DESPITE the difficult inflationary environment, price controls and a shortage of labour on its estates, Tanganda Tea Company Ltd (Tanganda) exported tea worth $22 billion from a production le
vel of 10 700 tonnes.
Company chairman John Moxon said for the period ending October 31 turnover amounted to $28,34 billion (2002 $4,95 billion).
Exports amounted to $22,02 billion while local sales $6,31 billion.
He said profit before tax for the period stood at $21,60 billion, an increase of 713% for the 2002 figure of $2,67 billion.
Moxon said this was very much a function of tight cost controls with the most operating costs increasing by less than the official rate of inflation.
“Production for the year totalled 10 700 tonnes, 3% below the previous year of 11 011 tonnes, and was primarily a result of the labour shortages and a cold spell at the end of the winter season,” the chairman said. “Average prices on the international tea markets were little changed over the course of the year. The company continued to expand the area set out to tea. The outgrower extension scheme has also grown with the company now providing technical and material assistance to over 600 outgrowers.”
Moxon said the second processing line at the Tingamira Export Processing Zone was now fully operational.
Turning to coffee, he said production for the year was 371 tonnes, a decrease from the 400 tonnes, produced in 2002.
“Prices continued to be depressed and more suitable crops are now to be planted in marginal coffee areas with an initial planting of 50 hectares to macadamias in January,” he said. “In spite of the smaller crop, coffee did contribute positively to profits.”
Earnings per share at the company increased by 663% to $156,81. In 2002 they stood at $20,53.
On the beverage division Moxon said trading conditions were made difficult with the imposition of price controls during the first half of the financial year.