ZIMBABWE – Dairibord Holdings has reported a 40% growth in raw milk supply for the half-year period ending June 30, 2024, outperforming the national production surge of 22%.
Ms. Mercy Ndoro, the group’s chief executive officer, attributed this impressive growth to a proactive strategy that included aggressive recruitment of milk producers and enhanced yields among contracted dairy farmers.
“The efforts of our milk supply development unit have made it a responsibility to interact with farmers and increase raw milk production, which has started to bear fruit,” she explained.
The company’s profit surged to US$3 million, up from US$736,000 during the same period last year, highlighting its resilience amid challenging economic conditions.
Ndoro noted that the volume and revenue performance for the interim period demonstrated a positive trajectory, enabling Dairibord to achieve substantial results despite external challenges.
Dairibord also experienced significant growth in export volumes, particularly to regional markets such as South Africa, Botswana, Zambia, Mozambique, and Malawi.
“These markets provide advantages of proximity, cultural similarities, and increasing demand for our products,” the CEO stated.
Furthermore, the company is beginning to see a gradual increase in export activity to the United Kingdom.
To facilitate further expansion, Dairibord has implemented several strategies, with a particular focus on enhancing its export reach.
The toll manufacturing initiative in South Africa has become a strategic priority for the group, addressing the inability to fulfill export demand through its Zimbabwe operations.
“The primary advantage of toll manufacturing lies in collaborating with third-party manufacturers, which allows for the elimination or reduction of capital expenditure,” Ndoro explained.
By leveraging existing infrastructure and excess manufacturing capacity, the company incurs minimal financial outlay, providing significant benefits.
This strategic approach will enable Dairibord to grow its presence in South Africa and other regional markets while offering a competitive advantage through low-cost production and supporting foreign currency generation amidst ongoing shortages in Zimbabwe.
Additionally, the company is forming partnerships with local distributors and retailers in target markets to ensure efficient product distribution and reach a broad customer base.
Maintaining high-quality standards and investing in brand-building activities remain essential for success in export markets, and according to Ndoro, these strategies will be a central focus moving forward.
Dairibord prides itself on being an inclusive business that actively supports small-scale farmers in enhancing national raw milk production.
Currently, the company collaborates with over 480 small-scale farmers and operates 13 milk collection sites, offering financial assistance and various support programs, including veterinary care.
Furthermore, Dairibord provides nearly 1,000 vending opportunities nationwide, emphasizing the empowerment of women, who make up approximately 65% of its vendors.
“These initiatives not only promote better nutrition but also create income opportunities for small-scale farmers and marginalized communities.”
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