admin
period of 12 months.
“To mitigate excruciating liquidity challenges, we managed to secure US$4 million from PTA that we are going to use as both working capital and to finance ongoing projects,” he said.
Mr Mandiwanza was giving a trade update for the first quarter after the company’s Annual General Meeting held in Harare last week.
Mr Mandiwanza said during the first three months of the year, the group turned over US$24 million, 19 percent in variance with the comparable period.
Volumes also increased 13 percent with raw milk increasing 8 percent compared with the same period last year.
In terms of revenue, milk products contributed 34 percent compared with 37 percent recorded during the comparable period.
Food contribution decreased from 32 percent to 30 percent, while beverages increased marginally from 32 percent to 33 percent and logistics remained at 1 percent.
Milk products contributed 38 percent to total volumes up from 36 percent. Food contribution remained at 17 percent while beverages went up to 48 percent from 40 percent.
Going forward, Mr Mandiwanza said the group was faced with a myriad of problems, chief among them competition from imports, water and power inconsistencies.
He added that local cost structures and tight liquidity and scarcity of key raw materials would continue to affect the business.
“Uncompetitive cost of capital and difficulties in getting long-term funding impacts on product availability,” added Mr Mandiwanza.
He said his company faced competition from imports from neighbouring countries in search of hard currency in Zimbabwe.
Dairibord has been affected by the cost of local sugar that went up three times during the first quarter of the year.
“Local sugar price movement is moving extremely in a worrisome direction,” he said.
Mr Mandiwanza said to mitigate limited raw milk supplies the group would work on a number of projects, including a heifer importation scheme.
The group would also work with farming communities to form co-operatives.
“We are looking at developing strong relationships with communities and we have also agreed to enter into joint ventures with farm owners on a Build, Operate and Transfer basis,” he said.
Online Reporter