Protein giant on the hunt for sustainable feed to combat dairy farm losses!

In the wake of substantial losses in its various operations, including quarter-billion dollars from farm activities, conglomerate Seprod is on a quest for a cost-effective solution to feed its cows at the dairy farm and bolster its financial standings. CEO Richard Pandohie highlighted that despite a notable 27% increase in top-line growth for the third quarter and a 16% rise over nine months, Seprod’s profits took a hit due to multiple factors affecting the company’s operations.

1. Challenges and Losses: Pandohie pointed out that issues at subsidiary AS Bryden Group, compounded by difficulties at newly acquired Caribbean Producers Jamaica Limited, led to diminished profits for Seprod. The company’s Serge Island Farms in St. Thomas faced setbacks due to incessant rain and numerous problems at the dairy farm, resulting in projected losses of approximately $260 million for the year. Feed costs and nutritional deficiencies were significant contributors to this financial setback.
2. Revamping Strategies: Following the cessation of sugar production, Seprod turned to unreaped sugar cane as cattle feed, only to encounter limitations in nutritional content. Pandohie acknowledged the mistakes made in the dairy business and emphasized the urgent need to rectify the situation. A crucial component of this correction plan involves significantly enhancing the nutritional value provided to the animals.
3. Collaborative Efforts: In a bid to promote sustainability within the region, Seprod joined forces with the Caribbean Private Sector Organisation (CPSO) to reduce the import bill and enhance food security in the Caribbean. A strategic partnership with organizations in Hyderabad, India, will see the cultivation of protein-rich sorghum at Golden Grove, aimed at improving food security for animals and, consequently, humans.
4. Community Involvement: Seprod’s alliance with the College of Agriculture, Science, and Education (CASE) underscores the company’s commitment to benefitting Jamaica at large. By focusing on growing their feed sources locally, Seprod aims to address the prevailing challenge of high feed costs in the agricultural sector.

Despite enduring farm losses, Seprod posted third-quarter revenues showing a notable increase, with net profits slightly lower compared to the previous year. Seprod’s acquisition of CPJ marked a significant milestone in its regional growth strategy, although initial challenges impacted business performance. However, signs of recovery and a promising fourth quarter outlook hint at a positive trajectory for the company.

In conclusion, Seprod’s proactive measures to address operational issues and collaborate with key stakeholders illustrate a steadfast commitment to overcoming challenges and fostering sustainable growth within the organization and the wider community.