RSTGA
Rungwe Smallholders Tea Growers Association (RSTGA) was incorporated
in 1998 as a Non Governmental Organization (NGO). Its aim is to increase
the production yield of green leaf and the income of farmers. The RSTGA
counts up to 15.000 members, spread out over 108 villages. All members
are smallholders, each of them owning less than half a hectare of land.
Wakulima Tea Factory
In 2002 the RSTGA managed to buy 25 percent of the Wakulima Tea Factory
in Rungwe, making al 15.000 farmers shareholders. Being a shareholder,
RSTGA has been able to bargain for green leaf prices. This has led to
an increasing kilo price over the last years and encouraged the farmers
to produce more tea. Both factors have led to a huge increase of income
for the farmers. Next to their income, farmers now even get dividend on
their shares!
Fair trade
Since 2002 the RSTGA sells 10 percent of the output of the tea factory
to TeaDirect
a fair trade organization in the UK. This organization pays 40 sterling
cent per kilo on top of the market price, a so called 'fair trade premium'.
The premiums are being pumped straight into development projects. In this
way fair trade does not only benefit the farmers, but the entire community.
The last couple of years more than 100 schools and 21 water projects have
been built of the fair trade premium. Also an hiv/aids awareness program
and a Community Health Fund was set up.
  
History of smallholder tea growing
Tea was first planted in Tanzania in 1902, when German settlers introduced
the crop. After the second world war the British took over and increased
the tea production. Since the independence of Tanzania in 1961, the smallholders
play an important role in the agricultural sector. During the early eighties
they accounted for about a quarter of Tanzania's tea production. But in
these same years there were numerous signs of distress in the smallholder
sector. Contributing to the decline were low prices, late payments by
the Tea Authority and old and inefficient processing factories.
The consequences of the decline became visible in the nineties. Smallholders
share dropped below ten percent and by 1998 it fell to five percent. These
bad circumstances led to a growing dissatisfaction among the farmers.
The government decided to take measures against the malaise in the industry.
They encouraged the smallholders to form associations and a governmental
organisation was set up to help them do this.
Eleven smallholder tea growers associations were set up as a result.
The RSTGA is one of them. Together with big farmers and big tea estates,
the associations account for a tea production of 25.000 MT a year. Next
to Kenya, Uganda and Malawi this makes Tanzania one of the biggest tea
producers in Africa.
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