(MALAWI VOICE) Angry Thyolo Farmers Want Whites Off The Estates…March To Police
Written By: Malawi Voice on January 15, 2014.
Hundred of farmers from Thyolo district today marched to the police station where they presented a petition which demanded that all the white estate owners should hand over the land to black Malawians.
Before presenting the petition to Thyolo police, the angry farmers marched on white-owned farmlands, initially with pangas and bulks of trees.
tea“We demand that these white estate owners should off our land or the president should intervene by equitably distribute these lands, so that we should also benefit,” said the leader of the group Joseph Mwitere, calling themselves Peoples’ Land Organisation, adding “We will take law into our hands, if government fails to act within two weeks.”
Officer-Incharge for Thyolo Police a Mr. Chalera confirmed of the development saying the farmers presented the petition after misunderstanding arose with the estate owners.
“What happened was that, these farmers encroached some tea-estates, so when the estate owners hit back, they became angry hence coming here.”
Labels: LAND REFORM, MALAWI, TEA
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(NYASATIMES) Malawi Nyasa Times – Malawi breaking news in Malawi
January 15, 2014
Maurice Nkawihe, Nyasa Times National
Police in Thyolo have arrested 11 people who led a demonstration some irate villagers staged on Wednesday afternoon in a quest to repossess 250, 000 hectares of land from various tea estates in the district.
The demonstration, sprouted from Chibwana village, was organised by a Thyolo-based Peoples Land Organisation (PLO), which is leading calls to repossess idle land from tea estates to be distributed to some of subsistence farmers that have little or no land to cultivate.
Thyolo Police Public Relations Officer, Edith Kachotsa told Nyasa Times in an interview that the villagers did not seek permission to stage the demonstration.
According to Kachotsa, the villagers led by PLO staged another unlawful demonstration on Monday but they were forced to call it off after being advised by the police to seek permission before taking their grievances to streets.
However, on Wednesday the irate villagers decided to bypass the law once more and started protesting; chanting songs threatening authorities of civil unrest if not permitted to take over 25,000 hectares of land in some of the tea estates that has been idle for about 50 years.
“We have since charged those arrested with unlawful assembly and will be in court soon. They (eleven) are the ones who led today’s protest. They were advised to call it off but they ignored the advice, and they even threatened to set tea fields on fire if we don’t allow them to proceed; but we successfully defused the protest without any problem,” Kachotsa said.
She added: “This is a long standing issue; they (PLO) have been at District Commissioner’s (DC) office several times, but it seems they are failing to reach compromise as the villagers are not relenting on their mission to repossesses the said land, which they claim has never been cultivated for over 50 years”.
Kachotsa disclosed there were no riots or looting during today’s demonstration, which started at around 1pm and was stopped at around 4pm.
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13 thoughts on “Thyolo residents demand land redistribution: Police arrest 11 over demo”
1.
Chief Goneka January 16, 2014 at 8:14 am - Reply
Vuto la kuberekana ngati mbira ndi limenelo,malo onse mwatha kugawana tsopano mukufuna kulanda malo a estate.Mu solver kumeneko.
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2.
omngoni January 16, 2014 at 7:21 am - Reply
I feel sorry for people from Thyolo they are refugees in their own country. I doubt if Peter will do anything on this. He failed to contain the University saga when he was minister of education. Anthu a ku Thyolo onvetsa chisoni alibe polima alibe pokhala.
Labels: LAND REFORM, MALAWI, TEA
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(STICKY) (NYASATIMES) Thyolo Residents Demand Land Redistribution - Police Arrest 11 Over Demo
January 15, 2014
Maurice Nkawihe, Nyasa Times National
COMMENT - This is becoming an issue all over Africa, especially after the IMF/World Bank have given the green light to handing over millions of hectares to 'foreign investors'. The people want and need their land and mines back, they don't need 'donor aid' or charitable giving. This also shows that land reform is not 'Mugabe's land reform', it is something people have been fighting for over a century. Also read: (MALAWI VOICE) Angry Thyolo Farmers Want Whites Off The Estates…March To Police
Written By: Malawi Voice on January 15, 2014.
Police in Thyolo have arrested 11 people who led a demonstration some irate villagers staged on Wednesday afternoon in a quest to repossess 250, 000 hectares of land from various tea estates in the district.
The demonstration, sprouted from Chibwana village, was organised by a Thyolo-based Peoples Land Organisation (PLO), which is leading calls to repossess idle land from tea estates to be distributed to some of subsistence farmers that have little or no land to cultivate.
Thyolo Police Public Relations Officer, Edith Kachotsa told Nyasa Times in an interview that the villagers did not seek permission to stage the demonstration.
According to Kachotsa, the villagers led by PLO staged another unlawful demonstration on Monday but they were forced to call it off after being advised by the police to seek permission before taking their grievances to streets.
However, on Wednesday the irate villagers decided to bypass the law once more and started protesting; chanting songs threatening authorities of civil unrest if not permitted to take over 25,000 hectares of land in some of the tea estates that has been idle for about 50 years.
“We have since charged those arrested with unlawful assembly and will be in court soon. They (eleven) are the ones who led today’s protest. They were advised to call it off but they ignored the advice, and they even threatened to set tea fields on fire if we don’t allow them to proceed; but we successfully defused the protest without any problem,” Kachotsa said.
She added: “This is a long standing issue; they (PLO) have been at District Commissioner’s (DC) office several times, but it seems they are failing to reach compromise as the villagers are not relenting on their mission to repossesses the said land, which they claim has never been cultivated for over 50 years”.
Kachotsa disclosed there were no riots or looting during today’s demonstration, which started at around 1pm and was stopped at around 4pm.
Labels: 2009 BUDGET, LAND REFORM, MALAWI, TEA
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Chilangwa orders workers to secure Kawambwa Tea fields
By Godfrey Chikumbi in Kawambwa
Mon 05 Aug. 2013, 14:01 CAT
KAWAMBWA Central PF member of parliament Nickson Chilangwa has instructed workers at the abandoned Kawambwa Tea Company to commence the formation of firebreaks around the tea fields to secure them from bush fires.
Chilangwa's instruction follows the destruction of over 170 hectares of eucalyptus tree plantation by bush fires at the company last week because of lack of fireguards.
Over 3,000 cubic metres of cut timber intended for tea curing were burnt in the inferno.
The tea fields have been overgrown by grass because no weeding has taken place since 2011 when workers went on strike demanding to be paid salaries by Gombe Holdings, a company whose owner from Zimbabwe later ababdoned the plant.
But Chilangwa, who could not disclose where the money to pay the workers who would put up firebreaks would come from, said the government was displeased to learn that the tree plantation had been gutted by bush fires.
He said although the company was in private hands, the government would not watch the fields being destroyed by bush fires because the tea company belonged to the Zambian people.
He said the workers would create fire guards around the over 450 hectares of tea fields and were expected to complete the works within this month.
"We don't need to wait for the investor who is in Zimbabwe to come and put the fire guards when bush fires have already started destroying plantations. I will not tell you where we shall get the money to pay the workers from but we have agreed and the work will be done. These tea fields belong to Zambia and when they are destroyed, it is Zambia that will lose," said Chilangwa.
Labels: KAWAMBWA TEA COMPANY, NICKSON CHILANGA, TEA
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COMMENT - What does 'the highest paid in the tea industry' mean, exactly? The writer clearly sides with management. Also, the issue of raising the tea picking 'quota' ("the imposition of a 253kg a day tea plucking quota, up from between 180kg and 200kg.") isn't gone into. Also the writer states a lot of opinion as fact. For more indepth information on Magwa Tea, check out the article
"Transformations And Tensions In A Tea Enterprise: Transkei, South Africa", from 1996.
Tea plantation faces collapse after worker rampage
STUART GRAHAM
LUSIKISIKI, EASTERN CAPE, SOUTH AFRICA
May 30 2011 12:20
The largest tea estate in the southern hemisphere, Magwa Tea outside Lusikisiki in the Eastern Cape, faces ruin after being looted and abandoned by its workers earlier this year. The 1 803 hectare farm had a turnover of R65-million a season and provided jobs and career training for 1 200 permanent and 2 300 seasonal workers.
In February, the farm was shut down when workers, the highest paid in the tea industry, went on the rampage after management refused their demand for a 104% increase. By May, tea plants usually kept pruned to waist height, for ease of picking were shoulder high and useless.
The plants stretch as far as the eye can see on both sides of the dirt road that winds across the hills from Lusikisiki to Mbotjie on the Wild Coast, in Transkei.
"The crop for the year has been lost," says Pierre Leppan, a director at the Eastern Cape Development Corporation (ECDC) which has managed the farm for the past seven years.
"The names of six managers are on a hitlist and the ECDC is unable to guarantee their safety. They are having to run the farm on their cellphones."
The farm had started thriving in recent years, after decades of plundering, corruption and mismanagement.
A Magwa manager, who declined to be named for fear of his job and his safety, says the trouble started last year, soon after a Farm Workers' Union (Fawu) official was redeployed to Cape Town and replaced by two others.
Harmonious relationship
The original union official had understood Magwa, its history, and what was and was not viable, but his successors had not.
"The workers and the management had a harmonious relationship until then," the manager says.
"The two new officials were confrontational from the start. They misunderstood how Magwa worked. They thought, for example, that the management were the owners of the farm."
The manager said the officials postponed a Magwa workers' council election to allow seasonal workers to "boot out" most of the permanent workers.
Last year, the new council demanded a 104% wage increase, even though Fawu had negotiated a 7% nationwide increase for agricultural workers.
Magwa management told the council it was not authorised to approve the increase, but that the decision was up to the ECDC board and the department of agriculture.
Incensed, the workers cornered managers in their office and assaulted them. A violent strike, which was later declared illegal, went on for three months.
"Throughout the strike, the managers had shots fired at them," the manager says.
"Vehicles were stolen and vandalised. Houses were looted and burned."
The strike ended when the department of agriculture offered the Magwa employees a financial package to return to work.
Production was soon back on line, but the mood at Magwa remained tense.
"Workers were not following management's instructions, which led to the suspension of programmes around the farm," says the manager.
Tension running high
Magwa security manager Daan Schoeman recalls the tension when he returned to work in July.
"When I went back in July, I could feel that something wasn't lekker [right]," he says.
In March, workers went on the rampage again. "They destroyed everything in sight. They stole what they could. Fridges, freezers, ovens and vehicles -- everything," says Schoeman.
The police were called and rubber bullets and tear-gas were fired.
He received a desperate call for help from a manager.
"He said 'Help Daan, they're killing me', but I couldn't do anything. It was impossible to get in. They chopped him up with pangas, but he made it out [alive]. One of the security guards, though, was shot dead.
"It was terrible; that day, I started becoming an old man," he says.
Permanent workers, who lived in houses on the 13 settlements on the farm and refused to take part in the strike, were chased off their properties.
Police spokesperson Captain Mduduzi Godlwana confirmed that one person was arrested for murdering the security guard and another 48 for public violence. They are to appear in court soon, he says.
Fawu official Tonga Mbaliese blames the management for the strike.
He says the initial dispute was about the imposition of a 253kg a day tea plucking quota, up from between 180kg and 200kg.
"The target was set unilaterally without employees agreeing with it.
"The workers are not the cause of the problems on Magwa. The problems are caused by the style of management," Mbaliese says.
"There is no transparency at Magwa. Management can't cry foul and blame everyone when they are the ones who are not working."
Surrounding communities, politicians and tribal leaders have all laid claim to the land in past decades.
The plantation is in the Pondoland magisterial district of Lusikisiki, which falls under the Qawukeni Tribal Authority.
In the 19th century, the land was used to graze cattle, according to University of the Western Cape land and agrarian studies programme lecturer Thembela Kepe.
In a study titled Magwa Tea Venture in South Africa: Politics, Land and Economics, he writes that cattle was herded to the coastal grasslands during the winter months, when upland grazing was limited.
In the 1960s, Johan Mills, the then secretary to the Chief Minister of Transkei, suggested to Paramount Chief Botha Sigcawu that Pondoland needed a commercial venture to provide a local alternative to migrant labour to the sugar cane fields of Natal.
"When people rejected the notion of tea being good for the Mpondos, Sigcawu is said to have intimidated the residents, claiming that the land belonged to his father anyway and implying he could force them to move," Kepe writes.
The residents retaliated by burning down Sigcawu's supporters' houses. Several deaths were reported, including that of Sigcawu's brother, Chief Vukuyibambe Sigcawu.
Even after the plantation was established, it was beset by problems. Its assets were regularly plundered through corruption that continued into the 1990s.
Another problem was a demand by Fawu that workers receive higher wages at agricultural schemes.
It was thought that state-run enterprises should set a good example in labour practices. As a result, Magwa workers became some of the highest paid tea estate workers in southern Africa.
The high wages and poor profitability plunged the farm into financial trouble. A plan to lay off workers sparked violence in mid-2003 when 15 offices and a boardroom were burnt down.
In 2004, the ECDC, which was brought in as a custodian of the land, appointed a team of specialist tea farm managers to make the farm viable.
Exports at a minimum
It seemed an impossible task.
Magwa was producing just 1.2-million kg of "made" tea a season. Exports were at a minimum and the cost of production was "extremely high" at R25 a kilogramme.
However, by 2007, Magwa was achieving its highest-ever production figures, with 2.7-million tonnes of "made" tea a season.
"The department of agriculture would give us R15-million a year, and we were giving them R65-million back," says the senior employee.
"The tea was sold in advance on contract, making in roads into huge markets such as China, Pakistan and the [United Kingdom]."
This success was despite the infrequent and late arrival of government funds and a monthly wage bill of R3.5-million.
Before operations at Magwa shut down, workers were earning five times more than those in Malawi, the farm's general manager says.
They were also earning bonuses and being taken out of the fields and mentored.
"We were taking from the bottom and building up skills so that they could take over the running of the farm one day," says the manager.
"Tea industry skills are in enormous demand around the world, so many of the Magwa workers were poached, but this was fine. We would train more. We became something of a university for the tea industry."
Now Magwa's future remains uncertain.
Eastern Cape Rural Development spokesperson Ayabulela Ngoqo says a new Magwa board will be appointed on June 30, and will be tasked with finding a solution to the problems.
"The board will be given the prerogative to deal with all administrative matters affecting operations," he says.
"We won't have a harvest this year, but our main aim is to get it up and running again." -- Sapa
Labels: APARTHEID, LABOUR, PARASTATALS, TEA
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Smallholder tea, coffee farmers see red
Friday, 06 May 2011 09:17
By Obert Chifamba recently in CHIPINGE
THE cool climate and the undulating plains of Manicaland have seen generations of people coming and going. For years they have nurtured thick bushes of lush green tea and coffee and have acted as the watershed of economic development and empowerment for many people.
Today, places like Honde Valley, Katiyo, Tanganda, Cashel Valley and Chipinge, traditional heavyweights in tea and coffee production, have experienced waning fortunes owing to a plethora of challenges.
The woes of the tea industry mirror the broad challenges afflicting the Zimbabwean economy at the moment and chief among them liquidity constraints, limited lines of credit and a capacity utilisation of around 60 percent.
This is not so because of lack of markets but lack of vibrant crop yields due to erratic rainfall patterns and the liquidity constraints on the back of the global economic recession.
Tea prices are beginning to firm internationally but this is only felt by large-scale producers like estates, which leaves the new farmers most of whom are in outgrower schemes still waiting on the fringes to get a bite of the cherry.
The price of tea is currently swinging between US$1,80 and US$2 for a kilogramme locally while the international markets are offering US$3 per kilogramme.
On the other hand, coffee prices are ranging from US$3,50 to US$4 on the local and international markets respectively.
Producers however feel the prices fall short of upsetting the high costs of production, which leave them unable to sustain their operations without seeking financial aid from other sources. They also find it difficult to penetrate the lucrative international markets.
"Our biggest undoing at the moment is the slow cash inflows that have left us unable to manage the leaf properly after harvesting and as a result the quality has not been good. This has also translated into very low prices," a farmer contracted to Tanganda's outgrower scheme Lloyd Nemadire said.
He added that it would only be fair if the farmers were able to sell their produce direct to the international markets and not go through middle buyers, which would mean less profit accruing to them.
Another farmer who requested anonymity said the fact that they did not have the resources to diversify into other activities made their situation more precarious as they did not have a fallback position in times of hardship.
Big players like Tanganda, have diversified into the agro and beverages business and have even received a PTA Bank certificate of effectiveness, which enables them to commence drawdown on their facility.
This is actually the second after the first disbursement of US$1,7 million two years ago that was directed to the agricultural division while the latest allocation is meant for tea processing, tractor purchase, factory equipment, beverages division and mechanical tea harvesters.
Tanganda has also ventured into producing macadamia avocado and vegetables to raise income streams that complement the tea cycle.
"We have engaged the University of Zimbabwe Department of Statistics to conduct research into the woe area of efficiencies, which though not complete, has shown that cost containment must be accompanied by other proactive measures to improve competitiveness.
"In addition, a Sri Lankan consultant was able to assist the team to ‘relearn' what the local team already knows, but which knowhow had receded owing to pressures on Zimbabwe's economy," explained Tanganda chief executive Andy Mills.
Places like Chipinge have unique weather patterns lending them to tea and coffee production as well as avocado and macadamia. Ultimately Chipinge is able to retain and employ indigenous people and even attract skills from neighbouring Mozambique.
The Herald recently established that it takes a year or so to establish a coffee or tea nursery, followed by land preparation, then planting after which the farmer starts reaping profits only in the fifth year. This is generally a period of heavy financial and input investment into the crop yet dry in terms of income for the farmer.
"Many farmers involved in outgrower schemes find it difficult to pull through this stage as there will be no income to support their families yet they will be investing a lot of time and human resources into the project. Some have even opted out of the schemes," a manager at Clear Water Tea Estates commented.
He added that most of the small-scale farmers did not have electricity and found it difficult to cure their tea and get good quality and competitive prices in the end.
"Even the big guys are suffering from power cuts at the moment. Tea should be plucked at three leaves and a bud after every 14 days and if it goes beyond this, the quality is grossly compromised.
"Our business is ruined if there is no power. From the field the leaves are withered, crushed, fermented and then dried using electricity so if supplies are erratic as has been the case recently, then we suffer heavy quality losses," he further explained.
Similarly, a manager at Chipinge Holdings Company where they grow coffee, macadamia and avocado pears said coffee production was capital intensive.
"The crop is highly susceptible to fusarium wilt, which if not controlled can cause severe damage and losses. It requires a lot of spraying and is labour intensive right from the nursery, planting, weeding, irrigation, fertilization and harvesting.
"Coffee prices have been very low in recent years. They are only beginning to firm but that is countered by high fertilizer costs. Compound J that is needed for the crop is locally very expensive with the price ranging between US$34 and US$36 per bag," he said.
Many players in the tea and coffee industry have since broadened their scope to accommodate alternative crops to raise their revenue levels.
Tanganda is replacing tea with macadamia and introducing avocado in areas where tea yields are falling below minimum thresholds.
There are already 120 000 hectares under macadamia, a hectarage that will be increased to 150 000ha by year-end while another 120 000ha will be put under avocado.
At the moment macadamia and avocados are making their debut on the markets but are not bringing much as they are being sold locally and unprocessed.
Macadamia nuts can be processed into soap, body lotions and cosmetics while the crushed nut can also be put on cakes.
Zimbabwe has just started exporting the product to South Africa, which in turn exports to Europe and England.
Locally, Chinese business people are buying the crop and sending to China but in both situations the producer is getting the least profits.
Avocados are also sold to markets in Bulawayo while Lever Brothers also absorbs part of the produce.
Producers would be comfortable selling a processed product that fetches a better price.
Tanganda has an outgrower scheme of approximately 1000 farmers.
These farmers benefit from a ready market for their product, and get quick payment for their commodity. The two parties have cultivated a win-win partnership.
obert.chifamba@zimpapers.co.zw
Labels: COFFEE, TEA
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Mulli ‘delighted’ with Kosovo interest for Malawi tea
By Nyasa Times
Published: June 22, 2010
Smallholder Tea Company (Steco) boss, Leston Mulli has said his company is delighted with the interest by Kosovo’s president, Fatmir Sejdiu to buy the Malawi leaf. Kosovo President and Malawi President Bingu wa Mutharika visited Steco and Chitakale Tea Estates under the imposing Mulanje Mountain last week. Sejdiu expressed interest that his country would import the Malawian leaf.
“It is good news for Malawi to found new buyers for the tea,” said Mulli whose company also exports the leaf to Dubai and is sold at Mombasa auction floors.
“Kosovo President Sejdiu assured us during our discussions that he will send a business delegation. We will be selling tea to Kosovo,” he said.
“Tea export can help boost the country’s economy,” said Mulli whose Steco produces 60,000 kg of tea at peak season and between 25,000 and 30,000 kg off season per day.
The Government of Malawi through the Privatization Commission put Chitakale and Steco on sale years back and Mulli Brothers Group of Companies own the two estates after a successful bid.
The Privatization Commission of Malawi is mandated to help facilitate measures and policies aimed to strengthen the role of the private sector in the economy.
Mulli Brothers Group of Companies has grown to diversify its services, products and operations.
The mission of this indigenous progressive company is to enhance the profitability and competitiveness of manufacturing companies by assisting the country in its socio-economic development initiatives.
Eunice Kazembe, Minister for Industry and Trade expressed Steco’s uniqueness and the need for Malawians to take business risks.
“Steco is different. Its shareholding is all local Malawian. As a country, this shows we have viable tea business and as Malawians we can take risks. The next stage in the Kosovo deal with Malawi is to enter some contractual agreements,” she is quoted by Africa News
Malawi is regarded as pioneer of tea-growing in Africa after it started commercial production in the 1880s during the British colonial era.
Labels: CHITAKALE AND SMALLHOLDER TEA COMPANY (MALAWI), TEA
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Zambian minister ‘impressed’ with Chitakale, Steco estates
By Nyasa Times
Published: March 25, 2010
Zambian Foreign Affairs Minister Professor Fashion Phiri on Thursday visited Chitakale and Smallholder Tea Company (Steco)as part of his tour of duty to Malawi and was “impressed” to learn that a Malawian conglomerate Mulli Brothers Group of Companies own the two tea estates.
Phiri, who was accompanied by his permanent secretary John Chikuwa, told Nyasa Times that he was impressed with the strides the two estates have made in the growing of tea thanks to privatization.
Zambian minister is in the country for the meeting on Malawi/Zambia Joint Permanent Commission of Cooperation where delegates will discuss issues of trade, agriculture, tourism, industry and investment.
During the visit, Malawi was represented by Foreign Affairs Minister, Professor Etta Banda and her Principal Secretary Anthony Livuza.
The Government of Malawi through the Privatization Commission put Chitakale and Steco on sale years back and Mulli Brothers Group of Companies own the two estates after a successful bid.
The Privatization Commission of Malawi is mandated to help facilitate measures and policies aimed to strengthen the role of the private sector in the economy.
Mulli Brothers Group of Companies has grown to diversify its services, products and operations.
The mission of this indigenous progressive company is to enhance the profitability and competitiveness of manufacturing companies by assisting the country in its socio-economic development initiatives.
Labels: CHITAKALE AND SMALLHOLDER TEA COMPANY (MALAWI), FASHION PHIRI, JOHN CHIKUWA, MULLI BROTHERS GROUP, PRIVATISATION, TEA
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How global market prices, weather affected Uganda’s trade returns
By Dorothy Nakaweesi (email the author)
Posted Wednesday, December 30 2009 at 00:00
In Summary
Tea, one of Uganda’s top five export earners suffered harsh weather conditions and exchange rate problems against the shilling in 2009. The price of fertilizers, a major input in the production of tea, went up thereby eating deep into exporters’ profits.
As 2009 comes to a close, Dorothy Nakaweesi makes a recap of major events and highlights in the commodities trade. Most commodities were affected by poor weather conditions and faltering prices on the international market.
Coffee
Coffee, Uganda’s leading foreign exchange earner was hit by unexpected shocks including the international economic recession and disease out-breaks and hostile weather.
The country registered a 25 per cent drop, cumulating to almost Shs200 billion worth of revenue missed in 2008/9 coffee year exports.
According to a September report, the month of the coffee year from the Uganda Coffee Development Authority, the country earned Shs568 billion in 2008/9 down from the previous years’ Shs757 billion.
“The value per metric tonne alone from August 2008-August 2009 dropped by 30 per cent. This means during this period alone we lost 800 metric tonnes,” said Mr Markus Vogel, the managing director, Ugacof Ltd, one of the coffee export firms.
“This is something which was beyond our control.”
Coffee is a source of livelihood to thousands of Ugandans especially those living in rural areas. A slump in earnings only means farmers are more affected and therefore unable to meet their daily spending needs.
The UCDA report further indicates that the volume of exports in that coffee year also dropped by 4.8 per cent. The country exported a total of 3,057,970 bags of coffee down from 3,211,256 exported in 2007/8.
Tea
Tea, one of Uganda’s top five export earners suffered harsh weather conditions and exchange rate problems against the shilling in 2009. The price of fertilizers, a major input in the production of tea, went up thereby eating deep into exporters’ profits.
Uganda imports all its fertilisers and other inputs for tea production from mainly Middle East and Europe.
“We used to buy each 5kg bag of fertilisers a year ago at Shs50,000. But this has since gone up to Shs120,000. We have no choice but to incur these costs if you are to have better yields,” Ms Hope Mugyenyi of Royale Tea, a small grower company, said.
Last year Uganda earned over Shs129.2 billion from close to 45 million bags of tea exported and projections for 2009 stood at over 46 million kilogrammes.
“The coming of the rains is a positive change in production. If it continues raining then we anticipate earning an average of Shs149.2 Billion,” Mr George William Ssekitooleko, the acting secretary general, Uganda Tea Association (UTA), said. Prices at the Mombasa auction have been high for the last two consecutive years sometimes hitting an average $1.8 (Shs3, 357) to $1.9 (Shs3, 543) per kilogramme.
Flowers
Once Uganda’s promising non-traditional export has performed below expectation this year. Exports volumes dropped despite the availability of good soils and weather, and the cheap labour.
Mr Joroen Verheul, Netherlands Ambassador, a country which largely consumes all Uganda’s flower exports said local conditions are inadequate and need to be improved.
Flower growers and exporters have complained of poor road infrastructure, expensive electricity and high freight charges as being the reasons for the poor performance.
This year however, a 10-year tax holiday to companies engaged in value added exports such as the flower sector, withholding tax exemptions, stamp duty exemption in share capital and mortgages was approved.
Fish Sector
Fish production has had one of the bleakest pictures after reports of depletion. There has been a continuous decline in both the volume and value of fish. By June, volumes stood at 8,212 tonnes, way below the 11,903 tonnes, exported in 2007 around the same time.
Value received a boost by the strong dollar over the last six months earning the country Shs80.5 billion down from Shs120 billion recorded around the same time last year.
Last year Uganda’s fish export brought in under $115 million (Shs224 billion) from about 23,000 tonnes of processed fish. This is another drop of $20 million (Shs39 billion) compared to the previous year. This brought about a loss of over Shs58.5 billion compared to the country’s best year, 2005 in which nearly Shs282 billion to premium markets and another Shs58.5 billion to regional markets was earned.
Labels: AGRICULTURE, COFFEE, COMMODITIES, FISHING, FLOWERS, TEA, UGANDA
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Govt warns defiant investors
By Kabanda Chulu in Kawambwa
Friday March 28, 2008 [03:00]
KAWAMBWA Tea factory manager George Mwansa has said the company is struggling to penetrate the export market due to lack of modern equipment. And Luapula Province acting permanent secretary Clement Siame has warned Khumah Holdings of Zimbabwe, which is the holding company of Kawambwa Tea, to stop defying government directives. During a tour of the tea estate and factory on Tuesday, Mwansa said the company was producing 100 metric tonnes of tea per month when it reached peak production.
“But when not operating at full capacity, we only produce between 60 and 70 metric tonnes of tea and out of this only 24 tonnes is being taken to the Mombassa auction floor in Kenya where buyers are found,” Mwansa said. “We export tea as a finished product, packaged as Kawambwa Tea and the quality is good because we sell everything at the auction floor but our export volumes are not high as compared to the region due to lack of modern equipment.
For instance, it is difficult to compete with others that are using the Continuous Fermentation Units (CFU) while we use the old system and only shareholders can answer on matters of recapitalisation.”
Kawambwa Tea was state-owned until it was sold off in 1996.
And Siame said the new owners of the company had failed to run considering their incapacity to recapitalise it.
He also warned Khumal Holdings that the government would not allow defiant investors.
“It is an acceptable that these people are not investing in the company and they are just taking money elsewhere and also why should they operate without hoisting a Zambian flag at this factory?” said Siame.
Labels: MANUFACTURING, TEA
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