Dairibord records 44% raw milk intake surpassing national average

ZIMBABWE – Dairibord Zimbabwe Limited (DZL), a leading player in the country’s milk processing sector, has reported a remarkable 44% increase in its raw milk intake for the quarter ending September 30, 2024, significantly outpacing the national average.

This surge highlights DZL’s substantial growth trajectory in the dairy industry, as the company continues to expand its market presence and processing capabilities.

Presenting the company’s trading update, DZL Company Secretary Maurice Karimupfumbi revealed that the group’s raw milk intake reached 11.8 million litres during the period under review, a significant jump from 8.2 million litres in the same quarter the previous year.

This 44% growth rate stands in stark contrast to the national increase of 16.7% in raw milk intake among processors, with DZL now accounting for 36.7% of Zimbabwe’s total milk production.

The impressive growth in raw milk intake was mirrored in the company’s overall sales volumes, which saw a 29% year-on-year increase.

This surge was driven primarily by the Milks and Foods product categories. The liquid milk segment recorded a 32% growth in sales volume, while the Foods category showed an outstanding 81% increase.

Beverages, another key segment, saw a more modest yet notable growth of 22% compared to the previous year.

For the cumulative nine-month period, DZL reported an 11% increase in total sales compared to the same period last year.

Beverages remained the dominant contributor, accounting for 60% of the total volume, followed by liquid milk at 31% and Foods at 9%.

Revenue for the quarter exceeded expectations, posting a 37% increase compared to the same period in 2023, reflecting the company’s strong performance across all product categories.

Despite these gains, DZL saw a slight shift in the proportion of its sales in foreign currency, with the percentage of total volume sold in US dollars decreasing from 93% to 74% in the quarter.

However, when looking at the cumulative nine-month period, the proportion of volume sold in US dollars increased from 74% to 81%. Exports also made up 5% of the total sales volume for the quarter, down from 11% in the previous period.

Looking forward, DZL is committed to maintaining its growth momentum. The company plans to enhance its processing capabilities through ongoing capital investment initiatives aimed at expanding its market penetration and increasing sales volumes.

In addition, the company will focus on export growth, cost management, and staff development as part of its broader strategy to sustain its upward trajectory in the competitive dairy market.

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