adminpayment plan.
Seed Co chief executive officer Mr Morgan Nzwere told an analyst briefing in the capital last week that the major buyers owed the seed house a cumulative US$22 million.
Seed Co’s debt for the 12 months ended March 2012 stood at US$44 million, a 36 percent jump from US$39 million recorded in the comparable prior period.
“We are not having any problems with our Government; they had given us a payment plan but they have indicated that they will pay the US$15 million by July this year.
“However, the Zambian government is yet to give us a payment plan; they are putting together some funds and anytime we could be getting paid,” said Mr Nzwere.
During the 12 months Seed Co profits grew 10 percent to US$19 million on the back of growth in volumes.
The group turned over US$117,7 million, a 20 percent positive variance compared to the US$97 million generated last year.
Sales volumes for the group also went up 22 percent to 67 240 metric tonnes during the period under review with Zimbabwe sales volumes increasing 74 percent.
Malawi was the only market that registered minimal growth compared to all the other countries where Seed Co operates.
A robust production base and balanced seed stocks following two seasons of successful production helped the group to meet demand.
In total the group’s maize seed sales went up 25 percent as the group sought to increase market coverage on the back of abundant stocks.
During the period under review, collaborative efforts with other organisations in West Africa were initiated and the group is expected to benefit from these synergies.
In East Africa better performing varieties are at advanced stages and this is expected to contribute significantly to group profitability.
Seed Co released an additional eight products on to the market, five of which were maize and two soyabeans and a wheat variety.
Seed Co foresees growth driven by positive developments in the region.
The economy is expected to improve in Malawi and the company anticipates improvement in margins in 2013.
With the new developments in West Africa, the group expects to sell the first bag of certified seed in 2013. They are also anticipating further growth in East Africa.
Online Reporter