HARARE - The 3,7 million litres of milk currently being produced each month falls below monthly demand estimated at an average of 5,5 million litres, Dairibord Holdings Limited has said.Announcing the group’s interim results for June 30, Dairibord said milk intake increased by 21% in comparison to the same period last year, with Dairibord Zimbabwe Private Limited recording a 33% increase.
Dairibord is now benefiting from the raw milk volume and quality incentive schemes put in place mid 2009. The group said that the 8% intake decline at Dairibord Malawi was due to increased competition for the raw milk due to the emergence of new players.
In order to give impetus to organic growth, improve market coverage and close market gaps, the group is on course with regards to the implementation of capital projects in constrained product lines. These investments are aimed at improving capacity, enhancing revenue and containing costs.
The last six months were e encouraging for the milk processor as it managed significant volume growth in all areas. Board chairman Tim Chiganze said that the group’s performance was pleasing given the operational challenges in the economy.
“Turnover was US$31,38 million, representing a 93% increase over the same period last year,” he said.
Dairibord has since disposed of its 17% holding in Interfresh as part of the company’s strategy to realign the business and focus on core business activities for optimal value creation. Dairibord intimated that the current constraints in the operating environment are likely to persist in the second half of year especially regarding liquidity challenges and erratic supplies of utilities.
Post published in: Economy