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Agric Reporter
The Zimbabwe Stock Exchange listed agro-foods processing giant National Foods Holdings Limited is set to churn out an investment pipeline of US$30million with the major project being a new flour mill, a second breakfast cereal and a substantial reinvestment into the stock feeds plant. As the country’s agriculture industry rebounds on growth.
“The installations have commenced for the new flour milling plant in Bulawayo that is on track for commissioning early next year, the new flour mill will realise increased wheat milling capacity for the group as the plant will be able to process 2000 tons of wheat per month.”, said the company’s chairman Mr Todd Moyo.
The establishment of the flour mill in Bulawayo dovetails into the Government’s devolution agenda of industrialisation of production zones in order to boost local economies through employment creation.
To add on, with the harvesting of the winter wheat period close to ending the country is expecting a bumper harvest of 380 000 tonnes from 79 hectares compared to prior season’s 45 000 tones as the Government moves towards flour self-sufficiency.
The prospects of the current winter wheat crop look very promising which is a most welcome development as it will reduce import dependence.
Furthermore, the company welcomes the development of increased wheat production as higher wheat prices impacted affordability of biscuits resulting in a 3 percent decline in sales volumes for the financial year ended 30 June 2022.
“The group is embarking on an exciting period of expansion with the entry into a number of new categories as it seeks to value add its portfolio of basic products. Many of these products will see the localised manufacture of products which had previously been imported reducing foreign currency requirement and increasing demand for locally grown produce”, said the chairman.
The company heeds the Government’s call for companies to source 40 percent of their raw materials as the country moves to support the primary production sector. The various products grown under this program now constitute a significant portion of the group’s raw material requirements.
Mr Moyo added: “National foods continues to keenly support contract farming of strategic crops such as maize, soybeans, sorghum and wheat as during the current winter wheat season around 12 000 ha of wheat has been planted representing a significant portion of the contracted crop whilst the group targets 40 000 hectares for maize and soybeans.”
The group as agro-processing company it bounces on development in the agriculture sector.
The chairman pointed out that despite cattle stock feed volumes declining following better summer season and consequent improved pastures the group stock feed volumes increased by 12 percent as a result of increased demand for poultry feed.
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