Title: Seprod Eyes Expansion with New Co-Manufacturing and Heifer Export Initiative
SEPROD Limited is set to embark on an exciting new venture, leveraging its co-manufacturing capabilities to start exporting heifers to various regional markets.
In a bold move, Seprod’s CEO Richard Pandohie highlighted that this initiative represents a transformative opportunity for the company. The venture is projected to significantly boost revenue streams within Seprod’s co-manufacturing segment, which is on track to achieve a growth target of 42 percent by the end of the fiscal year.
Currently, Seprod provides co-packing services for 14 companies, with eight of them contributing over 90 percent of the operation’s volume. Pandohie expressed enthusiasm about expanding this business, particularly through new prospects related to the company’s extensive dairy cattle operations at its Serge Island farm in St. Thomas.
We are actively collaborating with Barbados, both through private sector partnerships and government channels, to explore how we can mutually benefit the region. Our goal is to facilitate the export of dairy heifers, aged 12-15 months, from our Serge Island dairy operation to Barbados. Previously, they sought these supplies from outside the Caribbean, but we are working to meet their needs regionally. While we haven’t set a specific timeline for the start of these exports, we anticipate initiating this process shortly.
Pandohie
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Pandohie emphasized the potential significance of this initiative, noting that it could serve as a model for similar regional collaborations in the future. “This represents a groundbreaking opportunity for us, and we are focused on developing frameworks that could be applied to other regions as well,” he added.
Partnering with the Caribbean Private Sector Organisation (CPSO), Seprod’s initiative aligns with Caricom’s objectives to reduce food imports from outside the region. “Our aim is to capture at least 15 percent of this market opportunity, which could potentially contribute nearly 34 percent to our revenue growth between 2024 and 2030. Although this goal is ambitious, we are committed to achieving it through regional cooperation,” Pandohie noted.
Seprod’s robust financial performance, with a 43.5 percent revenue increase last year to $112 billion, sets a solid foundation for this new venture. The expected gains from the heifer export initiative are anticipated to help the company surpass its $150 billion revenue target by 2026.
“Our success in co-manufacturing extends beyond our own brands; we also produce for other companies, which significantly drives our growth. We take pride in our achievements, such as producing canned products for major brands like Starbucks when their capacity was strained in the US,” Pandohie shared during a hybrid shareholders’ meeting.
Focusing on co-manufacturing as a core area for growth, Seprod is investing in strengthening its capabilities. This includes capital investments in Caribbean Products Limited (CPL), its oil and margarine production arm, positioning it as the regional producer for Upfield Holdings, a Netherlands-based food company with brands like Flora and Blue Band.
As we look ahead, we are poised for substantial growth over the next five years. Our priorities include continued investment in new technologies and infrastructure to enhance profitability and productivity.
Pandohie
