New Zimbabwe.com

Top milk processor Dendairy in troubled waters

By Kwekwe Correspondent


KWEKWE based Dendairy Limited says the harsh economic environment has plunged the milk processor into a viability crisis with current operations now only aimed to keep the company afloat with hopes the country’s sagging economy could bounce back soon.

Company director Carly Archibald told NewZimbabwe.com the firm has even also fallen behind on its expansion drive targets.

The company late last year embarked on an expansion drive to see the construction of new process lines as well as expansion and refurbishment of existing sterilising and pasteurising plants.

The milk processor is currently producing around $5 million litres of milk per month.

“We are experiencing production challenges where we are running out of chemicals, ingredients for our processes and acquisition of spare parts. The major challenge comes in procuring foreign currency to continue with production,” he said.

Archibald said the firm was now only servicing the market to maintain its business relations with suppliers and consumers until the storm is over.

“We have realised that the purchasing power amongst our consumers has considerably fallen,” he said.

“We have tried to keep the pricing of our products as affordable to the consumer as possible. Milk hasn’t increased to what we pay our suppliers. Our objective as a business now is not to make a profit but to survive and get through this economic situation.

“As a country, we were distracted by the currency problem but the rest of the situation is generally good.”

Archibald expressed optimism on the economic situation soon improving.

“We have not lost hope that we will come out of this situation. That is why we are keeping our entire workforce intact. We will definitely need the workers as we are bringing in new lines of production,” he said.

Archibald said Dendairy has adopted multiple incentives to cushion the workers against the current economic turbulence.

He however said that challenges in securing much needed forex has seen the company delay its expansion drive.