Dairibord Holdings Limited
Dairibord Holdings Limited is a manufacturer and marketer of quality food and beverage products. The company is listed on the Zimbabwe Stock Exchange (ZSE). The company is a prime example of successful privatization as it was originally a state owned enterprise established for the purposes of processing and marketing milk products which was successfully privatized by the Government of Zimbabwe.
Dairibord Holdings has 100% ownership in Martindale Trading (Private) Limited t/a Lyons, Lavenson Investments (Private) Limited, NFB Logistics (Private) Limited, Kutal Investments (Private) Limited and 68.4% shareholding in Dairibord Malawi (Private) Limited. Kutal Investments is a property holding company which leases its properties to Group companies. Lavenson Investments (Private) Limited has a 100% ownership of Dairibord Zimbabwe (Private) Limited.
The Group produces an extensive range of products which include liquid milk products (short and long shelf life milk), food products (yoghurt, ice creams, cheese, condiments and spreads) and beverages (cordials, ready-to-drink dairy and non- dairy beverages, teas, mineral water) which are marketed in both the domestic and export markets.
Dairibord Holdings Limited is one of the largest manufacturing and marketing companies in Zimbabwe with factories in Harare, Chitungwiza and Chipinge. The operations in Malawi are located in Blantyre.
Dairibord Holdings has a staff complement of slightly over 1,000 permanent employees.
History of Dairibord Holdings Limited
1. Parastatal Phase
The Dairy Marketing Scheme introduced under the Agricultural Marketing Act in 1951 established The Dairy Marketing Board on 1 October 1952 to provide for
i. the reception of all milk delivered to it
ii. the manufacture and orderly marketing of milk and dairy products
iii.the administration of regulations applicable to producer registrations
Prior to 1952, there were four (4) co-operatives throughout the country. These were:
i. Manicaland Co-operative
ii. Matabeleland Co-operative
iii. Midlands Co-operative
iv.Mashonaland Co-operative
The Matabeleland, Midlands and Mashonaland Co-operatives amalgamated to form the Dairy Marketing Board. The Manicaland Co-operative which was based in Gaza in Chipinge only joined later in 1976.
1956 DMB became responsible for the activities of the Rhodesia Co-operative Milk Company and the Bulawayo Creamery (Pvt) Ltd
1960 a new dairy was commissioned in Harare
The Dairy Marketing scheme was incorporated as a schedule of the Agricultural Marketing Council Act in 1956, which remained in effect until 1962
Dairy Produce Marketing and Levy Act of 1961 superseded the Dairy Marketing Scheme on 18 May 1962 and applied to Northern and Southern Rhodesia.
In July 1962 until dissolution of the Federation, the Board operated dairies in the then Northern Rhodesia as well as Southern Rhodesia
In 1962 a new Dairy was commissioned in Kadoma
During the same year, the Board took over activities of the Creamery in Mutare
On 1 December 1967 the Agricultural Marketing Authority assumed the responsibility of the Board
In 1965 extension of Harare Dairy took place and installation of a spray drier was undertaken
There were major extensions at Harare, Bulawayo and Gweru Dairies in 1970
In 1978 the Kadoma Cheese plant was commissioned
In 1982 bulk collection of milk began
1983, Chipinge Dairy was constructed
The Harare Dairy UHT plant was commissioned in May 1987
Official commissioning of the ice cream plant at Harare factory was done on July 31 1987
1990, new Bulawayo Dairy came into stream thereby increasing overall capacity
1994, Chitungwiza milk powder and butter plant was commissioned
DMB operated as a state enterprise until the commencement of commercialisation.
2. Commercialisation Phase
In January 1991, and under the Government Economic Structural Adjustment Programme, new Boards of Directors were appointed to be directly responsible to the Ministry of Agriculture for commercial viability, including subsidies, of each of the Agricultural Sector Parastatals.
The Board put in place was tasked with turning around the loss making enterprise to a viable state enterprise.
DMB had accumulated in excess of Z$180 million past unserviced debt
Break-even was achieved in 1992 and between 1992 and 1994 DMB operated as a viable state enterprise
On 1 July 1994 there was a change in DMB legal status, from a parastatal to a commercial company, Dairibord Zimbabwe Limited (DZL) under the Companies Act owned by Government 100%.
In 1995 preparations for privatisation were undertaken, DZL became profitable, self-financing and with a virtually unencumbered balance sheet, being prepared for listing on the Stock Exchange
On 23 October 1996, Government announced plans to privatise state enterprises
3 Privatisation
Process of privatisation was completed by June 1997
1 July 1997, Dairibord became the first state owned company in Zimbabwe to privatise with Government divesting out 75% to private investors
On 15 September 1997, Dairibord Zimbabwe Limited was listed on the Zimbabwe Stock Exchange
A record 32 000 shareholders bought shares in the listed company
Share offer was at Z$1.20 per share and was oversubscribed.
1998 DZL acquired 60% equity in Dairibord Malawi
1998 Government sold the remaining 25% equity to private investors
June 2001 DZL acquired 100% ownership of Lyons Zimbabwe business
In December 2002 DZL acquired 40% shareholding in Charhons, a confectionary company
A transport and logistics company NFB Logistics owned 100% by DZL was formed in October 2003
4 Restructuring
In 2005 DZL restructured into a holding company with stand-alone efficient subsidiaries.
In April 2006, the holding company name was changed from Dairibord Zimbabwe Limited to Dairibord Holdings Limited in order to clearly demarcate the subsidiary Dairibord Zimbabwe (Private) Limited from the Holding company and to clearly reflect the Holding company nature of the restructured entity
Dairibord Holdings Policies
Quality Policy
At Dairibord Holdings, we strive to:
“Provide safe food and beverages that satisfy our customers’ expectations and comply with regulatory requirements, both nationally and internationally”
In our operations we adhere to stringent hygienic practices and, where necessary, emphasize on maintenance of the cold chain to assure the quality of the products that we present to our customers. Through active planning and control of every function, we strive to provide products and services that consistently meet all quality, quantity, timing and cost objectives.
Furthermore, we are dedicated to continually improving the quality of our products and services in order to sustain market share leadership by regularly determining the current and future needs of our customers and reviewing our processes in order to satisfy these needs.
Through the implementation of ISO 9001:2000 and ISO22000:2005 Quality management systems, we aim to achieve Quality Excellence, the foundation for the management of our business. Our quality objectives are documented in the company’s strategic plan and are reviewed annually through a management review process. Through our performance management system each employee of the company translates these objectives into desired actions and values.
The company policy is displayed openly as a sign of our commitment. The policy is presented to all employees in our quality orientation awareness training and is continuously reinforced by Management to ensure understanding and commitment at all levels.
Health And Safety Policy
Dairibord Holdings is committed to providing a safe environment for all employees by fulfilling the following policy:
To provide adequate health and safety training for each employee in terms of the location and function of their job.
To regularly review the design of the factories and equipment, in order to implement measures which will improve the safety of the workplace.
To provide First Aid Equipment for use in the factories as well as First Aid Training to designated members of the workforce.
To comply with the Factories and Works Act concerning Health and Safety in the workplace.
To run awareness training programs on HIV/Aids targeted at all employees.
These matters are covered comprehensively in our Health and Safety manual, which is available to all employees.
Environmental Policy
We at Dairibord Holdings are genuinely and deeply concerned about the global destruction and damage of the environment. We are committed to a continual reduction of our negative environmental effect. In line with the company’s commitment to environmental responsibility, we have a policy wherein:
We will actively move towards compliance with relevant environmental legislation and regulations.
We will publish the environmental policy in English, Shona and Ndebele where all employees of the company can view it. The policy will, on request be available externally to all interested parties. Environmental training will be used as a tool to spread environmental responsibility on a personal level throughout the company.
We will allocate resources to the setting and achievement of environmental objectives and targets for the company and for management. Programs will be publicly displayed.
We will maintain continuous efforts to achieve continuous improvement in our environmental performance policies, programs and operations taking into account technical developments, scientific understanding, customer and community expectations. Our starting point is to comply fully with the requirements of ISO14001: 1996. Environmental probity will play a large part in process development, particularly packaging of products and natural resources (energy consumption).
We will work with and advise suppliers and contractors in order to minimize the impact of their operations on the environment.
We will foster openness and dialogue with employees and all interested parties anticipating and responding to their concerns about potential hazards and impacts to Dairibord’s Operations.
We will measure environmental performance by conducting regular environmental audits. The company’s compliance to legislation and its own requirements as a responsible corporate citizen will be regularly assessed and used as a basis of determining future action on environmental relevance.
SECRETARY & REGISTERED OFFICE
Mercy Ndoro
ZB Life Towers
9th Floor
77 Jason Moyo Avenue
P O Box 587, Harare, Zimbabwe
E-Mail: ndorom@dairibord.co.zw
Telephone Numbers: +263 4 790801-7
Website: www.dairibord.com
AUDITORS
Ernst & Young Chartered Accountants (Zimbabwe)
SOLICITORS
Dube, Manikai and Hwacha
Mutizwa and Partners
PRINCIPAL BANKERS
Standard Chartered Bank Zimbabwe Limited
TRANSFER SECRETARIES
Corpserve (Private) Limited
4th Floor, Intermarket Centre
Cnr 1st Street and Kwame Nkrumah Avenue
Harare, Zimbabwe
