Dendairy raw milk intake increases 66 percent in year to date


Zimbabwe’s raw milk production in the first quarter to March 2016 increased 18.80% to 15.93 mln litres compared to 13.41 mln litres in Q1 last year

MILK and dairy products producer, Dendairy’s monthly raw milk intake has since January this year increased 66.67% percent to 1.5 mln litres compared to 900 000 litres in the prior year.

Director Daryl Archibald told FinX that the company’s farmer’s milk contribution has grown 20% from 2015 while the other contribution is coming from new farmers who have also come aboard.

“Dendairy’s fresh milk procurement has increased from 900,000 litres a month to 1,500,000 litres a month since January. Our farmers have grown around 20% from 2015 and the rest is from new farmers who have come on board,” he said.

Zimbabwe’s raw milk production in the first quarter to March 2016 increased 18.80% to 15.93 mln litres compared to 13.41 mln litres in Q1 last year, according to Figures from the Dairy Services Department in the Ministry of Agriculture Mechanization and Irrigation Development.

Milk and dairy products producers have been running dairy heifer importation schemes to boost milk production.

Archibald said the industry’s Dairy Revitalization Fund has to date secured 280 heifers that are going to numerous farms around the country.

“The fund is the brainchild of the deputy Minister of Agriculture Paddy Zhanda and the recipients will be paying for their heifers allowing the fund to continue purchasing in bulk to save farmers in the future,” he said.

In terms of company’s thrust this year, Archibald said Dendairy will be looking at consolidating the cost structure as the market remains tough and “very” price sensitive.

“In order to deliver at the right prices to the consumer we are rationalizing wherever possible. Our dairy blend CITRO is gaining traction and we are focusing marketing on this line for 2016,” he said.

Archibald said Dendairy is the only Zimbabwean producer of 100% no preservative fruit juice and hopes to gain traction on this line.

He said investments by Schweppes into juicing and pulping offer potential opportunities for the company to procure yogurt fruit syrups locally and in the process increasing local content to over 90%.

On exports, he said the company has been exporting to Mozambique, however it was very hard to get US$ in that market and as such payments have been erratic.

A Scandinavian backed Sub-Saharan Africa focused private equity investment company SPEAR Capital acquired a 27% stake in Dendairy under a debt and equity transaction.

The transaction was valued at $6 million. Dendairy has invested heavily in its factory and grown its raw milk supply since its establishment in 2004, the company has continued to experience market penetration and growth within the Zimbabwean market, and expanded its footprint into the region.

Dendairy currently produces Maas (fermented milk), UHT Milk, UHT Flavored Milk, Yogurts, Ice Cream, and Fruit Juices. FinX

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