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DENDAIRY sales volumes for 2013 jumped 30 percent to 1,6 million litres per month from 1,2 million litres per month the previous year.
This was mainly driven by the firm’s investment into a US$6 million Tetra Pak plant that commenced production mid November.
In an interview, Dendairy director Mr Daryl Archibald said the firm has begun realising the benefits of the new plant, but the potential has a long way to go. “Our sales volumes for the year ended December 31, 2013 grew 30 percent, courtesy of new products that we introduced in the course of the year.
These include ice creams, the six pack yoghurt, and later on the boxed milk and flavoured milk lines which are being produced from our new Tetra Pak plant. However, liquidity/cash constraints in the market slowed down December growth to only 14 percent,” he said.
Mr Archibald said the new products have been received well in the market with consumers giving positive feedback.
According to a demo report sheet, consumers perceived the products to be creamier and tastier than South African products.
“We are expecting our new products to perform better this year as they are being processed by the latest technology, giving us top quality local product and packaged in an easy to pour carton” said Mr Archibald.
However, some of the consumers expressed concern on the pricing.
“Our yoghurt, ice cream, Maas and milk powder sell for less than imported products, however, on the boxed milk, the South African product is landing cheaper due to the attraction of the US dollar that is being traded in Zimbabwe.
“If you look at the same products exported into Mozambique and Zambia you will find the local price reflects dumping,” he explained.
Mr Archibald said the firm is likely to continue on the same growth trajectory with sales volumes for 2014 expected to swell a further 35 percent to 2,2 million litres per month.
“We have now shifted our focus to ramping up local production and substituting South African products with Zimbabwean produced products. Where possible, we support local producers,” said Mr Archibald. — FinX
Online Reporter