Tanganda Tea Company Limited, in Zimbabwe, is exploring the Chinese avocado market as part of its export diversification strategy. The company reported a 9% revenue increase, linked to a rise in avocado export volumes. In the annual report for the year ending September 30, 2024, Tanganda noted that avocados were mainly exported to European markets during the review period.
The company emphasized that market diversification helps mitigate risk concentration. "Going forward, following the signing of a trade agreement between China and Zimbabwe in September 2024 at the Forum on China and Africa Cooperation (FOCAC), in Beijing the Company expects to diversify its markets into China," said Tanganda.
This move aims to enhance avocado exports early in the harvesting season and lessen dependence on European markets. Avocado production reached 3,976 tonnes, an 84% increase from the previous year's 2,156 tonnes, due to the plantations' maturity profile. Exports rose by 40% to 2,997 tonnes from 2,148 tonnes the prior year. 60% of the non-exportable secondary grade was sold for oil extraction and to retail and informal sectors, while 40% was unsaleable and will be used for crude oil extraction in the next financial year.
Tanganda plans to build an avocado oil extraction plant, noting heat impacts on fruit sizes in the first quarter, resulting in unsaleable smaller counts. "In the ensuing year, the company expects to construct an oil extraction plant through which the previously unsaleable grades will be channeled towards for oil extraction," the company stated.
Group chairman, Mr. Herbert Nkala, mentioned that despite macroeconomic challenges, demand remains relatively strong. The company will continue pursuing sustainable market diversification. Regional packed tea exports grew by 41%, driven by sales to Zambia, Mozambique, and the Democratic Republic of Congo.
Source: Chronicle
