Business / Companies
CSC to slaughter more cattle from Botswana
15 Dec 2011 at 16:52hrs | Views
THE Cold Storage Company (CSC) has started receiving cattle from Botswana under the second phase of the livestock slaughter deal that will see at least 60 000 animals being slaughtered per year over the next two years.
The country clinched the first phase of the deal in July this year, a development that saw CSC slaughtering more than 25 000 cattle from the foot-and-mouth infested Zone VI in Botswana, which is along the border with Zimbabwe to curb the spread of the disease.
CSC chief executive officer Mr Ngoni Chinogaramombe told Business Chronicle that the second phase of the slaughter deal would allow Zimbabwe's largest meat processor and marketer to slaughter cattle from Zone II, which is not foot-and-mouth infested.
He dismissed recent reports in some sections of the media that the first phase of the deal saw CSC slaughtering cattle infected with foot-and-mouth.
"Those were reports by people who are trying to frustrate this Botswana project by disseminating wrong information that the cattle are diseased. The public must ignore those reports if they are not coming from a competent authority such as a veterinary officer. This is a government-to-government project, so there is no way we could slaughter diseased animals," he said.
Mr Chinogaramombe said the second phase of the deal was expected to see an average of 5 000 beasts being slaughtered per month.
"The first phase of the slaughter deal which saw us slaughtering cattle from Zone VI of Botswana which was affected by foot-and-mouth outbreak was concluded in October. We were only taking disease free animals that were checked before passing them fit for slaughter by veterinary authorities from both countries.
"The second phase of the deal is a commercial arrangement borne out of the first phase and the Botswana government has appointed the Botswana Meat Commission to engage CSC to slaughter cattle from Zone II," he said.
He said the second phase of the livestock slaughter deal commenced mid last month with CSC having so far slaughtered 2 150 cattle.
Commenting on the benefits of the cattle slaughter deal, Mr Chinogaramombe said: "The company will be financially capacitated so that it can be able to carry out its activities that include the cattle restocking programmes. Some local farmers might be aware that CSC has started purchasing both breeding and slaughter stock from local farmers."
He said beef price was expected to stabilise as a result of the second phase of the slaughter deal as was the case during the first phase of the deal.
"As you might be aware, beef prices went up in October at the end of Phase I of the livestock slaughter deal, and during that phase beef prices had stabilised. The second phase of the slaughter deal will see a further stability in beef prices for the foreseeable future," said Mr Chinogaramombe, allaying fears of beef shortages during the festive season.
Recently, CSC said it required $28 million for recapitalisation.
He said the Botswana programme had gone a long way in helping alleviate working capital requirements.
"However, there is still a need for significant funding for the restocking programme and CSC is still negotiating with Botswana in providing breeding stock especially heifers," he said.
He said his organisation was presently not under extreme pressure to engage a strategic partner as the Botswana programme was envisaged to see the meat processor and marketer posting moderate profits.
"After demonstrating for a year or two that the company can generate profits if adequately resourced, then CSC can start engaging potential partners. At that stage, the company will be talking from a stronger point and if the Government so wishes it can realise higher value of its assets."
Turning to CSC infrastructure dotted across the country, Mr Chinogaramombe said the equipment was reasonably sound.
"The fact that we have not been operating efficiently over the past few years does not mean that our infrastructure is dilapidated.
"Some of the infrastructure has not been maintained regularly because of inactivity. For instance, when we started the Botswana project, we had to repair the Bulawayo abattoir. We spent something like $188 000 in refurbishing the abattoir.
"We also repaired Harare depot for $44 000 and we have also attended to Gweru and we will be moving to Mutare and all of our centres have to be attended to as we increase activity," he said.
Mr Chinogaramombe said during the period of inactivity, CSC adopted a leasing strategy of its farms and ranches so that infrastructure was maintained by tenants.
"As we buy cattle from Botswana, we will be restocking the farms with our cattle and after approximately three years the farms should be carrying our own cattle, not those belonging the leasees," he said.
Asked about reports that after the conclusion of the livestock slaughter deal between CSC and Botswana, that country received enquiries from other regional countries that showed interest in entering into a similar arrangement with Botswana, he said:
"We have heard reports that after signing the first phase of the slaughter deal with Botswana that country received enquiries from countries such as Angola and Mozambique showing interest to enter into a similar arrangement. If they are to strike such deals with Botswana, the advantage that Zimbabwe has over these other countries is that we have more than adequate slaughter facilities and if there is any competition with those countries, it will be for breeding stock not slaughter stock, Zimbabwe will out compete them."
The country clinched the first phase of the deal in July this year, a development that saw CSC slaughtering more than 25 000 cattle from the foot-and-mouth infested Zone VI in Botswana, which is along the border with Zimbabwe to curb the spread of the disease.
CSC chief executive officer Mr Ngoni Chinogaramombe told Business Chronicle that the second phase of the slaughter deal would allow Zimbabwe's largest meat processor and marketer to slaughter cattle from Zone II, which is not foot-and-mouth infested.
He dismissed recent reports in some sections of the media that the first phase of the deal saw CSC slaughtering cattle infected with foot-and-mouth.
"Those were reports by people who are trying to frustrate this Botswana project by disseminating wrong information that the cattle are diseased. The public must ignore those reports if they are not coming from a competent authority such as a veterinary officer. This is a government-to-government project, so there is no way we could slaughter diseased animals," he said.
Mr Chinogaramombe said the second phase of the deal was expected to see an average of 5 000 beasts being slaughtered per month.
"The first phase of the slaughter deal which saw us slaughtering cattle from Zone VI of Botswana which was affected by foot-and-mouth outbreak was concluded in October. We were only taking disease free animals that were checked before passing them fit for slaughter by veterinary authorities from both countries.
"The second phase of the deal is a commercial arrangement borne out of the first phase and the Botswana government has appointed the Botswana Meat Commission to engage CSC to slaughter cattle from Zone II," he said.
He said the second phase of the livestock slaughter deal commenced mid last month with CSC having so far slaughtered 2 150 cattle.
Commenting on the benefits of the cattle slaughter deal, Mr Chinogaramombe said: "The company will be financially capacitated so that it can be able to carry out its activities that include the cattle restocking programmes. Some local farmers might be aware that CSC has started purchasing both breeding and slaughter stock from local farmers."
He said beef price was expected to stabilise as a result of the second phase of the slaughter deal as was the case during the first phase of the deal.
"As you might be aware, beef prices went up in October at the end of Phase I of the livestock slaughter deal, and during that phase beef prices had stabilised. The second phase of the slaughter deal will see a further stability in beef prices for the foreseeable future," said Mr Chinogaramombe, allaying fears of beef shortages during the festive season.
Recently, CSC said it required $28 million for recapitalisation.
He said the Botswana programme had gone a long way in helping alleviate working capital requirements.
"However, there is still a need for significant funding for the restocking programme and CSC is still negotiating with Botswana in providing breeding stock especially heifers," he said.
He said his organisation was presently not under extreme pressure to engage a strategic partner as the Botswana programme was envisaged to see the meat processor and marketer posting moderate profits.
"After demonstrating for a year or two that the company can generate profits if adequately resourced, then CSC can start engaging potential partners. At that stage, the company will be talking from a stronger point and if the Government so wishes it can realise higher value of its assets."
Turning to CSC infrastructure dotted across the country, Mr Chinogaramombe said the equipment was reasonably sound.
"The fact that we have not been operating efficiently over the past few years does not mean that our infrastructure is dilapidated.
"Some of the infrastructure has not been maintained regularly because of inactivity. For instance, when we started the Botswana project, we had to repair the Bulawayo abattoir. We spent something like $188 000 in refurbishing the abattoir.
"We also repaired Harare depot for $44 000 and we have also attended to Gweru and we will be moving to Mutare and all of our centres have to be attended to as we increase activity," he said.
Mr Chinogaramombe said during the period of inactivity, CSC adopted a leasing strategy of its farms and ranches so that infrastructure was maintained by tenants.
"As we buy cattle from Botswana, we will be restocking the farms with our cattle and after approximately three years the farms should be carrying our own cattle, not those belonging the leasees," he said.
Asked about reports that after the conclusion of the livestock slaughter deal between CSC and Botswana, that country received enquiries from other regional countries that showed interest in entering into a similar arrangement with Botswana, he said:
"We have heard reports that after signing the first phase of the slaughter deal with Botswana that country received enquiries from countries such as Angola and Mozambique showing interest to enter into a similar arrangement. If they are to strike such deals with Botswana, the advantage that Zimbabwe has over these other countries is that we have more than adequate slaughter facilities and if there is any competition with those countries, it will be for breeding stock not slaughter stock, Zimbabwe will out compete them."
Source - Business Chronicle
