Last year’s delayed rainy season in Zimbabwe has sparked a surge in demand for small grains, according to seed producer SeedCo Limited. The country, grappling with frequent droughts and erratic rainfall, has been reliant on maize imports to feed its population. To address this, the government has been advocating for the cultivation of traditional small grains such as sorghum and millet, known for their resilience to droughts.
SeedCo Group Secretary Tineyi Chatiza, presenting a trading update for the third quarter ended December 31, 2024, disclosed the substantial increase in demand for small grains during the period. This demand not only extends to Zimbabwe but also neighboring countries, holding the potential to boost sales volumes. The company reported a revenue of ZW$39.9 billion, marking a 443% increase, and an operating profit of ZW$18.6 billion, signifying a 415% rise compared to the previous period.
Chatiza attributed the revenue surge to the growing proportion of US dollar-denominated sales amidst exchange rate depreciation and resultant inflationary effects. He also credited the enhanced profitability to the restoration of profit margins and the alignment of the exchange rate with market forces.
It is crucial to note that the comparison of financial performance is significantly impacted by exchange rate fluctuations and the shift in inflation statistics from the local currency to a combination of currencies, noted Chatiza.
