Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Govt must lead commercial milk production

‘Govt must lead commercial milk production’

Thursday, 28 April 2011 20:27

Taurai Mangudhla

GOVERNMENT should allocate resources to resuscitate the depleting national 
herd and revive the dairy sector, Dairibord Holdings Ltd (DHL) CEO Anthony 
Mandiwanza said.
Mandiwanza told businessdigest last week at the company’s annual general 
meeting in the capital that government must spearhead local commercial milk 
“Government’s advantage is that it is centrally located to attract the much 
needed grants from international monetary institutions. If government is 
committed to the process, the sector will take a jump in the right 
“Milk production development has always been a central government 
responsibility because it does not go well with a company’s balance sheet. 
If wishes were horses the sector would be back to peak levels between three 
and five years,” said Mandiwanza.
At its peak in 1991, the national dairy herd stood at more than 191 000 
compared to the current 20 000.
Mandiwanza said there was need for government to launch feasible animal 
husbandry schemes targeting commercial practice instead of the small scale 
farmers that cannot sustain the sector. The company’s sales volumes for the 
year ended December 2010 grew by 48%, mainly driven by domestic markets 
whilst exports accounted for 5% of the total volume of sales.
Mandiwanza attributed the improvement in performance to an increase in raw 
milk intake in the country.
“The raw milk intake at group level continues to firm up and this positive 
trend in raw milk intake can be attributed to the stabilization of the 
economy,” he said.
Liquid milks contributed 35% to both sales volumes revenue whilst foods 
contributed 16% to sales volumes and 29% to revenue.
Beverages accounted for 49% of the sales volumes and 35% of revenue.
DHL managed to record a US$75,187 million annual turnover, a 73% growth from 
Profit before tax from operations was US$8,017 million up from US$4,089 in 
the prior period.
Addressing delegates at the company’s annual general meeting on last 
Wednesday, Mandiwanza said his company had benefited from the stable 
economic conditions in the period under review.
He said; “The operating environment in 2010 was fairly conducive, setting 
the platform for consolidating growth achieved in 2009. The year-on-year 
inflation was stable and ended the year at 3, 2% whilst the economy grew by 
8, and 1%.”


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