The unexpected suspension of operations at Lujeri Tea Estates Limited, one of Malawi’s leading tea producers, has sparked nationwide concern, with over 10,000 estate workers and smallholder farmers now facing job and income losses.
According to information available on www.lujeri.com, by 2007, the number of smallholder farmers selling their tea to the company had increased to 6,000 from 1,100 in 2001.
The company, which contributes 22 per cent of Malawi’s tea exports, announced two weeks ago that it was halting all tea production and would no longer buy from smallholder farmers, according to Nation Online
It has also stopped buying tea from thousands of smallholder farmers who sell their tea to the company.
With the tea industry being one of Malawi’s major forex earners the suspension at Lujeri poses serious implications for the national economy, especially as the country faces inflationary pressures and foreign exchange shortages
The development comes as Malawi is still in shock from the recent closure of Shoprite, the largest retail supermarket chain in the country. Citing a challenging economic environment
