Tea Smallholder Factories records Rs. 152.4m profit

BY THEJA Vidyarupa, Akuressa group correspondent

SMALLHOLDER tea factories managed by the Tea Smallholder Factories Limited have shown a vast progress providing more facilities to their suppliers tea smallholders and employees during 2004-2005.

The Tea Smallholder Factories Limited (TSFL) recorded a pre-tax profit of 152.4 million an increase of 63% over the previous year.

This was due to the attractive market that existed during most parts of the year.

The gross turnover for the period is Rs. 1,539 million, an increase of Rs. 349 million or 29% on the previous year. The production in the financial year was 7.2 million kilograms. This is an increase of 408,000 kilograms on the year, previous season.

This was stated by the Chairman of TSFL C. Wijenaike in company's annual report for 2004-2005.

The TSFL has successfully retained a healthy smallholder base and as at the end of the financial year, catered to 7,976 direct and 5,188 indirect suppliers.

The total number of smallholders supplying leaf to the factories thus stands at 13,164. The ability of the company to retain smallholders that meet the criteria as regards the quality of green leaf, is attributed to the 'one to one' contact with the suppliers and well focused extension services. 90% of smallholders supply less than 600 kilograms green leaf per month.

Timely payment of attractive green leaf rates throughout the year was the special feature in retaining suppliers of a good standard of green leaf, in the year under review the tea smallholders were paid a sum of Rs. 1,017 million compaired with Rs. 780.8 million in the previous year, an increase of 30%.

The factory utilisation exceeds 90% which could be considered very satisfactory. The relationship with the smallholders over the decade has grown in strength resulting in greater confidence and loyalty.

Production of leafy teas has increased substantially with factories in the high and mid grown elevations, resorting to such manufacture outside their respective quality seasons.

Despite these increased volumes the TSFL's performance has continued to increase significantly due to its pursuit of processing a high quality end product.

Despite these increased volumes the TSFL's performance has continued to increase significantly due to its pursuit of processing a high quality end product.

The continuous improvement of working conditions and maintaining the highest standards in processing will assists the company in following the food factory concept which would be a pre-requisite in future trading.

Workers have been provided with uniforms and connected gear towards achieving a dignified workforce.