Dairibord milk supply registers 40pc growth

DAIRIBORD Holdings registered a 40 percent growth in raw milk supply, against a 22 percent surge in national production during the half-year period ended June 30, 2024.

Group chief executive officer, Ms Mercy Ndoro, attributed the surge in milk supply to a proactive strategy involving aggressive producer recruitment efforts and enhanced yields among contracted dairy farmers.

“The efforts of our milk supply development unit made it a responsibility to interact with farmers and grow raw milk which began to bear fruit,” she said.

Dairibord saw its profit surge to US$3 million from US$736 000 posted during the same prior year period.

The CEO said this reflected resilience in the face of a challenging economic environment.

She noted that the volume and revenue performance for the interim period reflected a positive trajectory enabling the group to achieve good results despite challenging conditions.

The group also experienced significant growth in export volume, particularly to regional markets including South Africa, Botswana, Zambia, Mozambique, and Malawi.

“These markets provide the advantage of proximity, along with cultural similarities and an increasing demand for the group’s products,” according to the chief executive.

Dairibord added that it was starting to witness a gradual increase in export activity to the United Kingdom.

According to Ms Ndoro, several strategies continue to be put in place to enable further expansion for the business particularly export reach.

She noted that the toll manufacturing initiative in South Africa had become a strategic priority for the group, as it was unable to fulfil export demand for that market through its Zimbabwe operations.

“The primary advantage of toll manufacturing for the group lies in the collaboration with third-party manufacturers, which allows for the elimination or reduction of capital expenditure.

“By leveraging the existing infrastructure and excess capacity of manufacturing partners, the company incurs minimal financial outlay, providing a significant benefit to the business.”

As indicated by Dairibord, this approach will facilitate the group’s expansion by allowing it to grow its presence in South Africa and regional markets, while also providing a competitive advantage through production in a low-cost environment, and supporting foreign currency generation amidst ongoing shortages in Zimbabwe.

Additionally, the company is partnering with local distributors and retailers in target markets to ensure efficient distribution of its products and reach its broad customer base.

“Maintaining high standards of quality and investing in brand-building activities are essential for success in export markets and these strategies will remain a central focus for the group moving forward,” added Ms Ndoro.

The company positions itself as an inclusive business, taking pride in being the only dairy processor that actively supports small-scale farmers in enhancing national raw milk production.

As such, the company is currently collaborating with over 480 small-scale farmers and operates 13 milk collection sites, offering financial assistance and various programmes, including veterinary support.

Additionally, the company provides nearly 1 000 vending opportunities nationwide, with a particular emphasis on empowering women, who represent approximately 65 percent of its vendors while creating opportunities for small businesses to procure supplies from these small-scale farmers.

These initiatives enable small-scale farmers and marginalised communities to promote better nutrition and earn an income.

-herald