SEED firm, Seed Co Limited, is anticipating increased demand for seed amid prospects of a better 2024/25 farming season following projections of normal to above-normal rains.
Seed Co is looking at recovering following a 2023/24 El Niño-induced drought, which was associated with prolonged dry spells, reduced rainfall and increased temperatures.
The seed manufacturer has set aside capital expenditure of US$3 million for its financial year ended March 31, 2025.
However, the capital commitment under review is about 17% lower than what the group spent in its financial year ended March 31, 2024.
The new 2024/25 agricultural season is set to begin mid-October.
As a result of drought, the output for both commercial and non-commercial crops decreased which has increased food insecurity and lowered forex revenue generation.
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“Group capital expenditure for the year to March 31, 2024 totalled ZWL51,7 billion (2023: ZWL17,8 billion restated). Capital expenditure for the year to March 31, 2025 is planned at US$3 million (2024: US$3,6 million),” Seed Co said in its annual report for the year ended March 31, 2024.
Seed Co group chief executive officer Morgan Nzwere said the group was anticipating increased demand for seed to refill granaries after an El Nino-induced drought in the previous season..
“The group is well-prepared to capitalise on these opportunities, despite ongoing risks such as possible logistical delays in moving seed across borders and power shortages which might impact timely seed processing and delivery to markets,” Nzwere said.
He said seed production during the 2023/24 agricultural season was impacted by the drought, with yields anticipated to be one-third lower than projected.
“However, substantial carryover stocks, particularly in Zimbabwe, are expected to meet local demand and mitigate regional shortages,” Nzwere said.
“Looking ahead, the priority is to equip growers with irrigation infrastructure to ensure stable production amid ongoing climate change challenges.”
The firm noted that climate change presented challenges and prospects for the group.
“Extreme weather and drought disrupt farming, while our climate-resilient seeds address rainfall variability and create new markets. We optimise R&D [research and development], production and commercialisation of 'climate smart' crop varieties,. products that deliver high yields, early maturity, disease/pest resistance, efficient water use and heat/drought tolerance,” Seed Co said.
“Initiatives like these have boosted productivity across agricultural regions. By diversifying our portfolio spanning field crops, vegetables, cereals and legumes, we mitigate clients’ crop failure risks under changing conditions. Seed Co also champions traditional, drought-resistant small grains such as sorghum, pearl millet and finger millet/cowpeas.”
These climate solutions, according to Seed Co, influence household and national seed/food security despite adverse climate impacts.
“Data confirms these climate adaptation efforts strengthen agricultural and social resilience over the long term. We continue innovating to capture emerging opportunities in sustainable, resource-efficient seed technologies,” the firm noted.
In terms of R&D, Seed Co’s intellectual property stemming from its robust R&D innovation pipeline remains the foundation of the business.
“Our research and development function remains a cornerstone of our strategy, driving industry-leading innovations through the introduction of climate-smart seed varieties. Our breeding programmes are meticulously crafted to address the evolving challenges of climate change, along with emerging pests and diseases,” Seed Co chairperson Pearson Gowero said.
“This proactive approach ensures we stay at the forefront of delivering seed solutions that meet farmer's needs within a well-managed product life cycle plan. In response to farmer demand, we have also diversified into new crop species, including rice, potato, hybrid sorghum and vegetable seeds, thereby broadening our revenue streams.
“Understanding the critical role of R&D in our science-based business, we continue to prioritise this function with substantial budget allocations, ensuring we maintain our leadership in providing superior, high-performing seed solutions.”
He said the firm’s business development team remained proactive in identifying growth opportunities and expanding our crop portfolio within the local market.
“Seed Co International, our regional associate, continues to offer a reliable export market and represents a growing investment in the region, with emerging opportunities in east, central and west Africa,” Gowero said.
“We continue to leverage data-driven market analysis and insights to understand the needs of farmers and stakeholders, allowing us to effectively address market gaps and seize opportunities.”