Massive milk deficit hits Zim
http://www.financialgazette.co.zw/
Wednesday, 08 May 2013 17:30
Staff Reporter
ZIMBABWE has experienced a four million litre monthly milk deficit in the
past few years following the depletion of its national dairy herd, which has
declined to 26 000, from 197 000 in the 1990s, Dairibord Holdings Limited
(DHL) chief executive officer (CEO), Anthony Mandiwanza, said last week.
In a trading update distributed to shareholders after the group’s annual
general meeting (AGM) on Thursday last week, Mandiwanza said national milk
demand currently stood at eight million litres per month, against the four
million litres being produced.
“We had a national herd of 197 000 cows in the 1990s with 75 percent being
dairy cows,” Mandiwanza said.
“But now the national heard is 26 000 which is producing four million litres
of milk every month from a national monthly demand of eight million,” noted
the DHL CEO.
DHL has embarked on a programme to beef up its milk output by importing
heifers.
“We hope that this initiative will contribute nearly 10 percent to our milk
supply in 2013,” he said.
In October last year, DHL imported 250 heifers, which were distributed to 10
farmers across all provinces.
The cows were already in production and expected to produce one million
litres of milk per year.
“We are targeting at least 500 dairy cows this year to add more to the milk
supply side,” he said.
Turning to overall group operations, the DHL CEO projected that production
would increase after completion of an ongoing rationalisation programme.
DHL has shut down its Bulawayo and Mutare plants and moved production to
Harare as part of its cost cutting measures.
It would maintain offices at the closed plants for distribution.
“Another challenge we have been experiencing was increased costs due to the
rationalisation process particularly on staff and equipment relocation,” he
said.
“Erratic water supply and high cost of utilities have also been a challenge
except for areas where we have invested in boreholes,” said Mandiwanza.
DHL would save up to US$1 million annually after the completion of the
rationalisation programme.
During the first quarter of the year, Mandiwanza said there had been limited
product supply due to the relocation of equipment under the rationalisation
programme.
He also commented on the liquidity crisis that has affected industries since
2009.
“The issue of liquidity…it’s becoming excruciating in the business. In this
quarter, the manufacturing sector in particular has been experiencing the
serious impact..,” Mandiwanza said.
Mandiwanza said revenue during the first quarter was flat at US$24 million
compared to last year.
Milk volumes decreased by one percent from 16,250 million litres in the
first quarter of last year to 16,046 million litres in the first quarter of
this year.
Mandiwanza projected revenue to increase in the second quarter after
completion of the rationalisation programme. — Staff Reporter.