Dairibord Zimbabwe Private Limited has invested close to US$500 000 for its new Pfuko/Udiko Mahewu plant to increase the contribution of non-milk valued-added product lines, a company official has said.
BY TARISAI MANDIZHA
Speaking at the official launch of its new product — Pfuko/Udiwo Mahewu on Thursday, Dairibord Private Limited managing director Thompson Mabika said the new plant has the capacity to produce 9 000 bottles per hour and with the demand on the market, it was set to increase capacity before the end of the year.
“We will definitely increase capacity. We never expected this level of acceptance. We have put in place plans to invest more on the Mahewu plant. By December 2014, the volumes for Mahewu will be the same as for Lacto which is close to 400 000 litres per month,” Mabika said.
The plant has four tanks with a holding capacity of 8 000 litres each.
“From the 8 000 litres, we package 500ml x 16 000 and 350ml x 23 000 bottles of Pfuko/Udiwo Mahewu per day,” he said.
He, however, said the product would currently be available in traditional flavour with three new flavours, Banana, Strawberry and Vanilla to be introduced in the next two months.
In its financial performance for the first quarter of the year, Dairibord Holdings Limited sales volumes were static due to the weak demand of products on the market.
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Dairibord chief executive officer Anthony Mandiwanza said the current operating environment had a negative impact on the performance of the group in the first half of the year.
“Sales volumes were static on account of weak demand. The operating environment will remain challenging characterised by low disposable incomes, deflation and low investment,” Mandiwanza said.
In the period under review, raw materials and packaging costs declined by 13% as compared to the same period last year.
Labour costs declined by 8% with repairs and maintenances down by 19%. Utilities expenses increased by 20%, while other expenses declined by 22%. This resulted in a 10% reduction in the group’s total expenses.
He said the performance of the business will improve, driven by new products and line extensions, new plants and equipment to increase capacity and improve efficiencies.
