Online Reporter
Michael Tome, Business Reporter
AGRIFOODS, a unit of diversified agriculture-focused CFI Holdings, has projected improved performance in the second half of the year, driven by an anticipated improvement in the regional harvest, which is expected to positively impact raw material pricing and improve availability.
The firm said that the expected improved regional harvest would have a positive impact on the food manufacturing industry and pricing, fostering a favourable business environment.
Despite increasing competition in the feed sector, Agrifoods said it remained committed to expanding production and market share, taking advantage of opportunities for growth and strengthening its position in the market.
The increased crop yields, following the good rains received last season, have enhanced national food security and reduced reliance on the expensive grain imports, translating to stable local markets and better incomes.
The good rains during the 2024-25 summer cropping season in Zimbabwe are expected to drive a strong recovery in agriculture, with the sector expected to grow by 12,8 percent in 2025 following a 15 percent contraction in 2024.
The stellar performance of agriculture is expected to drive strong economic growth, projected at 6 percent this year, highlighting the significant role of agriculture in Zimbabwe’s economic development.
For food manufacturing companies, the increased agricultural production is also expected to spur the overall economic growth.
“Going into the last half of the year, Agrifoods’ performance is set to strengthen on the back of the projected regional improved harvest expected to influence raw material availability and pricing positively.
“Management remains focused on growing Agrifoods’ market share, notwithstanding increased competition in the feed sector,” said CFI chairperson Ms Itai Pasi in the company’s financials for the half year to March 31, 2025.
Agrifoods recorded a 16 percent growth in sales volumes in the period under review compared to the same period last year, driven by a surge in aggregate demand for its products.
These developments at Agrifoods come as CFI Holdings remains focused on sharp procurement strategies, particularly for grain commodities, while prioritising continued investments in its milling operations as part of efforts to enhance long-term competitiveness.
Overall, CFI retail operations, which comprise Agrifoods, VETCO, Agrimix and Victoria Foods, contributed 85,04 percent to the group’s turnover, food manufacturing and down-packing operations contributed 9,06 percent, group properties 3,40 percent, and farming operations accounted for 2,50 percent.
The revenue increased by 30,4 percent to ZiG1,46 billion from ZiG 1,12 billion in the same prior year period.
The company specialises in producing premium stockfeed that is expertly formulated to enhance the health, growth, and productivity of livestock.
Peter Tanyanyiwa