Igara Growers Tea Factory Limited

Igara Growers Tea Factory Limited (IGTF) is a smallholder‑owned agribusiness in Uganda’s Bushenyi District (Southwestern region). Here’s a comprehensive overview:

🏭 Overview & Ownership

• Founded: 1995, following the privatization of government-run smallholder tea factories.

• Ownership: Fully owned by ~7,000 smallholder tea farmers who deliver green leaf and hold shares; typically one share per 500 kg delivered.

• Mailing Address: P.O. Box 110, Butare Trading Centre along Ishaka–Kasese Highway, Kyamuhunga Sub-county, Bushenyi.

🏭 Factory Operations

• Processing Stations: IGTF manages two factories—Igara Tea Factory and Buhweju Tea Factory (the latter built in 2010, first smallholder-owned in Uganda since 1969).

• Production Capacity: Processes ~250–180 tons of green leaf daily across both plants; made‑tea output approximates 50–60 tons per day.

• Market Share: Accounts for ~10% of Uganda’s tea from 28 total factories, making it the largest smallholder tea company in the country.

📈 Governance & Management

• Board Structure: A 9‑member board elected by farmers, representing different regions; operates on a rotational system for continuity.

• Management Company: Jointly with Kayonza Growers, IGTF founded the Uganda Tea Development Agency Ltd (UTDAL) to manage factory operations.

🌱 Benefits to Farmers & Technology Use

• Farmer Financing: Offers input loans (fertilizers, tools, etc.) and established a SACCO in 2018 for credit access.

• Tech Integration: Partners with digital‑agribusiness initiatives (e.g., CTA) using UAVs, GPS mapping, spatial data systems; over 4,500 farmers profiled and credit traceability improved.

💰 Financials & Economic Impact

• Leaf Annual Volume: ~34 million kg of green leaf annually (≈ 7.2 USD million in local economy).

• Factory Profitability: Biennial increases in turnover and profitability; scale‑up includes Buhweju capacity (70 t/day).

• Export Earnings: Tea ranks third in Uganda’s agri‑exports; IGTF plays a key role in foreign exchange revenues.

🌞 Sustainability Initiatives

• Solar Upgrade: Inaugurated solar plants (499 kWp at Buhweju and 425 kWp at Igara) via GRIPS Energy to cut energy costs and carbon footprint.

⚠️ Challenges & Industry Issues

• Unpaid Leaf Dues: In early 2024, farmers halted leaf delivery over ~4 months of unpaid dues amid price drops (from $0.16 to $0.04–0.05 per kg).

• General Constraints: Poor rural infrastructure, high input costs, high financing costs, weak sector regulation, and international market volatility .

🏆 Achievements & Replication Potential

• Smallholder-Led Success: IGTF exemplifies strong governance, accountability, farmer returns (leaf payment + bonus + dividends), and modern controls.

• Model Scaling: The factory demonstrates a viable blueprint for farmer-owned agribusinesses to pool resources and reduce fixed costs through shared management .

📞 Contact & Social Media

• Phone: +256 772 700 797

• Website: ugatea.com

• Social:

  • Twitter/X: @IGTFL

  • Facebook: “IGARA TEA”

  • Instagram: IGARA Growers Tea Factory.

📌 Bottom Line:
Igara Growers Tea Factory Limited is a robust, farmer-owned tea processing powerhouse in Uganda. Through strong governance, financing mechanisms for smallholders, tech adoption, and sustainable infrastructure, it stands out as a model of smallholder empowerment—despite ongoing challenges around infrastructure, regulation, and recent payment disruptions.