Zimbabwe: Delta Corporation reports a 10 percent volume decline in sorghum beer sales

Zimbabwe Stock Exchange (ZSE) listed beverage manufacturer, Delta Corporation has reported a 10 percent volume decline in sorghum beer sales, as the adverse impact of last year’s El Nino-induced drought bites, The Herald reported on January 24.

In its trading update for the third quarter ended December 31 last year, Delta Corporation company secretary, Ms Faith Musinga said though the domestic sorghum beer volume grew by a slight two percent for the quarter, it fell equally by two percent for the first nine months of 2024 compared to the same period in 2023.

“Overall volume declined by eight and 10 percent for the quarter and nine months respectively primarily due to cessation exports.

“The sorghum beer category was adversely impacted by drought, reduced disposable incomes in rural markets, changes in routes to market and the inconsistent performance by retail and wholesale partners,” she said.

This year, the company has increased the hectarage under its contract programme from last year’s 13 000 to 13 750. Last year’s production was affected by drought and this year’s production is expected to be higher, as a result of good rains.

Chibuku, a market leader in the traditional African beer category has two main packs – the Chibuku Scud, a non-carbonated beer, and the Chibuku Super, which is a carbonated sorghum beer brewed with the finest maize and sorghum locally grown in Zimbabwe.

Chibuku traditional African beer was first brewed in Zimbabwe in 1962.

Last year, Delta Corporation launched two new flavours of its Chibuku Super beer brand under the sorghum segment, as the firm sought to offer differentiated products and choices to meet the market’s dynamic needs.

It added the ginger and pineapple flavours to the Chibuku Super flavour range that comprise banana flavour, Chibuku Super Original and the Scud packs.

Sorghum beers had the second largest contribution to revenue in the second quarter of 2023, at 34, 60 percent, while the segment notched its highest volume contribution in five years last year.

The forecast of normal to above normal rainfall for the 2024/25 is expected to address the supply gap, as farmers have since planted 391 251 hectares of sorghum, the Agricultural and Rural Development Advisory Service (ARDAS) weekly report dated January 20 has revealed.

For the 2024/25 season, Government and private sector plan to finance the cultivation of 418 000ha of the crop.

At the moment, 94 percent of the targeted sorghum hectarage has been planted.

The Food Crop Contractors Association (FCCA) has surpassed its hectarage by planting 14 707ha.

The Presidential Input Programme (PIP) has achieved a whopping 133 percent increase from its target of 154 215ha by planting 205 446ha. Self-funded farmers have so far planted 156 049ha.

The Agricultural and Rural Development Authority (ARDA) establishments have planted 14 962ha while the AFC has so far financed production on 73ha.

Matabeleland South and North provinces have planted 100 percent of their target.

Masvingo province has the largest planted area of 85 164ha, followed by Manicaland at 58 526ha and Mashonaland Central with 55 857ha.

The area planted under sorghum this year has surpassed last year’s 176 933ha by 221 percent.

A total of 1 213 500 beneficiaries have received sorghum seed this year.

The report revealed that the condition of crops was good across provinces with most of the traditional grains (85 percent), planted in December at vegetative stage.

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