Igara Growers Tea Factory Limited

Igara Growers Tea Factory Limited

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.

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