DAIRIBORD Zimbabwe Limited (DZL) has recorded an 18% increase in liquid milk sales volumes for May despite constrained supplies.
Speaking to NewZimbabwe.com Business, DZL chief executive, Anthony Mandiwanza, said the company managed to overcome external forces headwinds.
“At a time when the national raw milk intake was at 4%, DZL only experienced a 2% decline. The issue of incessant rains in January and February brought about diseases to the animals and in the process milk production was affected,” he said.
Mandiwanza decried the escalating costs on dairy farming inputs, particularly stock feed prices which he said rose far higher than the rate of inflation.
Added to that were increased costs of electricity, labour fuel which have contributed to milk intake decline, notwithstanding the fact that liquid milk sales volumes grew by 18%.
Global Brent crude surged by almost 40% this year. Locally, the price of diesel went up by an average 10%, in US$ terms, while petrol prices went up by 5.6% since the beginning of the year.
Raw and packaging costs were affected by internal and external inflationary pressures on business.
“Foreign currency availability improved over prior year, improving supply of imported inputs. Input requirements were funded 46 % from the Reserve Bank of Zimbabwe Auction, 46 % from domestic proceeds and the balance from exports and interbank markets,” Mandiwanza said.
During the period under review, food volumes went up by 45% while beverages went up by 78%.
Revenue registered 463% growth, however, DZL bemoaned the impact of ongoing tightened Covid19 restrictions on business saying they will choke the smooth functioning of value chains and reduce demand.
In the immediate future, DZL does not see immediate reprieve in exchange rates
“Going forward, consistent availability of foreign currency on the auction platform, local sales and export markets will spur sustained economic growth,” he added.
