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Natasha Chamba, Business Reporter
AGROPROCESSING firm, Olivine Industries Private Limited, has closed its margarine plant, management has confirmed.
Olivine used to produce Buttercup margarine, Olivine cooking oil and jade soap among other products.
In emailed responses to Business Chronicle Olivine acting chief executive officer, Mr Sylvester Mangani, said the temporary closure of the margarine unit was as a result of persistent shortage of foreign currency in the economy.
“There is a shortage of our buttercup margarine in the market. The margarine plant is closed from January 2019 due to shortages of raw materials,” he said.
Mr Mangani said margarine requires very special and patented flavours, which are imported.
He could not disclose how much foreign currency was needed a month but said apart from vegetable fats, all the other inputs were imported on a regular basis because the ingredients had a short shelf life.
“The company is failing to import raw materials because it has not received forex from the Reserve Bank of Zimbabwe (RBZ) since October last year,” Mr Mangani said.
Mr Mangani said before 2016, Olivine was a loss making company but that has become a thing of the past as the firm has successfully turned around under the new management and partnership with Surface Wilmar. He however said there was an urgent need to address the issue of forex shortage so that the company can continue with its expansion plans.
Last year Government disclosed that it was considering selling part of its 35 percent stake in Olivine to Surface Wilmer in order to raise foreign currency towards recapitalisation. Surface Wilmer is the largest producer of edible oils in the country and is the major investor in Olivine. —@queentauruszw
Online Reporter