Seed manufacturing giant,
Already, Seed Co has recorded depressed volumes for its half year to
"The outlook remains highly unpredictable due the current harsh economic environment. The company's sales volumes are expected to close the current financial year lower than prior year due to challenges (in the economy)" said Seed Co in a trading update for the third quarter and nine months to
For both the third quarter and nine months period,
During the third quarter, volumes fell 3 percent, while for the nine months the decline was 24 percent compared to same period in the prior year.
According to the seed making giant, Government also reduced its seed uptake. Government is a key customer for seed making firms to sustain its various projects such as the Presidential Input Scheme and Command Agriculture.
"The reduction in sales volumes in both the 3rd quarter and 9 months was mainly due to low onset of the season and unfavourable weather forecasts, which discouraged farmers from purchasing seed, negative impact of low disposable income (and) reduced Government uptake of our seed," said the group.
The country has also been battling energy challenges, which had a knock on effect on the agriculture sector.
Farmers across the country were also affected by fuel shortages that hampered land preparations for the current season, while erratic electricity water supplies also incapacitated wheat farmers from growing the crop under irrigation.
Meanwhile, the group is continuing with its project for construction of a state of the art artificial maize seed drying plant at its Stapleford complex.
Seed Co indicated the construction work was progressing with equipment already delivered from
Despite the economic challenges, Seed Co is one of the stocks projected to survive the turbulence due to the strategic nature of its product while foreign exposure through its regional investments will also add to its allure.
"The company will also bank on its regional associate investment,
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