Tinaye Agere
Michael Tome
PLANTATION maturity and an increase in export prices spurred Tanganda’s earnings from avocado production during the 2024 financial year to September.
The company harvested 3 976 tonnes of avocados, an increase of 84 percent compared to the previous year.
During this period, Tanganda’s export volumes grew by 40 percent, coinciding with a considerable rise in avocado prices, which rose from 44 cents per kilogramme the previous year to 75 cents per kg.
This notable increase in production and favourable pricing enabled Tanganda to return to profitability, posting a profit of US$1, 4 million after incurring a loss of US$3,1 million a year earlier.
The avocados that were not exported were redirected towards oil extraction and local market sales, maximising the value derived from the harvest.
“Avocado production of 3 976 tonnes grew by 84 percent over prior year production of 2 156 tonnes due to the increased maturity profile of the plantations. The crop’s exports grew by 40 percent to 2 997 tonnes from 2 148 tonnes achieved in the prior year,” said Tanganda Tea Company board chairperson Herbert Nkaka in the company full-year financials to September 2024.
“Growth in export volumes was buttressed by the firming of export prices following global easing of Covid-19 imposed restrictions. The company sold 60 percent of its non-exportable secondary grade for oil extraction and to the retail and informal sector, while 40 percent was unsaleable . In the ensuing financial year, it is expected that the previously unsaleable secondary grades will be channelled towards crude oil extraction.”
With five thriving fruit and tea estates located in Zimbabwe’s Eastern Highlands, Tanganda recorded a 9 percent increase in overall revenue to US$25,7 million for the financial year.
The macadamia division also experienced substantial growth, with production rising by 77 percent to 1 626 tonnes.
However, this segment faced challenges, including logistical issues stemming from rescheduled shipping arrangements, which disrupted exports.
Additionally, a shifting consumer preference towards kernels over nuts-in-shell contributed to declining market prices.
To mitigate risks associated with fluctuations in primary produce prices, Tanganda is strategically investing in value addition processes.
The tea segment yielded mixed results, while local sales of packed tea declined partly due to shortages in packaging materials and a weakening formal retail environment.
Exports of tea surged by 41 percent, demonstrating strong international demand.
Tanganda’s investment in solar energy significantly helped the company from adverse effects of power cuts experienced throughout the year.
The installation of solar plants at three of its five estates — Tingamira, Ratelshoek and Jersey—has not only provided a sustainable energy solution but has also enabled the company to explore opportunities to sell excess electricity back to the national grid.
“Grid tying and net metering arrangements are key strategies being pursued to capitalise on the surplus power generated from our solar facilities, ultimately aiming to reduce energy costs,” said Mr Nkala.
Tanganda, which was disposed from Meikles in 2021, has strategically leveraged the proceeds from the US$20 million sale of the Meikles Hotel to reinvest in its agricultural operations, highlighting a commitment to sustainable growth and diversification within the sector.
Online Reporter