Dairibord to open new plant in Chitungwiza

to enhance productivity.
The ZSE-listed milk processor and manufacturer of food and beverages has been producing the nutritious beverage at its Mutare and Gweru factories but on a lower scale.

Without disclosing how much is to be spent on the investment, Dairibord Zimbabwe managing director Mr Thompson Mabika said in an interview the factory would start operating during this quarter.
DHL holds 100 percent stake in Dairibord Zimbabwe.

“We are currently doing the beverages at our Mutare and Gweru factories but at a lower scale,” said Mr Mabika.
“But we will be full fledged at the Chitungwiza plant this quarter.”

The plant was acquired from China.
DHL chief executive Mr Anthony Mandiwanza said in March this year that the group would spend over US$7 million in capital projects that will see it achieving a revenue target of over US$100 million.

Mr Mandiwanza said the funds would be spent on technology to enhance capacity and quality in production of yoghurt, milk, tomato sauce, salad cream and Nutriplus.
The money would also be used to enhance the company’s management information systems.
He added that the investment in production capacity and enhanced competitiveness would enable the company to serve the local market.

Dairibord is anticipating increased demand of milk-based beverages in the region, particularly Botswana, Mozambique and Zambia.
Dairibord is a household name in Zimbabwe and has very strong brands, which include Chimombe fresh milk, Lacto and Rabroy salad cream.
The acquisition of Lyons and a stake in Charhons have broadened the company’s product portfolio, particularly in the non-milk product range.

This year, the group anticipates milk volume sales to grow by 31 percent to 72,6 million litres in 2011 from 53,2 million litres in 2010.
Revenue is projected to grow by 39 percent to end the year at US$103,9 million from US$75,2 million last year.
Margins will remain at the same levels as 2010.

Raw milk intake is projected to grow by 22 percent from 22 million litres to 27 million litres while milk solids are projected to increase by 49 percent from 10,2 million litres to about 15,2 million litres.