BizDay Zimbabwe
BizDay Zimbabwe

Zimbabwe's leading authority on business, finance and investment news.

BizDay
Author

0

Share


avrt
BizDay Zimbabwe

Seed Co Profits Fall

BizDayBizDay

HARARE  – Diversified seed manufacturer, Seed Co, has seen profits fall by more than $6 million to $12,6 million (compared to S19 million in 2012) because of reduced Zimbabwean government orders and poor rains during the company’s last financial year.
According to a company statement, Seed Co says the financial year ending March 31st 2013, “was a challenging one”, particularly in Zimbabwe where seed uptake shrank by about 47%.   The company said the poor revenue turnover – compared to the previous year – was also a result of very late rains that fell just before Christmas when it was already too late for effective planting.
Another contributing factor for less turnover, was the tight liquidity experienced by small-scale farmers which was “compounded by the absence of agricultural funding at concessionary rates”, said the company.
Seed Co – head-quartered in Zimbabwe and listed at the Zimbabwe Stock Exchange (ZSE), but with offices in Malawi, Zambia, Kenya and Tanzania – said some of the reasons for its poor performance were caused by the  “carry-over of seed stocks in the Grain Marketing Board (GMB) and households”, and price wars in the cotton industry.
It said the situation was not helped by the lack of Malawi government orders which, in the previous financial year, had accounted for a substantial amount from cotton seed sales to that country.
However, markets in Zambia, Kenya, Malawi and Tanzania recorded a steady growth to contribute more than 60 % of group turnover.
Outlook for the new financial year was rosier based on anticipated better support for agriculture after Zimbabwe’s elections later in the year and the continued growth of the East African market.   The company was also encouraged by increased subsidies for farmers in Malawi and business development in West Africa.

BizDay
Author

BizDay

0

Comments