LIVINGSTONE MARUFU
National Foods Limited (Natfoods) will intensify maize imports in the coming months to cater for peak period which runs from December to March.
This comes at a time when various large corporates and small enterprises are struggling to procure new stocks for raw materials and supplies due to foreign currency shortages and droughts.
Natfoods’ push to increase maize imports comes as the United Nations arm, the World Food Programme announced that over 8m Zimbabweans are starving and the situation might get worse from January to March 2021.
“With respect to maize, unfortunately, our country has experienced successive droughts within two years, therefore, we are planning to increase maize imports in the coming months to cater for the peak demand period in December to March,” Natfoods CEO Michael Lashbrook told Business Times.
He said the company will prioritise replacing key raw materials amid a tight liquidity situation and weakening of the local dollar.
Lashbrook said the company has increased pipelines of most major raw materials by one month to cater for logistical challenges brought about by the Covid-19 pandemic.
He said the food processing concern is carrying its normal pipelines for all key raw materials and expects the continuity of supply for all key basic commodities in the coming months.
Lashbrook however, said the subdued “local liquidity and continued devaluation mean that replacement of this pipeline will need to be a key focus area for management in the months ahead”.
He said production from the company’s contract farming scheme has been reduced this year due to the impact of drought and difficulty in raising fund for the programme.
Natfoods said consumers are down-trading in favour of more affordable commodities, with groceries (mainly mealie meal, rice and salt). In October 2019, the company launched a new cereal product under the Pearlenta NutriActive brand, after years of research and planning. Lashbrook said the product has been well received by the market.
The company also launched “Allegros Popticorn” and “Iris” cream biscuits in the snacks and treats category during the quarter and according to Lashbrook the products were accepted by the market.
