Zambeef, the fully integrated African meat, crop and dairy plc founded by Irishman Francis Grogan, says its crops division has suffered a number of serious challenges this year. Its crops results will be below market expectations for the full year, according to the company. Despite harvesting a record soya crop of 42,800t, the price of soyabeans has fallen 33% in the past year. The price of maize has also dropped significantly by more than $65/t or almost 30% to $160/t.

The company said it is now harvesting the winter wheat crop and yields also look well below expectations due to the “adverse impact of Septoria” and may be down 20% on the budgeted yield.

The group has reduced its outlook profit for the year to September 2017, which now ranges from a profit of $0.5m to a loss of $2.5m.

The group said that these results were primarily driven by external factors. The group’s retail and food products division showed continued strong performance.

Zambeef grows maize, soyabeans and wheat, with approximately 8,000ha of crops under irrigation which are planted twice a year, and a further 8,600ha of non-irrigated crops.

It also recently disposed of its 90% interest in Zampalm for a total cash consideration of $16m with a further performance amount of up to $2m dependent on performance over the next three years.

The proceeds will be used to further pay down the Group’s debt and thus reduce gearing and interest costs.