AltX-listed agribusiness Ububele Holdings will push ahead with bold plans to scoop a huge dollop of the local ice cream market, not withstanding a meltdown in investor sentiment after a disappointing trading update last week.
Ububele CEO Bertie Cloete told the Vunani Securities small to mid-cap conference that Ububele was determined to become a national ice cream supplier and would look to complement its Gauteng-based facilities by buying out additional production plants in Cape Town and Durban.
Cloete reckoned Ububele would become the third-biggest ice cream supplier in SA behind dairy giant Nestle and Ola. “We will double our ice cream capacity this year. Dairy will do R550m in revenue for Ububele in two years’ time.”
Food prices are at record highs at the moment, which has a tremendous effect on the hungry. A warming climate is beginning to nibble at crop yields worldwide. The United Nations predict that there will be one to three billion more people to feed by the mid century.
Civilization depends on our expanding ability to produce food efficiently, which has markedly accelerated thanks to science and technology. The use of chemicals for fertilization and for pest and disease control, the induction of beneficial muttons in plants with chemicals or radiation to improve yields and the mechanisation of agriculture have all increased the amount of food that can be grown on each acre of land by as much as 10 times in the last 100 years. These extraordinary increases must be doubled by 2050 if we are to continue to feed an expanding population.