TSL expands into horticulture

24 Jun, 2019 - 14:06 0 Views
TSL expands into horticulture

eBusiness Weekly

Michael Tome
HARARE – TSL is planning on diversifying into chili and banana production (horticulture) for exports into the region and beyond as the firm aims to strengthen its foreign currency purse.
The move is set to enhance the company’s capability to self-sustain in house processes that require foreign currency.
Forex deficiencies have lately become a major setback for local industries production mainly those that rely on raw material imports, as such the company is moving towards self-sustaining mechanisms on the foreign currency front moving away from the growing trend where firms have become absolutely reliant on the RBZ for support.
As a result the firm has setup a thriving 25 hectare banana plantation for export while eyeing the increasing demand for dried chillies in Europe.
European imports of dried chillies increased in the last years with data showing that imports increased annually by 6 percent in volume and by 7 percent in value between 2013 and 2017. In 2017, 67 percent of (chilli) imports originated from developing countries.
Spain is the most important trader and processor of dried chillies in Europe including Germany, the United Kingdom and the Netherlands. Spain mainly imports chillies and supplies processed chilli products to other European markets.
In an interview, TSL Group chief operations officer, Derek Odoteye indicated that his company was targeting Europe and Middle East for chilies and African region for bananas at the moment while scouting for some other strong markets worldwide.
“We have ventured into chilies production to generate as much forex earnings as we can, because we utilize quite a bit of forex in the group so we want our business to be self-sustaining on the forex perspective, hence we have ventured into horticulture produce.
“Chilli will be destined for Europe and Middle East, our bananas are going into Africa as we will be finding out the best markets for the produce.
“So it will be chilies and bananas because they bring forex,” said Odoteye.
Furthermore the company intends to boost its traditional farming operations by improving tobacco, maize, wheat and soyabeans production and value chains.
“Right now we are investing on bringing extreme efficiencies to producers and processers of agro commodities.
“…we would want to be able to handle all the crops but we are starting where we are good, so tobacco, maize, wheat, and soya those are the things we are focusing on now and as the time goes on we will add some commodities to that.
“So we want to make sure that each part of those chains is doing the best it can to uncover a wide spectrum of agro commodities and then to deliver the best value to the customer,” he said.

 

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