Diversified agricultural concern Tanganda Tea Company Limited is turning to value addition, market diversification and operational efficiencies to drive recovery after production volumes came under pressure in the nine months to June 30, 2026.
The Zimbabwe Stock Exchange-listed company said the operating environment remained relatively stable during the period, although weather risks and subdued demand in some export markets continued to weigh on performance.
Bulk tea production fell 28 percent after management suspended out-of-season plucking when yields dropped below economically viable levels.
Tanganda chairman Addington Chinake said the decision was aimed at protecting the company’s long-term productive capacity.
“While this affected reported production volumes, the initiative is expected to support factory throughput and product quality in future seasons,” he said.
Despite the decline in bulk tea production, export sales volumes increased 9 percent, supported by stocks carried forward from the previous year, while packed tea sales surged 145 percent.
Chinake attributed the strong packed tea performance to sustained demand for the company’s core brands and improved distribution.
“The company will continue strengthening domestic and regional distribution partnerships while improving market coverage as the beverage business remains an important avenue for growing revenue and generating more value from its agricultural base,” he said.
The horticultural portfolio delivered mixed results, with macadamia production declining 5 percent and export sales volumes falling 45 percent amid subdued international demand and an ongoing supply-demand imbalance in the nut-in-shell market.
Tanganda is now pursuing value addition and market diversification to reduce its exposure to the traditional macadamia market.
Avocados emerged as a major bright spot, with production increasing 95 percent year-on-year as the company’s orchards continued to mature.
“The strongest production performance came from avocados, with output rising 95 percent year-on-year as the company’s orchards continued to mature,” Chinake said.
The increased crop is supporting Tanganda’s avocado oil extraction venture with Netherlands-based Trade Link Global BV.
“The plant, which commenced operations in May 2025, provides an avenue for the company to capture greater value from its fruit while reducing losses associated with lower-grade produce,” he said.
The recovery strategy is being supported by the US$8 million capital raise completed earlier this year through a renounceable rights offer, which was designed to ease working capital pressures while financing investments in plant, infrastructure and operational capacity.
The proceeds are being deployed towards working capital, supplier obligations, replacement of the Tingamira water bottling plant, infrastructure refurbishment and grid-tying of solar installations at Ratelshoek, Jersey and Tingamira estates.
The capital raise also resulted in a significant change to Tanganda’s shareholder structure, with Innscor Africa subsidiary Rutanhi Beverages Limited underwriting the offer and subsequently acquiring a 27 percent stake in the company.
Chinake said the first four months following the capital raise had focused on rebuilding leadership structures and strengthening key systems.
“The rebuilding process will continue into the coming seasons as the company works towards a sustainable business model supported by an appropriate capital structure and stronger financial position,” he said.
The strategy marks a shift towards extracting greater value from Tanganda’s agricultural base while strengthening operational resilience and reducing exposure to volatile commodity markets.
