Business Reporter
LISTED tea and coffee grower, Tanganda Tea Company (TTC) has hailed the liberalized exchange rate for positively impacting product pricing structures.
The RBZ’s monetary policy primarily aims for economic stability by controlling inflation and managing the foreign exchange market. Key strategies include a tight monetary policy, open market operations, a conservative monetary targeting framework.
Presenting a trading update this week, TTC Company Secretary Sharon Kodzanai commended the RBZ stance for revamping pricing dynamics.
“The operating environment for the period under review was relatively stable, primarily due to sustained stability of the local currency exchange rate.
“The company has benefitted from the liberalization of the exchange rate for pricing purposes .While short tern inflationary dynamics are easing ,the monetary authorities projection of achieving sub 30%inflation by the year end largely depends largely on maintenance of exchange rate stability, increased policy coordination,” she said.
During the period, TTC revenue for the quarter under review of US$5,6 million was 65% higher than prior year of US$3,4 million while revenue for the nine months period of US$13,7 million registered a 6% decline against US$14,5 million achieved last year .
Bulk tea production fell 6% to 6,826 tonnes, down from 7,293 tonnes last year, largely due to late rains. Export volumes declined by 19% to 3,646 tonnes. In contrast, packed tea and coffee sales volumes rose 11% during the quarter, although they were 8% lower than last year’s total of 1,310 tonnes.
Avocado output dropped 47% to 2,121 tonnes from 3,976 tonnes, following a November 2024 hailstorm and the biennial bearing effect. Macadamia nut harvests also decreased 43% to 849 tonnes due to extreme heat during the nut-set period, though exports of 520 tonnes were 5% higher than the previous year.
The company said the operating environment remained relatively stable, supported by exchange rate liberalisation, but noted ongoing challenges including weak demand in the formal retail sector, tight liquidity, and intermittent power supply.
Management confirmed plans to raise US$8 million through a Rights offer to support operations. Future performance, it added, will depend on exchange rate stability, policy coordination, and cost management.
