Seed producer, Seedco recorded a 45 percent growth in seed sales during the first quarter of its financial year ended June 30, compared to corresponding period last year owing to improved market demand for the crop.
Zimbabwe is propping efforts to increase cereal production and cut on the massive importation of grain at a time the country is reeling from foreign currency shortages.
Wheat seed and barley seed respectively made up 91.6 percent and 8.1 percent of the total sales volumes during the period under review.
Wheat seed sales volumes were 56.5 percent higher than prior year on the back of improved irrigation capacity which benefited from rising water levels and better electricity supply. In addition, the government’s commitment to reduce imports by supporting local production of the crop contributed to the positive sales performance, the company said.
However, barley seed sales volumes decreased by 20.3 percent compared to the previous year as the major customer cut back its seed uptake for malt production in response to reduced beer consumption arising from constrained customers’ disposable income and the Covid-19 lockdown.
Revenue, historical basis for the quarter grew by 1,097 percent from the same period last year while the turnover increase in inflation-adjusted terms was a relatively modest 80 percent.
“Compared to prior year, operating profit rose by 577% in historical cost terms and by only 28% after factoring in IAS 29 adjustments as the revenue growth was partially offset by the hyperinflation-driven operating costs,” the Group said.
However, the first quarter is mainly a cost-accumulation phase in preparation for the main maize seed selling season in the second half of the financial year.
