Thursday, October 08, 2009

Zambeef: sub-Saharan Africa’s biggest single cropping operation

Zambeef: sub-Saharan Africa’s biggest single cropping operation
Written by Kabanda Chulu
Thursday, October 08, 2009 4:44:19 PM

MAIZE provides over half of all calories consumed in Zambia but dependence on rain-fed production of the commodity leads to highly volatile output from one year to the other.

And given the erratic rainfall pattern and less than five per cent of cropped land under irrigation, Zambia’s maize crop fails to satisfy national consumption requirements, on average, in one year out of three.

In good harvest years, Zambia produces a maize surplus, enabling the country to export maize, and in bad years, when drought reduces output, the country imports maize hence consumers face wide swings in availability of their primary staple food.

It is against this background that Zambeef Products Plc has realised the true potential of Zambia, which is water, and plans are underway to use this natural resource to turn the country into a ‘mini Brazil’ of Africa’s economic growth and agriculture development.

Following the full development of the farm at Chisamba as well as the Sinazongwe farm which has been fully developed to 2,000 hectares of irrigation since its acquisition in 2004, Zambeef has become the single largest cropping operation in sub-Saharan Africa with 5,000 hectares under irrigation to produce 60,000 metric tonnes of grain per annum.

And since the acquisition of the Chiawa Farm in February 2009, Zambeef has invested millions of US dollars in the expansion projects that have resulted in increased hectorage of farm land from 940 hectares with 13 centre pivots at the time of acquisition to the current 1,620 hectares.

Upon completion of the Chiawa expansion projects in 2011, which has a total area of 10,000 hectares, Zambeef would have over 5,000 hectares of irrigated land that would ensure food security and eliminate the need for expensive grain imports.

At the heart of the Chiawa Farm expansion project would be the 6.6 kilometres water pipeline that would be commissioned this month to take water from the Zambezi River up to the new fields being expanded.

“Chiawa farm is just near the confluence of the Zambezi and Kafue Rivers and Zambeef is utilising water that will have otherwise been lost with no commercial value to Zambia,” said Company joint managing director Carl Irwin.

“We have realised that the true potential of Zambia is water and we want to utilise this natural resource by turning this country into a ‘mini Brazil’ of Africa’s economic growth and agriculture development.”

And Chiawa Farm irrigation manager Lucky Munshyasupuni said under the expansion projects, some farms being developed were green fields (new) projects.

“So there is clearing of land, putting up of roads, construction of the Zambezi water intake and booster pumps and installation of the 6.6 kilometre water pipe line that will take water from the Zambezi River up to the new fields,” said Munshyasupuni.

“Other related projects would include construction of additional water reserviour which is 120 metres in both width and length and would be the biggest at the Farm, installation of 26 booster pumps that would be powered a transformer with capacity of 100 kilo volts.”

And the farm’s chief engineer Raymond Banda said four silos with a capacity of 1,200 metric tonnes were in place and another eight would be constructed to meet the storage capacities from the increased production of crops.

And company chairman Jacob Mwanza said despite challenges of weather and the high cost of borrowing in the country, Zambeef Plc was progressing well to become a fully integrated regional institution with the capacity to process and manufacture agricultural produce that comes from its various farms.

And joint managing director Francis Grogan said Zambeef was seeking opportunities that would allow it to grow in a competitive manner and thereby contribute both to the company’s wealth, that of its shareholders and the Zambian economy in general.

“All these expansions are a proof that Zambeef is 100 per cent committed to agricultural development in Zambia and the policy of adding value through our production chain will help provide food security and eliminates the need for expensive grain imports,” said Grogan.

Zambeef is listed on the Lusaka Stock Exchange (LuSE). And according to latest statistics, Zambeef Plc’s turnover increased by 69 per cent to K439 billion and profit after tax increased by 59 per cent to K37.4 billion. During 2008, the company invested K289 billion in developing, expanding and diversifying the business.

Zambeef Products Plc also issued 44,036,596 new ordinary shares that resulted in the company raising K259 billion hence becoming a well capitalised and diversified agri-business which is placed to benefit from real growth, not only in Zambia but in the region as well.

Zambeef Products Plc also operates in Ghana and Nigeria and plans are currently underway to develop a 20,000 hectares palm tree plantation in Mpika.

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