Subsequently, the company projected a minimum savings of $2 million with a rationalisation cost of $1 million from retrenchments, head office relocations and relocation of plant and equipment.
Additionally, investment in 1.5 million litres water storage capacity with one week cover at the Chitungwiza factory will minimise water supply disruptions, thereby curbing exorbitant costs experienced in the previous period owing to water outages.
Mandiwanza said Dairibord would invest $2.5 million for the year towards water reservoirs, cold chain equipment and distribution vehicles in a bid to improve its operational efficiency.
The company also targets to import 300 heifers this year to increase milk production.
Given the investments in the preceding year and the ones on the books for 2017, the management is optimistic that the business has sufficient production capacity to support growth in demand going forward.
However, success will be depend on how far the measures instituted to reduce costs and expand capacity will yield positive results in an operating environment that is worsening by the day. Or more dark days lie ahead.-The Source
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