Tea, coffee output declines

LISTED firm Tanganda Tea Company Limited recorded a 22% decline in tea production during its financial year ending on October 31.

During the period under review production fell to 6 618 tons down from 8 500 tons in the year ago period. The company said was partly due to inadequate rainfall at its estates.

Rainfall at the estates was, again, below average and, compounded with a late start to the rains and a dry winter, impacted on production.

“In addition, severe frost in late August negatively impacted on production in September and October,” the company said.

Tanganda also suffered persistent labour shortages, which affected both quality and quantity. According to the financial results, the coffee volume decreased from 113 tons to 41 tons as a result of the shift from coffee to macadamias.

The beverage division fared better, as volumes increased by 6% despite a comparative volume decline of 25% in the last quarter.

The company also indicated that it managed to make substantial investments in harvesting machines, generators and tractors over the winter months. This investment, in turn, resulted in the production up to mid-December increasing by 20% last year.

Post published in: Economy

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