Local Government Minister Raphael Magyezi has urged tea farmers across Uganda to refrain from uprooting their crops, despite the ongoing crisis in the tea industry.
Addressing farmers at the commissioning of a 499 KWP solar plant at the Igara Growers Tea Factory, Magyezi acknowledged the challenges facing the sector but reassured farmers that the government is working to stabilize the industry.
The Ugandan tea industry has been grappling with price fluctuations for green leaf and processed tea over the last three years.
As a result, several tea processing factories have closed, leaving farmers frustrated and, in some cases, prompting them to uproot their tea crops.
Magyezi assured farmers that the government is aware of the issues and is implementing measures to address them. These include subsidizing fertilizer costs and introducing a tea policy to regulate the industry.
"We cannot afford to neglect tea, which has contributed significantly to the country's economy and the livelihoods of our people," Magyezi said, urging farmers to remain patient. "Tea has been a key revenue generator for both the nation and individual households. It is disheartening to see farmers uprooting their crops."
Samuel Muhereza, Chairman of the Board of Directors at Igara Growers Tea Factory, echoed the minister’s concerns.
"Our shareholders are deeply unhappy. Many tea factories have shut down, and the government must step in to provide support," Muhereza said.
Buhweju District LCV Chairman, Atuhaire Deo, also urged farmers to remain hopeful, comparing the current tea crisis to past struggles in the coffee industry.
"We saw a similar situation with coffee, where farmers uprooted their plantations when prices dropped. Today, those who did are regretting it," Deo remarked.
The newly commissioned solar plant at Igara Growers Tea Factory, installed by Germany-based energy agency DENA, is expected to significantly reduce operating costs.
The factory has been spending over Ush 80 million on electricity monthly, but the solar installation is expected to cut those costs by 40%.
This reduction will allow the factory to redirect funds towards paying farmers for their green leaf, which had previously been delayed due to financial losses.
"With the savings from power expenses, we can now allocate more money to paying our farmers," said Robert Nayebare, Manager at Igara Growers Tea Factory.
The factory had been operating at a loss of USD 0.3 per kilo of processed tea, but with the recent improvements, it is poised to start making profits again.
Minister Magyezi advised the factory's Board of Directors to focus on improving quality and cutting costs. "Ensure you prioritize quality and make necessary cuts to your operational costs so that you can pay the farmers what they deserve," he added.
The timing of the solar plant’s installation coincides with a positive shift in the market, as the price of made tea has begun fetching over a dollar per kilo in auction markets, offering hope to both factory operators and farmers.