It was established in 1969 and started processing black tea in 1970. It was established by government to process the smallholder farmers’ leaf within Bushenyi district. The management of Igara Tea Factory like all other smallholder tea factories in Uganda was by Uganda Tea Growers Corporation (UTGC), a government parastatal established in 1966. In 1995 the factory was privatized by the government and sold to the farmers who are now the shareholders of the factory company. The shareholders manage their company through a Board of Directors who are democratically elected during an Annual General Meeting. Currently Igara has seven members of the Board of Directors who are elected in rotation after every three years and are highly experienced in the tea industry and management of such companies.

Mission Statement
“To make high quality black teas in order to achieve high prices and realize increased sales, profits and benefits to the shareholders in an effective, efficient and sustainable way”

Vision
The vision of Igara Growers Tea factory Limited is to increase the productivity of farmers’ gardens to achieve the best quality green leaf as well as increasing the factory’s capacity to handle the increased production. In addition the factory intends to become a leader in the tea industry and improve the quality of life through poverty alleviation amongst our shareholders and contribute to the socio-economic development of the country.

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Detailed Information

The company is managed at senior management level by Uganda Tea Development Agency Limited (UTDAL), a management agency established by Igara and its sister factory Kayonza Growers Tea Factory limited. The management agency employs a cross section of high caliber, knowledgeable, well trained and experienced staff to run the Factory in order to guarantee the quality of black tea supplied to the market.
The factory runs an efficient leaf collection system that ensures green leaf is delivered to the factory within 4-6 hours of being plucked. In addition the production of green leaf is enhanced through supply of fertilizers to the farmers in a split season distribution system. This ensures that the farmers take full advantage of the rains that fall in two-four month seasons. The teas of Igara are high grown teas produced at an altitude of 5800 feet above sea level. The teas have special characteristics and are generally bright, brisk and quite strong. This makes them fit very well with most blends around the world.
The factory produces substantial quantities of teas every year totaling over 2500 tons. The tea comes in all major grades such as BP, BP1, PF, PF1, PD, D1, FNNGS, DUST and BMF. With over 2500 tons the factory is able to supply a container of each of the main grades (PF1, PD) every week and quite substantial amounts of the other grades are also available.
The teas produced are properly packaged in multi-walled paper sacks that have a thin aluminum lining in them. On request they can be packaged in polypropylene bags with a polythene lining. The bulking, storage and subsequent packaging of Igara teas are carefully done and these materials prevent moisture absorption and ensure a safe keeping quality of our teas for a very long time.Currently the factory is at an advanced stage of obtaining international accreditation for the implementation of food safety management systems. The Board and management have been fully committed to the implementation of a systematic, comprehensive, thorough and fully maintained food safety system using the Hazard Analysis Critical Control Point (HACCP) principles to ensure our product is relevant to the expectations and needs of our customers.

Our teas can be obtained directly from the factories or from United (E.A) Warehouses in Mombasa. Igara teas are mainly sold through the auction but good amounts are also sold through direct contracts and locally within Uganda. Igara is also registered as a Fair Trade producer and sells teas to Fair trade registered buyers who in turn pay a premium that is utilized for community projects and business improvement to maintain its standards of tea. The teas are received in Mombasa within a week from dispatch and can be shipped to any part of the world without any unnecessary delays.In the Mombasa auction our teas are being sold by African Tea Brokers and they remit the money directly to the factory’s account with Stanbic Bank, an internationally reputable bank. The terms of sale for teas under direct contracts with buyers is through a confirmed letter of credit issued by an internationally recognized bank that deals with the corresponding bankers of the factory.

Shareholding of the Company
Igara has a total of 2477 shareholders and fully paid up capital of Ushs. 528,910,000 as at the 31 st December 2005. This comprises of 105,726 shares. A shareholders register will be availed when you visit the factory. Note that the exchange rate is 2,300 shillings to one Euro.

Pricing Policy
The green leaf prices vary from one year to the other. It is arrived at by paying an initial budget figure in two parts. The first part is paid every month and a second part is paid after three months for every kilo produced during that period. Again depending on the performance of the company after the draft audited accounts for the year have been produced, a final price is then fixed by the Board.

Sales Data
Igara sells tea to mainly three market outlets; local, contract (direct) and Mombasa auction. The local sales are made within the country to local blenders. Direct sales are arranged contracts with buyers directly although the teas are shipped through Mombasa and most of the teas are sold through the auction by Brokers in the Mombasa auction.