Seed Co profit up from $142 million to $3.6 billion in first half

Seed Co, one of the biggest seed producers in the region, says there is insatiable demand for seed in the region. The company therefore expects to sell all its stocks. Its only challenge is to ensure that the seed is sold at prices high enough to cover replacement costs and continued supply.

In its report for the half-year ended August, Seed Co says local deliveries were slow and had been badly affected by late planting and the dry spell in January.

It therefore expected 40 percent of its normal deliveries. Seed production in Zambia, Malawi and South Africa had been satisfactory.

New research at Mpongwe in Northern Zambia was now operational. There was also progress at Umbeluzi in Mozambique where the company expected to come up with early maturing varieties suitable for the costal belt stretching from Southern Mozambique to the Horn of Africa.

The company expected to release seven new varieties in Zimbabwe, which had improved disease resistance and yield. The company was also advancing new varieties in soyabean, wheat and groundnut.

It made a good start with turnover increasing from $2.1 billion to $6.4 billion. Local sales improved by 65 percent while regional sales shot up by 411 percent.

Operating profit shot up from $224.3 million to $5.2 billion boosted by other income which contributed $6.5 billion.

Net profit rose from $142.9 million to $3.6 billion.

The company says traditionally, about 80 percent of its business is done in the second half.

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