Nestlé Zimbabwe plans to resume manufacturing its smooth hot chocolate drink, Milo, and is in the process of installing a new cereal plant at its Southerton plant in Harare that would enable it to double production.
The project, estimated at $28 million, will result in the installation of a cereal plant, administration block and laboratory equipment.
Chief executive officer Kumbirai Katsande said the new plant would bring an end to the current cereal shortages in the country.
“We are currently installing a new plant, which should see us doubling our volumes in a bid to meet our local and regional demands,” said Katsande.
“Our cereal division is currently operating at 90% capacity.”
He said the machine would be up and running by mid this year.
He said the group was currently producing banana flavour on Cérévita products as this was the most favoured flavour.
“Banana is the most popular flavour followed by wheat. We are hoping later this year the company will produce all three varieties.”
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He attributed the current cereal shortages to the company’s products being smuggled out of the country.
“We have noticed that some of our products are finding their way to the international market without company authorisation,” he said.
Katsande further said the company will soon resume manufacturing the popular Milo brand.
Production of Milo ceased last year to pave way for the modernisation of the plant. All supplies were being imported from South Africa.
Nestlé has also introduced the “3-in-1” Ricoffy product, which is currently being fed into the Zimbabwean and South African markets.
Nestlé Zimbabwe last year bought 200 dairy cows from South Africa in a $14 million investment programme aimed at reviving the country’s battered dairy industry.
Katsande said national milk production stood at 50 million litres per year from the 40 000 dairy cows available.
At the height of Zimbabwe’s economic performance just before the turn of the millennium, the country produced 260 million litres of milk per year.
