Ariston focuses on quality
LISTED agricultural concern, Ariston says the 20 percent production decline in its estates recorded last year compared to 898 tonnes produced in FY2022 was due to the deliberate decision to focus the business on the quality of tea produced as opposed to quantity.
This was meant to increase the percentage of tea whose quality meets export parameters which would result in improved selling prices and hence export revenue.
In a trading update for the first quarter ended December 31, 2023, the firm said tea production volume at 716 tonnes increased by two percent when compared to 700 tonnes achieved in the prior comparative period.
“The FY2023 volume was however 20 percent behind the 898 tonnes produced in FY2022.
“The 20 percent decline was due to the deliberate decision made by the board to focus the business on quality of tea produced as opposed to quantity so as to increase the percentage of tea whose quality meets export parameters which would result in improved selling prices and hence export revenue.”
According to the update, first-quarter tea sales volumes for the current year at 529 tonnes were 12 percent ahead of the sales for the prior comparative period of 473 tonnes.
Average selling prices for both export and local sales held at the same level as those experienced in the prior comparative period.
On the macadamia sector, the firm said harvesting only commences towards the end of the second quarter, therefore it said it is too early to determine macadamia nut production.
“In the current period, there were some early macadamia nut drop noted. These amounted to 76 tonnes.
“On the whole, macadamia nut set in the orchards is encouraging and has held. In the global macadamia nut industry, it is still too early to get an indicative view on what the market prices will be, it noted.
“Management is, however, ensuring the quality will be improved, so as to ensure that the group is well positioned to take advantage of improvements in selling prices for the forthcoming season.”
-chronicle
