Meikles Limited bulk tea production in the six months period to 30 September 2019 declined by 17% primarily due to adverse weather according to Meikles Limited Executive Chairman John Moxon.
Zimbabwe last year witnessed drought that negatively affected the rain-fed agricultural system in the country.
“Bulk tea export sales of 3 282 tonnes were 11% lower than 3 669 tonnes sold in the comparative period last year,” Moxon says.
“Average international bulk tea export price for the period retreated to US$1.35/kg from US$1.47/kg in the six months’ period to 30 September 2019.”
Besides, the tanganda tea, Meikles macadamia and avocado also faced challenges according to information from Reviewed Condensed Financial Statements for the Six Months Ended 30 September 2020.
Moxon says all crops were affected by lack of rain and power in the past season.
“The volume of Macadamia production declined by 37% from 854 tonnes in prior year season down to 537 tonnes attributed to the drought and failure to irrigate crops due to power losses. The average price of primary grades of US$5.37 was 8% firmer than in the prior period,” Moxon says.
“The volume of avocado export sales grew by 15% to 1671 tonnes from 1 450 tonnes in the comparative period. However, due to the lockdowns in Europe that resulted in massive closure of restaurants and hotels, the avocado average selling price declined by 37% from US$1.62/kg in the half year ended 30 September 2019 down to US$1.02/kg for six months ended 30 September 2020.”
Tanganda also recorded reduced revenue and profits in the six months period to 30 September 2020.
“Inflation adjusted Group revenue of ZWL 11.2 billion retreated by 8% compared to the same period of the previous year due to COVID-19 induced decline in sales volumes across the Group’s operations,” Moxon says.
“Operating profit in inflation adjusted terms was ZWL 402.9 million compared with ZWL 604.5 million in the previous period. In the past season all crops were affected by lack of rain and power.”
