While congratulating you all for a job well done, the major challenge before us now is to sustain this exemplary performance and to record a net profit for the full year 2013/2014. During the year ended 31st October 2012, Trading Division sales drop by 30% to 4.1 billion. The mainly attributed to our inability to make sizable sales under the Government sponsored voucher based subsidy scheme for farmers.
The Government was planning to make a wholesale review of the operation of the scheme but up to this point in time not much has been made in this regard.
Our gross profit from sales likewise declined falling from Tshs. 576 billion to Tshs. 340million or a drop of 41%.
RELOCATION OF MOROGORO BRANCH
Meanwhile the relocation of the Morogoro Branch to a new location from Msamvu to town area. An area along the bus station was completed and branding with TFA logo and our new colour scheme (special green, yellow, blue and cream). TFA Morogoro now has a prominent position.
Our association is yet to find a lasting solution to the problem of low margins in the Trading Division. The CSPII Corporate Strategic Plan II envisage that we should operate with a margin of at least 20% we are still far off that mark. Several strategies to achieve this benchmark have been identified in the CSPII and all our efforts are now directed towards implementing them.