Zichis Eyes Additional N540m Monthly Earning, Animal Feed Capacity Appreciates

Kayode Tokede  

Zichis Agro-Allied Industries Plc is ramping up production capacity and expanding its land bank, with the company’s animal feed production scaling up to five tonnes per hour, raking in additional N540 million in monthly revenue.

According to the Executive Director, Finance & Strategies, Mr. Chris Ogbaisi, the recently upgraded 5-tonne-per-hour animal feed mill has commenced operations and is projected to generate over N540 million in monthly turnover.

This development, he said, is part of the company’s medium-to-long term value creation roadmap for improved shareholder returns and outlook for the Zichis brand.

Ogbaisi confirmed that the company has also commenced the clearing of a 2,000-acre farm estate, a strategic move timed to take advantage of the current planting season and expand the agricultural base that the animal feed business draws from.

The disclosures come against the backdrop of a six-session losing streak in Zichis shares on the Nigerian Exchange (NGX), which the Executive Director attributed partly to profit-taking.

According to Ogbaisi, the animal feed mill has been upgraded from a 2-tonne-per-hour capacity to a 5-tonne-per-hour facility, which is now fully operational. 

Explaining the production and revenue projection, Chris said the facility has an hourly production capacity of 5 tonnes and is projected to produce about 1,200 tonnes monthly based on 12 operating cycles across 20 working days.

This output translates to approximately 40,000 bags of animal feed per month, with each bag priced at N13,500.