Dairibord to commission milk equipment

DAIRIBORD Zimbabwe Holdings Limited (DZHL) says it plans to commission a $4 million sterilised milk plant in Chipinge as part of efforts to boost production of its long shelf life product.

BY TARISAI MANDIZHA

DZHL group chief executive officer Antony Mandiwanza said the new plant, to be commissioned on June 12, had the capacity to produce 24 million litres of milk per annum.

Mandiwanza said the plant had already contributed to the group’s overall performance for the four months ending April 30 2015.

“The project is worth $4 million and this is going to increase production supply, reduce cost and stimulate milk production in the Chipinge area,” Mandiwanza said.

He said the state-of-the-art equipment for the refurbishment of the plant was being imported from South Africa and the Netherlands.

“The plant is already running, the continuous production tower was imported from Nertherlands, the blow moulders came through China but the suppliers are from South Africa, feeling and packaging is from Filmatic South Africa,” he said.

Mandiwanza said the commissioning of the Steri plant will increase volumes for liquid milk as well as improving operating efficiencies.

Mandiwanza said, DZHL accounted for 40% of the 54 million litres of raw milk produced in Zimbabwe.

According to statistics from the Zimbabwe Association of Dairy Farmers (ZADF), the national herd stands at 5,3 million but only 0,05% (26 502) are dairy cows that produce 54 million litres per annum as compared to 256 million litres in 1990.

In the four months to April 2015, DZHL recorded a 6% growth in revenue due to change in product mix, reduced steri production costs, increased contribution from the heifer scheme, cost containment measures and the performance of a Malawi venture.

In the period under review, raw milk intake was 3% down from last year, volume 22% above the same period last year, revenue 6% above last year and operating profit better than last year at 1% from -2% in 2014.