Farai Mabeza, Senior Staff Writer 
THE Seed Co group (Seed Co) plans to introduce new seed drying technology across the rest of its operational markets, after successfully installing a US$12,5 million dryer in Zimbabwe.
The seed manufacturer’s Victoria Falls Stock Exchange-listed unit Seed Co International, operates in a number of sub-Saharan countries including Zambia, Kenya, Malawi and Nigeria.
Group financial director John Matorofa told a virtual analysts briefing last week that construction of another drier was nearing completion in Zambia and is expected to enhance early seed harvesting and grading capacity.
“Introduction of cob harvesting and seed drying technology across the group is on the radar following the pilot plant commissioning in Zimbabwe,” Matorofa said. The Zimbabwean dryer was financed through a loan from French development finance institution Proparco.
Meanwhile, Seed Co’s profit for the half year ended September 30, 2021, declined from US$2,5 million recorded during the same period last year to US$1,5 million due to an increase in operating costs, among other factors. Matorofa attributed the drop to a number of reasons including the strengthening Zambian kwacha, which saw local costs translated to US$ at lower rates.
“The period saw an increase in the share of the South African associate loss on full accounting and higher tax expenses from more profit contribution from higher tax countries,” Matorofa said.
The group’s revenue, however, jumped to US$35,6 million from US$27,9 million driven by better season preparedness and early sales in Malawi, Tanzania and Zambia.
It was also pushed up by local currency price adjustments and translation gains mainly in Zambia following appreciation of the kwacha currency.
Turnover in Zambia increased by 121 percent to US$15,5 million mainly due to price adjustments and early season start.
Sales in Malawi more than doubled, buoyed by early demand driven by a government inputs support programme.
Tanzania sales increased by 78 percent to US$4,1 million driven by early demand.
In Kenya, however, sales declined by 17 percent due to drought, while Nigeria saw turnover going down 42 percent as a result of stock unavailability following production challenges due to heavy rains last season.
Maize seed dominated both revenue and volume contribution driven by strong demand in Malawi, Tanzania and Zambia.
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