eBusiness Weekly
Michael Tome
Tanganda Tea Company Limited says it expects enhanced avocado and macadamia yield in the next three to five years given the maturity profiling of plantations and sustained investments being directed into the value chains.
Traditionally, Tanganda was involved in tea and coffee production but in recent years diversified operations to include the sought-after macadamia nuts and avocado fruit in its basket of produce.
Herbert Nkala, Tanganda board chairman, in the company’s financials for the year ending September 2022, said the diversification has begun to “yield tangible benefits” and the firm would continue to branch out its operations to maximise benefit.
To optimise the production in the avocado segment, Tanganda added 49 hectares to the avocado plantation bringing the total hectarage to 497.
The investment came as avocado exports during the year recorded a seven percent growth to 4 268 tonnes from 4 001 tonnes in the prior year despite a 38 percent decline in export selling prices to US44 cents per kg from US77cents, owing to high quantities supply to the European market by other producers, particularly Peru.
This was compounded by Covid-19 induced restrictions which reduced volume uptake mainly by the hospitality sector in Europe.
In terms of the macadamia nuts, the firm indicated that it will be exploring value addition strategies as the market is fast digressing from the uptake of the traditional nut-in-shell to kernel.
Due to the growing demand for shelled macadamia nuts (kernel), exports declined 16 percent in the 2022 financial year to 670 tonnes from 800 tonnes realised in the prior year.
Generally, the macadamia production at the estate remained flat at 1076 tonnes given the unfavourable weather pattern which was mainly characterised by dry patches during the season.
However, to enhance production output across its key crops including coffee and tea, Tanganda indicated that it will be investing more in mechanised and efficient farming practices to spur volumes meant for local and regional markets.
“As the world moves out of the pandemic we expect that both export volumes and selling prices will firm up,” said Nkala in the financials, while giving the prospects of operations going into 2023.
Meanwhile, tea exports surged to 7 125 tonnes, an 11 percent growth compared to tonnage realised in 2021. The growth in tea exports was met by favourable export marketing prices which firmed to US$1, 42 per kg from US$1,39 per kg in 2021.
The growth in tea exports was recorded albeit a decline in overall tea production as yield declined by six percent to 8 670 tonnes from 9 179 tonnes attributable to dry weather during the cropping season.
Coffee exports closed the year at 96 tonnes (selling at an average price of US$6, 65 per kg) which is 14 percent ahead of 84 tonnes recorded in 2021.
This output contributed to a 2, 9 percent increase in export sales to $6, 3 billion while local sales also improved to $5,89 billion translating to a 21,6 percent growth.
Resultantly, the company realised a profit after tax of $583 million a recuperation from a loss of $318 million in the previous year.
Revenue improved by 7,7 percent to $12,22 billion in inflation-adjusted terms while operating profit increased by 2, 3 percent to $2,07 billion.
However, Tanganda bemoaned logistical delays during the period under review that emanated mostly from global supply chain disruptions leading to lower local packed tea order fulfillment, particularly in winter which is a peak season.
It also indicated that it was greatly affected by liquidity challenges which continue to affect disposable income in the economy thereby affecting the uptake of volumes.
A final dividend of US0, 06 cents per share was declared, after an interim dividend of 50 cents (ZWL) per share was paid in July 2022.
This all comes after the successful listing of Tanganda Tea Company Limited on the Zimbabwe Stock Exchange (ZSE) on 3 February 2022, following its unbundling from Meikles Limited.
The year however ends with the retirement of John Moxon from the board of directors after a celebrated service that spanned over five decades.
