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Dairibord to ramp up production

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Dairibord Holdings Limited (DHL) plans to ramp up local production volumes by at least 30% on the back of an improved macro-economic environment in the last 24 months, an official has said.

The company expects modest growth at its Malawian subsidiary.

David Hasluck, DHL board member, told NewsDay last week the company was hopeful of making inroads into the market through its recently introduced products.

DHL subsidiaries include Dairibord Zimbabwe Pvt Ltd, Lyons, NFB Logistics Pvt Ltd and Dairibord Malawi Pvt Ltd.

“We are expecting growth in our dairy products and those from Lyons,” Hasluck said.

“Zimbabwe has seen the introduction of new products such as Nutriplus, Lyons Quench, and Yummy yoghurt that are doing well in addition to the traditional Cascade.”

Hasluck said they were expecting raw milk production in Zimbabwe to increase to between 22-23 million litres in 2011 from 17 million litres in 2010.

In Malawi the company is anticipating 5,3 million litres of raw milk output this year up from 5 million litres last year.

“We are not expecting as much growth in Malawi given the slow growth of that economy compared to Zimbabwe,” Hasluck said.

Last year DHL acquired and installed new technology to convert milk solids at its dairies in Bulawayo and Chipinge to boost the company’s production capacity.

In 2010 the company set itself a target to invest $5 million in capital projects including the acquisition of additional capacity to move raw milk, which would enhance the flow of raw milk to its milk production division.

Liquid milk production capacity utilisation level rose to at least 30% in 2010 from 10% in February 2009 following an increase in the local supply of raw milk by small and large-scale farmers.

DHL subsidiary Dairibord Zimbabwe Limited Pvt Ltd (DZL) produces Lacto, Super Milk, Chimombe, Sterilised Milk and Pasteurised Milk and Fresh Milk.

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