The financial year was characterised by a currency change, tight monetary policy and new tax regulations. The introduction of the Zimbabwe Gold (ZiG) currency in April brought about a predictable market environment in Q2, however this was arrested by a +40% devaluation in September. This, coupled with a tight monetary policy led to the Group facing liquidity constraints during the period. Moreover, inconsistent supply of electricity and water led to higher production costs and sapped output. According to the Dairy Services Unit of the Ministry of Agriculture, Lands, Fisheries and Rural Development, national milk production output increased by 15% y/y to 114.7mn for the period under review. Dairibord retained its position as the processor with the highest raw milk intake at 42.2mn litres, which was 49% above the prior year, representing 37% of milk intake by processors, up from 34% in the previous year.
