ZIMBABWE – Zimbabwean dairy processing giant, Dairibord Zimbabwe Limited (DZL) has reported a total of 28.5 million litres of utilised raw milk in just a year on the back of the group’s resilient performance amid a challenging economic environment.
According to DZL chairman, Josphat Sachikonye said during the year, the amount indicated a significant increase in raw milk uptake.
“Raw milk utilised for the year was 28, 5 million litres, 4% above 2021 and representing 34% of the total intake by processors as we remained the leading milk processor,” he noted.
“The business aims to continuously grow high-quality volumes of raw milk through our Milk Supply Development Unit (MSDU) by providing support to the farmers in critical areas.”
He also highlighted that the unit included feed formulation and nutrition, veterinary support, herd growth projects, input procurement facilities as well as sustainability and alternative energy options.
DZL’s performance has remained resilient despite the erratic supply and high cost of quality water and electricity problems persisting and taking a knock on the cost of production.
Dairibord records 40% increase in revenue
Meanwhile, Dairibord has recorded inflation-adjusted revenue of $63,38 billion during the financial year ended December 31, 2022, a 40% increase on the comparative period.
Moderate volume growth and price adjustments to protect margins were the main drivers of revenue growth.
In a statement accompanying the group’s 2022 annual report, Dairibord chairperson Josphat Sachikonye noted that sales volumes for the period grew 3% ahead of the same period last year, with beverages and food categories delivering growth of 7% and 10%, respectively.
He said domestic market sales volumes in United States dollars for the year were 50% compared to 17% recorded in 2021. Exports were 6% as the group’s regional footprint continues to grow.
“The business experienced increased costs arising from imported inflation and pricing distortions from currency instability. Resultantly, cost of sales and overheads grew by 46,4% and 46%, respectively,” he said.
Sachikonye also noted that the business operating environment remains challenging and that it is expected that global, economic growth will be slow due to the overhang of the COVID-19 pandemic and the effects of disruption to global supply chains.
“A decline in global demand is anticipated to lower commodity prices, reducing the opportunities for the nation to benefit from its rich mineral reserves.”
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