HARARE- Listed agriculture concern, Ariston which has farming plantations in Chipinge and Nyanga said some of its crops have been damaged by the cyclone in early assessments.

Group CE Spear, who typically spends much of the week at the estates, told Equity Axis, on Sunday, that the situation has been bad for some of the crop although positively there were no human fatalities at the farms.

Ariston operates Southdown Holdings which is Zimbabwe’s second largest tea producer and the country’s largest macadamia producer. The company's operations closely mirror those of Tanganda Tea Estates, with the 2 players' estates standing side by side from Clear Water to Southdown  near the Mozambique border.

Spear said some buildings’ rooftops have been blown away and this has affected some warehouses and other facilities at the farms. He said the road network has been severely damaged and that there is presently lack of access to most of the farms.

Within the farms,  rains continue to pour heavily likewise making it difficult to assess the situation. Spear said communication has been broken and direct timeous information has not been forthcoming.

Turning to the crop the CE said the macadamia crop has been negatively affected. Macadamia is the second biggest crop within the company’s crop portfolio and its contribution to the group’s total has swelled over the past 3 years on the back of favourable demand and firming prices.

Ariston is heavily invested in macadamia having invested in a world class nuts processing plant and irrigation facilities as well as doubling of production. The company is targeting to increase its macadamia processing capex in the near term.

Unlike Meikles, whose macadamia crop had not fully matured, Ariston’s crop had become a huge driver of the company’s financial performance over the last 3 years. In 2018 the company produced 1351 tonnes of macadamia.

Spear also highlighted that avocado crop has been damaged, further weighing on the operation.  Tea, which anchors the crop portfolio was not affected by the rains.

There are also costs associated with rerouting of the produce to market. The company relied on Beira for exporting to markets, the major market being China.

Given the serious effects of the cyclone on Mozambique and specifically the Beira port, the final product will have to be rerouted to South Africa’s Durban port, adding to the costs of the crisis.