Grain intake expected to increase

droughts.
GMB chairman Mr Charles Chikaura said in a statement on the parastatal’s operational performance that maize intake increased by 81 percent from 35 000mt in 2009 to 63 469mt in 2010.
Grain intake further increased to 249 792mt in 2011 and is expected to reach 300 000mt by the end of the 2012 marketing season.
Mr Chikaura said the annual grain intake increases were expected to boost handling revenue for GMB.
He said GMB’s turnaround was underpinned by sales performance, other income generating projects, annual grain intake, cost containment and restructuring.
“This has resulted in loss reduction initially and eventually to profitability in 2012/2013,” Mr Chikaura said.
On sales performance, Mr Chikaura said revenue for the year ending March 31, 2012 was expected to increase to nearly US$19,6 million, an increase of 33 percent on 2011 revenue.
Since the adoption of the multi-currency system, GMB’s sales revenue continued to increase from a low of about US$4 million in 2009.
Income from other projects such as Strategic Grain Reserve support and handling and storage fees have also increased by 563 percent between 2010 and 2011 due to increased grain intake volumes.
Mr Chikaura said in 2010 income from the income generating projects was about US$4,4 million before it increased to US$29,2 million in 2011.
A further 11 percent increase by March 31, 2012 was also anticipated, bringing the amount of expected income from other projects to US$34,1 million.
“The loss position as per audited financial statement improved from US$18, 709, 283 for the year ended March 31 2010 to US$6, 210, 184 for the year ended March 31 2011,” said Mr Chikaura. “A further reduced loss of US$1 524 560 is projected for the financial year ending March 31, 2012.”
In relation to the restructuring of the parastatal, Mr Chikaura said GMB intended to reduce staffing levels to 1 300 permanent employees by end of the 2012/2013 financial year.
He said the tender for the restructuring exercise had since been floated. The restructuring exercise is expected to see separation of the SGR from commercial activities.
“GMB will continue to expand its value addition activities to improve its financial and strategic position,” said Mr Chikaura.
“The proposed separation of SGR social activities from commercial activities will enhance efficiency and improve profitability and service delivery to the nation.”