- Group’s raw milk intake down by 6%
- Exports strategy registered growth
- Industry registered 20% – 45% decline in sales
Harare – Dairibord Holdings’ business performance in April and May was negatively affected by the COVID-19 pandemic beyond what was previously anticipated, with the first quarter of the year performing better than these two months.
In a trade update presentation at the Group’s AGM, the Group Chief Executive Officer, Mr. Anthony Mandiwanza said sales volumes in the period declined by 32% compared to industry reporting decline of between 20% – 45%.
The decline in volumes sold has been attributed to reduced demand particularly in April and May due to COVID-19 restrictions.
Raw milk intake in the period declined by 6% from prior comparable period due to escalating cost of stock feeds which in turn affected milk production, this is against the national milk intake decline of 8%.
However, Dairibord’s share of national milk production remained high in the period at 38%.
Dairibord’s exports strategy yield fruits as export receipts notched 20% ahead of the comparable period last year.
This is despite 2020 targets being impacted by COVID-19 restrictions, depreciating regional currencies and regional recessionary pressures.
Mr Mandiwanza also added that the period was characterised by increasing input costs versus limited ability to adjust selling prices.
“However, cost increases were below inflation. This was due to remodeling costs particularly distribution and labour (flexibility due to contract labour)”, he said.
The Group said despite the poor performance in April and May, it started to see recovery in June.
Going forward, Dairibord is looking into opportunities that include milk supply development through strategic partnerships and out grower schemes, supporting development of local production of agro-based materials such as groundnut to reduce over reliance on imports and create employment, cost containment and reduction to improve efficiencies across the value chain, intensifying export drive and harnessing domestic free funds among others.
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