Online Reporter
Michael Tome,
Business Reporter
Tanganda Company Limited says its avocado oil extraction plant at Tingamira Estate commenced operations last month, marking a significant milestone in its diversification efforts.
The plant, established through a joint venture with Trade Link Global BV of the Netherlands, is already supplying the product to several of its markets across the globe.
This initiative is part of Tanganda’s strategy to add value to its products and reduce reliance on its traditional cash crops. Tanganda has been expanding its avocado production and export capabilities, focusing on sustainable growth and diversification.
Establishing an avocado oil extraction plant is a strategic milestone for Tanganda, enabling the company to diversify its products and increase both revenue and profitability.
Avocado oil is a premium product used in various industries, including food (as a high-quality cooking oil and salad dressing), in the cosmetics and pharmaceuticals sectors (for skincare, haircare and health supplements), as well as in industrial applications such as lubricants, biofuels and organic products.
Its current high demand globally presents Tanganda with an opportunity to grow significantly in terms of profitability and revenue.
“The company entered into a joint venture with Trade Link Global BV of Netherlands in establishing an avocado oil extraction plant at Tingamira Estate. The oil extraction plant commenced operations in May 2025 and oil exports to already established markets are underway,” said Tanganda Company Limited Chairman Herbert Nkala in the group’s half-year financials to March 2025.
Extracting avocado oil involves several steps, including washing, peeling, depitting and pulping, followed by oil extraction using centrifuge methods, clarification and refinement.
These developments come as Tanganda Company Limited reported a 27 percent decline in revenue to US$8 million for the half-year ending March 2025, down from US$11 million in the comparable period last year.
This decrease was attributed to late rains that negatively impacted tea production, resulting in a 73 percent drop in profit after tax to US$539 983, compared to US$2 million the previous year.
Tea production suffered due to unfavourable weather conditions, with bulk tea production decreasing by six per cent to 4 736 tonnes. However, production improved in the second quarter due to better rainfall, a situation expected to enhance exports by the year’s end.
The company exported 2 174 tonnes of bulk tea, which is 28 percent lower than the previous year’s 3 005 tonnes, at an average export price of US$1,29 per kg, four percent lower than the previous year’s US$1,35 per kg, due to oversupply and stock build-up in Kenya.
“Revenue for the half year of US$8 million was 27 percent lower than prior year of US$11 million due to the impact of late rains on tea production and formal retail challenges that weighed down.”
The macadamia nut harvest commenced towards the end of the half-year period, and the company anticipates higher earnings given the firming prices globally.
Coffee production and exports have also declined due to ageing coffee plants, scheduled uprooting, and unfavourable weather patterns; however, volumes are expected to improve as new coffee plants mature.
The beverage segment faced challenges as well, with packed tea sales declining by 18 percent compared to the prior year. Volumes began to recover in the second quarter, benefiting from a stabilised exchange rate.
