The Sunday Mail
Tanyaradzwa Rusike
UNITED States of America firm, Ethos Asset Management Inc, is set to inject millions of US dollars into the Cold Storage Company, now CSC-Boustead Beef Limited, as the revival of Zimbabwe’s largest meat processor gains momentum.
The move is a game changer in the livestock sector after the company resumed operations a few months ago following 25 years in the lurch.
While Boustead Beef Limited president Mr Nick Havercroft was not at liberty to reveal actual figures, he told The Sunday Mail that the company will start receiving “substantial” funds from the American investor next month.
“The amount Boustead has secured from Ethos is substantial, but remains confidential. The first drawdown from this facility will be available in December, but practically Boustead will most likely draw down commencing January 2023,” he said.
In a statement, Ethos chief executive Mr Carlos Santos said he had committed to providing capital to sustain the venture for several years.
“We were very impressed with Boustead’s exceptional standards and level of operation in Zimbabwe. We are absolutely delighted at Ethos to be expanding our investments further into Africa and in particular, Zimbabwe for the first time,” he said.
To date, the company’s revival has been taking shape after Boustead Beef injected initial funds into the project, after signing a joint venture agreement with CSC.
Mr Havercroft said the latest financial backing will augment the company’s capital inflows.
“The cash injection enhances the investment already secured and made into the business, but the main use of the facility secured with Ethos will be for the regenerative, holistic, sustainability, pasture and feedlot paddock development to ensure that we achieve carbon neutrality of the business to combat climate change.
“Most importantly, the funds will also be used to assist with community development, poverty alleviation and the development and well-being of farmers. Without the farmers and good quality, grass-fed, free-range, organic, GMO and fair trade cattle, Boustead will be unable to supply the lucrative export markets with top quality beef, which is in ever increasing demand,” he said.
Mr Hovercraft revealed that the firm intends to grow its slaughtering capacity to 800 beasts per week in 2023.
“Boustead has a 10-year forecast on the slaughter numbers it wishes to achieve. It is important to remember that the CSC has not operated for over 24 years and we need to learn to walk before we can run.
“We are hoping by the third quarter 2023 to be slaughtering 800 cattle per week. The plant has a capacity of 800 per day and this is our target but realistically it is going to take some time to reach this number,” he said.
Zimbabwe, under the Agriculture and Food Systems Transformation Strategy, envisages to grow the livestock sub-sector to US$1,9 billion by 2025 from the current US$900 million.
Mr Hovercraft said the target can only be achieved by ensuring that the farmer remains viable.
“The most profitable time for a farmer to sell their steers for slaughter is around 22 months old and then they will get the best price. Keeping cattle for eight years and to sell only after it can longer be used for draft purposes, the value of that cow is basically half of the value as it will probably be graded as economy meat,” he said.
“An efficient mechanisation programme needs to be implemented and cattle should be bred for the purpose of feeding and slaughter, not draft power.”
Livestock Meat Advisory Council chairman Mr Solomon Zawe said CSC’s partnership with the American investor will boost the cattle industry in a big way.
“It is good for the cattle industry, the country at large, and it will also help to stabilise the economy. Cattle farmers need linkages and we believe that diseases such as foot and mouth will also be managed through this funding,” he said.
CSC was at one time the leading meat processor in Africa, processing up to 150 000 tonnes of beef and associated products annually. It exported to the European Union, where it had a yearly ration of 9 100 tonnes of beef.
