National Foods set to increase stockfeed exports

NATIONAL Foods Holdings’ stock feeds manufacturing division is set to increase its exports to the Botswana Meat Commission (BMC) by 43 percent to 1 000 tonnes per month, an official has said.

In an interview, National Foods stock feeds division managing executive Mr Lewis Ngwenya attributed the envisaged increase in stock feeds exports to BMC’s re-admission to the European Union beef market.

Botswana beef exports to the EU were suspended in 2011 after the bloc got concerned that the African country did not conform to its standards.

“We will be increasing our exports to BMC following its export certification by the EU. At present, we are exporting 700 tonnes per month of stock feeds to BMC and we are looking at increasing that figure to 1 000 tonnes or beyond.

“They have indicated to us that their exports will soon be increasing following the export certification into the EU so they want us to increase our stock feeds exports,” Mr Ngwenya said.

He said the development would see the stock feeds division improving its operations with workers expected to work overtime, which they would be paid for in line with the National Employment rates.

National Foods, which is listed on the Zimbabwe Stock Exchange, has operations that include prepacking and sale of dry groceries, manufacturing of stock feeds and vitamin and, mineral premixes for stockfeed applications.

The company operates in two segments namely milling, manufacturing and distribution, and properties.

The milling, manufacturing and distribution segment includes the milling of flour and maize, manufacture of stock feeds and sale of general household goods and also their distribution and warehousing.

The stock feeds division, which has branches in Harare and Bulawayo, employs a total of about 600 people.

“We are also going to increase our numbers of employment as a result of the BMC export certification to the EU,” Mr Ngwenya said.

As a standalone business, the stock feeds division last year produced and sold over 160 000 tonnes with an annual turnover of $70 million reflecting an eight percent profit before tax.

National Foods is one of few companies listed on the local bourse that have consistently performed well since the introduction of a multicurrency system in February 2009.

In 2015, the company planned to invest about $8,3 million towards upgrading its plants across the business units with about $4 million set aside for fixing the flour milling plant.

About $1 million was set aside for rehabilitating the maize business. — @okazunga