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Packaging Cashewnuts for Export is Now a Local Affair
News Source
Daily News
July 03, 2008
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WHEN you talk of Olam Company in Mtwara Municipal and its outskirts, you simply talk of thousands of people, who depend on the factory to earn their daily bread. By no doubt the leading cashewnut factory in the country, started its activities there in 2003.

Recently, it celebrated five years of excellent performance in the region and the whole country. The company had been operating for many years before engaging in the buying of crops from farmers for export.

For years, they have established activities in various upcountry regions like Mbeya, Mwanza, Mara and Kagera. In these places they buy coffee, cocoa, cotton, yellow grains, pigeon pea and cashewnut. The establishment in Mtwara has gained good momentum for the last five years in these areas.

“We are operating in other 50 countries, apart from Tanzania and we have planned to invest more in this country plus contribute to its economic growth,” said Mr Aromal J Koshi, Olam’s Zonal Manager. He covers Dar es Salaam and Mtwara regions. He spoke to the ‘Daily News’ during the company’s anniversary celebrations in Mtwara recently.

The company has recorded a tremendous success for the past five years when it opened its doors in Mtwara. It started with 350 workers, who were cutting only four metric tons per day but now, the factory has more than 4000 workers, who are cutting 72 metric tons per day. They are employed on either permanent or temporary contracts.

However, over 80 per cent of the temporary workers are paid on weekly basis.

The first thing to note when you visit the factory is thousands of young ladies, who are busily involved with a stage in the cashewnuts production line. It is stated in their job agreement that workers are paid according to their performance and not just the number of days one has worked. For every one kilogram of cashewnut they prepare for packaging, 200/- is paid to a worker.

An Administrative Officer at the factory, Mr Gilbert Hyagilla, said, “In a normal circumstance, depending on one’s speed and commitment, 24 kilograms of shelved cashewnut can be collected a day. Many workers have a good life through this job and they are really happy.”

But why is it that 98 per cent of the workers are all females? Mr. Hyagilla has a quick answer on to this question. He says, Makonde boys are not naturally good in casual labour and that they do not enjoy the work, as is the case with the ladies. He also added that the job requires one to sit down and work becomes tiresome and cumbersome to many male workers.

The Administrative Officer said Olam came as a savior to many people in this region, especially ladies, as in the past they were greatly intimidated by their families and husbands, as a result of them not contributing to their homes.

“But some people can scoop even more than 60,000/- a month, depending on their performance and that is really great for many, according to the life standards there. No wonder many have built houses for their families through this job,” Mr Hyagilla said.

As you tour the factory from section to section, you pass through those starting the process in the cutting, then peeling, grading and eventually packaging. You’ll find females busy as bees, while few male workers and a few other female supervise the production. They are all happy and that was seen during the celebration of the anniversary.

Reading a message on behalf of other workers, Ashura Issa, who has worked for the factory since its inception five years ago, said it has helped them by providing employment, thus enabled them fight poverty and pay for the education of their children.

“We thank God that the factory has managed to sustain us here, but more importantly for our government, for following the recent directives on cashewnut purchasing system from villages that enabled our factory to buy enough and keep us on the job,” said Zuhura, while other workers clapped and chanted.

Available reports revealed that nearly 701m/- generated were circulated in the whole Municipal Council, through small and medium businesses established by Olam workers. Every month nearly 300m/- is paid as wages and salaries. More indirect employment is also provided, from which income is generated.

From a business point of view, the company was proud of having a record of 11,200 metric tons of processed cashew kernels exported to Europe, the US and South Africa. This has helped them to build the reputation of the Olam brand. Yet, management says that is not enough, as more need to be done.

“Local entrepreneurs have been encouraged to forge successful partnerships with the company to encourage grass root processing. As a result, i

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