Seed Co bullish on adequate seed supply

LIVINGSTONE MARUFU

Seed producer, Seed Co International, is optimistic on supplying enough seed for the 2022/2023 summer cropping following a 20% increase in varieties supply from the same period last year.

The development comes at a time when the government and farmers want to increase hectarage after the weather experts predicted good rainfall in most African countries.

In a first quarter trading update, Seed Co group chief executive officer Morgan Nzwere said the seed company is ready for the summer cropping season.

“The stocks for the current selling season is about 72 000 metric tonnes which will be 20% above last year. But this will include carry-over stocks from last year. We have adequate stock for the summer,” Nzwere said.

He said the current operating environment remains difficult with the war in Ukraine impacting economies and livelihoods. Nzwere said inputs and items used in farming are taking longer than usual to come through due to supply chain challenges.

He said the Zimbabwean operating environment is significantly challenging, particularly a plethora of Statutory Instruments that were enacted by the authorities.

“We are aware of the liquidity squeeze in the Zimbabwean market which is happening at a time when we are paying growers for delivering seeds.

“It is very difficult now to look for the RTGS. You find that there is no money, the environment is still a challenging one that we are operating under,” Nzwere said.

“We are well aware of the increase in interest rates to 200% by the authorities. However, we are trying to ensure that we meet the demand.”

The seed producer said it was trying to pay the growers for every seed delivered despite the liquidity squeeze.

In terms of trading activities, the company had winter cereals in Zimbabwe and Zambia and these are the two markets that sell wheat and barley.

Seed Co also sold a bit of maize in Nigeria due to the different seasons that are in that part of the world.

“In terms of the winter cereals they were 7% down compared to prior year as a result of the non-recurrence of export product to Nigeria of 2000 tonnes last year. Local winter cereal went up by 26% and in Zambia winter wheat cereals went up by 11%,” he said.

In Nigeria, Seed Co ran out of stock due to the huge demand that decimated all carry-over stocks.

The production in Nigeria could not benefit from the planned carry over that we had factored during the production time.

In Kenya and Tanzania where they normally have the second season, there was a drought and that dampened exports from Zambia and sales of maize in that region.

The vegetable business is doing well over the past few years but still not significant in terms of contribution, according to Nzwere.

In terms of the regional turn over business is 40% higher.

In terms of the product development for the upcoming season, seed producers have come up with a number of varieties that are drought tolerant and cob rot resistant.

Seed Co has some seeds that are in the SADC catalogue and this enables it to sell the seeds anywhere in the region.

On working capital the seed company has collected over 70% and it is hoping to collect the balance before the end of October.

In the outlook, the seed company is banking on more US$ sales in Zimbabwe to get a value for money and increase hard currency earnings.