Natfoods increases contract farming hectarage by 11%

Talkmore Gandiwa

HARARE – National Foods will increase its farm crop under contract farming by 11% in the current agriculture season to 10 000 hectares. The crop will comprise of 6 000ha of maize and 4 000ha of soya beans.

Chief executive Mike Lashbrook said yields are anticipated to be a lot higher than last year’s due to the good rain season that has been forecast and the increase in planted hectarage.

Due to the recovery in local agricultural production, Lashbrook said that the company’s foreign currency needs have reduced substantially. “We do not expect any maize imports in the coming year. We will only need higher protein wheat for blending/gritting purposes and to import rice.”

“Our foreign currency needs are being provided for by a combination of receipts from our own customers and support from the Reserve Bank of Zimbabwe in the form of the foreign currency auction and letters of credit,” he said.

 “In terms of forward looking volumes we are working hard to sustain the volume momentum,” said Lashbrook.

 “Volumes for the first quarter of the current financial year (July to September 2021) increased by 24% compared to the prior year. This was an encouraging increase on last year” said Lashbrook.

Natfoods share price is currently sitting at 155 000c on market cap of $106.02 billion.

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