Harare - Diversified industrial conglomerate Innscor Africa Limited’s protein division comprising of Colcom and Irvines remained stable for the year ended June 30, 2018 although the later was adversely affected by Avian Influenza.

In a statement accompanying the Group’s financial results, Chairman Addington Chinake said the the Colcom division, comprising, Triple C, Colcom Foods, Texas Chicken and Associated Meat Packers (AMP), increased overall volumes by 2 percent over the comparative year.

He said a 4 percent decline in pork and beef volumes were offset by a 22 percent growth in pies and a 14 percent growth in chicken volumes.

“A positive shift in sales mix from fresh meat and carcasses to processed products resulted in an 18 percent revenue growth.

A 31 percent growth in operating profit arose mainly from improved product mix, efficiencies arising from the new “Zimnyama” beef abattoir established during the year, a restructuring of the pie operations, the divisionalisation of the business and economies arising from increased processed product volumes.”

Chinake said the development of an additional piggery continues as per plan and is expected to provide an additional 25 percent in pig numbers into the processing plant from September 2018.

In the period under review, Chinake said pie capacity has doubled following the transfer of the pie manufacturing line previously managed under the Bakery division, resulting in improved efficiencies and ability to expand into different product variants.

He said the operation’s “Texas” retail operation has expanded its platform with new outlets in Karoi, Bulawayo and Kwekwe and continues to explore additional sites for development.

During the reporting period, AMP has made progress in securing its beef supply chain through backward integration by investing in the newly established “Zimnyama” beef abattoir.

At Irvines, Chinake said volumes were severely impacted by the effects of the Avian Influenza epidemic which occurred at the end of the last financial year.

“Table egg volumes were 47 percent below those recorded in the comparative year, whilst day old chick sales were 10 percent down over the same period, this part of the business having been augmented by the importation of hatching eggs during the second part of the financial year.

“Frozen chicken volumes increased marginally, with all available raw material being diverted into this particular line in an effort to keep supply to the consumer open.

“Overall revenue was similar to that recorded in the prior year. A strict overhead control programme has been in place whilst the operation has been in the re-stocking phase, and this allowed for a small increase in operating profit to be recorded over the prior year.”

Chinake also noted that in mitigation of future outbreaks, further bio-security controls have been added to the stringent control environment already in place at the operation.

In addition, he said the operation has invested in the only Polymerase Chain Reaction (PCR) laboratory in Zimbabwe.

“This facility enables highly accurate, on-site testing for Avian Influenza, and immediate elimination of any infected birds in the event of a future outbreak.”

In addition, Chinake said the re-stocking of the breeder flocks is now largely complete, and we expect a gradual improvement in the volume of table eggs going forward, whilst local production of day old chicks will also now gradually improve and be fully restored by the end of March 2019.

He said importations of day old chicks will need to continue until full capacity is restored however, and we will work with the authorities to ensure that the necessary importation permits, foreign currency and duty exemptions are granted to ensure the day old chick and frozen chicken markets are fully supplied in the interim.

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