Despite some Ugandan tea brands recording remarkable performance at the Mombasa Tea Auction, farmers are decrying the plunging prices of green leaf and rising production costs, threatening the sustainability of tea farming across the country.
According to the latest Tea Market Report by Tea Brokers East Africa Limited for Sale 15/25, only 20 out of the 39 companies that participated in the Mombasa auction achieved an average price above $1 (about sh3,650).
Uganda’s average price stood at $1.03 per kilogram. Notably, Kabale tea fetched $1.41, Kyamuhunga $1.29, and Bwindi $1.25 per kilogram-figures that placed them among the top-performing brands in the region.
Rising costs vs falling prices
Tea growers are grappling with production costs ranging between $1.10 and $1.20 per kilogram-figures that far exceed the current green leaf price, which has fallen sharply from sh600 to just sh300.
Victoria Ashabahebwa, the chairperson of the Board of Uganda Tea Association (UTA), said the tea industry in Uganda is poised for significant transformation.
However, she said the government should finance tea factories to replace aged machinery and upgrade technologies.
“This would encourage small-scale cottage tea processing units that would also provide alternative sales channels for farmers and generate more income for them,” Ashabahebwa said.
The mood among farmers is far from celebratory. One farmer in western Uganda remarked. “You will one day return to the soil, and that’s when you’ll understand the pain we endure.”
“Firewood alone costs sh50,000 per cubic meter,” said a factory operator. “How can we sustain operations when our revenue is slashed by half? It’s simply not viable.”
Tea hammer prices for sale 13/2025 averaged at $1.02. Farmers said the improvement is insignificant and noted it’s not time to celebrate yet.
The price dropped for the factories who are usually at the top of the hammer list, while some did not sell tea, and a few maintained their previous price.
The highest price for hammer sale 13/2025 was 1.36 (for Kisoro brand) with lowest at $0.75 (for Rusekere brand).
