Ashly DhaniNelson Gahadza
National Foods says it is adequately covered in terms of raw material supplies, but is worried about the El Nino effects that could impact negatively the 2023-24 season.
The company is Zimbabwe’s largest food manufacturer and produces a broad range of basic foods, including maize meal, flour, rice, salt, snacks, biscuits, pasta, sugar beans, baked beans, popcorn and a full range of animal feed.
Bulk of its raw materials comes from agriculture, however, weather experts have since warned of the El Nino effects that could affect Zimbabwe and other regional countries as it is associated with low rainfalls and even drier conditions in some arears.
National Foods chief executive, Mike Lashbrook, during a tour of the company on Wednesday, said the company has enough stocks supported by improved current national harvests and its contract schemes.
“We have adequate raw materials at the moment, and there are no issues in terms of raw material supplies in rice, soya, wheat, and maize,” he said.
He said while El Nino brings tougher seasons, the company is in constant engagement with the government, which has already allowed the importation of maize despite a bumper harvest.
Lashbrook said the company has, over the past two years, made investments worth over US$30 million in bringing in new products and expanding capacity.
“The pasta plant is expected to come on line this year, and the biscuit plant will be completed by December this year, while in Bulawayo we have invested in bread capacity,” he said.
He said these investments up the value chain will ensure the company produces competitively against regional products.
“We will be value-adding flour to ensure we produce products that are of high value and important to our country.
According to Nyasha Mhizha, managing executive for biscuits division, construction of the biscuit plant was completed a few weeks ago and is now in the process of installing the equipment targeted to be completed by December 2023.
“We are seeing a lot of imports coming into Zimbabwe of superior quality. We therefore went on to procure the latest equipment to be able to compete with our regional peers and substitute them with local products,” he said.
Mhizha said the plant equipment was sourced from Italy from a reputable supplier.
As part of the US$30 million investments in new projects, the company is seeking to ramp up production and expand its footprint.
Major projects under the fund include a new flour mill for Bulawayo, a second breakfast cereal plant for Harare, new biscuit and pasta plants, as well as substantial reinvestment into the Harare stockfeed plant.
Many of these products will see the localised manufacture of products that had previously been imported, reducing foreign currency requirements and increasing demand for locally grown produce. National Foods procures most of its raw material requirements through local contract farming schemes.
Bongani Ndlovu