PRODUCTION at Chemco Holdings has plunged to 20%, its lowest ever, due to perennial foreign currency shortages.
sted agricultural chemical manufacturer is currently operating at 20% capacity after failing to access foreign currency to buy raw materials.
Managing director Brian Mutandiro said the stocks of chemicals are low across the board as they do not have the foreign currency to import some of the chemicals required.
“Our flower and cattle dosing remedies (chemicals) are the most affected of all the chemicals that we produce.
“We are failing to meet demand for the chemicals this year as we are operating at 40% capacity of what we supplied last year, meaning that this year the yields will be lower because of the shortage of chemicals,” Mutandiro said.
He said this year’s yields will be affected significantly and crop resistance to diseases will be weakened as well.
“We are struggling to maintain our current staff levels from our 24 depots which are spread throughout the country due to the low levels that we are operating at.”
Meanwhile, the company is currently expanding its retail business using its Farm A Rama brand throughout the country.
The company is rebranding 14 branches that will be opened before year-end. The branches will be specifically supplying chemicals, fertilisers, agricultural inputs and hardware.
Chemco’s subsidiaries include Chemco Transport, Chemco Harvesters, retail, Agricura, Farm A Rama and Agriculture Buying Services (ABS).
It also owns TS Timbers, Seed and Agricura Chemicals.