Zambeef Plc

Our history

Zambeef was incorporated in 1994, with limited capital, employing 60 staff, slaughtering 180 cattle per month in a small, rented abattoir, delivering meat in a Land Rover and selling the meat through 2 rented butcheries.

Since its incorporation as a small scale start-up business, Zambeef has, through both organic growth and acquisitions, become one of Zambia’s largest agri-businesses with annual revenues of approximately US$275 million, and currently employs over 5,800 staff.

Zambeef was listed on the Lusaka Stock Exchange in 2003 and only carried out its first equity capital raise in 2008 – between 2003 & 2008, Zambeef recorded a compounded organic growth rate of over 20% in real terms.

In June 2011, Zambeef successfully concluded its dual listing on the Alternative Investment Market of the London Stock Exchange. The Banker magazine named Zambeef’s US$55 million listing in London and rights issue in Zambia as 2012’s ‘Deal of the Year’ in Africa for equities. The magazine commended the landmark listing for Zambeef, saying the company’s initial public offering (IPO) on London’s Alternative Investments Market in June 2011 was significant in many ways. “It marked the first time a company from the southern African country had listed internationally and was one of the few overseas African IPO’s from outside the natural resources sector” - The Banker stated.


Business model

We continue to pursue a vertically integrated business model which provides strong foundations for growth and:

  • Underpins margin capture and value add
  • Secures supply chain
  • Reduces risk and earnings volatility

The Zambeef group is principally involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, eggs, edible oils, stock feed and flour. The Group also has large cereal row cropping operations and is also in the process of rolling out its West Africa expansion and its palm project.

Zambeef’s vision & strategy is to be the most accessible & affordable quality protein provider in the region & to increase the efficiency & capacity of its primary production facilities.

To achieve this, the Zambeef group continues to pursue a vertically integrated business model, from primary production to processing and distribution to retailing the finished products in a value-added form directly to the end consumer through its own extensive retail network. This ensures value-add and margin capture throughout the value chain.

Cropping

Zambeef has one of the largest row cropping operations in Zambia, with 8,120 Ha irrigated and 8,480 Ha rain fed, arable, developed land available for planting each year. Crop production is focused primarily on soya beans during summer cropping season and wheat during winter cropping season; with a capacity to produce 40,000 MT of soya beans, 45,000 MT of wheat and 21,000 MT of maize per annum. The group also has storage capacity of over 125,000 tons. The Farming Division provides an internal source of raw material inputs (soya beans, wheat and maize) for further processing and value add within the Group.

Beef

Zambeef is one of the largest suppliers of beef in Zambia, with a capacity to slaughter 100,000 cattle per annum. Zambeef is also one of the largest feedlotter of quality beef in Zambia, with a capacity to feedlot 24,000 grain-fed cattle p.a. Zambeef currently has 8 abattoirs & 3 feedlots located throughout Zambia.

Chicken & Eggs

Zambeef is one of the largest chicken and egg producers in Zambia, currently processing 6.2 million chickens p.a. and producing 46 million eggs p.a.

Further investment in new layer & broiler houses planned for 2014, as well as a new chicken abattoir, to include a value-added products range.

Pork

Zambeef’s 100% subsidiary, Masterpork Ltd, operates one of the largest piggeries, pig abattoir & pork processing plant in Zambia, with a capacity to slaughter 100,000 pigs p.a.

Masterpork produces a full range of cooked, smoked and processed meat products.

In 2012, Master Pork commissioned its new, state-of-the-art Hirsch-Pro 400 automated processing plant, capable of processing 30 tons of processed meat products per day.

Milk & Dairy

Zambeef’s has its own dairy farm, with over 2,500 dairy cattle, with 850 currently lactating, and producing an average of over 6.5 million litres of milk p.a.

The milk is pasteurised & homogenised in a modern milk processing plant and further value added in producing yoghurt, drinking yoghurt, cheese, butter and milk based juices.

Further investment planned in 2013 to increase processing capacity & meet increased consumer demand.

Edible Oils

Zambeef’s 100% subsidiary, Zamanita Ltd, is one of the largest edible oil and soya cake producers in Zambia.

Zambeef acquired Zamanita in January 2008 as part of a process of vertical integration, enabling it to add value to edible oil seeds such as soya beans produced by Zambeef’s farming division, while obtaining a source of supply of feed cake which is the primary ingredient in stock feed production.

This acquisition was strategically important to Zambeef as edible oils complement the group’s range of food products distributed through its retail network in Zambia. The by-product from the crushing of oil seeds (soya cake) is also a major source of protein for stock feed production in the group’s stock feed division.

In October 2012, Zamanita successfully commissioned a large upgrade and expansion of its soya bean crushing and Solvent Extraction Plant, which has doubled the crushing capacity from 50,000 tons per annum to 100,000 tons per annum. The upgrade will also enhance and improve the efficiency and safety of the facility.

Stock Feed

Zambeef commissioned its stock feed plant in 2010 as part of a plan to increase its stock feed production, initially to cater for its internal livestock divisions and with a long term vision to be one of the leading stock feed suppliers in Zambia.

One of the leading stock feed producers in Zambia, with a capacity of 13,000 M.T. p.m.

The stock feed division currently supplies all of Zambeef internal requirements (33%) and the surplus stock feed (67%) is sold to third parties in Zambia and the region.

Further investment planned in 2014, to improve production efficiencies and capacity, as well as a new ruminant plant.

Mill and Bakery

Zambeef commissioned its wheat mill in 2007. The mill adds value to the wheat from the Zambeef farms and currently has a milling capacity 30,000 M.T. of wheat p.a.

Leather & Shoes

Zambeef’s 100% subsidiary, Zamleather Ltd, operates the group’s tannery and shoe plant, allowing the group to add further value to the main by-product of its beef abattoir business, being the cattle hides, and sell these in a processed form as wet blue and finished leather and industrial footwear and protective leather clothing.

Zamleather has a processing capacity of 72,000 hides p.a.

Palm

Zambeef’s 100% subsidiary, Zampalm Ltd, commenced the first commercial palm plantation in Zambia in 2008.

The initial pilot phase is to plant up to 2,800 hectares, plus crushing mill and physical refinery, subject to proving viability in the pilot phase.

Zampalm’s aim is to provide Zamanita Ltd with locally produced raw material feed stock in the form of palm oil.

Shoprite is Africa’s largest retailer and Shoprite has chosen Zambeef as its strategic partner to run and manage its own in-house butcheries in Zambia, Nigeria and Ghana. Zambeef’s strategic partnership with Shoprite dates back to 1995.

West Africa

  • Zambeef entered into a Concessionary Agreement with Shoprite to manage the Shoprite butcheries throughout Zambia, Nigeria and Ghana.
  • Currently 92 retail outlets, four wholesale centres, seven fast food outlets and 22 Shoprite butcheries in Zambia.
  • West Africa provides an exciting opportunity for the Zambeef Group, in partnership with Shoprite.
  • Currently 15 Shoprite butcheries, six self-operated stores and two processing plants in West Africa.

The vast majority of Zambeef’s food products are retailed directly to the end consumer through Zambeef’s extensive retail network.

Zambeef has one of the leading distribution & retail footprints in Zambia, which currently consists of 92 retail outlets, 3 wholesale centres, 7 Zamchick Inns & 22 Shoprite butcheries. Currently 15 Shoprite butcheries, six self-operated stores and two processing plants in West Africa.

Zambeef’s 3 wholesale centres were started in 2011 in order to attract the large informal and commercial sector in Zambia.

Zambeef is continually investing in upgrading and refurbishing existing stores as well as opening new retail outlets each year.

Zambeef also operates one of the largest transport and trucking fleets in Zambia and has its own workshop to service and maintain its vehicle fleet.

 

Our Strategy

Our strategic priorities continue to be focused on:

  • To increase efficiency and capacity in primary production facilities ensuring Zambeef is a low cost protein producer in the region.
  • To expand the retail and wholesale distribution channels in order to increase market penetration in the region.
  • the retailing of cold chain meat and dairyproducts;
  • where appropriate, forging strategic alliances and partnerships with acknowledged industry players;
  • unlocking value and capital gains from within the Group and reducing debt/ gearing; and
  • developing the business into a regional food supplier.

Executive management