Milk imports hurt local industry: Dairibord

ZIMBABWE Stock Exchange-listed manufacturing concern Dairibord Holdings has raised concerns over the influx of cheap dairy products mainly from South Africa, saying the development would hurt local companies, company officials have said.

TARISAI MANDIZHA

Currently, a litre of milk costs 62 cents locally compared to an average 40 cents in South Africa. This has resulted in local companies struggling to compete with imported milk products.

Speaking at the Imara Investment Conference in Harare, group chief executive officer Anthony Mandiwanza said it is unfair that products from Zimbabwe’s major trading partner are imported into the country yet local dairy firms are barred from exporting to the regional powerhouse.

“Our biggest upset and annoyance is that we cannot export to South Africa, but they can export to Zimbabwe,” said Mandiwanza.

Also speaking at the same conference, Dairibord Holdings group finance director Mercy Ndoro said the company was facing intense competition from imports mainly as a result of the weakening rand.

Ndoro said although local companies cannot meet raw milk demand due to a dwindling national herd, there is need to ensure that the players become more competitive.
Last year Dairibord  rolled out a heifer importation programme which seeks to boost milk output.

Statistics show that raw milk production in Zimbabwe is averaging 4,5 million litres per month against an estimated demand of 8 million litres per month. The group recorded a marginal revenue increase of $24 295 million for the first three months of the year ending March 31 up from $24 226 million in 2012 the same period.

The group volumes declined to 16 046 million litres of milk for the three months to March from 16 250 million litres in 2012.

In the period under review, raw milk intake increased to 6,6 million litres for the first quarter compared to 6,58 million litres during the same period in 2012.

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40 Responses to Milk imports hurt local industry: Dairibord

  1. tato June 6, 2013 at 7:51 am #

    CEO bemoans about not being allowed to export milk but finance director say the local producers dont have the capacity to meet local demand for milk, so whats going on here?. You want to export yet you cant even meet local demand and at the same time you cant compete!!!!

    • walter June 6, 2013 at 9:06 am #

      Dairiboard milk is priced high…

      • Falcon June 6, 2013 at 1:51 pm #

        Of course Dairiboard products are artificially priced high but they are a Zimbabwean company employing locals up and downstream. South Africa should not be allowed to continue dumping here, the prices of their products which are smuggled in anyway (without paying duty) is sufficient ground for grief not only at Dairiboard but other Zim industries. Of course that is not to say Zim industry are any better, they are extremely inefficient and their reward system is ridiculous with management accounting for 80% for salaries paid.. Instead of the cost of raw material purchases being the biggest expense, salaries and benefits are getting the lion’s share of the costs..how anyone can pretend to be doing business with such skewered cost base is a mystery. Why not get rid of the fancy fleet of cars, holiday and educational benefits as a starting point? Start cutting the cloth according to your length? Learn from Delta and Econet who seem to be on top of their game? Companies need to have a happy and competent labour force to be able to produce such good results. I bet their ratio of reward for the highest paid and the lowest paid is not as ridiculous as obtaining at say ZBC and other parastatals, templates from which some idiotic companies out there are using. REVISIT your reward system TODAY. What this management does is a mystery as companies are closing everyday. The government that is warehousing these distressed companies has become so big doing nothing that you begin to wonder whether anybody in the land cares about industry anymore. i think that IDC is a useless body, the soon it too is disbanded and smaller units left to run their affairs the better for all. In any case how long has the top brass in this company been at the helm, and with what results? Break this useless monster into smaller units with NEW board members and take them to the stock exchange to raise their own capital..you will be pleasantly surprised some of the companies being throttled by the inefficiency at the top of the IDC are viable entities that just need injection of…not working capital but serious and focussed management. We saw the kind of management we have in the banking sector when Ecocash came on the line, they went ballistic about turf protection when they had been sitting on this gold mine for years..no imagination at all but ready to pounce on princely benefits for doing zilch! My view is CZI should sit down with their counterparts down south and discuss issues then whatever they come up with is then related to their respective governments for action not vice versa. When the situation in Zim normalises they will lose big time..so why not level the playing field by persuading their companies to stop dumping products and smuggling here, the benefits they are getting are not sustainable in the long run. Our GNU has removed industry out of the equation in their bid to win votes..a strange infantile way of thinking if ever there was one. We saw recently the VP receiving a largesse from one Waverley Blankets whose idea of manufacturing is bring in ready made rolls of blanket fabric cutting these and packing them..If this is manufacting then how come pigs have not started flying yet? Blanket manufactuers National Blankets and Travan Blankets have been forced to close or scale down because of this unfair practice by Waverley Blankets. At its peak between the two comatose blanket manufacturers upwards of 2 000 people were employed in both Bulawayo and Chitungwiza (places where the loss of just one job is aTRAGEDY) Today between the two of them I would be surprised if they employ more than one hundred people. What causes anguish no end is we have a full fledged Minister of Finance and one for industry who can not be bothered. It is shameful for the VP to be this ill advised to accept gifts from a company that is shortchanging everyone, the government she is leading included, in this manner. The press should dig a little bit deeper about how these uncontrolled imports are decimating industry and killing their own advertising revenue since dead companies can not advertise wares they do not have in the press.

    • Costa rakafa June 7, 2013 at 7:51 am #

      People want affordable things,cant u see the difference 62c & 40c.

  2. diva June 6, 2013 at 7:58 am #

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    • masese June 6, 2013 at 8:07 am #

      Diry board has been not been running professionally for a long time what do you expect,boilers colapsing calprits going scott free-vana vasekuru.

      • john June 6, 2013 at 8:38 am #

        Mandiwanza its time to go.You have over stayed and destroyed DZL

  3. jiggyz June 6, 2013 at 8:14 am #

    it was mealie then chicken next…money imports hurting local banks.

  4. baba munya June 6, 2013 at 8:30 am #

    increase yr production first baba kwete kuti timame ne tea hobvu makutadza kutipa mkaka ,chimboshandai zvakadaro

  5. john June 6, 2013 at 8:40 am #

    It is a well known secret that Mandiwanza and Mercy Ndoro the finance director are lovers

    • Falcon June 6, 2013 at 1:57 pm #

      @John- this is a very serious allegation, are you aware you may be asked to provide proof of this? This is dangerous slippery ground my friend. If on the other hand this were true, then lord have mercy, this is taking frivolity to dizzying heights and both should resign immediately..

  6. zecksman June 6, 2013 at 8:59 am #

    Makapata chose,hamugoni kuita mukaka unokwana vanhu saka munoda kuti tinwe tea isina mukaka?ukasa impotwa motoita $2 zve pint yacho?

  7. Sly June 6, 2013 at 11:01 am #

    Yeah mati madi, i am another costomer who buy s.a milk n not dairy board milk. Handiti makavhara byo n mutare plants n u want us to buy ur products, never. Tengesai ikoko ku harare. Am actually incouraging residents here to buy cheap s.a milk n stop buying dairy board milk. Muchamama chete

    • kikiki June 6, 2013 at 5:47 pm #

      Please continue to sabotage them becoz thats the only way for us here in Harare to have a stable supply of milk!! Didnt you hear they are failing to meet demand!

      • Sly June 8, 2013 at 7:58 am #

        Unonzwa chirungu here, hanzi demand is high,but pple are buying sa manufactured milk leaving out dairyboard milk becoz its expansive therefore they have lost market share thats why they closed byo n mutare plants.

  8. blessing June 6, 2013 at 11:06 am #

    What is the behind not exporting ,don’t lie to us there is some sanction on that. The problem is that if yo can’t meet your demand then how can export ,Mr Mandiwanza I think if u know your economics we’ll for u to export you should first have a surplus on your commodite that you wan export ,so how can you export if u can’t meet your demand of 8 million litres . This shows u a operating under the optium level ,so grow then talk of exporting

  9. Cde Zion June 6, 2013 at 11:17 am #

    useless CEO even if you xport hw a u going 2 compete with them on prices wen u can do that locally,,their milk is even cheaper in SA than it is here & yrs more xpensive than it is locally coz u wld hv factored in transport costs, duty etc

  10. Cde Zion June 6, 2013 at 11:23 am #

    my argument is SA’s milk is still cheaper after paying duty & transport xpenses,,,so is it nt common sense that yr milk will be more xpensive in SA after incurring the same costs. I think this dull CEO had some hangover during that conference.

  11. Chief Accountant June 6, 2013 at 11:35 am #

    I wont sympathise with you guys you chased away our brothers under the guise of rationalising operations.moreso you also came out in the state paper saying you now have a toll manufacturing arrangement with a SA company., and least but not least Mr Mandiwanza you’ve overstayed.,is there any place for King reports and Combined Codes in your corporate governance .,

  12. takutaku June 6, 2013 at 1:33 pm #

    mr mandiwanza lets be honest you’re importing milk from south africa you have strong competition unlike before and also competition from South Africa as well so you argument does not make sense i wonder how effective you still are at Dairibord. zim CEOs need to be more aggressive and serious and also not take us customers for granted it might have make sense to close the Byo factory coz of stiff competition from Keshelmer and the imports but i believe you guys slept on the job. maReporter may you please be serious on the stories you write

  13. Pastor June 6, 2013 at 1:54 pm #

    Ching’ombe cheku malawi way too cheap

  14. Themba June 6, 2013 at 2:06 pm #

    Please remember that south africans are paid in Rands, whilst our workers are paid in US$. Second exporting into South Africa, one has to register with the companies, for example, Makro charges R35000 to be on their suppliers list, yet will not guarantee to buy from you, except to have you on their list. Its protecting their own industries, as was supply a product cheaper to anything being manufactured in South Africa, but the hurdles put to stop me from exporting were too many. We should charge the South African products according to Zimbabwean costs, as theirs receive export incentives which are not available here. Here we are talking as producers, not traders. Lets understand things from those levels. Yes it true some of the costs are higher, ie ZESA Blackouts, Water and fuel, before talking of labour costs. Directors need to adjust their salaries to be in line with the current state of affairs in the country, not as before.

  15. izo June 6, 2013 at 4:50 pm #

    Let chitungwiza and harare people support you cause you closed in byo and mutare then now you want our support

    • kikiki June 6, 2013 at 5:45 pm #

      We already are you, cant you see they are failing to meet (our) demand!! It doesnt mean that they were no Chitungwiza and Harare people who also lost their jobs wen those in byo and mtare were closed just as it also doesnt mean that there are no manyikas and ndebeles working @ dairyboard Chitungwiza and Harare depots!!! grow up we are in Zimbabwe not Byo or Mtare or Harare, etc

  16. Side effect June 6, 2013 at 4:59 pm #

    Mandiwanza shuld go after we helped him in mutare during the zim dollar erer we were a major exporter of milk to mozambique .alas that fool retrenched our felow frends and reduced us to mere marketers .we must not buy their milk in mutare and bulawayo

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  18. WILLARD MUBVUMBI June 6, 2013 at 5:17 pm #

    LA COMPETENCIA ES SALUDABLE.

  19. baruva June 6, 2013 at 5:48 pm #

    Huyai mukame anhukazi azere nenkaka kunoshebelebe«

  20. mabvazuva June 6, 2013 at 7:13 pm #

    Saka kana asina capacity anoda kuti tidii, wajaira masuper profits vanaMandivanza. Just look at his other brands like lacto kuti yabuda musitaera sei! Inga we are buying malocal brands wani pasour milk, they are not even producing a 1 litre pack kuzoti 2 litre pack ingano but we have a number of local companies producing those. The bottom line is your product yaderera mastandards bhururu especially lacto, because there are only lacal brands for that product on the market. Hamuna capacity baba saka musavharira vamwe so that u start bottle necking and profiteering again tichishaiwa maproducts acho!! Zvema queue asina basa hatizvide nxaa!

  21. Ex-employee June 7, 2013 at 12:27 am #

    We ca spend hours debating about the real reason here. This co. is run like a mafia, where workers are overworked but rewarded wth ridiculous wages, also not much reinvestment occurs. Innovation is key, look at Delta how they have revamped and are competing well against imported brands. Truth is that the CEO is an egocentric cretin who does not have a vision for the future except to loot as much as he can, for as little as possible for personal gain and for the gain of his henchmen. Sad this company that had a huge product portfolio numerous plants and depots, is now an ailing ox. More than just milk for real…

    Aiva madziva ava mazambuko. … And worse is yet yo come unless leadership is changed here.

  22. vukani madoda June 7, 2013 at 1:08 am #

    I have to say the CEO shoots himself in the foot here.There are 2 statements he has made which left me in no doubt that his company only cares about itself and not the consumers.For a start Zim farmers are not producing enough milk to meet the demand-if there were no imports there would clearly be a shortage and we would be back to Gono’s bearer cheque era where milk was being sold literally in the black market at exorbitant prices.Secondly I am not sure if the restriction not to sell is by the S.Africans or our own government but it matters not who has banned the exports as ,if Dairiboard was allowed to export milk,even with no duty being levied ,their milk would be more expensive anywhere and if the transport cost of exporting was added their milk would have no takers there-so their milk is better off here:look at the ethanol project-that company is failing to export to SA where the ethanol could be utilised but this is not happening and you haveto ask the question why-is it the pricing structure?

  23. Mukanya June 7, 2013 at 6:33 am #

    Mafia type wont take them far. why is it that dendairy doesnt cry?. Their milk is better whilist dairibord is goi down on standards
    nxt tym the heading will be “DENDAIRY OR GUSHUNGO DAIRY TAKES OVER DAIRIBORD”

  24. Senzeni Bo June 7, 2013 at 8:05 am #

    Dairiboard has been measured and been found wanting. What can we say. Bulawayo branch employed people from Harare anywhere it changes nothing from closing. Who cares? Matebele tribes have been shut out from parastatals and government employment for 33yrs it’s nothing new. Who cares when their business are collapsing from left right and centre? Why should any matebele care? Our parents benefit nothing and some where retrench after independence? Whites who managers where racially sucked it no secret. Lets face the truth. Our north brothers are the only who can comment of these companies it them and their children who are being affected. Matebeles lose nothing gain nothing?

  25. med kasvaz June 7, 2013 at 8:52 am #

    Competition is healthy.Dairiboard should just compete with other companies so that they become competetive enough to also export their products. This is foolish cry from people who do not know what they are doing .People want cheap products these days, mind you this is a multi currency economy !

  26. jimmy June 7, 2013 at 7:33 pm #

    Most pple used this article to solve personal vendettas. Hamunyari here. Just bcoz u wr sacked out or know the finance manager who is driving a better car than yours n probably attracting tuma ladies better than u u now complaining like that. Ha ha ha ha. Black pple thts why musingabudiriri. Too jealous. Dairiboard is a company like any other Zim companies wch are recovering from the meltdown. Give the guys a break n let them ddo thr jobs. Advice is more like it not wishing thd go to the gallows. Gushungo dairy has unlimited funding from your $$$z. Give the guys a break.

    • Falcon June 13, 2013 at 11:55 am #

      @Jimmy- ko Dendairy ine ulimited funding here? And pray tell us, where does the unlimited funding ye Gushungo dairy come from? jerasi rekambani yakafa?, madhakwa here?

  27. Jason Mgabadeli okaZikhali June 7, 2013 at 10:10 pm #

    Buy your milk and us in Byo will buy from SA. I can’t buy substandard products to fatten thieves pockets. Dairybad keep your products in Harare

  28. Moss June 8, 2013 at 2:38 pm #

    Dairibord is now complaining about imports that are hurting them, yet when it matter the most for us Zimbabweans they were choosing to export milk to neighbouring countries because they wanted forex leaving us with shortages. We were finding dairibord milk on Zambian, Mozambican and Namibian shelves yet there would be no milk in our shelves. What goes around comes around

  29. Tsveruka June 8, 2013 at 8:01 pm #

    It’s not cheap imports hurting Dairy bord, it’s inefficiency. Other local dairy products are cheaper than Dairybord’s why? Manga majaira monopoly ndokurasa muswe. Ko va Mandiwanza muchasuduruka riini? Zvave kuda vanotemwa dzinobuda ropa

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