ZaMBeef

fEATuRE

cow!
Zambeef continues to expand its reach, taking full advantage of the growth in Zambias economy. By ian armitage
ambeef needs little introduction. It is of course one of Africas biggest agribusinesses and food producers. It comes from humble beginnings starting out as a small butcher shop in Lusaka in 1991. Today it produces just about anything. Place Zam in front of a food product and there is a pretty good chance Zambeef Products is making it. Unsurprisingly its tagline is Feeding the Nation. We are one of the largest agribusinesses in Zambia, Justo Kopulande, Zambeef Products head of public relations says.

It is a real giant, involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, eggs, edible oils, stock feed, flour and bread. It also has large row cropping (maize, soya beans and wheat) operations and has increased its presence in West African countries like Nigeria and Ghana, in conjunction with Shoprite, as well as invested in an ambitious palm project within Zambia. Those are certainly the big developments, Kopulande says. Zambeef has taken full advantage of the growth in Zambias economy, which has averaged 6 percent a year over the past decade. It recently announced a 32 percent rise in revenues to $127.6 million in the six

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Zambeef focus food & agriculture

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months to March, with the strongest divisional growth being cropping (up 211 percent), chicken and eggs (up 82 percent), stock feed (up 63 percent), and the West African operations (up 56 percent). We achieved excellent financial results for 2012 interim and we attribute it to strict financial discipline, investment oriented financial strategy, a defined strategic plan and a reliable retail chain of our varied food products. And we have a lot to look forward to. We have continued with the expansion of our production capacity with several projects underway including the expansion and upgrade of Zamanitas crushing capacity, the upgrade and expansion of processing facilities at Master Pork Limited and the expansion and upgrade of the dairy processing plant. Weve also announced an intention to increase in the dairy herd through the purchase of about 180 in-calf heifers. Zambeef has a very successful distribution model too something it aims to improve further. We have one of the leading distribution and retail footprints in Zambia, Kopulande says. Zambeef operates over 100 stores under the Zambeef banner and many in-house butcheries in Shoprite supermarket outlets in Zambia, while it has a number of its own fast food outlets under the brand Zamchick Inn. It also operates several in-house butcheries in Shoprite outlets and stores under the Zambeef banner in Nigeria and Ghana. Zambeef has proven its ability to penetrate more international markets. We are becoming a more global business, yes. Many expansion projects are underway and under development.
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Zambeef focus food & agriculture

We recently acquired 9,000 hectares of land on the copperbelt. that was funded through a very successful floatation of shares both in Zambia on the lusaka Stock exchange and in london through the alternative investment Market (aiM) of the london Stock exchange

One of those is the expansion of its soya production. Zambeef has this year produced about 40,000 tonnes of soya beans. It wants to produce more. We do. We recently acquired 9,000 hectares of land on the Copperbelt. That was funded through a very successful floatation of shares both in Zambia on the Lusaka Stock Exchange and in London through the Alternative Investment Market (AIM) of the London Stock Exchange. We were the first Zambian company to list on AIM and in that process we raised $55 million in total in conjunction with a domestic rights issue. Why make the purchase? Simple - to create capacity for raw materials specifically soya to feed our Zamanita crushing plant soya needs and increase production of stock feed. On the land we will expand our irrigation capacity for production of soya, wheat, and maize - in that cycle. Remember, these are raw materials for production of edible oils (soya), flour (wheat) and the residue from these

Insulated Structures are proud suppliers of top quality coldrooms and freezers to Zambeef, and congratulate them on their success.

For more information contact Tony Goncalves Phone: 0027 73 2163573 Email: tonyg@insulated.co.za Web: www.insulatedstructures.co.za

Zambeef focus food & agriculture

grains is what is used in the production of stock feed. It will have positive ramifications for locals. It will create employment, market for their Soya, crop residues for live stock feed for locals and agro technology transfer. Zambia imports huge volumes of Palm crude oil from the Far East and so this investment makes a lot of sense. Our homegrown palm crude will go a long way in import substitution. We will also create real jobs plus the resulting multiplier effect. The project will promote food security, jobs, export opportunities, self sufficiency in cooking oil and feed our Zamanita refinery in Lusaka. The added advantage is it creates a buffer in case of
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the project will promote food, security, jobs, export opportunities, self sufficiency in cooking oil

economic hurdles in other subsectors of the agroeconomy, Kopulande says. You really have to take your hat off to Zambeef. It started small but has diversified in a number of agricultural sectors.

We are a good testimony of how agri-business can make a big difference in a country like Zambia which has good climate, land and livestock, Kopulande concludes. END

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