LIVINGSTONE MARUFU
Seed producer, Seed Co says it is struggling to cope with the demand for its products in Africa, despite the devastating effect of Covid-19, it has been learnt.
SeedCo’s group chief executive, Morgan Nzwere, told Business Times that the Covid-19 pandemic has left the globe asking for some food.
“Fair is foul and foul is fair, despite the devastating effects of the Covid-19 pandemic, there is high demand for food and agriculture related products in Africa and in the world at large,” Nzwere told Business Times.
He added: “On our part there has been a high demand of seeds that spilled into January and we struggled to cope with the demand in Africa and other markets.”
During this lock down imposed by the government to curb the spread of Covid-19, agriculture is treated as essential service.
A new report by research firm Morgan & Co said agricultural businesses that provide key inputs into food production are well positioned for growth.
“Seed Co International develops and markets certified crop, mainly hybrid maize seed as well as wheat, soyabeans, groundnuts and vegetable seeds is set to benefit from the national focus on agriculture,” part of the report reads.
Seed Co has an estimated market share of 70% for open market sales and gets 50% for government sale in Zimbabwe.
The seed company will continue to benefit from a high demand for the horticultural products in Europe hence exports of that sector are anticipated to rise this year.
In its financial report for the half year to September 30, 2020, Seed Co Zimbabwe posted a 236% increase in profit to ZWL$2.20bn from ZWL$656.7m posted during the same period in 2019 due to strong sales volume growth and selling price increases.
Revenues for the group increased 55% to ZWL$975m in the period under review from ZWL$627.3m in the prior comparative period.
Going into the future, Seed Co is optimistic that seed demand is expected to remain strong due to initial weather forecasts which indicated normal to above normal rainfall.
