ZIMBABWE – Zimbabwe’s largest milk processor, Dairibord Holdings Ltd, is expanding its supply and distribution networks into South Africa, with future plans to invest in Zambia, Botswana, and Mozambique. 

The Zimbabwe Stock Exchange-listed company aims to capitalize on regional opportunities while strengthening its revenue streams. 

Dairibord’s chief executive officer, Mrs. Mercy Ndoro, announced the expansion strategy while responding to rumors that the company would close its Zimbabwean operations.

Mrs. Ndoro firmly denied reports circulating on social media that Dairibord was relocating to South Africa.

“Dairibord remains firmly committed to its Zimbabwean roots and will continue to operate within the country,“ she stated. 

She further emphasized that the company’s regional expansion would not come at the expense of its Zimbabwean operations.

Instead, Dairibord is optimizing supply channels in South Africa and intends to replicate this model in other neighboring markets to meet increasing demand for its products.

In addition, Dairibord is looking to tap into the opportunities presented by the Africa Continental Free Trade Area (AfCFTA), which aims to facilitate intra-Africa trade and enhance foreign currency generation. 

Meanwhile, in its financial year ended December 31, 2023, Dairibord saw a 10% increase in raw milk intake, processing 31.43 million liters, compared to the previous year. 

This upward trend has continued into 2024, with a 40% surge in milk uptake during the first half of the year, from 12 million liters in 2023 to 19.9 million liters in 2024. 

These results reflect the company’s efforts to increase collaboration with both small and large-scale farmers as part of Zimbabwe’s broader import substitution strategy.

Zimbabwe’s Finance Minister, Professor Mthuli Ncube, has supported the dairy sector with fiscal measures such as the suspension of duties on milk powder imports and a phased reduction of milk powder imports. 

These measures have led to a significant reduction in milk product imports, which fell 21% in the first half of 2024.

Dairibord remains focused on expanding its regional presence while reinforcing its operations in Zimbabwe. 

This will contribute to the country’s goal of boosting domestic milk production from 70 million liters to 130 million liters annually by 2025.

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