ZIMBABWE Stock Exchange (ZSE) listed food processing giant National Foods Holdings Limited’s new mill at their Bulawayo site is set to increase wheat milling capacity by 2 000 tonnes per month.
In an annual report for 2022, the company’s chairman Mr Todd Moyo said the new mill is set to start operating early next year.
“The installation of the new mill at our Bulawayo site has commenced and the mill remains on track for commissioning early in 2023.
The new mill will increase wheat milling capacity by around 2 000 tons per month,” he said.
The establishment of the new flour mill in Bulawayo comes at a time the Government is pushing its devolution agenda of industrialising production zones to boost local economies through employment creation.
The food processing giant is also embarking on an exciting period of expansion with the entry into a number of new categories, as it seeks to value and add its portfolio of basic products.
Mr Moyo said the introduction of a new milling plant will see the localised manufacturing of products, which had previously been imported, reducing foreign currency requirements and increasing demand for locally processed products.
This is in line with the Buy Zimbabwe campaign, which has seen more people buying more Zimbabwean-made products and is fully supported by the Government as it is critical in attaining an upper-middle-class status by 2030 anchored by the National Development Strategy 1 (NDS1).
“The prospects for the current winter wheat crop look encouraging which is a most welcome development as it will reduce import dependency. National Foods continues to play a major role in supporting the local contracted wheat crop,” he said.
The Buy Zimbabwe campaign has helped drive a robust private sector-led initiative resulting in increased local products and the creation of jobs consistent with NDS1.
The chairman added that National Foods continues to keenly support contract farming of maize, soya beans, wheat, sugar beans, sorghum and popcorn.
“During the current winter season around 12 000 hectares of wheat has been planted, representing a significant portion of the contracted crop.
“In addition to this, 40 000 tons of maize and soya beans were delivered during this year’s summer cropping programme.
“The various products grown under this programme now constitute a significant portion of the Group’s raw material requirements,” he said.
Meanwhile, the food giant’s revenue for the year increased by 33 percent to record $128,4 billion, driven by both volume growth and inflation-driven price increases.
The group’s volume for the period increased by eight percent to 569 000 tonnes from 523 480 tonnes compared to the prior year.