By Alois Vinga
TANGANDA Tea Company has seen exports growing by 14% during the six months ended March 31, 2022 on the back of increasing selling prices on the international arena.
The export growth is in line with the country’s broad economic thrust, which aims at positioning companies to generate enough foreign currency revenue through foreign sales.
Presenting the group’s performance this week, Tanganda board chair, Hebert Nkala, said despite depressed production during the period, exports managed to cushion the gap.
“Although bulk tea production of 5 935 tonnes for the period was 12% below prior year production due to dry weather in December of 2021 and February 2022, bulk tea exports of 3 747 tonnes were 14% above 3 278 tonnes sold in the comparable period of last year,” he said.
On the back of the developments, 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.
“Coffee exports of 96 tonnes were also 14% 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. The company is realising the benefit of its diversified operations,” said Nkala.
Profit before tax for the period in inflation terms amounted to ZWL 589 million compared to ZWL 749 million achieved prior year.
Profitability was adversely affected by the disparities between increase in production costs and movement in exchange rate.
The company decried the pandemic and global conflict, which created global logistical and supply challenges but packed tea sales volumes, were resilient at 933 tonnes, 4% below 1 033 tonnes in prior year.
Going forward, the company expects yields of avocado and macadamia to increase, with enhanced maturity profiling of plantations over the next three to five years.
The solar plants constructed at three of the five estates have 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.
“The Company has 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,” added Nkala.
