• Victoria Foods wheat flour volumes increased 86% as stronger demand lifted utilisation of CFI’s milling capacity
• Agrifoods volumes rose 27%, extending the recovery in CFI’s processing businesses
• Farm & City volumes fell 21% as weaker tobacco farmer incomes and higher agricultural input costs reduced spending

Harare-  CFI Holdings has recorded an 86% increase in wheat flour volumes at Victoria Foods during the June quarter, extending a shift in the group’s operating momentum towards food processing as Farm & City Centre sales declined 21%.

CFI is one of Zimbabwe’s diversified agro industrial groups, with operations spanning agricultural retail through Farm & City, stockfeed manufacturing through Agrifoods, food milling through Victoria Foods and primary agriculture at Glenara Estates.

Group inflation adjusted revenue declined 1.9% to ZWG690.89 million from ZWG704.22 million. The modest revenue contraction conceals substantial differences across the portfolio.

Victoria Foods produced the strongest movement. Wheat flour volumes increased 86% on stronger demand. Agrifoods volumes rose 27% as demand strengthened and production capacity utilisation improved.

Those businesses are extracting higher throughput from processing assets that have required significant rehabilitation and capital over recent years.

Farm & City moved in the opposite direction. Sales volumes declined 21% as tobacco farmer purchasing power weakened and fertiliser and fuel costs increased.

The tobacco season explains part of that pressure. Zimbabwe has produced record tobacco volumes in 2026, yet average selling prices have been weaker. Earlier in the season, volumes were running almost 29% above the comparable period with average prices down about 24%. Higher physical tobacco output therefore did not translate proportionately into disposable income for farmers.

That transmission reaches Farm & City directly because tobacco growers form part of its customer base for fertiliser, chemicals, hardware and other agricultural inputs.

Global input costs added pressure. Zimbabwe experienced a sharp increase in fertiliser and fuel costs after Middle East supply disruptions, with local fuel prices rising materially during the quarter and some fertiliser categories experiencing severe price increases. Global urea prices subsequently retreated from their conflict peaks, which can provide some procurement relief going into the next agricultural cycle.

Glenara Estates also produced a mixed crop result. Soyabean sales doubled after management deliberately prioritised the crop. Maize sales fell 64% and potato yields declined 10.6% following a disease outbreak.

The maize outcome has consequences beyond the estate. Victoria Foods recorded a 5% decline in maize meal volumes because of maize supply constraints, demonstrating that strong milling demand still requires reliable grain availability

CFI’s operating mix is therefore becoming clearer. Victoria Foods and Agrifoods currently provide the strongest volume growth. Farm & City remains exposed to agricultural disposable income and input affordability. Glenara carries production and crop allocation risk.

The group’s immediate opportunity sits in converting the large increases in milling throughput into stronger margins and operating cash. An 86% increase in wheat flour volumes creates considerably more value when existing manufacturing costs are spread across higher production.

Zimbabwe’s macro environment gives CFI a relatively stable pricing base. Annual ZiG inflation stood at 4.7% in June and the Reserve Bank reported average monthly inflation of 0.47% through the first half of 2026. Tight liquidity remains part of the same policy environment, which constrains consumer and business spending.

The outlook therefore divides across CFI’s operations. Victoria Foods should benefit from sustained food demand and higher plant utilisation. Agrifoods has room to carry its volume recovery where livestock and poultry demand remains firm. Farm & City faces a tougher agricultural spending environment until farmer incomes improve and fertiliser and fuel costs normalise. Glenara needs better crop execution following the potato disease setback and the sharp decline in maize sales.

CFI enters the final quarter with group revenue broadly flat and its processing businesses expanding rapidly. The next test is earnings conversion. Victoria Foods’ 86% wheat flour increase and Agrifoods’ 27% volume growth now need to produce stronger margins and cash generation. Continued revenue weakness at group level in the presence of those volume gains would expose how much of the processing recovery is being absorbed by pricing, input costs and weaker performance elsewhere in the portfolio.

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