By Desire Tshuma
Harare – Seed Co Group told analysts today that it is navigating a “complex operating environment” of climate volatility, currency pressure, and Middle East-linked cost shocks, even as it ramps up breeding capacity and new processing facilities across Africa.
Presenting the group’s Audited Full-Year Results for the year ended 31 March 2026, Group Chief Executive Officer Morgan Nzwere said eight external factors are defining how the business operates.
“Climate change is increasing volatility, including the risk of a Super El Niño across Southern Africa in the 2026/27 season,” Nzwere said. Other pressures include currency pressure and a rising cost of borrowing, government subsidy schemes in some markets, regulatory fragmentation with informal seed still accounting for 30-45% of planted seed, and intensifying competition as Africa presents the greatest agriculture growth potential.
Technology and data adoption, political transitions in Tanzania, Zambia, DRC, Nigeria and Ethiopia, and ongoing Middle East and Eastern Europe conflicts were also listed as key context for the group.
The Middle East conflict has already fed through to costs. Nzwere said fertilizer prices rose sharply due to escalating conflicts and the partial closure of the Strait of Hormuz. Fuel price shocks are driving input cost inflation for logistics. Crop protection saw only moderate impact and limited supply disruption.
Because most seed sales were completed pre-conflict, FY26 felt minimal impact. However, the group quantified an 8% to 10% weighted impact on the cost of seed from oil-linked pressure on logistics, packaging and fertilizer.
Despite the headwinds, Seed Co said its R&D pipeline remains strong across climate-adaptive crops. The group is developing maize, wheat, soybean, sorghum and rice, with new material targeting improved cob-rot tolerance. Trait work is advancing on cob rot, fall armyworm, maize streak virus and MLND with a Limagrain partnership supporting progress.
Regionally, breeding capacity has been expanded in Zambia, Kenya and Tanzania. New varieties are in the pipeline for portfolio renewal in Zambia, West Africa expansion in Nigeria, and to address market gaps in Zimbabwe and Kenya.
On operations, Seed Co reported several production and processing successes. A colour sorter was commissioned in Zimbabwe, 70% of Group production is now under irrigation, and drier efficiency has improved locally. A Tanzania factory and Zambia Depot Warehouse are due for commissioning in September 2026.
Challenges remain around regional supply chain constraints, climatic volatility, and limited grower networks in some markets. Mitigants include supply chain investments, regional diversity with East Africa expected to have better rains, and a sharper varietal mix placement.
Key focus areas for FY27 are ramping supply chain infrastructure and processes, operational excellence in demand planning and inventory, and early processing readiness.
Nzwere said the combination of climate-adaptive R&D, expanded regional capacity, and supply chain upgrades is intended to position Seed Co to manage volatility while capturing Africa’s long-term agriculture growth potential.