n Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust - An investigation into toll processing in the agro-processing industries in Zimbabwe
|Article Title||An investigation into toll processing in the agro-processing industries in Zimbabwe|
|© Publisher:||Southern Bureau of Strategic Studies Trust|
|Journal||Journal of Strategic Studies : A Journal of the Southern Bureau of Strategic Studies Trust|
|Affiliations||1 University of Zimbabwe|
|Publication Date||Jan 2011|
|Pages||50 - 62|
|Keyword(s)||Capacity utilization, Subcontracting, Toll manufacturing and Toll processing|
The research explored the adoption of toll manufacturing by the agro processing industries in Zimbabwe. All literature reviewed indicated that, in whatever way, toll manufacturing was implemented, it alleviated the raw material constraints faced by the industries, contributed positively to plant capacity utilization, productivity levels, employment levels and employee morale. A cross sectional survey was applied across three sectors that constituted the agro industries, namely seed, food and stock feed. Stratified random sampling was also used to sample from the list of companies available for selection. Questionnaires were used to gather information. From the research findings obtained, it appeared that most companies had utilized less than 40% of their plant capacity. As a result of this, they resorted to toll manufacturing for third parties. This research concluded that capacity under utilization was a result of constraints, mainly raw materials and foreign currency hence the need for toll manufacturing. Therefore, toll manufacturing can be used by manufacturing industries with low plant utilization although the evidence is inconclusive.
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