History of Dairibord Holdings Limited     

Full 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:

1. the reception of all milk delivered to it
2. the manufacture and orderly marketing of milk and dairy products
3. the administration of regulations applicable to producer registrations

• Prior to 1952, there were four (4) co-operatives throughout the country. These were:

1. Manicaland Co-operative
2. Matabeleland Co-operative
3. Midlands Co-operative
4. 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, 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 new dairy 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
• The Dairy Produce Marketing and Levy act of 1961 superseded the Dairy Marketing Scheme on 18 May 1962 and applied to Northern and Southern Rhodesia.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 Northern Rhodesia as well as Southern Rhodesia
• 1962 new Dairy commissioned in Kadoma
• Same year took over activities of the creamery in Mutare
• On 1 December 1967 Agricultural Marketing authority assumed the responsibility of the board
• 1965 extension of Harare Dairy and installation of a spray drier
• 1970 major extensions in Harare, Bulawayo and Gweru Dairies
• In 1973 bulk collection of milk began
• 1978 the Kadoma Cheese plant was commissioned
• 1983 construction of the Chipinge Dairy
• May 1987 Commissioning of the Harare Dairy UHT plant
• July 31 1987 official commissioning of the ice cream plant at Harare Factory
• 1990 new Bulawayo Dairy came into stream thereby increasing overall capacity
• DMB operated as a state enterprise until the commencement of commercialization.

2.  Commercialisation Phase

• In January 1991 and under the Government’s 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 $180m past unserviced debt
• Break-even was achieved in 1992 and between 1992 and 1994 operated as a viable state enterprise
• On 1 July 1994 there was a change in DMB’s legal status, from a parastatal to a Company under the Companies Act owned by Government 100%. 
• In 1995 preparations for privatization were undertaken, DZL became profitable, self-financing and with a virtually unencumbered balance sheet, being prepared for the Stock Market
• On 23 October 1996, Government announced plans to privatise state enterprises
• Process of privatization had been completed by 27 July 1997
• Name was changed from DMB to Dairibord Zimbabwe Limited (DZL)

 3. Privatisation

•  Process of privatization was completed by June 1997
• 1 July 1997, Dairibord became the first state owned company in Zimbabwe to privatize with Government divesting out 75% to private investors
• On 15 September 1997, Dairibord Zimbabwe Limited was listed on the Zimbabwe Sock Exchange
• A record 32 000 shares 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 255 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’s name was changed from Dairibord Zimbabwe Limited to Dairibord Holdings Limited in order to clearly demarcate the operating company (Dairibord  Zimbabwe (Private) Limited  from the Holding company
• June 2007: Imposition of price freeze
• August 2010: An ice cream processing and packing equipment was commissioned at DZPL
• 2011: A Cascade  processing and packing plant was commissioned at Lyons
• A Nutriplus processing and packing plant was commissioned at Chitungwiza in the Q3 of 2011
• A yoghurt plant was commissioned in Q4 of 2011
• In 2012 Dairibord Holding disposed the 40% equity in M.E Charhon to Cairns Holdings
• Mulanje Peak Foods, a canning company was disposed of in 2012
• In the first quarter of 2013, Dairibord Holdings commenced the rationalisation process and this resulted in the mothballing of Mutare and Bulawayo factories and operations from the two factories were moved to the Harare and Chitungwiza factories.
• Dairibord factories were receiving significantly less volumes of raw milk for processing and it therefore made business sense to consolidate factories so as to reduce operating costs to maintain viability.
• However, sales and distribution continued in the affected areas as there are important markets that need to be served.
• In June 2015 the Chipinge Steri Milk  Plant  was commissioned and the investment enabled the Group to rationalize production operations at Gweru effectively reducing the number of factories from five (5) to four (4)
• In 2015 there was the Pfuko expansion at the Chitungwiza Factory. The investment was made to unlock capacity which was already constrained.