7 December 2017

Zimbabwe: Foreign Currency Shortage Hits Day Old Chickens Imports

Zimbabwe Stock Exchange listed company, Innscor Africa Limited operations, says the volumes of processed chicken has normalised, but constant supply might be hampered by the acute foreign currency shortages in the country.

Zimbabwe, since February 2009, adopted a multi-currency economy with the United States dollar dominating other currency, however, there has been acute shortage of the green currency in the country since 2016 which has negatively affected the few companies that are operating in the country.

Addressing stakeholders at the Annual General Meeting yesterday, Group Chief Executive Officer, Julian Schonken, said forex shortages has also negatively impacted on the small scale sector which depend on day old chicks for production.

"The shortage is also affecting small scale sector which relies on day old chickens for production.

"Table egg productions remains at around 43% of normal capacity," said Schonken.

He added that the introduction of family loaf was very well received by the market and accounted for 47% of total loaves sold so far.

"The business continued to invest in extending its pipeline of key raw materials to this end, working capital increased by $9.3 million during the quarter to $88.3 million and we have a good pipeline of raw materials in most of our key categories at this point," said Schonken.

He added that revenue continued to show good growth on the back of a 13% increase in average loaves sold per day versus the comparative quarter.

"Revenue continued to show good growth on the back of a 13% increase in average loaves sold per day versus the comparative quarter.

"The performance was however negated by an increase in raw material costs compressing the gross margin dollars as the selling price to the consumer remains unchallenged.

Zimbabwe

Govt 'Orders Land Grabbers to Vacate Farms' - Report

Zimbabwe's new minister of lands, agriculture and rural settlement, Retired Air Marshal Perrance Shiri, has reportedly… Read more »

Copyright © 2017 263Chat. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 900 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.