by 2029/30 through the use of modern technology in the whole production chain and strengthening the marketing system,” said Mr. Bashe when serving as Agriculture deputy minister before his elevation on January 8, 2022.
This strategy, which includes adopting modern technology and enhancing the marketing system, is expected to triple tea production by the end of the decade.
With tea already contributing an average of 60 million USD annually to the foreign exchange and creating 50,000 direct jobs each year, today's auction is set to chart a prosperous course for Tanzania's tea sector and its contribution to the economy.