Increased milk supply buoys Dairibord profits

by Elijah Chihota

Despite the ongoing economic challenges, increased supply of raw milk saw the country’s largest milk processor, Dairibord Holdings Limited’s profitability increasing.

This was revealed in the company’s financial statement for the first half year ended 30 June 2018, which were released this week.

The improved profitability came on the back of a 12 percent increase in raw milk intake which spurred a 6 percent in volumes to 41million litres in the first half of 2018.

“The Group achieved revenue of $50.872 million, 15% above H1 2017 while volumes grew by 6% to 41.002 million litres,” indicated Dairibord Chairman, Josphat Sachikonye in the statement

Dairibord also registered a profit of $0.270 million.

“The business achieved an operating profit of $0.720 million, a 239% improvement over last year. Profit for the period improved to $0.270 million from a loss of $0.845 million, which included non-recurring restructuring costs of $0.867 million,” said the Chairman.

“Group raw milk intake for the six months of the year was 12 % up on same period in 2017. The improved intake benefitted from the enhanced milk supply strategy which is anchored on recruitment of more farmers, herd growth and productivity at farm level,” said Sachikonye.

In order to improve the country’s food self-sufficiency, Government has introduced the Command Agriculture in the agricultural sector which also touches on livestock production with a slant towards dairy cows.

Milk self-sufficiency will result in the reduction of the raw and processed dairy products import bill and increase employment in the dairy industry in line with the new dispensation’s economic turnaround and growth thrust.