adminMEIKLES Limited says it has invested in excess of US$25 million since last year in its subsidiary Tanganda Tea Company aimed at improving production. In an interview, executive chair Mr John Moxon said currently over 1 500 farmers were under the outgrower scheme where the company provides fertilisers, seed and other requirements.
“Since last year we have invested over US$25 million into Tanganda production and this year the rains started pretty well and the crop is doing well,” he said.
Under the scheme, outgrowers provide their land and do all the required land preparation and buy tea seedlings from Tanganda at a subsidised rate.
The company then provides fertiliser and other chemicals for which the outgrower pays from the proceeds of his crop.
Tanganda recently secured an US$8,4 million credit facility from the Preferential Trade Area Bank.
The funds would go towards capital projects which include the acquisition of tea packaging machinery, agricultural equipment, product delivery trucks and development of new plantations.
The capex plan is expected to transform the company to be able to provide profitable, long-term growth for shareholders. — FinX.
Online Reporter