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| SMALL HOLDER TEA COMPANY (STECO) |
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BRIEF ON SMALLHOLDER TEA AUTHORITY |
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HIS EXELLENCY THE LIFE PRESIDENT OF THE REPUBLIC OF MALAWI |
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DR H KAMUZU BANDA |
Plucking tea in a smallholder’s garden during a visit to the Project |
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In June 1962 His Excellency the President, who was then Minister of Natural Resources and Surveys, appointed a team to investigate the possibility of starting a smallholder tea project in Malawi. This team reported favourably and in April 1963 His Excellency appointed a further team to study and report in more detail how such a project should be commenced. Again a favourable report was presented and two acres of tea nurseries were planted at the Bvumbwe Research Station in the Thyolo district. |
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In 1964 Government purchased 50 acres of land in the Thyolo district to be utilized for the establishment of permanent tea nurseries to grow the planting material for the scheme. In 1965 the first Malawians planted tea- in the Mulanje district of the Southern Region and at Kawalazi in the Nkhata Bay district of the Nothern Region. These initial smallholders planted one acre each. The following year 67 acres of smallholder tea were planted and from this point the project developed rapidly.
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WHY WAS SMALLHOLDER TEA AUTHORITY FORMED & WHAT ARE ITS AIMS? |
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The idea of African grown tea was suggested by His Excellency the Life President, some years before Malawi gained its Independence as he felt that no crop grown in Malawi should have a European monopoly. In the districts where tea was usually grown there was no reason why the local population should not benefit as well and make a far better living than they were at present, from any traditional crops. The Smallholder Tea Authority was therefore set up with the aim of promoting the growing of tea by Malawi Smallholders by providing the following : |
- Short term credits to cover the cost of green leaf transportation, fertilizers, and insecticides which are purchased in bulk and resold at cost to the Smallholder.
- Long term credit- up to and exceeding 21 years- on planting material grown in and transported from, Authority nurseries.
- Dissemination of technical advice and assistance together with administration, accounting and buildings.
- Purchase of green leaf from the Smallholder and resale to contracting factories at a normal charge.
- Transportation to the contracting factories of all green leaf.
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Today, several years later MULLI BROTHERS LTD would like to revive the dream that Dr Kamuzu Banda had with the welfare of his people at heart. Mulli Brothers holds 90% majority shares while smallholder farmers hold 10% to ensure that the dividends (thus profits realized during sales of tea) are shared most appropriately as bonus at the end of each harvest season. The farmers get their bonus equivalent to the amount of green leaf delivered during the stated period. The 10% shares for the farmers reinforces ownership of STECO. |
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STECO Business Operational Model under MULLI BROTHERS LTD |
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| CONTACT |
| TEL: +265 (0) 1 466 244 |
| FAX: +265 (0) 1 466 257 |
| ADD: P.Box 135 , Malawi, Central Africa |
| E-MAIL: steco@africa-online.net |
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