IH SECURITIES says volumes sold in National Foods Holdings (NatFoods) maize and stock feeds divisions are likely to be weak in the last quarter of the fiscal year 2023, due to the projected over-supply of the harvest on the domestic market.
This comes as Zimbabwe is expecting a bumper harvest for the 2022-23 crop, which will likely see the country having an oversupply of the produce.
“In the same vein, the raw material pipeline for NatFoods from the domestic market looks promising as the company has invested US$12 million into the summer crop contract scheme, lessening its import bill. NatFoods has continued with its ongoing capacity expansion initiatives providing volumes upside,” IH Securities said.
NatFoods is currently looking at near-term projects, which include the commissioning of a new flour mill in Bulawayo.
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