Agri-Business
Tuesday, April 22, 2014
Rwanda in tea boon
KIGALI, Rwanda - Today Rwanda exports over 23,000 tons of made tea earning $66 million, with the leaf going to such countries as Pakistan, Egypt, Sudan, United Arab Emirates, Russia, and the United Kingdom among others.
The country has over 13 operational tea factories and hopes to construct five more by 2018, with the hope of earning $147million by 2018.
Of recent, the regional tea industry has been hit by lower prices due to higher supplies to the Mombasa auction. But, Rwanda’s tea is quickly gaining a niche market which has meant higher demand. The country is undergoing a tea boon which explains the optimism for posting such high future projections.
Jean Damascene Gasarabwe, the Head of Tea Division at National Agricultural Export Board (NAEB) told East African Business Week, “In 2004, government decided to privatize tea factories as one way of ensuring tea production increase and here the 11 tea factories which include Pfunda tea factory, Shagasha, Mulindi, Gisovu, Mata, Kitabi, Nshili- Kivu, Gisakura, Nyabihu, Rubaya, and Sorwathe tea factories were all privatized by 2012,” he said.
He said privatization helped in rehabilitating tea factories, processing capacity and Rwanda tea factories steadily gained international standard certificates.
He said infrastructure was also rehabilitated, and value addition to tea products done with the aid of technology transfer.
Due to these factors, since 1994, tea production has continued to achieve success and remains one of the biggest exports for Rwanda worldwide.
“Tea was introduced to Rwanda back in 1956 and by 1990 this crop was planted on over 12.000 hectares producing over 12.854 tons from the 11 factories the country had,” Gasarabwe said.
In 2000, tea production increased to 14,874 tons; 15,483 tons in 2003; 20,478 tons in 2007; 24,066 tons in 2011 and in 2012 the output reached 22,562.888 tons.
Gasarabwe said because of increased production and better quality, new markets were created and Rwanda was able to gain revenue of $65.7 million in 2003, up from the $22.6 million the country used to get before.
“Five other tea factories have been constructed since 2004 plus five more to be constructed by 2017 and this will further improve tea production,” he said.
By 2013, the national total area for tea planted was 23,000 hectares with hope from government to increase such land by 18,000 by the year 2017.
Rwanda tea has been recognized as one of the best in Africa and has quickly gained international notice.
Two tea factories, Gisovu and Katabi were awarded first and third prizes respectively in the First African Tea Convention held in Mombasa Kenya not long ago.
Three more factories (Kitabi, Gisovu and Karongi) won the Tea Cupping competition that took place in Kigali in 2013 and another one Sorwathe, came in as the winner for Green Tea.
Rwanda hopes to re-enforce operations and strategies which will be aimed at increasing productivity, quality and value addition.
“Firm Field Schools and contract farming between factory owners and tea cooperatives have been initiated, plus we want to improve on packaging and Rwanda tea branding hence target new markets,” Gasarabwe said.
This does not mean the Rwanda tea sector does not have problems.
The main one is the international price fluctuations. “Currently price for made tea dropped down and this has therefore affected negatively the Green Leaf price and therefore the price to pay tea farmers since the price of Green Leaf is based on the international market price of made tea,” Gasarabwe said.
He again said tea productivity is still low which affects the gross income of farmers plus the profitability of all the tea shareholders, plus climate changes which again affects productivity.
A tea farmer, Jean Damascene Uwimana, from Rulindo district said the agriculture ministry has continued to train them on tea production practices, together with giving them fertilizers.
By Agnes Bateta, Tuesday, April 22nd, 2014