THE revamped Cold Storage Company(CSC)-Boustead Beef factory, which resumed operations yesterday after 22 years of closure, will never be allowed to collapse again as its re-opening is anchored on renewed business modelling that connects more livestock farmers and downstream industries with prospects for higher job opportunities.
Vice President, Dr Constantino Chiwenga, said this while
officially re-opening the giant beef processing factory in Bulawayo, where he
stressed the Second Republic’s increased focus on resuscitating agro-processing
industries in line with the broader growth trajectory under the agricultural
sector, which is the mainstay of the country’s economy.
The massive beef processing plant is being revamped under a
US$400 million joint venture farming concession agreement with Boustead Beef
Zimbabwe, a United Kingdom-based investor.
So far, US$24 million has been pumped into the business
with a target to slaughter 1 500 beasts per day.
In line with the Agriculture and Foods Systems
Transformation Strategy, Dr Chiwenga said the re-opening of CSC signals an
important milestone in the transformation of the country’s economy.
This buttresses the livestock growth plan (2021-2025), one
of the five anchors of the Agriculture and Foods Systems Transformation
Strategy envisaged to growth the livestock sub-sector to US$1,9 billion by 2025
from the current US$900 million.
Already, a cocktail of interventions that include improved
nutrition, animal genetics, animal health, farmer knowledge on best management
practices and access to high value domestic and export markets are being
pursued.
“Today is a great day, what had been sent to the dust bins
has come back and the Cold Storage Company is here to stay and will never again
go into the state in which we saw it happening for so many years under our
watchful eyes,” said VP Chiwenga.
“The plant is a key component in the beef production value
chain. May I hasten to state that this event is a crucial indicator of the
private sector’s resolve to stimulate growth of the livestock such-sector by
providing a steady market for the slaughter stock for our livestock farmers.”
To date, Dr Chiwenga said, US$24 million has been invested
to resuscitate the company, which has been idle for the past 22 years.
“This sub-sector has a strong private sector-led livestock
value chain comprising beef, dairy, pork, sheep, sheep and poultry production
systems, which are actively participating in the implementation of the
Livestock Growth Plan,” he said.
Boustead Beef Zimbabwe’s main mandate is to revive the
strategic company’s operations across the country by refurbishing industrial
assets such as ranches, feedlots and residential properties.
It rejoins the sector that has an increasing number of
registered abattoirs in the country that processed more than 75 000 metric tons
of meat last year. Dr Chiwenga said with over 90 percent of livestock owned by
small holder farmers who provide 85 percent of the slaughter stock , the
importance of Boustead Beef in the marketing of livestock is crucial.
He noted that the firm intends to grow its daily slaughter
to 1 500 at full operational capacity, hence smallholder livestock farmers who
contribute about 90 percent of the slaughter stock will play a crucial role in
the operations.
To that end, Dr Chiwenga directed Lands, Agriculture,
Fisheries, Water and Rural Resettlement Minister, Dr Anxious Masuka, and Boustead
investor representative Mr Nick Havercroft to ensure that each month there is a
progressive increase on slaughter rate until the 1 500 mark per day is reached.
“It provides a competitive market for the smallholder
livestock farmers who have suffered huge losses though middlemen and other
unscrupulous buyers,” said Dr Chiwenga.
“The goal of the Government is to develop the livestock
sub-sector as a whole. Government is also committed to the opening of high
value markets, such as the Boustead Beef-Cold Storage Company for cattle, goats
and sheep. There is evidence that this will stimulate production along the
value chain nodes.”
The VP also said that rural livestock farmers who have been
getting raw a deal are guaranteed of a vibrant market should ride on CSC to
generate higher incomes leading to the transformation of livelihoods.
Another benefit for rural livestock farmers is on the
setting up of unique feedlots along the lake Gwayi- Shangani project.
“Boustead Beef-Cold Storage Company will provide a unique
feedlot and grazing model for communal farmers which will increase the value of
their cattle. Therefore, this model will enable communal farmers to be paid
twice, at delivery of the cattle to the feedlot and after fattening at
slaughter.
“Boustead Beef Cold Storage Company has already secured
US$36 million for this feedlot and grazing purchase scheme for communal
farmers. This model should increase the cattle offtake from six percent to the
targeted 15 percent by 2015. We, therefore, envisage that 266 sales pens throughout
the country will be re-established,” said Dr Chiwenga.
Dr Masuka and his deputy, Davis Marapira, Minister of State
for Bulawayo Metropolitan Province Judith Ncube, several senior Government
official and farmers union representatives joined VP Chiwenga on a tour of the
massive plant during which several beasts were slaughtered.
In her remarks, Minister Ncube said major progress has been
made in resuscitating CSC and regions around the city, which are renowned for
livestock production will immensely benefit.
“The beef sector is the backbone of the industries in
Matabeleland region and it is my hope that resuscitating Cold Storage Company
will bring with it the much needed investment in the livestock value chain as
well as empowerment of local farmers,” she said
Minister Ncube said as a region, they expect that once the
resuscitations complete, CSC would resume exporting to the European Union and
other markets.
Dr Masuka said the revival of CSC was an important win for
Vision 2030 and as such there must be a robust strategy to revamp the entire
sector.
“This is a significant event under the Second Republic, the
revival of CSC, which has been idle for 22 years is a firm indication that the
economy is on a recovery path. We are happy that Vice President Chiwenga shoot
the first beast in the resuscitation of CSC,” he said.
CSC used to play a leading role in the processing and
marketing of Zimbabwe’s beef since its inception in 1937.
Since 1992, CSC largely survived on EU exports and had a
$15 million revolving payment facility with the bloc.
The facility was discontinued after the EU suspended
imports in 2001 following an outbreak of foot and mouth disease. CSC had an
annual quota of 9 100 tons and used to earn at least $45 million per year from
the EU export quota.
In 2010, the cash-strapped CSC was forced to abandon an ambitious project to supply goat meat to Angola as farmers expressed dissatisfaction with supplying small stock on credit to the company. Herald
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