Zimbabwe: Dairbord to launch new US $ 1.5 million factory
MILK processor Dairibord Holdings has announced that it will commission a new US $ 1.5 million manufacturing facility in the second half of the current fiscal year.
Zimbabwe’s largest dairy processor, which is listed on the Zimbabwe Stock Exchange (ZSE), said the manufacturing plant would produce ice cream and yogurt.
Dairibord has not had a functional food manufacturing plant since it made the decision to decommission an old plant, to replace it with a new and more efficient one, as part of its new expansion dynamic.
The latest move follows a failed acquisition of another industry competitor, Dendairy, through which the company sought to expand its brand portfolio for domestic and foreign markets.
In an interview, Dairibord CEO Anthony Mandiwanza stressed that the new factory would strengthen the company’s ability to meet product demand and increase its market share in the country and beyond.
âOn the food side, this has really been a supply problem as we have taken the main food factory in Harare out of service so that we can set up a new state-of-the-art factory at a cost of around 1.5 million dollars. dollars.
“The food, which is mainly ice cream and yoghurt, has not been on the market in any meaningful way because we have deliberately taken the plant out of service in order to launch the new plant in the second half of the year, and we are on the verge of to do so in the second semester.
“We are reorganizing our processing site to improve our capacity and the availability of our products,” said Mr. Mandiwanza.
This comes against the backdrop of a strong financial performance in the first half of 2021, during which volume absorption exceeded the comparison of the past five years.
The results showed the highest volume uptake in five years despite the restrictions and lockdown.
The notable jump in Dairiboard volumes was mainly attributed to the beverage category where the Pfuko brand, both traditional buttermilk and flavored buttermilk, posted very strong numbers.
Cascade has been the other big driver in the beverage category, particularly the liter packaging which was introduced last year and has subsequently had a significant impact in terms of volumes.
Mr. Mandiwanza alluded to “the demand for this product (Cascade) to date exceeds the supply”.
He did however profess some of the negative encounters his company has experienced due to the advent of the Covid 19 pandemic on the supply side especially at the start of last year.
The dairy manufacturer has faced challenges in sourcing the packaging and raw materials the company imports due to limited movement between national borders.
2021 started off on a strong front for the company, however, as the company managed to secure inputs in advance of last year when the company had to deploy substantial working capital for the process. supply of raw materials.