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Elton Manguwo
ZIMBABWE Stock Exchange (ZSE) listed dairy producer, Dairibord Holdings has recorded a 40 percent surge in milk uptake to 19, 9 million litres in the first half of 2024 versus 12 million litres during the same period last year.
In a statement accompanying the company financials Dairibord Holdings chairman Mr Josphat Sachikonye said by tapping into this increased supply, the group was better equipped to innovate its product offerings and enhance customer satisfaction.
“This substantial growth in raw milk usage not only demonstrates the company’s commitment to scaling its operations but also highlights its ability to meet rising demand effectively,” said Mr Sachikonye.
This expansion not only reinforces the company’s competitive edge but also positions it favourably for future growth opportunities in an evolving market landscape.
“This robust performance has further cemented the group’s dominance in the market, with its market share growing from 28 percent in 2023 to 36 percent in the current period,” said Mr Sachikonye.
According to the dairy services unit within the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development, national raw milk production increased by 22 percent year-on-year, reaching a total of 55, 1 million litres during the period under review.
“This escalation in raw milk output is poised to enhance supply chains, support local economies and potentially lead to lower prices for consumers, further positioning the dairy sector as a vital contributor to national food security and economic development, setting the stage for future advancements and sustainability initiatives,” said Mr Sachikonye.
Concurrently, the prevailing drought conditions in the country exerted substantial negative impacts on agricultural yields including raw milk production.
“Despite the challenges anticipated, the company’s significant increase in raw milk uptake during the first half of the year is projected to mitigate some of the negative impacts,” said Mr Sachikonye highlighting that increased milk uptake provided a buffer against potential fluctuations in supply and demand.
Recently, Zimbabwe Dairy Industry Trust (ZDIT) chairman Mr Mahlatini Mutsvairo highlighted that the dairy sector was a key component of the national livestock growth plan, which supports the National Development Strategy (NDS1) anchored by the Agriculture, Food Systems and Rural Transformation Strategy that seeks to achieve a US$8, 2 billion agriculture economy by 2025, as the country’s economy is agro-based.
“By focusing on enhancing milk production and processing capabilities, the dairy sector aims to improve the overall productivity of the agriculture sector,” he said
Online Reporter