Farai Mabeza, Senior Staff Writer 
SEEDCO says with El Niño weather conditions expected for the upcoming summer season, it will bank on placement of appropriate varieties in the right markets.
Droughts are becoming a regular occurrence due to climate change and SeedCo says its performance is now backed by the production of climate-smart seeds.
“We have been following the early weather forecasts and I think people have been talking of El Niño in most parts of southern Africa, which is not a good sign.
Morgan Nzwere, Seed Co chief executive
“But for us what it does is we have to structure ourselves appropriately and try to make sure that we stock the relevant sales areas with early maturing varieties to try and address the limited rainfall that is expected,” group chief executive of SeedCo, Morgan Nzwere, said during an analyst briefing.
This comes as the seed maker reported a $15,8 billion inflation adjusted PAT, which was a turnaround from the prior year’s loss of $2,2 billion.
Profitability was driven by 14 percent volume growth and 156 percent revenue growth together with increased US dollar-denominated sales.
Increased US dollar denominated but Zim dollar settled sales were credited for an increase in other income.
Maize remains the company’s flagship seed crop, contributing 52 percent of the volume having increased by 12 percent driven by better stock position and increased demand buoyed by better rains during the last season. Nzwere also announced that the company was now set to start production in Ethiopia.
“We are delighted we have been issued a business licence in Ethiopia, the second most populous nation in Africa. They grow a lot of maize. Over the last 10 years, we have been trying to get a licence there and it has been a challenge.
“We finally got that licence in April and started putting a team on the ground and that will be an important growth arm in East Africa,” Nzwere said.
SeedCo International’s revenue grew 17 percent driven by 11 percent volume growth in Tanzania and Kenya as well as Zambia.
Net exchange impact reversed US$6 million into the negative driven by exchange losses mainly in Zambia and Kenya.
“This was a major dent on profitability. Overheads increased in line with business growth in East Africa and in response to global inflation,” Nzwere said.
“Tanzania continues to be a shining beacon amidst regional turbulences. If we had enough seed in that market, we could have sold another
3 000 tonnes.”
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