Online Reporter
Tapiwanashe Mangwiro
Zimbabwe’s leading dairy processor, Dairibord Holdings, saw strong domestic demand reduce its export volumes in 2025 as the company prioritised the local market, according to its latest analyst briefing.
Dairibord reported that total sales volumes rose strongly during the year, reaching 132 million litres, representing a 12 percent year-on-year increase.
The company noted that exports accounted for a smaller proportion of volumes in 2025 compared to 2024, reflecting a strategic decision to supply the domestic market first amid rising consumption and growing demand for its beverage and food products.
“Exports accounted for 6 percent of volume sold in 2025, down from 7 percent in the prior year — a result of prioritisation of domestic sales to meet high local demand,” the company stated in its financial results presentation.
The shift highlights the strength of local demand for dairy and beverage products in Zimbabwe, even as the country continues to navigate a complex economic environment characterised by tight liquidity and structural challenges in the retail sector.
The growth in total sales was driven primarily by demand across its beverage and food product categories. Dairibord noted that an improved economic environment supported consumption, highlighting that strong agricultural output, resilient mining activity, and diaspora remittances helped underpin spending power within the economy.
“Firm demand was underpinned by a good agricultural season for tobacco and other cash crops, as well as growth in the mining sector, bolstered by resilient gold prices and strong diaspora remittances,” the company said.
Demand was also supported by more stable pricing conditions in US dollars, which the company said helped limit arbitrage pressures in the market. While exports softened as a share of total volumes, domestic demand strengthened across several product segments, particularly beverages and food items.
The company’s beverages category recorded robust growth during the year, with sales volumes rising 17 percent year-on-year. This was supported by strong demand for key brands including Pfuko Maheu, Cascade, Quench, and Quickbrew tea.
“Key beverage brands — Pfuko Maheu, Cascade, Quench and Quickbrew tea — performed strongly,” the company confirmed.
Meanwhile, the foods segment also expanded rapidly, posting 17 percent growth in sales volumes. This performance was driven by increasing demand for products such as drinking yoghurt and ice cream.
“Foods exhibited a robust 17 percent year-on-year sales volume growth, driven by strong demand for Yogie drinking yoghurt and ice creams,” the company said.
However, not all categories performed equally well. Liquid milk volumes declined during the year due to operational disruptions linked to upgrades at one of the company’s facilities.
“Liquid milks declined 5 percent, a result of downtime at the Chipinge plant during the commissioning of the new Steri Milk plant,” the company explained.
Dairibord also highlighted structural changes in Zimbabwe’s retail landscape, with the informal market continuing to gain ground relative to formal retailers. The company noted that general trade and cash economy channels now account for a growing share of its sales, reflecting wider economic trends.
“The GT/Cash channel continues to grow, reinforcing its position as the largest channel, currently contributing over 40 percent of sales,” the company said.
Formal retail, by contrast, remains under pressure amid ongoing economic headwinds.
“Retail continued to be under pressure,” the company said, adding that the business continues to adjust its route-to-market strategies to optimise working capital and margins.
The company is also strengthening its rural distribution footprint and expanding direct-to-consumer sales channels as it adapts to the evolving structure of Zimbabwe’s consumer market.
Although export volumes declined as a share of total sales, the company continues to maintain a regional presence, particularly in neighbouring South Africa. According to the presentation, South Africa currently contributes a small portion of overall sales but remains a strategic market for long-term expansion.
“South Africa sales contributed 2 percent to total sales volume,” the company said.
Dairibord noted it had already established an initial foothold within that country’s informal trade networks and
