Listed seed producer, Seed Co Zimbabwe is anticipating to cash in on increased government support programmes ahead of 2023 general elections, Business Times can report.
Government programmes expected to spur demand include the Presidential Crop Schemes, the Agricultural Finance Corporation and CBZ programmes, where government provides guarantees.
Seed Co is confident these programmes would guarantee huge sales.
Seed Co group chief executive officer, Morgan Nzwere (pictured) said the seed giant will produce more seed for the country as government needs abundant seed for its campaign programmes.
“Subject to favourable climate and economic conditions, Seed Co Limited is expected to ride on the good performance achieved in the just-ended financial year on the back of the anticipated continuation of government programmes ahead of 2023 elections,” Nzwere said.
Seed Co became the main seed supplier of government’s import substitution programme dubbed the Command Agriculture, Presidential Input Scheme and conservative farming programme known as Pfumvudza.
The Presidential Input Scheme, which supplies two million households, requires 20 000 tonnes for that programme alone, this implies the same amount may be needed for other two programmes.
Last year, Seed Co was overwhelmed by demand following a stellar season and this upcoming season, the seed producer plans to up its game to ensure the country is food secure as the elections draw closer.
Maize remains the flagship seed crop contributing 55% of the volume and growing by 61% due to strong government and open market demand.
Seed Co Zimbabwe’s profit skyrocketed 300% to ZWL$800m in the 12 months to March 31,2021 from a loss of ZWL$400m in the previous year owing to a 60% revenue growth driven by volumes surge and price adjustments.
Total assets stood at ZWL$13.3bn from ZWL$9.9bn due to foreign exchange gains.
Nzwere said the post-balance sheet promulgation of the Statutory Instrument 127 of 2021 on May 27, 2021 would present challenges in value preservation.