eBusiness Weekly
Enacy Mapakame
Although the macro-economic environment is volatile, Seed Co Limited says the 2019/20 farming season prospects are bright driven by increasing Government support programmes across the region as well as an anticipated good rainfall.
Bad weather conditions have had a knock on effect on agriculture related companies while inflationary pressures have also narrowed disposable incomes.
However, governments from across the region have several input programmes for their countries and the seed making firm is angling itself to capitalise on such.
In Zimbabwe, Government is targeting 210 000 hectares of maize for the 2019/20 farming season as well as 30 000 hectares of soya bean under the Presidential Input Programme.
Government is also looking at an additional 640 000 hectares of maize and small grains under support for the vulnerable groups.
Group chief executive officer Morgan Nzwere said the group was anticipating to benefit from such programmes as well as firming demand across the region.
“What we will get from Government programmes is debatable, but we will try and get a significant share of that. There is also a drive to cut on imports and this should see an increase in planting,” Nzwere told shareholders at the group’s annual general meeting in Harare yesterday.
“The Government input programme in Zambia is continuing with input distribution starting on September 1, and we expect to get a decent share of the business,” he said.
In Malawi, its subsidy programme is continuing although Government has decided to cut the targeted beneficiaries to 900 000 families from 1 million in the prior season.
Nzwere acknowledged that the operating environment was increasingly becoming unpredictable, especially in Zimbabwe due to inflationary pressures. However, the company has in place strategies to stay relevant both as a business and to its market.
“In Zimbabwe, while as a business we are doing everything within our control to prepare for the main selling season, the operating environment is increasingly becoming unpredictable,” he said.
Apart from Government, prospects are generally good for the seed producer on the back of favourable weather conditions across the region as well as increased production capacity in some regional markets.
Said Nzwere: “From the regional operations, we anticipate rebound performance with adequate product and better rainfall forecasts, unlike last year when our markets were badly affected by drought. We expect continued market share growth in East Africa.”
Kenya is expected to recover this season after it suffered product shortages as well as depressed demand last year due to drought and other supply chain related constraints. Seed Co has since increased production capacity in Kenya, and has adequate stocks to meet local demand during the season.
In Tanzania, Malawi, Zambia and Kenya, vegetable seed business units are expected to start contributing to the bottom line following their full roll out last financial year.
The group is also upbeat about Mozambique, Angola and the Tanzania where the seed producer has increased production to meet demand after suffering product shortages.
Other market areas are also being explored within the different countries as the firm consolidates its market share.
Business development work is continuing in Franco-phone Africa with demonstration plots of several varieties established this year in Ghana, Mali, Burkina Faso, Togo, Benin, Cote d`lvoire, Cameroon and Congo Brazzaville.
