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Michael Tome
Listed agricultural concern, Ariston Holdings Limited is looking at growing its export revenue in the 2020 financial year in an effort to weather the adverse effects of the prevailing economic environment currently being experienced in the local economy.
In the year to September 30, 2019, exports helped the Group remain profitable in real terms.
Ariston, which has vast interests in tea, avocado and macadamia production indicated that “channelling more produce into the export market will promote sustained growth in the group’s operations”.
To ensure that this proposal comes to fruition, Ariston says it “will continue to invest in new and improved equipment and technology while embracing the latest agricultural techniques in order to increase capacity and improve efficiencies”.
Ariston also hinted on growing its focus on product quality and maintaining international accreditation.
In the period under review the agricultural concern said its overall revenue for the fruit category consisting of pome fruit, stone fruit, avocado, and banana volumes increased by 440 percent compared to the prior comparable period.
Avocado contributed 41 percent to overall fruit revenue which was significantly up from 4 percent contribution in prior year.
On the other hand, tea production volumes went down nine percent to 2 985 tonnes compared to the prior year while macadamia production volume dipped by 4 percent to close the period under review at 1 301 tonnes notwithstanding firm international macadamia prices and demand.
“The group continues to be export-oriented with plans in place to increase export revenue generation by channelling more produce into export markets for 2020,” said the Ariston chairman Alexander Jongwe in a statement accompanying financial results for the year ending September 30, 2019.
Despite largely reported erratic rains in the 2019/20 summer cropping season Ariston said it remains upbeat owing to the favourable climate in the Eastern Highlands aided by irrigation which have both buoyed their otherwise under threat yield.
The group also relies on installed irrigation capacity to meet its water requirements for dependable farming operations.
“Fortunately due to the conducive micro-climate in the Chimanimani and Chipinge areas the orchards are in good shape and yields are expected to exceed those achieved in 2019,” said Mr Jongwe.
The group says it is banking on favourable avocado prices which is their major export crop. Avocado prices have remained unchanged in US dollar terms while the rest of the fruit category registered price improvements to varying extents owing to price adjustments that were effected to counter inflation.
Bongani Ndlovu