MUNUNGA TEA FACTORY COMPANY LIMITED
a) Where situated
Lies 135 Kms North of Nairobi – Kenya’s Capital city.
It is 10 Kms from Kerugoya Town – Kirinyaga District Headquarters.
It lies on the southern slopes of Mt Kenya
0 degrees 22’ South
37 degrees 21’ East.
c) Distance from Nairobi
135 KM North of Nairobi
a) When it was Built
Commissioned in 1993.
Lies within a radius of 7kms.
c) Number of Growers
d) Clones of Tea Grown
31/8,6/8,303/577,TN 14/3,301/5,PMC 61,301/5,BB35
e) Community based projects
Water, electricity projects and buying center construction.
a) Major Highway
The factory is situated 13 kms off the Nairobi Nyeri Highway.
b) Feeder Roads
Karatina – Kerugoya Road.
Situated on the slopes of Mt. Kenya (Southern Side).
Air Temperature 16C0 and Soil Temperature 18.3C0
1500 – 2200 M above sea level.
Deep well drained red acidic volcanic soil.
1. ISO Certified
ALREADY ISO CERTIFIED.
2. Fair Trade Certified
3. Sustainable Agriculture
MUNUNGA TEA FACTORY
P.O. BOX 955
Phone Number – 020 – 216414
CHAIRMAN’S REPORT FOR THE YEAR ENDED 30 JUNE 2012
I hereby submit the report on the performance of the company during the financial year ended 30th June 2012.
Crop production for the year was higher than last year. 19,014,602 kilogrammes of Green Leaf were delivered for processing at the company's factory. Out of this throughput 4,381,198, kilogrammes of tea were made. These throughput and output were higher than last year's levels of 16,171,944 kilogrammes and 3,826,319 kilogrammes by 2,842,658 kilogrammes and 554,879 kilogrammes respectively. This achievement was at a conversion factor of 23.04% which is equivalent to per 4.34 Kg of Green Leaf to make one kilogram of Made Tea.
There was an increase in tea prices during the year. The average price realized per kilogram of made tea sold was Kshs. 298.73. This compares favorably with the price of Kshs. 266.48 in 2011.The prices therefore increased by Kshs. 32.25 per kilogram of sold tea. This year's price of one kilogram of made tea sold is equivalent to Kshs. 68.83 per kg of green leaf.
The manufacturing costs increased during the year. The average manufacturing cost for the year was Ksh.77.74 for every kilogramme of made tea against the average manufacturing cost of Kshs. 70.71 per kg for last year. There was an increase in the manufacturing cost by Kshs.7.03 per every kilogramme. This manufacturing cost includes monthly green leaf payment at Kshs. 54.09 per kg of made tea for the year which is higher than Kshs. 50.72 per kg for last year. This year's manufacturing cost was equivalent to Ksh.17.91 per kilogramme of green Leaf as compared to previous year when the cost averaged at 16.73.
GREENLEAF PAYMENT AND DIVIDENDS
The company was able to pay Kshs. 1,035,203,166 for the green leaf delivered against a total payment of Kshs 840,132,485 realized in the previous year. The company managed to pay an advance or first payment of Kshs 12.00 from July 2011 to March 2012 and Kshs. 14.00 from
April 2012 to June 2012 per kg of green leaf delivered, which is equivalent to Kshs. 54.09 per kg of made tea.
The Board of directors further recommends that a payment of an interim dividend of 5% be paid as a final dividend to all class 'B" shareholders who were appearing in the Company's share register as at 30th June, 2012. A total sum of Kshs. 4,782,256 is payable to all the shareholders of the company by way of dividends.
The company has expanded the withering by jacking the third floor and this will increase the withering capacity that will enhance the process, improve the tea quality,
reduce the energy and labour cost and efficiency collection of the green leaf.
During the financial year the company has been awarded energy management award
due to efficiency in utilization of the energy.
The company has implemented the Fleet management system that will enhance the
monitoring of the vehicle operation.
The Company has continued in modernizations of its machinery this financial year the
company have procured the second firewood steam boiler which is being installed.
The Company has also continued to improve road network within the catchment that
has resulted to efficiency and effectiveness in services delivery.
The tea industry is threatened by the increasing costs of major inputs both at the factory and the farm levels. Such costs include fertilizers, energy and labour, and also the instability of Kenya shilling against foreign currency.
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.
FRANCIS M. MUGO (CHAIRMAN)
RIPOTI YA MWENYEKITI YA MWAKA ULIOMALIZIKA 30 JUNI 2012
Ningetaka kuwatolea ripoti kuhusu vile Kampuni ilivyofanya katika mwaka ulioisha tarehe 30 Juni, 2012.
MAVUNO YA CHAI
Mavuno ya Chai katika mwaka yalikuwa juu ya yale ya mwaka uliotangulia. Kilo 19,014,602 za majani mabichi ya chai zilipelekwa kutengenezwa katika kiwanda cha Kampuni. Kutokana na kiasi hiki cha chai kilo 4,381,198 za chai iliyotengenezwa zilipatikana. Kiasi hiki kilikuwa juu ya kile cha mwaka uliotangulia cha kilo 16,171,944 za majani mabichi na kilo 3,826,319 za chai iliyotengenezwa.Tofauti ilikuwa kilo 2,842,658 za majani mabichi na kilo 554,879 za chai iliyotengenezwa.Mapato haya kwa kibadilisho cha 23.04 kwa mia ni sawa na kilo 4.34 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 298.73. Bei hii ilikuwa ya juu ikilinganishwa na bei ya mwaka uliotangulia ya Kshs.266.48. Kwa hivyo Kampuni ilikuwa na tofauti katika hizo bei ya Kshs 32.25 kwa kila kilo moja ya chai iliyouzwa. Bei ya chai iliyotengenezwa na kuuzwa katika mwaka ni sawa na Kshs.68.83 kwa kila kilo moja ya majani mabichi.
GHARAMA YA UTENGENEZAJI
Gharama ya utengenezaji ilipanda katika mwaka na ilikuwa Kshs. 77.74 kwa kila kilo moja ya chai iliyotengenezwa. Gharama wastani ya mwaka uliotangulia ilikuwa Kshs.70.71 na kwa hivyo tofauti ikawa Kshs 7.03 kwa wastani kwa kila kilo moja ya chai iliyotengenezwa.Gharama ya utengenezaji imejumuishwa na ile ya malipo ya majani chai kwa mwezi ya kshs 54.09 kwa kila kilo moja ya chai iliyotengenezwa yenye ilikua juu
ikilinganishwa na ile ya mwaka uliotangulia ya kshs 50.72 kwa kila kilo moja ya chai iliyotengenezwa.Gharama ya utengenezaji katika mwaka ilikuwa sawa na Kshs 17.91, kwa kila kilo moja ya majani mabichi,ikilinganishwa na mwaka uliopita ambapo gharama ilikuwa Kshs 16.73.
MALIPO YA MAJANI CHAI NA MGAO
Kampuni iliweza kulipa malipo kwa wakulima ya Kshs.1,035,203,166 kwa majani chai iliyopokewa kiwandani ikilinganishwa na yale ya mwaka uliopita ya shilingi 840,132,485. Kampuni iliweza kulipa malipo ya kwanza ya Kshs. 12.00 kutoka Julai 2011 mpaka Machi 2012 na kshs.14.00 kutoka Aprili 2012 mpaka Juni 2012 kwa kilo moja ya majani mabichi ambayo ni sawa na Kshs. 54.09 kwa kila kilo moja ya chai iliyotengenezwa. Baraza la Wakurugenzi walipendekeza malipo ya mgao ya asilimia tano kwa wanahisa wote wa hisa za "B" waliokuwa katika kitabu cha wanahisa cha kampumi mnamo tarehe 30 Juni 2012. Kwa jumla shilingi 4,782,256 zitalipwa kama mgao.
Kampuni inaendelea kupanua eneo la kutandaza majani chai ikizingatia kwamba kwa sasa kiwango cha Majani chai tunachopata na kile tunachotarajia katika siku za usoni, huu mradi utaongeza ustandi wa chai na upungufu wa gharama ya kawi. pia
utawezasha uchukuzi wa majani mabichi ya chai kwa haraka.
Mwaka huu kampuni ilichaguliwa kuwa katika kampuni zile bora kwa kumbunguza gharama ya kawi na ika hitimu cheti.
Kampuni pia imenunua machine ya kisasa ya kusaidia uangalifu kamili wa magari wakati yanapo chukua kuni na majani mabichi ya chai.
Katika mwaka huu kampuni pia imenunua machine ya pili (firewood boiler) yenye itazaidia kupunguza grarama ya utumiaji wa mafuta. huu mradi unaendelea.
Kampuni imeendelea kutengeneza barabara zetu ambazo zimeboresha huduma ya uchukuzi wa majani mabichi ya chai.
Lazima tukumbuke ya kwamba kunawiri kwa Kampuni hii katika siku za usoni kutategemea sana mipangilio itakayowekwa sasa kama ya kupunguza gharama.
Tukumbuke ya kwamba biashara ya majani chai inakumbwa na matatizo kadhaa kutokana na ongezeko kama gharama za utengenezaji (zikiwemo gharama za mbolea, kawi na malipo kwa wafanyi kazi) na pia kutoimarika kwa sarafu ya Kenya ikilinganishwa na fedha ya kigeni.
Kwa niaba ya Baraza la Wakurugenzi, ningetaka kuwatolea shukrani wafanyi kazi wote wa Kampuni, wanahisa na wakulima wote waliopeleka majani mabichi ya chai katika Kampuni kwa kazi yao iliyowezesha Kampuni kufanikiwa katika mwaka tunaoufikiria.
FRANCIS M. MUGO (MWENYEKITI)
CORPORATE SOCIAL RESPONSIBILTY STATEMENT
Mununga Tea Factory’s corporate social responsibility is driven by a clearly defined vision that merges with the values, principles and aspiration of the stakeholders we interact with.
We recognize that we must integrate our business values, vision and mission to meet the expectations of our stakeholders. We acknowledge all feedback that we receive from our stakeholders.
We maintain open dialogue to ensure that we provide support according to our abilities. The stakeholders include the shareholders, regulators, community, employees and the environment.
Shareholders and Regulators
We are open and honest in communicating our strategy and performance to our stakeholders.
We have been involved in the following community initiatives:
Through farmers field school the company have started the energy management
project i.e. rocket jiko.
Continuity maintenance of the road network in the catchments.
Assisting the need student through DIT program.
Provision of clean water to some members of the community around the factory
Continuity in internships for the students
Mununga Tea Factory is an equal opportunity employer and this transcends through the
selection, training and reward of its human resource without any discrimination. The
employment policies are clearly defined. The details of the benefits are outlined in note 1(k) to
the financial statements on page 20.
The Company propagates tree seedlings which are sold to the community around the
catchment at subsidized prices.
The Company has also acquired land for planting trees, an initiative which will not only benefit
the Company in future but will also go a long way in conserving the environment.
The Company also put up a wet land project, a modern environmental effluent treatment plant
that will further enhance the already established effluent treatment system to ensure that the
environment is protected from the industrial effluents.