Tanganda moves to process macadamia nuts as global prices dip
STAFF WRITER
Tanganda Tea Company is stepping up efforts to process macadamia nuts as a hedge against volatile global prices, aiming to boost export earnings and reduce reliance on raw commodity sales.
In its 2024 annual report, chairman Herbert Nkala emphasized that value addition is central to the company’s growth strategy.
“The company plans to invest in value addition processes to reduce the risk of primary produce price fluctuations. Despite challenges in the operating environment, we remain focused on adding value to our products,” Nkala said.
Macadamia production jumped 77% to 1,626 tonnes, up from 921 tonnes in the previous year. However, exports dropped by 3% to 1,508 tonnes due to shipping delays, pushing a 286-tonne consignment into the next financial year. Market shifts saw nut-in-shell prices fall by 5% to US$1.84 per kg from US$1.93 per kg the previous year, well below the US$3.26 per kg recorded in 2022.
Tanganda’s revenue grew 9% to US$25.7m, driven by increased avocado exports and rebounding prices post-Covid-19. The company returned to profitability, recording a US$1.4m after-tax profit compared to a US$3.1m loss the previous year.
Despite this recovery, Zimbabwe’s economic landscape remained turbulent. Nkala highlighted the challenges posed by exchange rate volatility, inflation, and a weakening local currency.
“The operating environment was characterized by currency depreciation and inflationary pressures. Although the government implemented tighter fiscal and monetary policies, market confidence in the local currency remains low,” he said.
El Niño-induced droughts further strained operations, affecting agriculture and hydropower generation. Tanganda mitigated power shortages by investing in solar energy at three of its five estates and is now exploring net metering strategies to reduce electricity costs.
Tea production increased by 3% to 8,113 tonnes, but extreme heat affected quality, leading to a 2% decline in export volumes. A surplus of bulk tea in Kenya also drove prices down, with Tanganda’s average export price slipping from US$1.44 per kg to US$1.34 per kg.
Avocado production surged by 84% to 3,976 tonnes, with exports up 40%, supported by rising global demand. Export prices climbed to US$0.75 per kg from US$0.44 per kg the previous year. Tanganda is now looking to process secondary-grade avocados into crude oil to maximize value.
The board opted not to declare a dividend, focusing instead on cash flow preservation and reinvestment. Nkala remains optimistic about demand for Tanganda’s products despite economic headwinds.
“The company will continue to pursue market diversification, expand regional and international reach, and enhance cost efficiencies to strengthen performance,” he said.
With a strong push for value addition and export expansion, Tanganda is positioning itself for long-term growth in the global agricultural market.
