Chronicle Editor
Sikhulekelani Moyo, [email protected]
LISTED tea processing firm Tanganda Tea Company is investing in dams, reservoirs, and precision irrigation systems to mitigate the impact of a drought due to El Nino.
El Nino is a climate phenomenon involving the warming of the ocean surface temperatures in the eastern Pacific Ocean near the equator.
According to the 2023/2024 rainfall season forecast, the bulk of Matabeleland North, parts of Midlands covering Gokwe North and South districts, and parts of Matabeleland South province covering Bulilima District are expected to receive below-normal-to-normal rainfall, while normal rainfall with a bias towards below normal rainfall is highly likely for the remaining provinces for the sub-season October-November-December 2023.
In a statement accompanying abridged audited financial statements for the year ended 30 September 2023 Tanganda chairman Mr Herbet Nkala said the late onset of the rain and its relatively uneven distribution led to a decline in bulk tea production.
However, he said the company has invested in water harvesting techniques which will assist in mitigating the effects of the drought.
“The predicted El Nino is not expected to significantly impact avocado and macadamia yields as the company invested in dams, reservoirs, and high-technology precision irrigation to mitigate the impact of a drought.
“Yields of avocado and macadamia are expected to increase with enhanced maturity profiling of plantations over the next three to five years,” he said.
Tanganda, which is turning 100 years this year, noted that the late onset of the rain and its relatively uneven distribution led to a decline in bulk tea production.
The bulk tea volume of 7 894 tonnes was nine percent below 8 670 tonnes produced in the prior season.
“In turn, following the production trend, bulk tea exports of 6 238 tonnes were 12 percent below the previous year of 7 125 tonnes.
“The export average selling price increased slightly to US$1,44 per kg from the prior season’s average selling price of US$1,42 per kg,” said Mr Nkala.
Tanganda is also planning to invest in the value addition of macadamia in a bid to mitigate the effects of price fluctuations of primary products.
“The company exported 1 551 tonnes of macadamia (nut-in-shell) compared to 621 tonnes sold in the prior year. The unsold balance of 350 tonnes from the preceding year’s stocks was exported during the financial year,” he said.
“The impact of the shift in market preference, from nut-in-shell to kernel, was evident as the prices realised declined by 41 percent to US$1,93 from US$3,26 per kg realised to September 2022.
“The company strategy is to invest in value addition options to mitigate primary produce price fluctuations and to diversify markets into Europe and America.”
Meanwhile, Mr Nkala said as a result of the biennial bearing phenomenon coupled with the impact of the extensive pruning carried out on 55 hectares of mature trees to rejuvenate them, avocado exports of 2 148 tonnes were 50 percent below the prior year of 4 321 tonnes.
He said the average export price remained at 44 US cents per kg, as achieved in the prior year.
“Forty-four additional hectares of avocado plantation were established during the financial year, bringing the total hectarage under avocado to 541 hectares,” he said.
Financially, Tanganda’s revenue for the year was $128,99 billion on inflation adjusted terms representing a 42 percent increase from the prior year’s revenue of $90,77 billion.
In historical cost terms, a 678 percent growth from $7,35 billion to $57,24 billion was achieved.
“The company suffered an inflation-adjusted loss after tax of $17,05 billion compared with a profit after tax of $4,33 billion in the previous year. In historical cost terms, the profit after tax of $15,45 billion grew by 270 percent over $4,17 billion in the previous year,” he said. —@SikhulekelaniM1
Online Reporter