Subdued prices hit Ariston
LIVINGSTONE MARUFU
Agro-industrial concern, Ariston Holdings says subdued prices of macadamia nuts on the international market will have an adverse impact on the overall company’s performance.
Ariston group human resources manager Brian Kagondo told Business Times that macadamia nuts are one of the group’s cash cows.
“Macadamia nuts prices on the international market have remained subdued and this is a cause for concern for the overall group performance as the crop contributes a significant chunk to the group’s performance,” Kangondo said.
In a trading update for the quarter to June 30, 2022, volumes for the company’s macadamia nuts suffered a 14% decline.
Nut count was flat in the reviewed period.
Poultry production volume increased by 11% as a result of more placements in the current period, the company said. Poultry is produced on an out-grower model for the largest poultry producer in Zimbabwe.
Other products consist of potatoes, commercial maize, soya beans, sugar beans and bananas.
These products will be included in the fourth quarter production statistics.
Export tea sales volumes decreased by 15% and selling prices improved by an average of 6% compared to the prior comparative period.
Local tea volumes declined by 9% while average selling prices increased by 14% in real terms.
Macadamia export volumes declined by 2% compared to the prior comparative period.
The total lockdown in China resulted in a global slowdown of macadamia sales, as China is the largest consumer of macadamia in the world.
Revenue for the group declined by 19% compared to that achieved in the prior comparative period.
The Russia – Ukraine war, Ariston said, has continued to have a negative impact on the group’s operations.
Input costs, primarily fertiliser, have continued to soar, at the same time the selling prices of agricultural products have not increased at the same level as input costs, thus putting pressure on margins, the company said.
