Profile

HISTORIC PERSPECTIVE

Iriaini tea Factory Company limited is located at Iriaini location, Othaya Division of Nyeri District. It’s well served with two major streams:Thuti and Gikira. The factory catchment is well linked to two major towns Nyeri (Provincial Headquarter 25 km away by a tarmac road and Nairobi Kenya Capital 138 km away.

The area is volcanic soil with Tea, Coffee and dairy farming being predominant. Food crops planted are maize, beans and vegetables.

The factory site area is 39 ¼ acres.

FACTORY HISTORY

The factory was commissioned on 5th January 1981 with a shareholding capacity of 2115 farmers only holding 9% of the then share value. All then rest being under KTDA both as trustee and managing agent. The loan funding was a joint venture of the Kenya Government and African Development bank.

MISSION STATEMENT

To provide effective Tea husbandry, collection and transport of high quality green leaf for efficient, quality manufacture of high quality tea. To invest in tea related profitable ventures for the benefit of shareholders and other stakeholders.

VISION

To be the leading producer and manufacturer of high quality tea in the Kenyan tea sub-sector and beyond.

ACREAGE

The factory started with small scale holder farmers of an average of 0.5 acres totalling 510 hectares to a current hectare age 1145 ha.The green leaf production has increased from an initial 5.1 million in 1981 to current 12.7 m in 2005, with farmers increasing from 2115 to 5747 to-date

International certifications

Iriaini is a fair-trade certified factory

Chairman's Report

CHAIRMAN’S REPORT FOR THE YEAR ENDED 30 JUNE 2011

I hereby submit the report on the performance of the company during the financial year ended 30th June. 2011.

CROP

Crop production for the year was higher than last year. 17,575,174 kilograms of Green Leaf were delivered for processing at the company's factory. Out of this throughput, 4,491,577 kilograms of tea was made. This throughput and output were higher than last year's levels of 14,713,516 kilogrammes and 3,902,993 kilogrammes by 2,861,658 kilogrammes and 588,584 kilogrammes respectively. This achievement was at a conversion factor of 25.56% which is equivalent to 3.91 per Kg of green Leaf to make one kilograms of Made Tea.

TEA PRICES

There was an increase in tea prices during the year. The average price realized per every kilogramme of made tea sold was Kshs. 265.01. This compares favorably with the price of Ksh. 247.61 for last year. The prices therefore increased by Kshs. 17.40 per kilogramme of sold tea. This year's price of one kilogramme of made tea sold is equivalent to Kshs. 67.52 per kg of green leaf.

MANUFACTURING COST

The manufacturing cost increased during the year. The average manufacturing cost for the year was Ksh.60.69 for every kilogramme of made tea against the average manufacturing cost of Kshs. 60.26 per kg for last year. There was an increase in the manufacturing cost by Kshs. 0.43 per every kilogram. This manufacturing cost includes monthly green leaf payment at Kshs. 46.96 per kg of made tea for the year which is higher than Kshs. 43.89 per kg for last year. This year's manufacturing cost was equivalent to Ksh.15.51 per kilograms of green Leaf.

GREENLEAF PAYMENT AND DIVIDEND

The company was able to pay to the farmers of Kshs.1,013,862,774 for green leaf delivered. This payment is higher than last year’s payment of Kshs.787, 561,387. The company managed to pay a first payment of Kshs.12 of Green leaf which is equivalent to Kshs.46.96 per Kg of made tea.

The Board of directors recommended a dividend of Ksh2,282,002 which is 2.5% of the issued class B share capital be paid as final dividend to all shareholders appearing in the company’s share register as at 30th June 2011.

GENERAL INFORMATION

We have concluded a remarkable financial year with the highest ever recorded second payment in the history of our company and by extension factory companies managed by KTDA. The favarouble performance achieved was as result of good prices in the market coupled with the favarouble exchange rates that prevailed throughout the year. In addition to this, the company has put in place measures to control cost of operations. Among these measures, include Imenti Tea Factory hydro generation plant with a generation capacity of 0.9 megawatts. Half of this generation is consumed by our company whereas the rest is sold to Kenya Power company under a power purchase agreement.

This has led to an additional income generating stream pushing up the return to our growers. In addition, the company has installed two continuous fermenting units and a weigh feeder that has not only resulted in reduction of manufacturing labour cost but also improved on the consistency in the quality of our made tea

The company has been modernized by re-carpeting both the leaf base and the factory yards. Also it has completed replacement of the asbestos with iron sheets in line with ISO 22000 certification requirements.

Lastly, as mentioned earlier our company has compiled with various international standards i.e. an upgrade from ISO9001:2000 to 9001:2008 certifications, Fair-trade, ISO 22000 on food safety and lastly Rain forest alliance. The Factory was audited and recommended for certification.

CHALLENGES

We are still faced with the challenge of satisfying our company processing capacity by shortfall of over three million kilogrammes of green leaf every year. We appeal to our growers to improve on good agriculture practices in order to reduce on idle capacity.

Lastly, we are also faced with challenge of ever increasing labour cost whereby successive negotiations with labour unions have always resulted to increase in wage bills. We have implemented electronic weighing scales that did not only reduce the leaf collection cost but also improved efficiency.

VOTE OF THANKS

On behalf of the board of Directors, I wish to hereby express my thanks and appreciation to the staff of the company, shareholders and growers who supplied green Leaf to the company for their good work which has contributed to the success of the company during the year under review.

GEOFREY M. MUTHURI (Ag. CHAIRMAN)

RIPOTI YA MWENYEKITI YA MWAKA ULIOMALIZIKA 30 JUNI 2011

Ningetaka kuwatolea ripoti kuhusu vile Kampuni ilivyofanya katika mwaka uliomalizika tarehe 30 Juni, 2011.

MAVUNO YA CHAI

Mavuno ya Chai katika mwaka yalikuwa juu ya yale ya mwaka uliotangulia. Kilo 17,575,174 za majani chai zilipelekwa kutengenezwa katika kiwanda cha Kampuni. Kutokana na kiasi hiki cha chai, kilo 4,491,577, za chai iliyotengenezwa zilipatikana. Kiasi hiki kilikuwa juu ya kile cha mwaka uliotangulia ambacho kilikuwa kilo 14,713,516 za majani mabichi ya chai na kilo 3,902,993 za chai iliyotengenezwa na tofauti ilikuwa kilo 2,861,658 za majani mabichi na kilo 588,584 za chai iliyotengenezwa.Mapato haya kwa kibadilisho cha 26.53 kwa mia ni sawa na kilo 3.91 za majani mabichi ambayo yanatoa kilo moja ya chai iliyotengenezwa.

BEI YA CHAI

Bei ya chai ilipanda katika mwaka. Bei wastani ya chai iliyopatikana kwa kila kilo moja ya chai iliyouzwa ilikuwa Kshs 265.01. Bei hii ilikuwa ya juu ikilinganishwa na bei ya mwaka uliotangulia ya Kshs.247.61. Kwa hivyo Kampuni ilikuwa na tofauti katika hizo bei ya Kshs 17.40 kwa kila kilo moja ya chai iliyouzwa. Bei ya chai iliyotengenezwa na kuuzwa katika mwaka ni sawa na Kshs.65.69 kwa kila kilo moja ya majani mabichi.

GHARAMA YA UTENGENEZAJI

Gharama ya utengenezaji ilipanda katika mwaka na ilikuwa Kshs. 60.69 kwa kila kilo moja ya chai iliyotengenezwa. Gharama wastani ya mwaka uliotangulia ilikuwa Kshs.60.26 na kwa hivyo tofauti ikawa Kshs 0.43 kwa wastani kwa kila kilo moja ya chai iliyotengenezwa.Gharama ya utengenezaji imejumuishwa na ile ya malipo ya majani chai kwa mwezi ya kshs 46.96 kwa kila kilo moja ya chai iliyotengenezwa yenye ilikua juu ikilinganishwa na ile ya mwaka uliotangulia ya kshs 43.89 kwa kila kilo moja ya chai iliyotengenezwa.Gharama kwa jumla katika mwaka ilikuwa sawa na Kshs 15.51. kwa kila kilo moja ya majani mabichi.

MALIPO YA MAJANI CHAI NA MGAO

Kampuni iliweza kulipa malipo kwa wakulima ya Kshs.1,013,862,774 kwa majani chai iliyopokewa kiwandani malipo haya juu ya yale ya mwaka uliopita ya Kshs.787,561,387. Kampuni iliweza kulipa malipo ya kwanza kwa kshs.12 kwa kilo moja ya majani mabichi ambayo ni sawa na 46.96 kwa kilo moja ya chai iliyotegenezwa. Baraza la wakurugenzi ilipendekeza kulipa mgao wa asilimia 2.5 kwa mia kwa wanahisa wote waliokuwa katika kitabu cha wahahisa cha kampuni mnamo tarehe 30th June 2011. Jumla ya Kshs 2,282,002 zitalipwa wanahisa zikiwa mgao.

MAELEZO MENGINE KWA UJUMLA

Mwaka uliomalizika haukuwa wa kawaida kwani ulikuwa na kiwango cha juu sana cha malipo ya pili kwa wanahisa katika historia ya kampuni yetu na vile vile katika historia ya makampuni chini ya usimamizi wa KTDA. Matokeo haya mazuri yalitokana na bei nzuri kutoka kwa soko la chai ikijimuishwa na ubadilishanaji bora wa sarafu ya Kenya mwakani. Zaidi ya hayo, mikakati kabambe iliyowekwa na kampuni kukabiliana na ongezeko ya gharama ya uzalishaji ilichangia matokeo haya mazuri. Kati ya mikakati hiyo ni ule mtambo wa utoaji umeme wa kutumia maji ambao unaweza kuzalisha 0.9 megawatti. Nusu ya hii nguvu inatumika kwa kiwanda na mabaki inauziwa Kenya Power & Lighting co. Ltd.

Hali hii imechangia ongezeko wa mapato ambayo yameimarisha malipo kwa wanahisa. Zaidi ya hayo, Kampuni imeweka mitambo miwili ya vitengo vya kuchacha pamoja na mtambo wakubeba majani mabichi ambayo imechangia kupunguza gharama ya uzalishaji na vilivile kuimarisha thamani ya majani inayotengenezwa. Tume kikamirisha kiwanda chetu kisasa,kwa kukiweka miundo msingi kama vile kutengeneza kwa saruji mahali pa kuegeza magari pamoja na kubadilisha vigae vya paa vya asbesto na mabati ya kisasa kuambatana na usajili wa ISO 22000. Kama vile niliposema hapo awali Kampuni imezingatia viwango mbali mbali vya kiulimwengu kama vile kuboresha ISO 9001:2000 hadi 9001:2008,usajili wa Fair trade,ISO 22000 inayohusu ubora wa vyakula na Rain Forest Alliance ambayo inahusu njia mwafaka za kilimo. Kiwanda kilikagliwa na kikafaulu. Tunangonjea cheti cha Rainforest Alliance.

CHANGAMOTO

Tunakabiliwa na changamoto ya kukidhi mahitaji ya uwezo wa usalishaji wa mitambo yetu kwa upungufu wa majani mabichi kiwango cha million tatu kila mwaka.Tunawasihi wanahisa wetu kuimarisha miundo misingi ya kilimo ili kutumia mitambo ipazavyo.

Kwa kumalizia, tunakumbwa na ongezeko ya gharama ya wafanyi kazi inayotokana na mifululizo ya majadiliano baina ya kampuni na chama cha wafanyi kazi nchini ambayo imechangia ongezeko ya gharama ya wafanyi kazi.Tunatafuta mbinu zote za kisasa ili kupunguza kutegemea utumiaji wa watu. Badala yake kuzitumia mashine kama vile utumiaji wa mashine ya kupima majani chai mabichi,ambayo mbali na kupunguza gharama ya ununuaji wa majani, inalihisich kazi.

SHUKRANI

Kwa niaba ya Baraza la Wakurugenzi, ningetaka kuwatolea shukrani zangu za dhati kwawafanyi kazi wote wa Kampuni, wanahisa na wakulima wote waliopeleka majani mabichi ya chai katika kampuni kwa kazi yao iliyowezesha Kampuni kufanikiwa katika mwaka tunaouangazia.

GEOFREY M. MUTHURI (KAIMU MWENYEKITI)

Directors

Financials

Corporate Social Responsibility

CORPORATE SOCIAL RESPONSIBILITY STATEMENT

The company is committed to social responsibility practices and regularly gives back to society. During the period under review the following corporate social responsibility activities were undertaken.

1. The company joined other Kenyans to alleviate famine in the Northern frontier district under the Kenyan for Kenyan initiative by donating tea.

2. To conserve the environment the company has been running a programme of giving two (2) seedlings per farmer for planting during the rainy season.

3. The company regularly sponsors students under DIT programme and regularly absorbs students in internship training.

4. As a Fairtrade certified factory the company receives premium funds from tea sales to fair trade certified buyers. This premium has been used to finance common good project such as constructing secondary school dining hall, polytechnic class, assisting disadvantaged children, constructing community Libraries and computer labs among others. These facilities seek to better the livelihood of the area community.

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