SEED.zw | Release of 2016 Annual Report
Below are some extracts from the Chairman’s Statement:
I am pleased to present to you my last Annual report of your Company for the Financial year ended 31 March 2016.
I am pleased to report that your Company managed to post commendable earnings despite another year of serious challenges due to adverse effects of the El Niño weather pattern that saw most of its markets experiencing late rain and near drought conditions.
I am delighted to report that your Company successfully acquired and integrated a vegetable seed business into its portfolio. This will be an exciting platform to diversify the income streams of the Company.
A world class research laboratory which is now fully equipped and functional will see your Company using modern research facilities and technology to be more effective and efficient in research and raise its productivity frontier to compete with the other top seed companies in the world.
The economic activity in sub-Saharan Africa deteriorated significantly in the period under review, with growth for the region as a whole declining to 3½% in 2015. This was the lowest level in 15 years. The steep decrease in commodity prices did severely strain many of the sub-Saharan African economies that resulted in most of the Governments significantly cutting back their farmer subsidy programs. There was huge devaluation of currencies against the US dollar for almost all African countries.
Group turnover remained unchanged at $95m despite a 7% reduction in the maize seed uptake, thanks to the vegetable business turnover of $5m that offset the reduction as well as upward price adjustments in some markets…
The Group has made significant progress in increasing the irrigation capacity of its key seed growers, increasing the yields and lowering the cost of seed in the process. There is now adequate capacity to produce market demand.
Research and Technology
The research function has been strengthened with the appointment of new leadership, while highly experienced personnel have been deployed to champion breeding and research operations in East and West Africa. In South Africa, an experienced breeder has been appointed to spearhead breeding programs at the newly acquired research farm, while in Mozambique, a new breeder has been appointed to champion breeding of tropical low land varieties…
New Business Development
The new Vegetable business has now been integrated into the Group and capitalization of the business has been completed to enable it to grow. This new business unit is expected to start contributing positively going forward…
The negative effects of El Niño weather conditions on food production and the steep decrease in commodity prices that has severely strained many of the sub-Saharan African economies and the weakening of currencies is set to continue in the current year. However despite this tough economic environment, I am very positive about the future of the company…
Welcome Daniel Jacquemond as JC Juilliard’s alternate. Lastly, I will be retiring from the Board at the upcoming Annual General Meeting. Having been on the board of your Company for the past 20 years, it has been a truly rewarding experience and I have seen the Company grow from a single unit based in Zimbabwe to now covering most of East, Central and Southern Africa and starting operations in…
By Order of the Board
J P Rooney
8 June 2016
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Seed Co Limited (SEED.zw)Share price: 22,995.96 ZWL cents ▼ (-4.04 | -0.02% – 28/03/23)
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