GUEST ARTICLE: Pamalat Zambia closure
By Tom Hansungule (Agricultural Specislist)
Parmalat Zambia closure …let them just go quietly without giving malicious reasons!
Pamalat zambia has issued a memo where they have indicated their intentions to exit the Zambian market ,a business they have operated since 1992 when they took over Zambia Daily Produce Board.
What is captivating are the reasons they have given,loadsheding,drought and a bad economy!
They are saying those who want their products will have to import from south africa!
I think Pamalat Zambia is not being honest,what has forced them out is a combination of stiff competition,weak distribution network,poor capital and managerial inefficiencies in their operations,they have simply lost Zambian market!
Their are so many determined players who have entered the dairy market today in Zambia and most of them have invested handsomely and are posting profits.
A cursory look at some of these competitors in the dairy sector will make the story more clear.
Trade kings
Trade kings are proving to be a jack of all trades,they have gone into almost all household products ranging from dairy milk,surf,soft drinks and many more home products!They are leveraging on a strong distribution network and vigorous advertising.
Zambeef,these have been very aggressive with their investments until recently,like Trade kings,they have a range of household products as well from bread,meat,dairy milk,cooking oil,rice including shoes and various other product.They draw their strength from originating their business at farm level hence enjoying a strong value chain.Their brand Dairy Gold aplears very competative in the price
What is mind boggling is that all the dairy companies operate in the same environment with Pamalat Zambia and haven’t exited the Market.
The above companies are all facing load-shedding and drought and havent exited because they are still able to profit from this economy!
Pamalat zambia must therefore be more sincere with their public reasons for exiting the Zambian market!
Uwawa tabula kabepesho (a fallen person always has an excuse for their fall).
We would do well to listen to the exit comments of those companies that even bother to grant us the courtesy of giving reasons for their exit. Let us not be defensive. Loadshedding has definitely affected business, big or small. I have an SME and I have felt the negative impact of loadshedding and the drought.
The economy is under performing unless you want to turn a blind eye to reality. Companies will be affected differently and so will be their response. Loadshedding, drought and the bad economy are legitimate reasons for a company to shut down.
We must begin by admitting the causes of the economy underperforming before we can look for solutions. The survival of the nation is at stake. We must not bury our collective head in the sand.
GRZ should not allow any importation of milk fro outside Zambia especially from south africa.
Boma should not allow them to bring in processed dairy products from outside the country. I agree with the writer of this article, Parmalat have simply failed to think outside the box to survive in this economy. They will only be missed by the Zambian employees who may be thrown out of employment. Otherwise the economy is slowly recovering.