Tanganda Tea Company revenue for the quarter increases by 17 percent
Tanganda Tea Company revenues for the quarter were $5.4 million, 17% ahead of comparative prior year period. Bulk tea production was 1,858 tons versus 1,793 tons in 2010. Beverage sales were 723 tons (2010: 610 tons) 19% up.
Meikles advised tha tea prices improved by 5% due to the improved tea quality however, cost of production for both bulk tea and beverages were higher than expected due to the higher costs of power, labour, fertilizer and other inputs.
The cost of labour in particular remains a significant challenge and discussions with the relevant authorities for a sustainable wage are being progressed.
New water bottling plant is in transit and once installed in the third quarter will increase production to 5.2m litres from the current 1.8m litre capacity per annum. 120 hectares of macadamia are now planted of which 90 hectares are in production and 70 hectares of our target 120 hectares of avocados have been planted so far.
The outlook for bulk tea production is positive and Meikles expect to produce over 9,000 tons in the current financial year. Tanganda's immediate focus is to maximize the production and distribution of packed tea locally and in the region.
