The Sunday Mail
Enacy Mapakame – Business Reporter
DAIRIBORD Holdings Zimbabwe will spend US$1 million on importing 500 heifers this year as it targets to increase milk production by 200 000 litres per month.
While the country requires at least eight million litres of milk per month, production currently stands at 4,5 million litres.
The annual national raw milk production in Zimbabwe stands at 55,5 million litres.
The heifers will be delivered by the end of the year at a cost of US$2 000 each, with 100 beasts coming in by April.
Last year, Dairibord imported 180 cows against a target of 250.
Group chief executive officer Mr Antony Mandiwanza said the company would spend US$10 million on capital expenditure, part of which will be spent on increasing UHT milk production.
UHT describes milk that has been heated to a very high temperature so that it stays fresh longer.
“The other money will also go towards beverages; our company is ‘more than just milk’ and we will strengthen the beverages side,” said Mr Mandiwanza.
The firm has a range of beverages such as Dairibord Pfuko/Udiwo.
The group will commission its Chipinge plant in May after completing equipment installation next month.
The plant is expected to improve efficiencies. Mr Mandiwanza commended the increase in players in the dairy industry, but criticised the proliferation of unscrupulous vendors selling counterfeit products under the guise of being Dairibord distribution agents.
“We know about the counterfeit products and it is a very difficult issue. That is why we are engaging law enforcers to help us.
“These people print regalia with our logos and sell fake products and ride on our brands.
‘‘What they sell does not reflect who we are and what we stand for,” said Mr Mandiwanza.
He indicated there was need for foreign investment to support infrastructure development.
“The broader macro-economic fundamentals of this country must come right.
‘‘We cannot do it alone without international support.
“Then the allocation of resources to infrastructure development projects such as roads, rail, water and electricity supply are key and we need international support to do that. But there should be confidence in the economy for people to come,” he said.
In 2014, Dairibord reported an operating profit of US$1,35 million against a loss of US$1,83 million in the prior year.
The group attributed the growth in profitability to cost containment measures that were implemented.
Group profitability was weighed down by a US$350 000 loss at its Malawi unit.
Revenue for the year fell 1 percent to US$99 million, but volumes sold increased by 8 percent.
The mismatch in volumes growth and revenue decline was a result of price adjustments effected in the year to maintain competitiveness.
Net asset value grew 1 percent to USc12,8.
The group did not declare dividend despite recording a profit. Dairibord closed Wednesday trade at USc8 per share.
