Uganda is among the top twenty-two tea exporters in the world, with an export value of $35.5 million in 2022. The tea sector in the country includes both commercial plantations and smallholder producers. Its main destinations for exports are Pakistan, the Arab Emirates, Kenya, and China. During the year 2022, Pakistan remained the largest importer of Ugandan tea. The country’s market has a high demand for Ugandan tea, importing products worth $27.9 million.

Uganda’s tea industry is not without its challenges. These include: volatile market prices and the modern methods of farming. The country exports a large quantity, but there is potential to increase the exports. There is a chance of improving the quality of the products and the efficiency of production. There is a continuous attempt in research and development to come up with improved varieties of tea. Also improved tea farming practices with a view to improving the tea industry.

1. The challenge for Uganda’s tea industry is the global oversupply of tea. This has depressed prices and undercut profitability. This overproduction led to low prices for Ugandan tea in the international markets. This situation has left Farmers and producers in losses as they fail to meet the cost of production.
2. Another significant problem is global warming. The weather is changing, which in turn influences yields and quality. Climate changes are characterised by high temperatures and unpredictable rainfall. It has put pressure on the tea plants, leading to low, unpredictable production. These environmental changes need immediate action to ensure the industry is protected in the future.
3. Another biological risk factor is tea diseases. More specifically, fungal diseases such as Xylaria and Armillaria. The disease affects the roots and other parts of the plant, leading to root rot. Other effects that are not desirable in the tea industry. Hence, a need to carry out research in developing a variety of teas that are resistant to the disease.
4. Also, Uganda’s tea sector faces the challenges of poor infrastructure. This leads to poor farming practices and poor production standards. The absence of efficient processing plants and poor adoption of methods of production hinder the production of quality tea to compete in the international market.

The sector also has operational obstacles that raise operational costs. For example, transport by a poor road network. This may slow down the delivery of tea to the markets. As a result, it decreases the quality of tea before it gets to the auction market.

However, Uganda is now diversifying its production due to economic problems from the global oversupply of tea. Sustaining efforts include developing speciality teas that fetch higher prices. It also includes exploring new market opportunities in non-traditional regions. This strategy aims to reduce reliance on local markets and increase profit margins..

To tackle the impacts of climate change, the tea industry is practising climate-smart agriculture. Research through partnerships between research organisations and universities is in the areas of growing high drought-tolerant tea and improving water management. These efforts are very important for making the production steady. Also are crucial for stabilising production against unpredictable weather patterns.

For diseases such as Xylaria and Armillaria, a lot of effort has been put in. The country is conducting research to come up with disease-resistant tea variants. This approach not only protects the health of tea plants but also protects the quality of tea produced. So that Uganda keeps on competing with other tea-growing nations.

However, developing physical infrastructure and technology or skills in producing food are among the main concerns. Improvement in the quality of roads and upgrading of processing factories are anticipated to improve transport and handling. This guarantees that tea gets to the markets in the best condition, and for this, better prices will be fetched.

The implementation of strategies aimed at revitalising Uganda’s tea industry. These steps are laid out in several key actions. Each exemplified by recent initiatives and developments:

• Market Diversification:

Example: To the extent that Uganda has identified new markets for its teas. It has been to the Middle East, for instance. Some recent campaigns have featured promotions in Dubai, where Ugandan tea is seeking to break into new markets.

• Adoption of Climate-Smart Agriculture:

Example: Enhancement of climate-resilient tea varieties is one area that has benefited from partnerships with research institutions. These initiatives are crucial to address climate change and support the sustainable production of tea.

• Research and Development for Disease Resistance:

Example: Current research activities include the development of tea varieties. These are resistant to diseases such as Xylaria and Armillaria. This is important for the health and productivity of crops. At the moment, the effectiveness of the technology is being tested through field trials.

• Infrastructure and Technological Upgrades:

Example: There is capital investment in infrastructure as announced by the Uganda Tea Development Body. To put up new tea processing factories equipped with the best processing and packaging techniques. This will enhance the quality and thus the price of tea in the international market.

• Training and Capacity Building:

 Example: The government is in the process of drafting a national tea policy. That will also provide for training and better input to improve the smallholder farmers’ skills and tea production quality.

There are signs of improvement on the reform initiatives towards the tea industry in Uganda, backed by the right statistics. Newly introduced speciality teas and market penetration into regions such as the Middle East. This has enabled Uganda to increase the average export price per kilogram of tea. These new markets have diversified the consumers. Hence, the price stabilises at a higher level, which is good for farmers and their returns on capital.

Adoption of climate-smart agricultural practices, supported by collaboration between local research institutions and international partners. It has led to the development of drought-resistant tea varieties. This innovation has resulted in a notable increase in yield per hectare. Increasing both the sustainability and the global competitiveness of Ugandan tea​.

In addition, post-harvest processing facilities have enhanced the quality of tea produced for export, earning better prices on the global market. With these improved facilities has been possible to avoid a lot of post-harvest losses. Hence, a greater percentage of tea produced meets export requirements. The latest findings show a 15% decrease in losses. This proves the efficiency of those structural changes.

These results collectively mark a shift towards more growth and an economically viable tea industry in Uganda. This industry promises a sustainable future for its stakeholders.

The achievements achieved within the tea growing sector in Uganda indicate a positive trend. Shows sustainability and economic future in the sector. The strategic shifts towards market diversification, adoption of advanced agricultural technologies, and infrastructural growth have positioned the industry on a path of success. Such efforts are crucial not only in the process of stabilising the industry but also in the fight to maintain competitiveness in the global market.

Prospects for future development of the Ugandan tea industry will depend on sustaining the pace of innovation and market development. The industry has to remain relevant and competitive. This is a challenge in a constantly changing world. This means that research and development of new tea varieties that are climate-resilient and high-yielding will have to be a continuous process. As these initiatives evolve, the sector plays an increasingly important role in national economic development.