Dairybord Attributes SI64 For 2017 Profit

Statutory Instrument 64

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Dairybord Attributes SI64 For 2017 Profit
Image Credit: The Source

Zimbabwe’s milk processor, Dairyboard has attributed the Statutory Instrument 64 (SI64) for the profit the company created in 2017. Dairyboard made an operating profit of $4,1 million last year a 204 percent increase from the $3.99 million loss the company had in 2016.

The SI64 to restrict the importation of goods in Zimbabwe was gazetted by the government through the Ministry of Industry and Commerce in 2016.

“Demand firmed spurred by SI64 and improved performance in agriculture and mining,” said Dairybord Holding in its 2017 Financial Results Presentation.

Dairyboard made a sales volume of 89.4 million litres an 8 percent increase from 2016. The SI64 to restrict the importation of goods in Zimbabwe was gazetted by the government through the Ministry of Industry and Commerce in 2016. Milk products were among the goods that were being banned/ regulated as the government tried to promote the Zimbabwean industry which meets stiff competition from foreign produce.

“We have always clarified that SI 64 (of 2016) is not a ban but a restriction on imports. We cannot import when we are producing enough goods for the country and the same can be said on shortages, we cannot have empty shelves during the Christmas period because we do not want imports,” said the Minister of Industry and Commerce Mike Bimha during the relaxation of the statutory.

SI64, which met criticism from the public during its gazette was relaxed in November after a change in the government. Dairyboard, which is the largest milk processer in Zimbabwe also witnessed revenue from milk increase by 10 percent to $103.1 million. The 10 percent growth was a result of volume growth and moderate price adjustments according to the Dairyboard presentation.

Liquid milk rose by 9 percent to $33.3 million in revenue whilst food produced by Dairyboard increased by 14 percent $27.8 million and beverages to 11 percent to $41.9 million. On volumes sold liquid milk rose by 8 percent to $30.4 million, food by 10 percent to $12.1 million and beverages by 7 percent to $46.9 million.

Besides the removal of the SI64, the other source of competition for Zimbabwean companies is the country’s open for business mantra, which is being used to lure foreign companies to invest in the nation and Reserve Bank of Zimbabwe Dr John Mangudya warned the local industries to update machines in order to stand the emerging competition.

Dairyboard, which has invested $2.4 million in property, plant and equipment this year however made a $0.551 million operating loss for the Malawi branch in 2017.

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