Ariston explores India tea market

ARISTON Holdings (Ariston) is exploring the possibility of exporting its tea to the Indian market.
A trading update issued following the firm’s AGM said the global tea market remains depressed but still presented opportunities for exports.
“The division is experimenting with exporting to India as their own production is under pressure, providing an opportunity for the division’s tea. An experimental load of packaged tea was exported to South Africa a week ago and the company awaits to see the results of the sales,” the company said.
Ariston said high temperatures during the spring season affected production given that the irrigation rehabilitation had not been completed.
It is projecting 2 900 tonnes of tea in the year to September 2020 from 2 980 tonnes during the same period last year.
A total of 1 100 tonnes of macademia are expected from 1 302 tonnes during the same period, while 1 149 tonnes of stone fruit are expected from 1 206 tonnes.
The company is also expecting 1 580 tonnes of pome fruit from 1 500 tonnes last year while 1 022 tonnes of poultry is expected from 1 103 tonnes.
For macadamia, the company said the new drying plant was working well but volumes are expected to drop despite the “excellent quality and improved prices.”
“The yield declines are not unique to Zimbabwe but a curious phenomenon across Southern Africa, with Mozambique, Malawi and South Africa similarly negatively affected. The high temperatures during spring could likely be one of the reasons for the low yields”.
The firm said China remains the division’s main export destination.
“China has increased production but their quality remains low, paving way for Ariston’s high-quality macadamia. Yields are expected to bounce back in the year ahead,” Ariston said.
Ariston recorded a 23 percent increase in revenue during the half year ended March 31, 2020 to $76,07 million from $61,82 million during the comparative period.
Stone fruit volumes are down as unsuitable varieties were removed, leaving desirable varieties which enabled the division to do more exports.
“The sales values continue to lag inflation. The new plantings are set to improve volumes as they are expected to come into production between October and November 2020,” Ariston said.
Ariston said pome fruit production was up and quality was “excellent” despite harvesting coinciding with the Covid-19 pandemic, which resulted in stock accumulation.
“Notwithstanding the pandemic, sales are currently doing well with reasonable prices recorded for the season. The first exports are currently underway with the expectation of exporting 100 tonnes of apples.”
“The division is building up its export markets and has begun experimenting on small scale exports of deciduous fruits to Zambia. In addition, the division is exporting pome and stone fruit to wholesale markets in the UK. Production is expected to increase towards 2 000 tonnes next year as production increases.” .
Ariston said poultry production at its Kent operation had improved in the last six to nine months despite reduced annual replacements largely due to the national lockdown.

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