Michael Makuza, Business Reporter
TANGANDA Tea Company Limited says its diversified agri-business value chains have led to significant growth with tangible benefits to the bottom line as a long-term operating strategy.

The company’s operations have expanded after it successfully listed on the Zimbabwe Stock Exchange (ZSE) in February 2022 and has since invested in four key value chains.

“The company has invested in four key value chains, namely tea, macadamia nuts, avocados and coffee. This strategy of diversifying operations has yielded tangible benefits and will continue to be a focus in the coming years,” company chairman, Mr Herbert Nkala, said in a statement accompanying the results for the 12 months ended 30 September 2022.

He said Tanganda has also invested in new equipment for packaging facilities in Mutare and expects to see more business growth going forward, with a focus on growing the local market and exporting.

“The company’s decision to invest in new machinery at the packaging factory in Mutare in line with its value addition strategy has resulted in the realisation of factory conversion efficiencies,” said Mr Nkala.

The company is expecting the investment to increase volumes in both the local and the regional markets.

Tanganda company started operations in the 1920s as a tea-growing experiment and has the country’s biggest hectare under tea at approximately 2 106 hectares, avocados 458ha, macadamia 850ha and coffee 185ha.

On the company’s operations, bulk tea exports grew by 11 percent to 7 125 tonnes from the prior season’s 6 392 tonnes and the average export selling price slightly increased to US$1,42 per kg from US$1,39 per kg in the previous year.

Mr Nkala said their avocado fruit exports grew by seven percent from 4 001 tonnes in the prior season to 4 268 tonnes.

However, the average export selling price of US 44 cents per kg was 38 percent lower than US$0,71 per kg in the prior year as a result of the oversupply on the European market by Peru, compounded by the Covid-19 pandemic that reduced volume uptake by the European hospitality sector.

The group said their macadamia nut production of 1 076 tonnes was nearly equal to last season due to the dry weather experienced during the season.

“The macadamia market is shifting to kernel from the traditional nut-in-shell market, resultantly exports declined by 16 percent from 800 tonnes in the prior year to 670 tonnes,” said Mr Nkala.

“Global prices of nuts declined from an average of US$5,12 per kg achieved in the prior year to US$3,26 per kg in the current year.

 

“To mitigate these developments, the company has identified alternative markets and strategies that include exploring value addition options.”

Coffee exports of 96 tonnes were 14 percent above the 84 tonnes achieved in the prior year.
The average export selling price of US$6,56 per kg remained slightly firmer than the prior year’s price of US$6,50 per kg. Mr Nkala said yields of avocado and macadamia are expected to increase with enhanced maturity profiling of plantations over the next three to five years.

“The company will enhance mechanised efficient farming practices to maximise production output,” he said.

Michael Makuza, Business Reporter
TANGANDA Tea Company Limited says its diversified agri-business value chains have led to significant growth with tangible benefits to the bottom line as a long-term operating strategy.

The company’s operations have expanded after it successfully listed on the Zimbabwe Stock Exchange (ZSE) in February 2022 and has since invested in four key value chains.

“The company has invested in four key value chains, namely tea, macadamia nuts, avocados and coffee. This strategy of diversifying operations has yielded tangible benefits and will continue to be a focus in the coming years,” company chairman, Mr Herbert Nkala, said in a statement accompanying the results for the 12 months ended 30 September 2022.

He said Tanganda has also invested in new equipment for packaging facilities in Mutare and expects to see more business growth going forward, with a focus on growing the local market and exporting.

“The company’s decision to invest in new machinery at the packaging factory in Mutare in line with its value addition strategy has resulted in the realisation of factory conversion efficiencies,” said Mr Nkala.

The company is expecting the investment to increase volumes in both the local and the regional markets.

Tanganda company started operations in the 1920s as a tea-growing experiment and has the country’s biggest hectare under tea at approximately 2 106 hectares, avocados 458ha, macadamia 850ha and coffee 185ha.

On the company’s operations, bulk tea exports grew by 11 percent to 7 125 tonnes from the prior season’s 6 392 tonnes and the average export selling price slightly increased to US$1,42 per kg from US$1,39 per kg in the previous year.

Mr Nkala said their avocado fruit exports grew by seven percent from 4 001 tonnes in the prior season to 4 268 tonnes.

However, the average export selling price of US 44 cents per kg was 38 percent lower than US$0,71 per kg in the prior year as a result of the oversupply on the European market by Peru, compounded by the Covid-19 pandemic that reduced volume uptake by the European hospitality sector.

The group said their macadamia nut production of 1 076 tonnes was nearly equal to last season due to the dry weather experienced during the season.

“The macadamia market is shifting to kernel from the traditional nut-in-shell market, resultantly exports declined by 16 percent from 800 tonnes in the prior year to 670 tonnes,” said Mr Nkala.

“Global prices of nuts declined from an average of US$5,12 per kg achieved in the prior year to US$3,26 per kg in the current year.

 

“To mitigate these developments, the company has identified alternative markets and strategies that include exploring value addition options.”

Coffee exports of 96 tonnes were 14 percent above the 84 tonnes achieved in the prior year.
The average export selling price of US$6,56 per kg remained slightly firmer than the prior year’s price of US$6,50 per kg. Mr Nkala said yields of avocado and macadamia are expected to increase with enhanced maturity profiling of plantations over the next three to five years.

“The company will enhance mechanised efficient farming practices to maximise production output,” he said.