10/01/2008 (AllAfrican.com) - National  Foods' strategic business unit Oils and Malt division managing director Mr Martin Ndengu is optimistic that the food processor will have adequate raw materials for the production of cooking oil and related by-products this year.

In an interview with the Herald Business this week, he said that the edible oils manufacturer was hopeful that the agricultural thrust would pay dividends in availing raw materials.

"Our business is driven by raw material availability so we are hopeful and positive that the agricultural thrust will enable us to have significant quantities of inputs as far as raw materials are concerned," he said.

The sentiments come against the backdrop of funding under the Bacossi facility and improved hectarage put under cotton this season, with the Cotton Ginners' Association expecting over 250 000 tonnes of cotton. Cottonseed is a key component for edible oil production.

However, Mr Ndengu was quick to add that for soya, it may not be a good season because of the delays in planting the crop owing to the incessant rains that have pounded most parts of the country.

He pointed out that as a measure to boost local stocks of oil, exports have to be cut down marginally.

The local oils industry is currently very short as oils processors are still failing to meet national requirements. The nation requires approximately 8 000 metric tonnes per month for both industrial and domestic use.

Olivine Industries and United Refineries are the two other major players in the industry.

To meet the challenge of foreign currency, Mr Ndengu said National Foods would generate revenue by exporting cotton and soya cake, which would be the main export products this term.

Although upbeat about the availability of raw materials, he said production at the SBU's plants in Harare and Bulawayo was way below capacity at between 30 and 40 percent.

This, he attributed to erratic electricity and water supplies. He also lamented maintenance costs that he said were skyrocketing.

Last year, National Foods was split into 10 SBUs run by separate management. These include stock feeds, milling, secondary manufacturing, transport and oils and malt. The decentralisation was facilitated to enhance faster decision-making processes.