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Elton Manguwo

ZIMBABWE Stock Exchange listed tea processing giant Tanganda Tea Company has recorded a revenue growth of 7, 7 percent $11, 35 billion to $12, 22 billion, as key horticulture investments pay off following the company’s unbundling from Meikles Limited.

“The company invested in four value chains – tea, macadamia nuts, avocados and coffee with this diversification of operations yielding tangible benefits. It is expected to continue playing such a pivotal role in the coming years,” said the company chairman, Mr Herbert Nkala in the financial statement for the year 30 September 2022.

The company has identified strategies to invest in value addition options amid declining of global prices of nuts from an average of US$5, 12 per kg achieved in the prior year to US$3, 26 per kg in the current year.

“The macadamia market is shifting to kernel from the traditional nut-in-shell market resulting in exports declining by 16 percent from 800 tonnes in the prior year to 670 tonnes in 2022 prompting the need to explore value addition,” said Mr Nkala.

Furthermore, the company increased the area under avocado by an additional 49 hectares bringing the total to 497 hectares as avocado fruit exports grew by 7percent from 4 001 tonnes in the prior season to the current 4 268 tonnes.

The group is set to enhance mechanised efficient farming practices to maximise production output of avocado and macadamia, which is expected to increase with the enhanced maturity profiling of plantations over the next three to five years.

With the Government encouraging demand driven production in the horticulture sector, the group’s investment pipeline in bulk tea was necessitated by a growing demand stemming from the dry weather experienced during the season.

“The group recorded bulk tea exports growth of 11 percent to 7 125 tonnes from the prior season’s 6 392 tonnes as the export selling price firmed up to US$1, 42 per kg from US$1, 39 per kg in the previous season at the backdrop of a six percent decline in tea production volumes to 9 179 tonnes,” said Mr Nkala.

Furthermore, the company invested in new machinery at the packaging factory in Mutare in line with its value addition strategy resulting in the realisation of factory conversion efficiencies. This investment is expected to increase volumes in both the local and regional market.

The group recorded overall packed tea sales volumes of 1 994 tonnes nine percent below 2 191 tonnes recorded in the prior year.

Mr Nkala highlighted the company introduced Makoni, Resurrection and Rosella herbal infusions onto the market in response to customer preferences in response to liquidity challenges affecting disposable income in the economy to impact the level of sales volumes.