DAIRIBORD Holdings (Dairibord) says it is aiming for low-cost collaborations to intensify the visibility of its products in export markets.
The country’s largest dairy processor has committed to achieving above average top line growth, driven by an increased focus on domestic and export markets, improved product availability and an optimised route to market.
In the export markets, Dairibord mainly trades with customers in Zambia, Mozambique, Botswana, South Africa, Namibia and Malawi.
Dairibord’s chief executive, Mercy Ndoro, said the group is exploring regional opportunities for growth, diversification and foreign currency generation.
“The regional opportunities that we are looking at do not speak of physical presence; however, we are looking at low-cost collaborations so that we begin to intensify the visibility of our brands, with specific focus at the moment on South Africa, Botswana, Zambia and Mozambique,” she said at the company’s AGM last week.
Zambia, Malawi and the United Kingdom contributed 3,0 percent, 0,6 percent and 0,7 percent respectively to export volumes.
Ndoro said Dairibord will focus on boosting processing capacity to increase product supply and be able to service export markets.
This comes as the company’s research and development team is working on innovation, line extension and introduction of new products that appeal to the market.
During the year ended December 31, 2022, Dairibord completed a third maheu (Pfuko) line, a drinking yoghurt (Yoggie) line and a third blow moulder for Steri milk bottles.
The dairy processor also installed a new chilled water plant at the Harare Rekayi Tangwena factory to optimize production capabilities.
Dairibord says volume growth this year will be underpinned by the recently completed capital investment projects in processing capacity.
During the year ended December 31, 2022, Dairibord’s sales volumes grew three percent ahead of the same period last year, with beverages and foods categories delivering growth of seven percent and 10 percent respectively and liquid milks declining by seven percent.
Contribution to total volume of liquid milks, beverages and foods was 28 percent, 62 percent and 10 percent respectively.
Domestic market sales volumes sold in US dollars for the year were 50 percent during the year compared to 17 percent recorded in the prior year while exports where six percent as the group’s regional footprint continues to grow.