TINASHE MAKICHI
Listed manufacturer, National Foods’ volumes for the first quarter of 2018 were firm at 25,6 percent above last year.
Volumes growth for the period was driven by maize volumes which increased by 55 percent compared to last year as the maize harvest was lower than last season and consumers also elected to sell their home grown maize to the Grain Marketing Board.
Stockfeeds volumes for the quarter grew 44 percent as the sector recovered from the Avian Influenza outbreak, while snacks and treats volumes increased by 48 percent as snack and Iris biscuit brands made further progress in the market.
Natfoods chief executive, Mike Lashbrook, told the company’s annual general meeting that the group’s flour unit continued to operate at maximum capacity during the period and would have increased volume had the capacity been available.
“We are investigating options to increase capacity in this regard. The flour unit is expected to continue to operate at maximum capacity for the foreseeable future,” said Lashbrook.
He said profitability for the quarter largely met expectations while the company continues to work closely with the Reserve Bank of Zimbabwe to manage funding for its wheat import requirements.
“Efforts to develop our local raw material pipeline are ongoing through the provision of support to local farmers.”
Lashbrook said this summer, the group’s contract farming scheme will amount to 9 000 hectares of maize, soya beans, and popcorn.
He said product supply during the period has been largely consistent to the market in most categories, although supplies of some products which use imported raw materials, such as cooking oil and salt, have been impacted by foreign currency availability.
In the recent quarter, Lashbrook said inflationary pressures increased significantly, particularly on imported items.
“Unfortunately this has resulted in price increases across the basket of goods we produce.”
Lashbrook said consumer demand remained robust during the period, continuing the trend seen at the end of the previous financial year.
