The Sunday News
BEVERAGES maker Delta Corporation, says it has spent more than $200 million to purchase locally produced agricultural products required to sustainably run and support its breweries since 2009. The company’s chief executive Mr Person Gowero said this while giving oral evidence to the thematic committee on indigenisation and empowerment.
“As a business, our thrust first and foremost is to buy all the raw materials that we can find in Zimbabwe provided that they meet the quality standards that we set and also generally that the prices are competitive, because most of the products that we make can be brought from other countries so we must make sure that we are competitive,” he said.
He said the company spends between $50 million and $60 million every year to support farmers who grow specific inputs needed in their business.
“Delta provides seed, extension services and guarantees a market for the output as far as sorghum and barley are concerned. We pay cash when the farmers deliver their crops and deduct the advance that we give them to grow those crops,” he said.
He noted that barley output, where Delta supported farmers, had exceeded wheat output although both crops are grown under the same conditions.
Mr Gowero said last season, the company collected 47 000 tonnes of barley grown by mostly indigenous farmers on contract.
Delta, however, imported sorghum from Malawi last year due to a shortage of the commodity which is largely grown by rural farmers.
The company recently indicated that it will spend $590 000 to support production of 2 000 tonnes of white and red sorghum varieties during the 2014/15 season. Delta requires about 12 000 tonnes of sorghum annually. — BH24
