Conrad Mwanawashe Business Reporter
SEEDCo’s overall winter cereal sales for the first four months to July were 11 percent higher that the same period last year buoyed by a rebound in Zambia. However, the seed maker’s Zimbabwean unit’s winter sales took a 20 percent knock on last year. Chief executive officer Morgan Nzwere told the annual general meeting on Wednesday that Zambian farmers had exhausted carryover stocks so had to buy new stocks this year. This, coupled with a flexible credit plan by the Zambian Commercial Farmers’ Union under the Lima programme spurred the rebound.

In Zimbabwe wheat sales were lower due to import parity issues, lack of concessionary finance and electricity challenges.

Nzwere said barley sales were non-existent due to the breweries having adequate carryover stocks and therefore not placing new orders.

In terms of seed production for the summer crop Nzwere said: “We expect to have adequate stock to meet our demand this year. Last year as you may recall we ended up running out of supply of short season varieties. This year the production was very much skewed towards short season varieties. We will be having enough to supply the demand that is likely to arise.

“We are expecting at year end to end up with carryover stocks of 20 percent of our annual stores requirements which is a target that we always aim to achieve,” said Nzwere.

Regionally, an estimated maize deficit of 25 percent is expected to spur demand for maize next year.

Nzwere said South Africa is currently importing and although Zambia has excess, it is not enough to meet the demand in the region.

“So we think this should lead to a good selling season come the selling time for our varieties. We are currently busy placing stocks in distribution outlets. We also have got adequate stocks in all maturity categories,” said Nzwere.

All the conditions precedent on the acquisition of Prime Seeds have been met including approval from the Competition and Tariff Commission and the group is in the process of consolidating the new company into its structures.

The group acquired 100 percent stake in the country’s biggest vegetable producer and expects to tap into its technical partner Limagrain’s knowledge of the sector.

Prime Seeds Vegetable business structures are being set up in all SBUs.

On the Nigerian front there has been some progress in the volatile maize growing belt with the new political dispensation.

The company is looking forward to its first meaningful production this year, though quantities will be small.

In Ethiopia, the company is still selling through an agent as getting own business licence is still a challenge. The company has approached the Common Market for East and Southern Africa for assistance with a business licence.

Nzwere said there has been progress in debt collection with $16.2 million having been collected since the beginning of the year and the main activity is paying growers for the delivery of seed this year.

“We have managed to arrange adequate facilities to pay for the seed. We have arranged facilities in Botswana at around five percent which could reduce our borrowing costs significantly,” said Nzwere.

In the year to March revenue at $95 million was down 11 percent from about $106 million.