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Business Reporter
NATIONAL Foods Limited says the decision to streamline some of its operations last year has resulted in significant cost reduction and increased plant utilisation.
The Zimbabwe Stock Exchange-listed agro-processing concern closed its edible oil plant in Harare, citing viability constraints.
It also closed down and placed under care and maintenance its edible oil, flour and stockfeeds plants in Bulawayo.
But the closures did not result in job losses, as employees were redeployed to other divisions within the group.
Natfoods said it found it more economical to centralise its operations.
“The intention was purely a review of the business model in line with our vision of moving away from a more decentralised to a centralised set-up,” group human resources and corporate affairs director Mr Innocent Magaya said in an interview.
“This has basically enabled us to maximise use of our capacity.”
The oil plant in Bulawayo was closed in January last year due to shortages of cottonseed, a key raw material in oil production.
Natfoods has since entered into an agreement with another cooking oil producer under which it is providing raw materials for the processing of oil under its brands.
The flour plant was decommissioned in August due to serious shortages of wheat and high prices on the local market.
Natfoods currently imports wheat through Beira, which has  made it uneconomic to transport the grain to Bulawayo for milling.
The Harare flour plant has the capacity to mill 15 000 tonnes of wheat per month against the national consumption of 8 000 tonnes.  
The decommissioning of oil and flour plants in Bulawayo led to the closure of the stockfeeds plant, which relied on by-products from the cooking oil press and flour mills.
According to the company, there was no way the stockfeeds plant could continue operating without oil and flour plant.
But the company said its Harare plant has enough capacity to meet national requirements.
National Foods would evaluate reopening of the Bulawayo stockfeeds plant as the supply of raw materials improved on the back of an anticipated growth in the agro-industry.
The company continues to face competition from flour imports following the scrapping of import duty on basic foodstuffs by Government.
Established in 1920, Natfods was subsequently listed on the ZSE 50 years later. Some of its household brands include Red Seal, Gloria and Natfoods stockfeeds.