SUMMARY STATUS REPORT ON SAMALIYA TEA ESTATE

Status of Tea Plantation

Samaliya Tea Estate located at Mpugwe in Masaka district covers a total of 640 Acres
of land, of which 190 Acres are occupied by squatters. An estimated 200 Acres
constitute the main tea production area which though is mostly covered by bushes.
The bulk of the remaining 250 acres of productive area of this land is largely bush
land.

The tea estate soils are still highly fertile (with a high humus content) as they have
been able to support organic tea production for all these years ever since the tea estate
was opened up in 1952.Good soils are the very reason why the tea estate has been
producing good quality made teas without the use of any chemical fertilizers and in
spite of using old tea-processing machinery/equipment.

There is a sizeable (4-5 Ha.) eucalyptus forest plantation stand on the western bounds
of the tea estate.

Activities – on-going and planned:

In-filling: - The tea estate management has however embarked on efforts to expand
the tea production acreage through in-filling of the empty gaps and spaces that were
created by neglect and extensive destruction by termites. A few nursery beds have also
been established to provide a steady and continuous source of supply for
seedlings/seed lets. Nursery materials and inputs are budgeted to cost over UShs.
5,000,000.

Grass trimming: - The tea estate is putting in a lot of effort in an attempt to trim the
grass and reduce on the bush land that occupies vast portions of the tea estate.
However, such an exercise demands that it uses 3 grass trimmers/cutting machines
which cost more than UShs. 2,000,000.

Spraying: - The tea estate has drawn up work plans to spray all the grass that has
claimed large areas of the tea estate. Spraying is to be mostly done during the rainy
seasons by using selective herbicides (estimated cost of UShs. 4,000,000) and then
apply fertilizers worth UShs. 5,000,000 immediately after that.

Bush-cutting:- There is a dire need to cut down all the bushes on the tea estate that
have since destroyed and choked much of the tea plantation. This exercise will involve
cutting down on the “buyukiyuki” and other types of bushes/shrubs which are
widespread on the tea estate. The tea estate has hitherto been engaging prisoners and
a variety of other able-bodied and energetic workers for this kind of work. Since the
tea estate is sub-divided into eight (8) Blocks, the planned cost of bush-cutting per
Block is UShs. 4,000,000 such that it would require UShs. 32,000,000 to remove all
the bushes/shrubs from the entire tea estate.

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Factory Status

Practically, the entire tea set-up at Samaliya Tea Estate is in obsolete and derelict
condition including the buildings housing the tea-processing machinery and
equipment – since it has never been changed/overhauled from the time the tea estate
was established in the early 1950s.In fact, all the tea-processing equipment and
machinery belongs to the 1940s – 1960s era that can no longer be directly sourced on
the market including its spare parts.

The working condition and output capacity of the tea estate plant machinery is in
such a poor and sorry state that underlies its current very low output of made tea – as
it is operated only once a week (so as not to run down the already delicate and
precarious condition of the still-functioning tea-processing equipment/machinery).
This is in stark contrast to the tea-processing capacity of the plant way back in 1972
when it used to process 4,500 – 5,000 kgs of green leaf tea per day (in 2 shifts of 12
hours each) – as the composite parts and equipment of the plant were still in robust
and relatively brand new condition by then.

The only few good parts of the tea factory that are still in good running condition as of
today are the CTC Roller (which needs some sharpening though with a good lathe
machine), but the rest of the parts and equipment just need to be completely and
comprehensively overhauled so as to bring the tea estate back to its pre-1973 made
tea output levels and standards.

However, if the rehabilitation of Samaliya Tea Estate is to be considered from a least-

cost-option perspective, then the sensible thing to do at this material time is to carry
out factory repairs and machinery parts replacements as explained below:-

1. The Dryer – needs replacement of its mouth part that are estimated to cost
UShs. 10,000,000.

2. The Withering Troughs – would require re-installation of 3 heavy duty fans

running under 30 HP motors each. The cost for each fan is UShs. 1,900,000
and each motor costs UShs. 1,800,000 that brings the total cost to UShs. 11.1
million for the 3 withering troughs.

3. Build a new Conveyor System that draws the crushed tea leaves from the CTC
roller to the fermentation room and from there to the Dryer. The fermentation
room replacement costs UShs. 10 million.

4. Replacement of Switch board, Starters, and Isolators.

5. Replacement and re-installation of the motor at Ball breaker is estimated to

cost UShs. 65,000.

6. Replacement of Pilo Bearings estimated to cost UShs. 50,000.

7. Replacement of Fan Belts.

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 8. Replacement of Gear Box, Pulley, Gear adjustment estimated to cost UShs.
300,000.

Rehabilitation of Housing Infrastructure:

The state and condition of the tea estate factory housing, administrative buildings,
and residential quarters also need to be seriously looked into since most of them are
weather-beaten and have never been repaired or renovated for the over 40 – 50 years
that they have stood on this estate. Some of these buildings are in such a state of
disrepair and neglect that they can no longer be considered safe and secure for tea
processing plant housing and human habituation any longer. They therefore pose a
great risk to both their machinery/equipment and human occupants to such an
extent that something needs to be done rather urgently to make them both safe and
habitable. The summary below provides an overview of the kind of repairs and
renovations that need to be urgently undertaken on the mentioned structures and
facilities at the tea estate.

1. Re-roofing the Dryer side of the factory plus provision of additional burglar
proofing – to cost UShs. 10 million.

2. Re-installation of the water system – a pump, pipe works and reservoirs – to

cost UShs. 5 million.

3. Renovation of the main house – this will require face-lifting, installation of a

modern sanitation system – all estimated to cost UShs. 30 million.

4. Repairs to existing workers’ houses and construction of a new labour line able
to accommodate over 30 tea estate workers – all estimated to cost UShs. 20
million.

5. Installation of a modern communication system at the main office –estimated to

cost UShs. 5 million.

6. Construction of new store rooms with adequate storage space and capacity to
accommodate the various tea grades ranging from tea for export and tea for
domestic market sales – estimated to cost UShs. 10 million.

7. Construction of social facilities and amenities at the tea estate including a

Health Centre, Day Care nursery centre, a factory canteen/shop.

Tea Out growers Scheme

Samaliya Tea Estate has an impressive 56-strong list of tea out-growers within its
immediate environs that currently produce and supply green leaf tea ranging between
800 – 1,500 kgs/week to the factory depending on the season. These tea out-growers
seem not to have any formal organization that binds them together or advocates for
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their interests at the moment though there are plans afoot to organize and have them
associated under a grower’s co-operative – to be known as Masaka District Tea
Outgrower’s Association for loaning, inputs provision and facilitation purposes.

These tea out-growers seem to have the will, resolution and enthusiasm to up on their
current tea production output levels provided they are given adequate incentives and
production inputs to encourage and support them to sustain their production.
However, owing to the prevailing weak administrative and financial condition of the tea
estate at this time, it is unlikely that they are getting much support to increase their
tea output. Whatever green tea leaf they are producing, it entirely comes out of their
own resources and improvisations – hence their low output given their numbers and
acreage under tea production (a total of 370 acres in all).

With that sort of area under tea cover throughout the year through the constant and
continuous provision of vital inputs like herbicides and fertilizers and application of
good tea management practices, these out-growers can be able to produce not less
than 1,776,000 kgs p.a. (assuming that 1 acre of tea plantation yields 400 kgs of
green tea per month under Ugandan conditions), which to all intents and purposes
would be quite a significant supplement and boost to Samaliya Tea Estate’s current
and future green tea production.

The Squatters/Encroachers

Samaliya Tea Estate continues to face the persistent twin problems of encroachment
by cattle grazers on its tea estate and squatters who have established over 214
homesteads on the tea estate spanning an area totaling over 190 acres in size.

Cattle grazers on the one part always drive their small herds of cattle to graze and feed
on the widespread bushes and grasses that cover large parts of the unproductive land
of the tea estate. They take advantage of the lack of perimeter structures around the
tea estate, the wild and uncultivated land lying dormant under bush within the estate,
and the absence of strict anti-encroachment security measures and enforcements on
the part of the tea estate administration and management. So, they just drive in their
hordes of cattle at will and in any way they want to without restraint or control. In the
process of grazing encroachment on the tea estate by cattle herders, quite a good
number of the tea bushes in the marginal or dormant areas of production are
damaged by the cows – as they are especially fond of feeding on the young tea shoots
and foliage.

The land squatters on the other hand seem to have taken up residence on this tea
estate for quite some time now – a phenomenon that is fairly common on other under-
performing tea estate elsewhere in Uganda owing to weak management and oversight
controls and population pressure.

The squatter problem has been particularly exacerbated by some of the past
governments in Uganda that gave out encouraging signals for them to stay put
wherever they might be – which they saw as an opportunity for them to construct
permanent homes and other structures of residence at will on the tea estate. The

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resulting outcome overtime has been that these squatters have now set up agricultural
activities within the tea estate that run counter to the Company’s long-term objective
of reviving and expanding tea production acreage within the bounds and confines of
the tea estate. Some of the salient undesirable activities that have been spawned by
the unmitigated increase in squatter settlements on Samaliya Tea Estate include:-

 Construction and establishment of permanent homesteads

 Cutting down of trees on the tea estate for firewood and charcoal
 Cutting down trees on the tea estate for construction poles and timber
 Up-rooting the tea bushes
 Planting bananas (matooke) on the tea estate
 Planting eucalyptus trees on the estate
 Planting coffee, maize, etc. on the tea estate
 Making bricks in the swampy area

The cumulative impact of these squatter activities on Samaliya Tea Estate has been a
significant reduction in land acreage available for tea production and the reduction in
soil fertility as a result of their poor land-use techniques. Their activities have also
played a big part in increasing the aridity of the land as clearly evidenced by the
eventual and complete drying up of River Kazimba that used to be the only viable and
reliable source of water on the tea estate in the 1950s – 1970s.