adminMichael Tome
DIVERSIFIED food manufacturer, Davipel Trading says it will be intensifying its exports as part of a strategy to broaden its foreign currency earnings base this year.
The company has already cut its import bill to zero through establishment of a grits manufacturing plant, and in the process saving the company US$500 000 it was using for procurement per month.
Foreign currency deficiency has curtailed some firms’ capacity utilisation with some shutting down operations all together since forex is a necessity to their everyday operations.
However, a number of local companies are now directing their focus on exports to earn this much sought after currency for continuity in their operations especially for the procurement of raw materials beyond the country’s borders.
In this regard Davipel says it is setting up shop in regional countries including Mozambique and Zambia to generate foreign currency. The company aims to export upward of 40 percent of gross produce by the end of this year.
Davipel managing director Davison Norupiri told Business Weekly that the company was already exporting some of its products and had also put up an export department to focus on the regional business.
“So we have now started exports which we have not been doing,” said Norupiri.
Early last year the company was already producing gem meal (a mixture of maize bran and the gem), which it exported to South Africa on daily basis.
The company says it has come up with an approach that will streamline foreign currency spending, reinforcing inflows at the same time.
“Foreign currency is a sticking issue and it is something which is still giving challenges to a lot of businesses, so we have come up with major focus areas in order to try and manage our foreign currency requirements.
“We used to import grits into this country worth about US$500 000 every month and now we have since reduced that to zero,” he added.
As a company premised in a Special Economic Zone, Davipel is set to tap into benefits accruing from the status as it gives leverage in terms of importation and exportation of critical materials.
In 2018 the company opened a $12 million snack manufacturing plant in Sunway City a show of commitment towards growth of indigenous industry’s capacity and job creation outline.
The company has managed to break the barriers to become the third largest snack producing company in SADC.
Davipel is a food manufacturing company established in 2002 that trades under Royal, Jiggles and Jumbo brand names.
Under its Agri Milling division the company manufactures Sunny refined mealie meal as well as poultry feed, grits and maize bran to complete the wide range of foodstuffs produced by the firm.
Online Reporter