eBusiness Weekly
Theresa Mhazo & Latipha Mapfumo
Seed Co Limited has adequate seed and is prepared for the main summer selling season which is now underway, the company said in a statement accompanying financial results for the half year to September 30, 2022.
Chairman David Long said while the business is still taking deliveries of raw seed, by the end of the first half 15,500mt tonnes of maize seed was in stock across all varieties.
“The business will have adequate seed available for this summer selling season,” he said.
Seed Co develops and markets certified crop seeds, mainly hybrid maize seed, but also wheat, soya bean, barley, sorghum and groundnut seeds.
Record local winter and barley sales were achieved during the first half with a growth rate of 30 percent from prior year to 6,320mt.
Overall, winter sales were 8 percent lower in the absence of repeat export sales, Long said.
Last year 2,000mt of wheat was exported to Nigeria.
Commenting on summer sales, Long said, “maize seed sales began on a lower note as farmers did not pre-stock as they did in prior year given the liquidity crunch in the economy.”
The rollout of Government programmes was also delayed this year leading to maize sales volumes declining by 45 percent from same prior year period.
On the export front, the business registered a notable 88 percent volume growth satisfying the shortage in the region caused by drought in prior year particularly in East Africa.
On product pricing, Long said “the local market, selling prices were regularly adjusted in line with inflationary pressures and exchange rate movements resulting in inflation-adjusted turnover being 5 percent higher than prior year”.
“Gross margins were stable in inflation-adjusted terms owing to inflation tracking price adjustments and the relatively lower carrying value of wheat stock carried over from prior year”, he said.
A loss was absorbed from associates mainly contributed by Seed Co International whose first half performance was subdued with notable early sales reduction in Malawi and drop in revenue in Nigeria due to product unavailability and in East Africa due to drought.
