Tanganda upbeat about growing regional exports

28 Jun, 2022 - 00:06 0 Views
Tanganda upbeat about growing regional exports Mr Nkala

The Herald

Business Reporter

Tanganda Tea Company says its investment in new machinery at the packaging factory in Mutare is expected to increase volumes in regional markets.

The tea company is the biggest grower and producer of tea and coffee in Zimbabwe and one of the biggest tea producers in Africa with extensive operations in Mutare in the Eastern Highlands of Zimbabwe.

Group chairman, Mr Herbert Nkala said in a statement of the group’s interim financials for quarter ended March 31, 2022  the company invested in new machinery at the packaging factory in Mutare in line with its value addition strategy and factory conversion efficiencies.

“The investment is expected to grow volumes in the regional market,” he said. Tanganda’s regional market territory currently consists of Zambia, Malawi, Mozambique, South Africa, Botswana and Namibia.

He added that the diversified agro-based firm has committed to investing in modernising the factory to meet world class standards as well as serve the markets.

Mr Nkala said the company constructed solar plants at three of the five estates and this has significantly reduced reliance on power from the national grid.

“Further benefits from the investment are expected to be fully realized once full reticulation and net metering have been implemented before the end of 2022,” he said.

Tanganda re-listed on the Zimbabwe Stock Exchange (ZSE) effective February 03, 2022 as the company was now in a position to unlock value for shareholders as a stand-alone entity.

Established in 1924, Tanganda was once listed on the ZSE, but voluntarily delisted in 2007 following its merger with Meikles, Cotton Printers and Kingdom to form Kingdom Meikles Limited.

The marriage, however, collapsed after three years, with Tanganda and Cotton Printers becoming wholly owned subsidiaries of Meikles and Kingdom Bank going separate ways in 2010.

Tanganda is a diversified export business with focus also on coffee, water, macadamia nuts, and avocado to its portfolio.

According to Mr Nkala, yields of avocado and macadamia are expected to increase with enhanced maturity profiling of plantations over the next three to five years.

“Yields of avocado and macadamia are expected to increase with enhanced maturity profiling of plantations over the next three to five years.

Mr Nkala said in-spite of negative dry weather in December 2021 and February 2022, pandemic and global conflict headwinds, revenue remained resilient at $1,909 billion, seven percent down from $2,061 billion achieved in the same period of the previous year.

Mr Nkala said that although bulk tea production for the period of 5 935 tonnes was 12 percent below prior year production of 6 762 tonnes due to dry weather in December of 2021 and February 2022, bulk tea exports of 3 747 tonnes were 14 percent above 3 278 tonnes sold in the comparable period of last year.

The export average selling price firmed up slightly to US$1,43 per kg from prior year average selling price of US$1,41 per kg.

He said that avocado and macadamia harvest commenced in earnest at the end of the reporting period and the revenue was recorded in the second half of the financial year. Coffee exports of 96 tonnes were 14 percent above 84 tonnes achieved in the prior year.

Average export selling price of US$6,67 per kg remained slightly firmer than US$6,50 realised prior year.

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