National Foods continues to invest in contract farming

Agro-Industrial entity National Foods says it continues to keenly support contract farming of various cereal crops, principally maize, soya beans and wheat indicating that it purchased 45 000 tons of wheat for the 2023 season from contract farmers.

It invested US$12 million in the 2022-23 farming season.

The listed group’s contract scheme is managed by its unit Paperhole Investments (PHI) Commodities, which is responsible for the production of crops such as maize, soya beans and sorghum.

In the statement accompanying its abridged reviewed group financial results, independent non-executive chairman, Mr Edwin Isaac Manikai, said: “The Group acts as the largest off-taker to the A Growth contract farming scheme, which produced 45 000 tons of wheat for the 2023 season, all of which was purchased by National Foods.

“For the current summer season, around 5 200 hectares of maize and 2 400 hectares of soya have been planted under this scheme.”

The firm acknowledges in its half-year results that the current summer crop has been seriously impacted by the ongoing drought affecting the region.

Maize volumes were disappointing, declining by 9,5 percent over the comparative period, although there was some recovery toward the end of the current period under review.

However, Mr Manikai said there is a substantial import programme in place for raw maize, and it is expected that supplies to the market will be consistent for the foreseeable future.

Stockfeed volumes continued to show encouraging growth, closing 14 percent above the comparative period, on the back of strong performances in the poultry and beef categories. Additional investment to improve the efficiency of the manufacturing platform will be undertaken in the period ahead, Mr Manikai noted.

Volumes in the cereals unit grew by seven percent over the comparative period, notwithstanding the compressed trading in the modern retail channel.

“We have developed an exciting product portfolio in this division and management is focusing on enhancing route-to-market initiatives to maintain the positive volume trend.”

The milling company is involved in flour and maize milling, stock feed and cereal production, as well as projects in groceries, snacks and treats and cooking oil manufacturing.-chroniclec.zw