An 84% increase in avocado production has been instrumental in Tanganda's financial turnaround, marking a shift from the previous year's loss to profitability. Situated in Zimbabwe's Eastern Highlands, Tanganda operates across five estates, engaging in both fruit and tea cultivation. This year, the company reported a revenue increase of 9%, totaling US$25.7 million, and achieved a profit of US$1.4 million, a notable recovery from a US$3.1 million loss.
Avocados emerged as a key contributor, with the company harvesting 3,976 tons, an 84% increase from the previous year, benefiting from the maturation of its plantations. This surge in production coincided with a 40% growth in exports and an increase in global avocado prices from 44 cents per kg to 75 cents per kg. Surplus avocados were directed towards oil extraction and the domestic market.
Additionally, Tanganda's macadamia segment saw a 77% increase in production, reaching 1,626 tons. Despite export challenges due to shipping disruptions, the company is exploring value-addition strategies to mitigate the impact of fluctuating primary produce prices.
The tea division experienced varied outcomes, with a decline in local packed tea sales attributed to packaging shortages and a weakening retail sector. Conversely, tea exports witnessed a 41% increase. Investments in solar energy have also paid off, safeguarding the company against power disruptions and enabling the sale of excess electricity.
Following its separation from Meikles in 2021, Tanganda has leveraged the proceeds from the sale of Meikles Hotel, channeling US$20 million into agricultural ventures.
Source: ZWNews