To ease your site search, article categories are at bottom of page.

September 19, 2010

Zimbabwe seed company experiences improved local, export sales

by MacDonald Dzirutwe

Seed Co Limited, Zimbabwe's largest seed producer, sees profit rising at least 50 percent this fiscal year from $13 million in the year to March 2010, buoyed by growing sales at home and in the region, its chief said.

Companies in Zimbabwe have started to recover after a decade of economic decline, which saw inflation rising to 500 billion percent in 2008, leaving the local currency worthless.

Zimbabwe discarded its local currency in favour of foreign currencies last year, which Seed Co Chief Executive Morgan Nzwere said had helped stem a decline in production at home, while demand was rising in southern Africa.

Seed Co has been expanding on the continent and controls more than half the maize seed market in Malawi and Zambia, 40 percent of the Tanzanian market. It is also testing new maize varieties for sale in Ethiopia and West Africa.

"We should see an overall growth of 70 percent in seed production (and) the profit should increase substantially," Nzwere said in an interview. "I think we should be able to achieve at least a 50 percent growth in profits."

The company posted an net profit of $13.3 million during the year ended March 2010 after revenues rose 43 percent to $77 million.

Nzwere said the company, which also produces wheat and cotton seed, was planning to raise maize seed production to 100,000 tonnes annually in the next three years, nearly double the projected output in 2010/2011.

Seed Co reinstated dividends this year, paying shareholders 1,39 U.S. cents a share and Nzwere said the company should be able to maintain its dividend policy in future.

Nzwere said the company would also be boosted by demand from governments providing free and subsidised seeds to poor farmers in Zambia, Malawi, Tanzania and Zimbabwe.

"The increased donor support to governments in the region to improve food security will continue to push up demand for seed for the foreseeable future and that should see the company benefitting from that," he said.

Reuters

Article Categories

AGRA agribusiness agrochemicals agroforestry aid Algeria aloe vera Angola aquaculture banana barley beans beef bees Benin biodiesel biodiversity biof biofuel biosafety biotechnology Botswana Brazil Burkina Faso Burundi CAADP Cameroon capacity building cashew cassava cattle Central African Republic cereals certification CGIAR Chad China CIMMYT climate change cocoa coffee COMESA commercial farming Congo Republic conservation agriculture cotton cow pea dairy desertification development disease diversification DRCongo drought ECOWAS Egypt Equatorial Guinea Ethiopia EU EUREPGAP events/meetings exports fa fair trade FAO fertilizer finance fisheries floods flowers food security fruit Gabon Gambia gender issues Ghana GM crops grain green revolution groundnuts Guinea Bissau Guinea Conakry HIV/AIDS honey hoodia horticulture ICIPE ICRAF ICRISAT IFAD IITA imports India infrastructure innovation inputs investment irrigation Ivory Coast jatropha kenaf keny Kenya khat land deals land management land reform Lesotho Liberia Libya livestock macadamia Madagascar maize Malawi Mali mango marijuana markets Mauritania Mauritius mechanization millet Morocco Mozambique mushroom Namibia NEPAD Niger Nigeria organic agriculture palm oil pastoralism pea pest control pesticides pineapple plantain policy issues potato poultry processing productivity Project pyrethrum rai rain reforestation research rice rivers rubber Rwanda SADC Sao Tome and Principe seed seeds Senegal sesame Seychelles shea butter Sierra Leone sisal soil erosion soil fertility Somalia sorghum South Africa South Sudan Southern Africa spices standards subsidies Sudan sugar sugar cane sustainable farming Swaziland sweet potato Tanzania tariffs tea tef tobacco Togo tomato trade training Tunisia Uganda UNCTAD urban farming value addition value-addition vanilla vegetables water management weeds West Africa wheat World Bank WTO yam Zambia Zanzibar zero tillage Zimbabwe

  © 2007 Africa News Network design by Ourblogtemplates.com

Back to TOP