- 15% increase in seed sales volume
- 17% rise in revenue to US$13.1 million
- 20% jump in operating profit to US$5.4 million
- New drought resistant seeds unleashed
Harare- Seed Co Limited, Zimbabwe's largest seed company, has started the 2025 fiscal year on a positive note, reporting increased sales volumes, revenue, and operating profit in its first quarter.
This encouraging performance follows a depressed 2024, largely due to the El Niño-driven drought and fiscal challenges that affected small-scale agricultural activities.
In the first quarter of fiscal year 2025, which ended on June 30, 2024, Seed Co saw its seed sales volume increase by 15% to 8,133 metric tonnes, up from 7,051 metric tonnes in the same period the previous year.
This contributed to a 17% increase in revenue, which reached US$13.1 million.
The improved performance also translated to a 20% increase in operating profit, which stood at US$5.4 million.
“This was largely due to a strong local winter maize sales and exports. Wheat and barley volumes remained consistent with last year,” the Group said in a trading update.
The bullish start to the fiscal year is further bolstered by the expectation of a La Niña-influenced rainfall season in 2024-2025, which is expected to bring more rainfall and benefit agricultural activities.
Despite the various external challenges faced, Seed Co Limited is optimistic about the upcoming season and its ability to satisfy the demand for its products.
Seed Co has introduced new seed varieties that are more resilient to drought conditions. The company has launched SC661 and SC657, both medium maturity varieties that are more resistant to drought compared to previous offerings like SC649.
SC661 is a high-yielding variety with good disease tolerance and an excellent stay-green character, making it better equipped to withstand water-stressed conditions.
SC657, on the other hand, has a yield potential of up to 16 tonnes per hectare at about 55,000 plants per hectare in a good season. It reaches physiological maturity in 138-145 days at 1,100 to 1,300 metres, making it an elastic variety with wide regional adaptation and producing extra-large sized cobs.
The 2024/2025 season is projected to be mainly affected by La Niña, which usually brings more rainfall than drought spells. This could provide some relief to farmers and potentially improve crop yields compared to the recent drought-affected seasons.
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