Online Reporter
Nelson Gahadza
Business Reporter
Diversified agricultural concern Tanganda Tea Company Limited is banking on stronger value addition, market penetration and operational efficiencies to drive recovery after production volumes came under pressure during the nine months ended June 30, 2026.
The Zimbabwe Stock Exchange-listed company said the operating environment remained relatively stable during the third quarter, although weather risks and subdued demand in some of its key export markets continued to weigh on performance.
Bulk tea production for the nine months was 28 percent below the comparative period, reflecting, among other factors, management’s decision to suspend out-of-season plucking when yields fell below economically viable levels.
The company said the move, while reducing reported production volumes in the short term, allowed it to undertake comprehensive maintenance programmes across its processing facilities ahead of the new tea season.
“While this affected reported production volumes, the initiative is expected to support factory throughput and product quality in future seasons,” chairman Mr Addington Chinake said in a trading update.
He said the decision highlights management’s increasing focus on protecting the long-term productive capacity of the business rather than chasing volumes at uneconomic levels.
Despite the lower bulk tea output, export sales volumes increased 9 percent, supported by stocks carried forward from the previous year. Packed tea performed particularly strongly, with sales volumes surging 145 percent compared with the prior period.
Mr Chinake attributed the improvement to sustained demand for its core brands and route-to-market initiatives implemented during the period.
“The company will continue strengthening domestic and regional distribution partnerships while improving market coverage as the beverage business remains an important avenue for growing revenue and generating more value from its agricultural base,” he said.
For the period under review, performance across the horticultural portfolio was mixed.
Macadamia production declined 5 percent, while export sales volumes fell sharply by 45 percent amid subdued international demand and an ongoing supply-demand imbalance in the nut-in-shell market.
Mr Chinake, however, said the company is pursuing value addition and market diversification to reduce its exposure to the traditional nut-in-shell market.
“The strongest production performance came from avocados, with output rising 95 percent year-on-year as the company’s orchards continued to mature,” he said.
He noted that the increased crop is supporting Tanganda’s avocado oil extraction venture with Netherlands-based Trade Link Global BV.
“The plant, which commenced operations in May 2025, provides an avenue for the company to capture greater value from its fruit while reducing losses associated with lower-grade produce,” said Mr Chinake.
Tanganda earlier this year completed a US$8 million capital raise through a renounceable rights offer which was designed to address persistent working capital pressures while supporting investments in plant, infrastructure and operational capacity.
The proceeds are being deployed towards working capital, supplier obligations, replacement of the Tingamira water bottling plant, infrastructure refurbishment and grid-tying of solar installations at Ratelshoek, Jersey and Tingamira estates.
The capital raise also brought a significant change to Tanganda’s shareholder structure, with Innscor Africa’s subsidiary, Rutanhi Beverages Limited, underwriting the offer and subsequently acquiring a 27 percent stake in the company.
Mr Chinake said the first four months after completion of the capital raise had largely been dedicated to renewing leadership structures, reviewing critical operations and overhauling financial reporting, export and accountability systems.
He said the rebuilding process would continue into the coming seasons as it works towards a sustainable business model supported by an appropriate capital structure and stronger financial position.
