Tanganda outgrowers scheme nearly doubles

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TANGANDA Tea Company (Tanganda) nearly doubled its support for the tea outgrowers scheme to $115,06 million in the year ended September 30, 2023 from $59,11 million in the prior comparable period.
The diversified group has an excess of 1 000 farmers that are affiliated with its outgrowers’ scheme.
“Outgrowers support directly benefits small-scale farmers, labour and through the multiplier effect, the district,” the company said in its 2023 annual report.
The outgrowers are predominantly tea-based, where the company goes to the areas where farms are and collects the tea on a daily basis, processes it, markets it for them, and gets paid based on the market price.

Apart from the outgrowers scheme, the tea maker was active in promoting social corporate responsibility activities in surrounding communities. Are left behind in terms of technology.
“Tanganda identified the importance of the internet in modern education and spent $35,7 million in information technology in schools which are accessible to the local communities,” the company said.
In the comparative period, the company spent $4,24 million on information technology in schools.
During the year ended September 30, 2023, Tanganda’s revenue grew by 42 percent to $128,99 billion from the prior year of $90,77 billion.
The company suffered an inflation-adjusted loss after tax of $17,05 billion compared with a profit after tax of $4,33 billion in the previous year.
In terms of operations, bulk tea volumes declined nine percent to 7 894 tonnes, below 8 670 tonnes produced in the prior season.
Bulk tea exports of 6 238 tonnes were 12 percent below the previous year of 7 125 tonnes and the export average selling price increased slightly to US$1,44 per kg from the prior season’s average selling price of US$1,42 per kg.
Avocado exports of 2 148 tonnes were 50 percent below the prior year of 4 321 tonnes as a result of the biennial bearing phenomenon coupled with the impact of the extensive pruning carried out on 55 hectares of mature trees to rejuvenate them.
Tanganda exported 1 551 tonnes of macadamia (nut-in-shell) compared to 621 tonnes sold in the prior year.
The company strategy is to invest in value addition options to mitigate primary produce price fluctuations and to diversify markets into Europe and America.
Coffee production of 87 tonnes was 28 percent above the 68 tonnes achieved in the prior season.
The decline in packed tea sales volumes of six percent from 1 994 tonnes achieved in the prior year to 1 873 tonnes sold in this financial year was mainly due to logistical global challenges in sourcing inputs.
To hedge against local currency inflationary pressures and devaluation, the percentage of domestic sales made in US dollars has been pushed up to 70 percent from less than two percent in the previous year.