Dairibord invests in solar energy

DAIRIBORD Holdings (Dairibord) says it is investing in renewable energy to power its factories as it plans to reduce dependency on fossil fuel-generated electricity.

The milk processor’s latest investment comes at a time when several companies in the country are turning to solar energy to cushion incessant power outages that have adversely affected output.

Energy remains a key aspect of Dairibord’s operations for powering machinery and vehicles and provision of lighting, among other activities, and the firm has previously resorted to diesel-powered generators which have proved costly.

“The business intends to invest in solar power plants for its Chitungwiza and Chipinge factories,” the group said in an annual report published recently. The milk producer has put in place initiatives to manage energy impacts including the mandatory use of only LED lighting, which uses low levels of energy and the investment in energy efficient equipment.

Dairibord is also monitoring utility indices which indicate the amount of energy used per volume of product.
The business has also invested in an efficient ammonia plant with automatic load controls, thus saving energy usage.

Dairibord’s sales reached a five-year high in 2021 at 94,2 million litres, largely driven by significant growth in the beverages segment.
The dairy processor expects moderate growth in the outlook in the wake of rising domestic and global inflation.

Liquid milk grew by 10 percent, foods grew by 34 percent while beverages recorded a significant 84 percent increase due to growth in volumes of Pfuko and Cascade. Volumes sold in foreign currency increased to 20 percent from 16 percent reported in 2020.

The group said despite the strong volume growth, the business was not able to meet strong consumer demand due to production capacity constraints and Covid-19 supply side disruptions.

Revenue for the year grew by 55 percent over prior year to $13,2 billion in inflation adjusted terms driven by the 48 percent growth in volume and moderate upward price adjustments of five percent.

Total foreign currency revenue increased by 120 percent over 2020, which was attributed to a focus on foreign currency generating initiatives.
The foreign currency revenue generated, coupled with proceeds from the auction market, contributed towards meeting the company’s import bill.
newsdesk@fingaz.co.zw