By William Milasi
Kwekwe based milk processor Dendairy Limited has said the inclement economic environment has seen the company no longer pursuing profits in its business endeavors but only operating for survival until the economy comes out of the woods.
Dendairy Director Darly Archibald in an interview said the company has even fallen behind on its expansion drive target.
The company late last year embarked on an expansion drive to see the construction of new process lines as well as expansion and refurbishment of existing sterilizing and pasteurizing plants.
The company is currently producing around $5 million litres of milk per month.
“We are experiencing production challenges were we are running out of chemicals, ingredients for our processes and acquisition of spare parts. The major challenge comes in procuring foreign currency to continue with production,” he said.
Archibald said the pricing of milk in the shops is not consummate with suppliers.
“We have realized that the purchase power amongst our consumers has considerably fallen. We have tried to keep the pricing of our products to be as affordable to the consumer as possible. Milk hasn’t increased to what we pay our suppliers. Our objective as a business now is not to make a profit but to survive and get through this economic situation.
“As a country we were distracted by the currency problem but the rest of the situation is generally good,” he said.
Archibald expressed optimism on the improvement of the economic situation.
“We have not lost hope that we will come out of this situation that is why we are keeping our entire workforce intact. We will definitely need the workers as we are bringing in new lines of production,” he said.
To cushion the workers Archibald said, Dendairy has adopted multiple incentives to cushion the workers during the current economic situation.
He however, indicated that challenges in securing the much needed forex have seen the company delaying its expansion projects.
“This is a difficult time to make capital expenditure. The actual recovery price of the product is not being achieved on the shelf. It is tough situations you can’t sell were you need it to be and consumers do not have enough disposable income,” he said.