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Judith Phiri, Business Reporter
LISTED seed manufacturer, SeedCo Zimbabwe demonstrated impressive growth in the third quarter of 2024, achieving a 48 percent surge in revenue, fuelled by increased seed sales volumes and record-breaking exports.
In a trading update for the quarter ending 31 December 2024, the company’s group secretary, Ms Faithful Sithole, highlighted that the expansion of the agriculture sector and the rising demand for climate-smart seed varieties are creating significant opportunities for the business.
“The company adopted the United States Dollar (USD) as both the functional and reporting currency, effective 1 April 2024. The business delivered a strong third quarter, with revenue up 48 percent, driven by higher volumes and record exports amid drought-induced stockouts across the regions,” she said.
“The performance was largely driven by a strong stock carry-over position from the previous season. Operating profit increased significantly, fuelled by sales expansion and cost optimisation. Margins remained robust due to enhanced productivity and effective resource management.”
She said revenue went up from US$42,5 million to US$62,7 million, while operating profit went up from US$20,7 million to US$25,8 million.
Ms Sithole said the company remains resilient, leveraging on domestic demand and regional opportunities to close the year strong.
She added: “As we prepare for the winter cereal season, we are seizing opportunities through market expansion initiatives and operational excellence.”
Meanwhile, the seed house at the start of the 2024/25 summer cropping season teamed up with the Zimbabwe Republic Police (ZRP) to flush out bogus agro-dealers that capitalised on the cropping season preparations to sell fake seed to unsuspecting farmers.
The initiative was essential to ensure that farmers had access to safe, high-quality seed, which are crucial for successful crop production.
By targeting counterfeit seed, they were promoting the overall health of the agricultural ecosystem, as the presence of these products threatens the integrity of the market and poses risks to production safety and sustainability.
SeedCo said as the country was pushing to boost agricultural production, the use of counterfeit agro-inputs could result in poor crop yields, increased pest problems and financial losses for farmers.
In a bid to guarantee the quality of seed, authorities have been calling upon farmers to confirm that their suppliers are officially registered and that their products display the required certification labels.
The operation, which continued until the end of the year (2024) allowed law enforcement agents to thoroughly investigate and address the widespread issue of counterfeit seed sales.
This initiative responded to the growing concern over the proliferation of fake seed in the market, which poses significant risks to both agricultural productivity and the livelihoods of farmers.
Counterfeit seeds were being sold in various locations, including hardware stores, street corners and open markets, while these sales venues made it easy for unscrupulous vendors to reach unsuspecting consumers.
The ZRP collaborated with agricultural authorities and stakeholders to enhance monitoring and enforcement efforts to ensure that offenders are held accountable.
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