Ariston Holdings to rely more on irrigation systems

AGRICULTURE concern, Ariston Holdings Limited has indicated that due to expected lower than normal rains during the 2023/2024 agricultural season, it will rely heavily on its irrigation systems to mitigate the effects.

The Meteorological Services Department (MSD) has predicted erratic and low rainfall patterns this year because of El Nino conditions which are expected to affect southern Africa.

Zimbabwe expects to receive normal to below-normal rainfall with parts of the Midlands and Matabeleland provinces getting below-normal rains for the beginning of the 2023/2024 planting season.

It is hoped that the extremely hot conditions will not persist for the duration of the entire season.

In a statement accompanying the group’s financial results for the year ended September 30, 2023, Ariston Holdings chairman Mr Alexander Jongwe said the group will have to rely heavily on its irrigation systems to mitigate the effects of poor rains.
Dryland activities will be kept at a minimum.

“The 2023/2024 agricultural season is expected to have lower than normal rainfall.

“The group will have to rely heavily on its irrigation systems to mitigate the effects. Dryland activities will be kept at a minimum and it is hoped that the extremely hot conditions will not persist for the duration of the entire season,” he said.

Mr Jongwe said in the period under review, the company invested in a solar plant with a 1,2 megawatt storage facility.

Most firms are now investing in solar plants in response to power shortages which are affecting the entire Southern Africa region.

The Government is urging more companies to invest in renewable energy.

Ariston Holdings said its solar plant is located at Southdown Estate in Chipinge.

“The plant is integrated into ZETDC and is on net metering. The plant came with a 1,2 megawatt storage facility as the tea factories operate throughout the day and night,” said Mr Jongwe.

He said the investment in the plant will not only result in financial savings for the Group but is also in line with the Group’s strategy of safeguarding and enhancing environmental resources and processes as this is a renewable energy source.

Mr Jongwe said the group will continue to focus on quality, production efficiencies and cost cutting measures.

He added that tea production season has commenced well with harvests being greater than that harvested in the prior comparative period.

“Macadamia orchards, so far, have better nut sets than the prior comparative period. Macadamia export prices being indicated for the 2023/2024 season are higher than prices achieved in the current year.”

Indications are that the global oversupply situation that arose during the Covid-19 period has now come to an end with the market being under-supplied.

Mr Jongwe said buyers are now trying to secure offtake agreements for the upcoming season.

“This is an improvement and points towards going back to the pre-Covid-19 period,” he said.

On the group’s financial performance during the period, Mr Jongwe said revenue increased by 15 percent to $35 billion when compared to the previous year.

“This was despite the decline in the selling price of macadamia nuts. The increase in revenue was therefore attributable to an increase in the price of tea driven by improvement in quality. The dollarisation of input costs resulted in an increase in the costs of sales by 10 percent. In the past the effects of the fair values on biological assets which had been harvested at year-end were included within cost of sales,” said Mr Jongwe.

He said joint ventures continued to contribute positively to the group as evidenced by a 169 percent increase in the share of profits posted for the year. —chronicle