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Judith Phiri, Business Reporter
LISTED tea processing giant, Tanganda Tea Company recorded revenue of $32 billion for the third quarter ended 30 June, which was 45 percent more than the $22 billion achieved in the previous financial year, in inflation-adjusted terms.
Tanganda Tea is the biggest tea and coffee producer in Zimbabwe and is also ranked as one of the top producers of tea in Africa.
In a trading update for the period under review, the company secretary, Mrs Sharon Kodzanai, said revenue for the nine months also grew.
“Revenue for the nine months ended 30 June 2023 of $100 billion grew by 61 percent from prior year of $62 billion. Our investment in solar is yielding results by reducing the cost of power. Fortunately, power supply from the national grid to the operations improved in June and the future looks promising in power supply from both our own solar system investment and improvement in supply from the national utility,” she said.
She said cumulatively, rainfall received on the estates has been in line with their 10-year averages, however, winter rains have been lower than past years affecting tea production in winter.
Mrs Kodzanai said management will keep monitoring the weather patterns taking possible appropriate action.
“As a result of the late onset of the rainy season, bulk tea production was four percent below comparable period in prior year and in turn bulk tea export volumes were 12 percent below prior year. Packed tea sales volumes were seven percent below prior year as the rapid decline in local currency saw volumes with some of the major customers decreasing.”
Mrs Kodzanai said to counter this impact, the company continues to develop alternative trading channels.
She said macadamia production was in line with prior year, while the macadamia marketing season commenced earlier than the previous year with 260 tonnes of current year crop already exported in addition to 475 tonnes that had remained unsold at the end of prior year. In terms of avocado production, Mrs Kodzanai said they were 38 percent below when compared to the previous year.
“This was as a result of biennial bearing phenomenon coupled with the impact of the extensive pruning carried out on 55 hectares of mature trees to rejuvenate them. Revenue from export of avocados is expected to be recognised in the last quarter of the financial year.”
Online Reporter