Tanganda sees decline in tea and macadamia exports amid production timing and packaging challenges
Diversified agriculture firm Tanganda has reported a decline in export volumes for the third quarter ending June 30, 2024, due to production timing issues and packaging material constraints.
Bulk tea exports dropped by 9% to 4,504 tonnes compared to the same period last year. The decline was attributed to the timing of sales, with production being concentrated in the third quarter. The company also faced packaging supply shortages and working capital management challenges, which further impacted its export figures.
“The 9% decline in bulk tea exports reflects the timing of sales and concentrated production in the third quarter. However, we remain confident in our strategy to diversify and grow our presence in regional markets,” said Tanganda’s group company secretary, Ms. Sharon Kodzanai.
Despite the challenges in bulk tea exports, Tanganda’s diversification efforts showed promise, with packed tea export volumes into the region increasing by 50%. This growth in regional exports is part of the company’s strategy to reduce reliance on traditional markets.
“Our sustained market diversification efforts have resulted in a 50% growth in packed tea export volumes into the region. This is a clear indication that our strategy is yielding positive results, despite the challenges we face in other areas,” Ms. Kodzanai added.
However, the company’s macadamia exports told a different story. Despite a 61% increase in production volume due to improved yields per hectare as plantations matured, macadamia nut-in-shell exports declined by 33%, falling from 735 tonnes to 494 tonnes. This decline was attributed to a delayed start to the marketing season, which affected the timing of sales.
Financially, Tanganda reported revenue of US$3.4 million for the quarter, consistent with the previous year. However, revenue for the nine months ending June 30, 2024, declined by 5% to US$14.5 million, down from US$15.3 million in the prior year. The company’s profit after tax also saw a decline, dropping by 8% to US$1.2 million from US$1.3 million.
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