AGRIBUSINESS firm Ariston Holdings Limited has recorded a 28% increase in tea production for the period ended June 30, 2024 compared to the same period last year, driven by the group’s focus on product quality improvement.
In its latest trading update, the group said volumes wer 2 880 tonnes compared to the same period in the previous year.
“Current year tea production volume at 2 880 tonnes was 28% ahead of the prior comparative period’s 2 245 tonnes. This was a significant improvement as the group exceeded the volume achieved in FY2022 (financial year 2022) of 2 850 tonnes,” it said.
However, the group’s macadamia production experienced a 2% decline, with 1 292 tonnes harvested in the current year compared to 1 313 tonnes in the prior period.
The company’s poultry operations were impacted by a significant reduction in volume as poultry houses were temporarily put on hold.
“Poultry is produced on an out-grower model. Volumes are determined by the poultry operator for whom the chickens are being grown,” the company said.
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“There was a significant reduction in volume as poultry houses were put on hold for a part of the year as the poultry operator installed a new abattoir. Poultry houses have now been operational since January 2024.”
In the period under review, the group also recorded a decrease in other products which includes bananas, commercial maize and soyabeans, driven by the company’s strategy to preserve more water for an El Niño-induced climate.
“In the prior comparative periods, other products included potatoes which are not part of the cropping plan in the current period in an effort to preserve the dam water for seed crop irrigation given the predictions for an El Niño-induced climate. Accordingly, there was a significant volume decline in this category,” it said.
The operating environment in the period under review was characterised by challenges arising from El Niño as well as short supply of new currency which largely disrupted local trading.
On the sales front, the company recorded a 17% decrease in tea sales volumes compared to the same period in the previous year, despite average selling prices holding steady.
Macadamia nut sales volumes surged 93% to 1 171 tonnes, reflecting an improved demand in the industry following the global decline during the COVID-19 pandemic.
The group is expecting to focus on cost containment measures, product quality improvements, and production process enhancements.