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, flour and bread. 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.
Zambeef has one of the largest irrigated row cropping operations in Zambia, with 8,350 Ha irrigated and 8,650 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 115,000 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.
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 & Egg
Zambeef is one of the largest chicken and egg producers in Zambia, currently processing 5.3 million chickens p.a. and producing 33.5 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.
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 1,900 dairy cattle, with 800 currently lactating, and producing an average of over 6 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.
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.
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.
The plant is currently operating at full capacity of 7,000 tons p.m. and essentially adds value to the protein by-product from the Zamanita crushing plant (soya cake).
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 and bakery commissioned in 2007. The mill and bakery adds value to the wheat from the Zambeef farms. Currently milling 30,000 tons of wheat p.a. and baking 9 million loaves 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.
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.
Zambeef entered the Nigeria and Ghana markets in 2005 and 2007 respectively, in partnership with Shoprite. This is an exciting opportunity for the Zambeef group.
Currently Zambeef operates 8 Shoprite butcheries and 4 of its own stores in West Africa, but Shoprite has large expansion plans for West Africa, and is expected to open 5 new stores, totalling 18,000m2, over the next 2 to 3 years.
In order to meet this increased demand from Shoprite’s planned expansion, and to control the consistency and quality of the meat products, Zambeef has acquired a 25 year lease on a 287 Ha piece of land, approximately 60 km north of Lagos, which will be developed to house a feedlot, abattoir, processing plant and cold room facilities.
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 91 retail outlets, 3 wholesale centres, 6 fast food outlets & 20 Shoprite butcheries.
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.
The Group continues to deliver strong financial performance in turnover, gross profit, EBITDA and profit after tax, both in US$ and Zambian Kwacha terms.
The Group’s turnover and gross profit is reasonably well diversified across 14 business segments, which obviously helps reduce the group’s earnings volatility.