Andrew
Online Reporter
Listed manufacturer, National Foods Holdings Limited (Natfoods) says the improved performance of the agriculture sector will reduce the need for imported raw materials.
Natfoods is the country’s largest food manufacturer, and utilises a significant amount of raw materials from the agricultural sector.
“Maize volumes for the recently concluded 2020-2021 harvest were excellent and the 2021 wheat harvest (which is currently underway) promises to be the best in many years,” said the group in its trading update for the first quarter to September 2021.
“The agricultural recovery is most welcome, as requirement for imported raw materials will decrease significantly, reducing the burden on the fiscus and improving household incomes.”
For the quarter under review, Natfoods’ volumes increased by 24 percent compared to the same period last year to 143 000 metric tonnes.
The group expects its volumes to continue on an upward trajectory.
“It is expected that volumes will show continued growth over last year. However, it is hoped that some of the recent economic challenges can be addressed, in order to slow inflation and restore general business confidence,” said management.
Natfoods said its two major capital development projects are on track, “with the Bulawayo Flour Mill scheduled for commissioning late in 2022 and the Harare Breakfast Cereal plant scheduled to be completed by the second quarter of 2022.”
Online Reporter