Dairibord denies relocation rumors to South Africa

ZIMBABWE – Dairibord Holdings has reaffirmed its commitment to Zimbabwe, dispelling recent online rumors that the company plans to exit the country or relocate operations to South Africa.

The group’s Chief Executive Officer, Ms. Mercy Ndoro, addressed these claims in a recent statement, emphasizing that Dairibord remains focused on its Zimbabwean roots, where it has long thrived.

“Dairibord has a longstanding history of exporting its heritage brands to South Africa and other regional markets, and we have no intention of leaving Zimbabwe,” Ms. Ndoro said.

“Instead, the company is optimizing supply and distribution channels in South Africa to meet growing demand.”

The CEO added that Dairibord’s focus on capacity building is part of a broader strategy to drive growth, targeting regional markets such as Zambia, Botswana, and Mozambique. 

He noted that the Africa Continental Free Trade Area (AfCFTA) encourages regional positioning as a key priority, and Dairibord’s strategy aligns with this vision.

As the largest milk processor in Zimbabwe, Dairibord works closely with small and large-scale farmers to increase raw milk production, playing a vital role in the country’s import substitution strategy. 

The company processes around 40% of Zimbabwe’s raw milk, operating from facilities in Chitungwiza, Chipinge, and Harare.

The company recently reported a 40% growth in raw milk supply for the half-year ending June 30, 2024, significantly outperforming the national average growth rate of 22%.

Ms. Ndoro attributed this success to a strategic initiative that involved recruiting more milk producers and enhancing yields among contracted dairy farmers.

“The efforts of our milk supply development unit have been pivotal, and we are starting to see tangible results in increased raw milk production,” said Ms. Ndoro. 

The company’s profit rose to US$3 million for the period, a sharp increase from US$736,000 in the same period last year.

Dairibord has also seen strong growth in export volumes to regional markets, including South Africa, Botswana, Zambia, Mozambique, and Malawi. 

The CEO also highlighted a growing export presence in the United Kingdom, signaling the company’s expanding international footprint.

To meet the rising export demand, Dairibord has prioritized a toll manufacturing initiative in South Africa, which will complement its Zimbabwe operations. 

This strategy enables the company to extend its market reach while maintaining its strong presence in Zimbabwe.

The company, listed on the Zimbabwe Stock Exchange, affirmed that it remains focused on delivering nutritious dairy products, serving Zimbabwean and regional markets, while generating value for its shareholders.

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