Freedom Mashava, Visuals Editor 
LISTED crocodile skin producer, Padenga Holdings (Padenga), says it has completed a feasibility study into diversifying its operations to include Avocado and Macadamia farming, as it seeks to widen income streams.
In a commentary to financial results for the year ended December 31, 2019, the firm said production was likely to commence next year.
“The investigation and feasibility study into plantation and cropping (Avocado and Macadamia) has been successfully completed and the project has now advanced towards identifying suitable locations that fulfill the multiple variables relevant to successful production,” the company said.
“Given the lengthy period before commercially viable crop yields are produced, attention is being given to additional shorter season/cycle export crops that will provide positive liquidity and profits during the developmental phase of the plantations. The objective is to commence operations in early 2021”.
Last year, the company took over Dallaglio Investments which owns Pickstone Peerless Mine near Chegutu and Eureka Mine near Guruve, which is under development with a target to eventually produce 140kg of gold per month this year.
It said it was working on improving the quality of skins harvested at its crocodile operation to meet the standards required by its principal customer.
The crocodile operations achieved 47 752 animals during the review period, which was four percent ahead of budget.
The firm is projecting to sell 55 000 premium quality skin this financial year.
“Demand for defect free skins remains strong and prices are anticipated to hold as long as the quality expectations of the premium, market are satisfied.
“Although closed for much of March and April, French tanneries were anticipating to reopen mid-April and product supply has thus far, not been interrupted,” said Padenga.
It said the Chinese market for luxury products has reopened after their Covid-19 shutdown and European markets were anticipated to follow.
Padenga projects growth in the European market this year.
The statement said in the alligator operation the full year harvest crop continued to improve and targeted quality grades.
Pre-tax profit declined to US$8,5 million during the review period, from US$11 million during the comparable period in 2018.
Operating profit before depreciation, impairment and amortisation declined to US$7 million, from US$11,4 million the previous year. Revenue rose slowed to US$29 million, from US$37,3 million the previous year.
newsdesk@fingaz.co.zw
