Zimbabwe’s largest seed producer, SeedCo Limited says it expects a 20% increase in profits due to the strong demand of seed in the region.
The firm also expects a 25% jump in its sales.
Speaking at the company’s annual general meeting yesterday, SeedCo group chief executive officer Morgan Nzwere said; “Demand expected to be good buoyed by elections in Zambia in September 2011 and Kenya August 2010, drought in East Africa and non-governmental organisations and the government in Malawi. Erratic weather in East Africa is driving market towards mid and early-aturing varieties which are our forte,” Nzwere said.
He said the company will also take advantage of the huge local demand as recently indicated by Finance minister Tendai Biti that the country required 50 000 metric tonnes of seed maize.
Nzwere said the company is also expecting cotton and soyabean to sell out due to high commodity prices experienced in the past year.
“ Cotton seed is projected to increase by 5% and contributing 20% to overall sales Exports to Malawi are poised to increase by 87% to
2 500 metric tonnes,” he said.
The company expects maize output to rise by 20% while soya beans is set to grow by 20% due to subsector demand and buoyant commodity price.
SeedCo has collected $24 million from its debtors so far that include Zambia, Malawi and others.
The seed manufacturing company is set to open a processing plant in Malawi and $5 million has been secured from Malawi to construct the plant.
Nzwere said a processing plant is already operational in Zambia.
In Kenya a full repacking plant will be installed in September and a processing plant will be operational in Ethiopia by December this year. The company is set to produce 94 000 tonnes of seed output this year from 65 000 tonnes in previous year and is eyeing developments markets in Nigeria and Ghana.