eBusiness Weekly
Dairibord Holdings Limited’s journey to date can be categorised into four key phases from starting off as a parastatal, to being commercialised and then being a privatised entity. The entity is currently undergoing restructuring to ensure efficiencies.
The Zimbabwe Stock Exchange-listed firm manufactures and distributes quality milks, food and beverages through its two main business units: Dairibord Zimbabwe Limited and Dairibord Malawi Limited.
Other subsidiaries include Goldblum Investments, Chatmoss Properties, Quallinnex Properties and Slimline Investments Limited.
Forerunner to Dairibord Holdings was the amalgamation of Matebeleland, Midlands and Mashonaland Co-operatives to form a parastatal, Dairy Marketing Board (DMB) in 1952.
The formation was provided for by the 1951 introduction of the Dairy Marketing Scheme, a brainchild of the Agricultural Marketing Act then. The Manicaland Co-operative joined in 1976.
In 1956 the Dairy Marketing Board assumed responsibility over the Rhodesia Co-operative Milk Company and the Bulawayo Creamery. A new Dairy was commissioned in Harare in 1960.
The DMB concept was exported to Northern and Southern Rhodesia in 1961 and until the dissolution of the Federation, the board had dairies in both regions.
1962 saw the commissioning of a new dairy in Kadoma and the control of Mutare Creamery. Succeeding years saw the parastatal expanding dairies in Harare, Kadoma, Gweru, Bulawayo and Chipinge. The Harare UHT and Ice Cream plants were commissioned in 1987.
From 1991 onwards the company entered a commercialisation phase. Adoption of the Economic Structural Adjustment Programme (ESAP) ushered in the appointment of new boards of directors to the Ministry of Agriculture for commercial viability.
Subsidies ensued and the new board was tasked to ensure an end to losses and debar further accumulation of debts that had reached $180 million.
The phase saw positives as the company operated viably between 1992 and 1994. In 1996 the Government announced plans to privatise the milk processor.
Privatisation was completed in 1997 when the Government divested 75 percent shareholding to private investors. It became the first State-owned company to privatise. The name changed from DMB to Dairibord Zimbabwe Limited (DZL). DZL got listed on the Zimbabwe Stock Exchange, with an oversubscribed Initial Public Offering.
Acquisitions began with a 60 percent equity in Dairibord Malawi in 1998. Next was the total acquisition of Lyons Zimbabwe in 2001.
And in 2002, DZL acquired 40 percent shareholding in Charhons. This was followed in 2003 by the formation of a transport and logistics company, NFB Logistics.
Inheriting years were characterised by restructuring exercises. In 2006, DZL restructured to operate with stand-alone subsidiaries and the name changed to Dairibord Holdings Limited.
2011, saw the commissioning of a Cascade processing plant at Lyons, a Nutriplus processing and packaging plant in Chitungwiza and a Yoghurt plant.
2012, saw the consolidation of factories to maintain viability citing reception of less volumes of raw milk for processing. Factories were reduced from five to four. The Chipinge Steri Milk Plant was commissioned in 2015. To unlock capacity, the Pfuko was expanded in Chitungwiza in the same year.
To date the company has made great strides with a number of its products having been conferred with the 2017 “Superbrand” status in various categories by the Marketers Association of Zimbabwe. The brands include cascade, Chimombe, Lacto, Lyons Quench and Lyons Quick Brew. The company itself was conferred with the Best Supplier-Wholesalers’ choice award in the same year.
Presently the company is in the process of disposing Dairibord Malawi which is expected to be finalised this year.
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