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News Article - Agriculture

Magwa keeps on brewing success


Posted on: Thursday, 24 November 2005. Article source: Daily Dispatch

Magwa's general manager Ian Crawford said new equipment and improved quality would allow the estate, South Africa's largest producer, to reach a target this season of about 2500 tons of tea.

"Last season we only started picking in December, but this season we started in September and despite a lull due to late rains we have already picked 500 tons of tea.

"The season starts to pick up around December and stays productive till March."

The estate was revived with involvement from Indian tea company JV Gokal and German arms manufacturers Ferrostaal in July, last year, at which stage no tea had been produced there for five years.

Crawford said the turnaround was remarkable.

"The quality is improving all the time and the quality will improve even more now that we have new equipment."

In the off-season, Magwa bought three new processing machines each of which is capable of dealing with almost twice as much as each of the two old machines on the estate.

"The machines can work better and cut the tea finer, again improving quality."

All of the tea produced is being sold to the local market.

"Our quality is good enough for export but the weak rand and the competition from other Southern African countries like Kenya and Malawi, whose operating costs are a lot lower, make exports difficult at present."

However, Magwa is sending samples to other countries and is trying hard to find "niche markets".

"Ideally we would like to be able to supply a large supermarket chain or a prestige store like Harrods with our tea in their packaging as they do pay a premium for quality and exclusivity," Crawford said.

The operation has improved and Crawford and his staff are looking forward to the height of the season where yields and quality are expected to be much higher.

The estate plans to expand its growing area and will start outsourcing its growing to emerging farmers around the estate from next season, Crawford said.

"Magwa has to produce 3500 tons to show a profit and last season they produced 1500 tons.

"This season we expect a little more than 2500 tons so we should be in the black by next year," Pierre Leppan, the Eastern Cape Development Corporation's executive manager for trade promotion, said.

 
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