Farai Mabeza, Senior Staff Writer 
SEED Co Limited says it will leverage its business on various food production programmes being implemented by African governments in the face of uncertainty on the continent.
The seed producer has operations in over 15 countries in different regions in Africa.
In a trading update for the first quarter ended June 30, 2022, Seed Co noted that global supply shocks from Covid-19 and the Ukraine war continued to cause supply chain bottlenecks and imported inflation, that is further compounding the woes of already fragile African economies.
“Primary food production however remains the topmost priority in Zimbabwe and on the continent, with various government and development partner interventions to boost food security. Seed Co is taking all feasible strategic measures to contribute meaningfully to concerted efforts to scale-up food production in the country and on the continent,” Seed Co said.
“Despite the largely exogenous challenges, the group has adequate stocks both in Zimbabwe and on the continent to contribute meaningfully to primary food production subject to favourable climatic and economic conditions.
“The group is taking various measures to harness real value in the Zimbabwean market where the use of hard currency appears to be dominating transactions. On the continent, Seed Co International is taking various measures to reclaim the erosion of margins that was experienced in the last financial year.”
Seed Co said that though the Zimbabwean economic environment remained challenging in the short to medium term, on the continent the company has mixed optimism with stability in some markets and headwinds in other markets.
“The group remains resolute in its mission to leverage its innovative seed solutions, agronomy services and strong brand, working with all stakeholders, to contribute to food security and plug global supply chain gaps,” Seed Co said.
“The Zimbabwean socio-economic environment remains challenging, with hyperinflation continuing, no respite to the wide disparity between the official and alternative market exchange rates while the recent hike in interest rates is making productive financing unviable.”
Seed Co reported an inflation-adjusted first quarter revenue increase of 36 percent compared to the same prior period on the back of price adjustments made to preserve value in view of the general increase in the cost of doing business during the comparative period under review.
newsdesk@fingaz.co.zw
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