CFI to sharpen procurement strategy for key commodities

CFI Holdings says it is enhancing its procurement strategies for key input commodities while ramping up investment in its milling operations, as the group positions itself for long-term competitiveness in the local operating environment.

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The company is prioritising the consistent supply of raw materials for its milling and poultry operations (Agrifoods and Victoria Foods) to mitigate the impacts of regional drought conditions, fluctuating local raw material prices and long lead times for imports

In the 2025 annual report, CFI chairperson Ms Valerie Pasi said the company’s long-term objective remains to deliver sustained value to shareholders through a portfolio of focused, synergistic business units.

According to CFI, the strategy will be built around three core pillars that include retail, farming and milling divisions, with the group seeking to balance its activities across these segments to drive growth and resilience.

Within its farming inputs division, the group plans to scale operations across several key areas, including building supplies and hardware, veterinary products, technical services and stockfeed milling.

Primary agricultural production will also be expanded, covering cereal and horticultural output, cattle breeding, as well as downstream agro-processing activities such as maize and flour milling and snack food production.

The group said value addition will remain critical, with increased focus on down-packing fast-moving consumer goods (FMCG) such as rice, salt and other dry groceries to improve margins and market reach.

“The group remains focused on sharp procurement strategies, particularly for grain commodities and will prioritise continued investments in its milling operations to underpin long-term competitiveness,” said Ms Pasi.

She acknowledged intensifying competition, particularly from the informal sector, which continues to exert pressure on pricing and volumes across formal retail channels.

“Management remains cognisant of the need for proactive strategies in a highly competitive trading environment, especially in view of the growing informal sector,” Ms Pasi said.

The strategy is designed not only to withstand current market headwinds but to deliver sustainable growth and enhanced shareholder returns over the long term.

Beyond its core agribusiness operations, the group is also directing attention to its property segment, where it intends to unlock value through property management and development initiatives.

In particular, CFI is advancing plans tied to low-cost housing development, in line with the Government’s Vision 2030 agenda to expand affordable housing delivery.

With investments in milling capacity, expanded agricultural production and a renewed focus on property development, CFI Holdings is positioning itself to build a more integrated and competitive business model.-herald