SeedCo targets increased exports
LISTED seed producer, SeedCo Limited, says the production of climate responsive seed varieties is critical as it focuses on scaling up its contribution to the growth of Zimbabwe exports and growing United States dollar-dominated sales.
In a statement accompanying the latest trading update for the period ended 30 September 2023, SeedCo group secretary Mr Tineyi Chatiza said despite the challenging and uncertain operating environment, the business remains committed to growing its bottom line and improving quality service to the market.
He noted that several research initiatives were being conducted at various stages with the view to producing climate-responsive seed products.
This comes at a time when climate change impacts are influencing the population dynamics of insects, emergence of new pests, changing status of pest and disease development, and the evolution of new races of pests, as well as changes in rainfall patterns, which have seen seed producers continuing to invest in new varieties that are resilient to change.
SeedCo
“Going forward the business is focusing on increasing the contribution of exports and USD-denominated sales as well as pricing right while containing costs,” said the company.
“The regional associate business is poised to continue the growth trend established in the first half leveraging on its diversified geographical footprint and climate-smart products to respond to the favourable and unfavourable El Nino weather conditions in East Africa and Southern African, respectively,” said Mr Chatiza.
“Overall, the company has an optimal varietal mix of seed suitable for both drought and good rainfall forecasts.”
Meanwhile, Mr Chatiza said in volume terms, the business registered eight percent growth in winter wheat and barley sales of 6,828 tonnes despite a myriad of challenges experienced by farmers.
On the other hand, he said the summer selling season started slowly mainly because of the late start of the rains and the Government-related input support initiatives.
“This saw maize sales volumes reducing by 22 percent when compared with the prior year. Gross profit margins notched up to 58 percent compared to 54 percent in the prior year benefiting from price reviews and older wheat stocks,” he said.
The seed producer has also assured the market that it has adequate seed stocks to satisfy anticipated demand across markets and several new and improved seed varieties are being released in response to climate change.
“The intake and processing of raw seed is almost concluded for this year’s selling season.
“The business has more than adequate stocks in the required varieties for the forecast rainfall season,” said Mr Chatiza. — chronicle
