Tanganda Tea Company Targets Chinese Avocado Market to Bolster Export Earnings
Tanganda Tea Company Limited is strategically positioning itself to enter the Chinese avocado market as part of its broader diversification strategy to enhance export revenues. This move follows a 9 percent increase in the company’s revenue, driven by a significant rise in avocado export volumes during the financial year ending September 30, 2024.
In its latest annual report, Tanganda revealed that the majority of its avocado exports were directed to European markets during the reporting period. However, the company emphasized the importance of market diversification to mitigate risks associated with over-reliance on a limited number of markets.
“Following the signing of a trade agreement between China and Zimbabwe at the Forum on China-Africa Cooperation (FOCAC) in Beijing in September 2024, the company plans to expand its market reach into China,” Tanganda stated. “This strategic shift is expected to maximize avocado exports during the early harvesting season and reduce dependence on European markets.”
The company reported an 84 percent increase in avocado production, with output rising to 3,976 tonnes from 2,156 tonnes in the previous year. This growth was attributed to the enhanced maturity of its avocado plantations. Export volumes also surged by 40 percent, reaching 2,997 tonnes compared to 2,148 tonnes in the prior year.
Despite this success, Tanganda noted that 60 percent of its non-exportable secondary-grade avocados were sold for oil extraction or to the retail and informal sectors. The remaining 40 percent, deemed unsaleable, will be utilized for crude oil extraction in the upcoming financial year.
To further capitalize on this opportunity, Tanganda announced plans to construct an avocado oil extraction plant in the near future. The company highlighted that adverse weather conditions during the first quarter of the reporting period had impacted avocado fruit sizes, resulting in smaller yields that were unsuitable for export.
“In the coming year, the company intends to establish an oil extraction facility to process previously unsaleable avocado grades into oil,” Tanganda stated.
Herbert Nkala, the group chairman, underscored the resilience of demand for Tanganda’s products despite challenging macroeconomic conditions affecting local, regional, and international markets. “The company remains committed to pursuing sustainable market diversification to expand its presence in regional and international markets,” Nkala said.
In addition to its avocado ventures, Tanganda reported a 41 percent increase in packed tea export volumes to regional markets, driven by strong demand from Zambia, Mozambique, and the Democratic Republic of Congo. The company identified regional market growth as a key strategy to boost sales, diversify markets, manage currency risks, and enhance overall performance.
As Tanganda continues to explore new opportunities, its focus on market diversification and value-added processing positions the company to navigate global market dynamics while strengthening its financial performance.
