Kayonza tea factory receives sh7b boost from Uganda Government

Friday, 2nd September, 2011

UGANDA - Kayonza Growers Tea Factory in Kanungu will get $2.5m (over sh7b) support from the Government to capitalise the company.

The funding was promised by President Yoweri Museveni when he visited the district in 2008 during the NAADS promotion tour.

Tea farmers under Kayonza will also get six million plantlets to increase tea acreage and output.
Other farmers in the district will get 30 million plantlets.

The plantlets will be supplied by the agriculture ministry, according to Caleb Kipande, the farmers’ chairman.

The money is part of the Government’s support to farmers.
He said the money would be used to buy new equipment to ensure that the factory operates according to international standards.

Kipande also noted that the majority of the farmers were willing to expand their farm acreage to tap into the increased green tea farm-gate prices. The company increased green tea prices from sh300 to sh370 per kilogramme recently.

"We have already induced the farmers by increasing the green leaf prices. Many of them have since applied for the seedlings," Kipande said.

Last year, Kayonza Growers Tea Factory received the ISO standards certicifate from the National Bureau of Standards.

Meanwhile, the Kanungu district LC5 chairperson, Josephine Kasya, has challenged farmers to increase production to meet the demand of the three tea processing factories.
"Each homestead in the tea-growing areas must grow at least an acre of tea to boost household income and meet their basic necessities," Kasya said.

David Manzi, a resident on Kalangara in Kayonza sub-county, said after increasing his farm acreage, he was assured of daily income from the green leaf sales since he could harvest about 100kg daily.

By PATSON BARAIRE: The New Vision Newspaper