Mcleod Russel plans another major tea estate purchase in Uganda, significantly increasing its investment base in the East African country.
India-based tea company, Mcleod Russel
, is looking to purchase land in Uganda for a major investment in the tea industrict.
Last year Mcleod Russel bought 60 tea farms in southwestern Uganda to increase its portfolio in East Africa. It currently produces 15 million kilograms of tea from these farms and wants to branch out to meet the demand for an extra 60 million kilograms every year.
A news statement from Mcleod Russel managing director, Aditya Khaitan, says there is no more land in India to meet the growth of the tea industry. He says his company hopes to purchase considerable land in Uganda, Rwanda and other African countries to meet the global demand for black tea.
Khaitan says Africa is the most promising location to plant new tea bushes. He says there are many areas where cultivation is possible but that have not yet been properly developed.
India is still the world's biggest producer of black tea, with annual output of 980 million kilograms. This accounts for 45 percent of the total global tea production.
The world consumes about 3.3 billion kilograms of tea a year, one third of it green tea consumed mainly in China. Black tea, the type customarily consumed in Europe and India, accounts for the rest.
The Mcleod Russel statement says the African purchases are part of an ongoing process to boost production on the continent.