Challenges
The Tea Industry as globally, faces a major challenge, with Uganda in a most serious and precarious position. Critically – The Supply vs Demand balance is out of alignment. There is a surplus of Tea in the market.
The world market is currently unable to absorb any more tea resulting in strife as everyone is fighting for what little they can get from the market; therefore, it is driving down prices and standards.
The Tea Board of Kenya report is highlighting that Kenya Tea has faced a dramatic over production so far, this year clearly points to the longer-term problem we have ahead of us in Uganda. The Association has challenges afflicting the sector which include but are not limited to:
Low and inconsistent volumes of quality tea,
Limited availability and high costs of quality of agricultural inputs
Poor infrastructures which lead to poor post-harvest managementPricing challenges
Hight power tariffs
Non-tariff barriers
Harmonization of practices by individual members on both technical and human relations
Developing and improving small holder to utilize the available capacities
To make members feel a sense of belonging
Collecting Association funds/subscription on time
Improving the quality of service to members
Bringing on board all the tea stakeholders like, Women in Tea, nursery bed operators packers and blenders etc.
The Uganda tea sector is currently experiencing an unprecedented crisis, primarily due to the collapse of the international export market.
Lack of regulation and policy on the tea quality standards
Limited access to affordable finance (that matches the tea cycle)
The future
Despite the falling tea prices, Uganda Tea Association has a very bright future both on the local and international arena.
To continue lobbying for the reduction of power tariffs, removal of VAT of local tea sales, subsidy on fertilizers and agricultural inputs among other issues.
The Association should foster industrial peace through harmonizing terms and conditions of service.
Members should continue improving the image of the industry with various Government, Ministries and international organizations.
Develop a vibrant tea research institute to disseminate research materials to all its members.
UTA may need its own office building
Conclusion:
UTA is mainly a service organization (NGO). Serving and promoting the interest of members. It derives its existence, support and strength from members.
More proposals to improve and rebuild the structure of UTA as a service organization are always welcome at any time.