We have adequate seed stocks for region: Seed Co
SEED producing giant Seed Co Limited has allayed fears of seed shortages saying it has adequate stocks for the 2022/23 summer cropping season.
Farmers have started preparing for the agricultural season with land preparations and procurement of inputs.
In a trading update, Seed Co Limited group secretary Mr Tineyi Chatiza said despite various challenges the group had adequate stocks.
“The group has adequate stocks both in Zimbabwe and on the continent to contribute meaningfully to primary food production subject to favourable climatic and economic conditions.
“The group is taking various measures to harness real value in the Zimbabwean market where the use of hard currency appears to be dominating transactions,” he said.
“On the continent, Seed Co International is taking various measures to reclaim the erosion of margins that was experienced in the last financial year.”
Mr Chatiza said they remained resolute in their mission to leverage innovative seed solutions, agronomy services and strong brand, working with all stakeholders, to contribute to food security and plug global supply chain gaps.
He said global supply shocks from the Covid-19 pandemic and the RussiaUkraine war continue to cause supply chain bottlenecks and imported inflation that was further compounding the woes of already fragile African economies.
“The Zimbabwean economic environment remains challenging in the short to medium-term. On the continent there is mixed optimism with stability in some markets and headwinds in other markets,” he said.
Mr Chatiza said primary food production remained a priority in Zimbabwe and on the continent with various Government and development partner interventions to boost food security.
“Seed Co is taking all feasible strategic measures to contribute meaningfully to the concerted efforts to scale-up food production in the country and on the continent.”
During the period under review, the group’s total sales volumes for the first quarter went down by 18 percent from the corresponding period last year with wheat seed making up just under 90 percent of total volume sold.
Mr Chatiza said the volume decline was because of a 13 percent reduction in wheat seed sales due to stringent measures applied on farmer selection by input funders and no repeat early legume and sorghum sales during the first quarter.
He said on an inflation-adjusted basis, first quarter revenue was up by 36 percent compared to the same prior period on the back of price adjustments to preserve value in view of the general increase in the cost of doing business during the comparative period under review.