DAIRIBORD Zimbabwe has invested $7,5 million in new maheu, peanut butter and Chimombe plants, as it moves to ramp up production and increase revenue.
BY TATIRA ZWINOIRA
The maheu plant will see output doubling to 3,4 million units a month, an executive has said.
Group chief executive officer, Anthony Mandiwanza told NewsDay on the sidelines of the company’s annual general meeting that Dairibord was now the largest player on the maheu market.
“We were experiencing supply constraints and have invested to double the capacity from 1,7 million per month to 3,4 million units,” he said.
“There is a plant for maheu, which we are in the process of commissioning now, and we should begin to feel its full impact in July, at a cost of $2, 5 million.”
Mandiwanza said Dairibord has invested in plant and equipment for Chimombe milk, which would be commissioned in the second half of this year and had spent about $4,5 million.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
“It is a new plant in processing and packaging. We have a new plant in packaging and processing Chimombe milk, so those are the two initiatives we are doing this year,” he said.
Mandiwanzira said Dairibord has also commissioned a peanut butter processing line at a cost of $500 000.
In the first four months of 2016, Dairibord’s operating profit margin was flat at 1% due to a depressed top line.
However, during the same period, due to the performance of its liquid milks and beverages, it had an overall 6% increase in its volumes over the January to April time period.
The expansion programme came after Dairibord registered higher volumes of liquid milks and beverages volumes from January to April. Steri Milk, Cascade, Pfuko Udiwo Maheu and line extensions were the key drivers.
The constrained economy has led the company to shift towards basic products, as consumers continue to feel the effects of the liquidity challenges on revenue performance.
In the period January to April 2016, Dairibord’s raw milk intake increased by 17% while revenue went down 6% on the back of lower average selling prices.
