Dairibord Zimbabwe rose

During the period under review total volumes rose to 65 194 million litres from 54 504 million after a 38% growth in Foods volumes.

During the company’s analyst briefing, CEO Anthony Mandiwanzira projected DZLH volumes to grow by 20% in 2012 while revenue is projected to increase by at least 23%.

The current national raw milk production is 4,5 million litres a month against the estimated demand of 7,5 million litres.

As at December 31 last year, the group had 1 050 permanent employees, 600 contract employees and 1 100 independent vendors.

There were 8 processing plants in Zimbabwe and 1 in Malawi. Capacity utilisation for value added lines was at 60%, Milks 35%. The group has 46 delivery vehicles and 20 distribution depots in Zimbabwe and 2 in Malawi.

A dividend of 0.44c (record date April 24) was declared, a dividend cover of 4.5 times. The per capita consumption was at 8 litres against a peak of 25 litres, which Mandiwanza said showed the potential that was in the market.

Mandiwanza said Zimbabwe's consumption was still low against regional comparatives with Kenya at 100 litres, Uganda at 50l, South Africa at 56l and Zambia 10l. Malawi was low at 5 litres.

Average raw milk Price per Litre in Zimbabwe was 60c compared with 40c in Malawi, 41c in SA, 43c in Zambia, 36c in Kenta and 27c in Uganda. Total raw milk supply increased by 16% to 25,99 million litres in 2011 from 22,46 million litres in 2010.

Giving an operational environment update Mandiwanza said the key issues remained the limited raw milk supply in the country and the group had embarked on a heifer importation scheme and will resuscitate the dairy co-operatives and offer extension services to dairy farmers "although that is supposed to be government work".

He added that between since 1980 the group had helped to set up 10 dairy co-operatives which are currently not in full production but the infrastructure was still in place.

"Funding for these initiatives is still under consideration and we have a team that is currently talking with people interested," Mandiwanza said.

Erratic supply of utilities remained a challenge with the group “going for about 14 days without water this month (February)”. The group has invested in boreholes and standby generators

As at December 31 last year, the group had 1 050 permanent employees, 600 contract employees and 1 100 independent vendors.

There were 8 processing plants in Zimbabwe and 1 in Malawi. Capacity utilisation for value added lines was at 60%, Milks 35%. The group has 46 delivery vehicles and 20 distribution depots in Zimbabwe and 2 in Malawi.

A dividend of 0,44c (record date April 24) was declared, a dividend cover of 4.5 times.