Seeds developer, SeedCo is facing challenges with sales volume performance for the nine months ended December 2019 recording a 24% negative growth as compared to the same period last year.
The government reduced the uptake of the firm’s seeds according to the Company Secretary T. N. Chimanya
Reduction in sales volumes was also due to the low onset of the rainy season as well as unfavourable weather forecasts which discouraged farmers from purchasing seed and also the negative impact of low disposable incomes on consumer demand.
Fuel shortages are affecting land preparation for the current summer season whilst electricity and water shortages incapacitated wheat growers from irrigating last winter.
SeedCo is, however, implementing measures to preserve value in Zimbabwe.
“Amidst the challenges, the Company managed to secure funding to pay for all seed deliveries from growers and funded the processing of the seed in readiness of the selling season,” Chimanya said.
“Striking a balance between cost containment and continuing in business (operating and retaining skills) profitably is now part of the Company’s challenging daily routine.”
Seedco recorded a ZWL $309 million in profit after tax for the nine months ended December 2019.
The Company Secretary says this year’s outlook remains highly unpredictable due to Zimbabwe’s current harsh economic environment.
SeedCo’s sales volumes are expected to close the current financial year lower than the prior-year due to challenges faced by farmers.