Tinashe Makichi Business Reporter
ProGroup’s stock feed manufacturing subsidiary, Profeeds is targeting to increase chicken feed production two-fold this year from last year’s 60 000 tonnes following a $6 million investment in a new plant.
The company also has plans to set up a fish feed manufacturing plant this year and to set up pig and cattle feed manufacturing lines.
Profeeds currently produces a successful range of premium quality, high performance stock feeds and since 2007 the company has been on a growth trajectory of 50 percent year on year.
Profeeds chief executive Mr Nigel Philp yesterday said improving efficiency and economies of scale has always been the company’s goal.
“Profeeds invested about $6 million towards the construction of a new plant that will help the company achieve 110 000 tonnes by the end of this
year.”
Profeeds was established in 2007 as a stock feed manufacturing plant. It has the biggest chicken feed in the country and has partnered up with Zimbabwe’s largest chicken producers to
target small-to-medium chicken farmers.
Mr Philp said this is attributed to a unique customer-orientated strategy as well as the development of a superior product basket.
“Our range of high performance feeds includes those for broilers, layers, pigs, horses, sheep and dogs. This is the beginning of a new trajectory for the company as we continue to work hard to become the largest stock feeds manufacturer in the country,” said Mr Philp.
He said this was a completely new plant, with new storage and silos.
The company is operating at 85 percent capacity which is almost full capacity, 50 percent up on last year following the company’s $6 million investment.
“Chicken has become one of the thriving small scale businesses in the country and it has provided a lot of opportunities for small-scale stock feeds manufactures.
“The demand of chicken feed is strong and it was unfortunate last year where there was an influx of imported chicken,” said Mr Philp.
He said Zimbabwe does not need to import chickens as there is enough chicken farmers but these farmers have been lacking access to working capital and markets.
Mr Philp said the control of maize prices had caused some inconsistencies in terms of pricing but he remained optimistic of the company’s future.
The company has managed to train several small-scale farmers on the
fundamentals of chicken breeding and Profeeds has also intensified efforts
to set up retail outlets across the country.
The company currently has 46 retail outlets across the country.