SeedCo scores big on exports

VICTORIA Falls Stock Exchange (VFEX)-listed company, SeedCo International Limited, has recorded an 88 percent jump in export volumes mainly driven by shortage in the regional market caused by drought in the prior year, particularly in East Africa.

This has seen the company export 2 000 metric tonnes of wheat to Nigeria alone. The regional seed maker said a record local winter and barley sales were achieved during the first-half, a growth of 30 percent from the prior year to 6 320 metric tonnes.

Overall, winter sales were eight percent lower in the absence of repeat export sales.

“On the export front, the business registered a notable 88 percent volume growth satisfying the shortage in the region caused by drought in the prior year particularly in East Africa,” said the company in a statement accompanying its half-year results for the period ended 30 September 2022.

“Last year 2 000mt of wheat was exported to Nigeria.”

SeedCo said maize seed sales began on a lower note as farmers did not pre-stock, as they did in the prior year given the liquidity crunch in the economy.

“A loss was absorbed from associates mainly contributed by SeedCo International whose first-half performance was subdued with notable early sales reduction in Malawi and drop in revenue in Nigeria due to product unavailability and in East Africa due to drought.”

Barley

However, the firm said it has adequate stock to meet local and regional demand during the current farming season for which normal to above-normal rainfall is expected.

Despite the harsh and uncertain operating environment, the firm said it will focus on defending the leading market position and stakeholder value enhancement by harnessing hard currency local sales, as well as exploiting regional export opportunities.

“The business has adequate seed and is prepared for the main summer selling season, which is now underway,” it said.-chronicle.cl.z