Pork Section

While the formal markets are being affected by liquidity constraints and high costs of regulation compliance, the industry has opened up to huge participation from the informal market. The need is to increase off-take percentages of the current base (commercialization).

 

The informal market has had the following negative effects on the industry:

1. Disease factor, with the illegal movement of cattle (FMD).

2. Bush slaughter, with no health inspection, therefore depriving the Veterinary Department of much needed income for funding technical support.

3. Most importantly, marginalized communities are not getting the true value for their livestock as a result of these informal traders.

 

Koala Park’s vision is to reform this industry as our social responsibility to marginalized farmers in the agricultural and livestock sectors. The following areas are where we feel we can effect changes for long term investment and returns, therefore maintaining our social responsibility to our customers and producers.

 

Phase One being achieved:

1. All production facilities are now owned in strategic areas, e.g. Abattoir and retails.

2. All production feedlots and farms have been developed on state, private and BIPPA agreement farms with long term leases that are respected by Government.

3. Transport networks have been developed and paid for.

4. Strong market share in both the formal and informal market.

5. Fully integrated production from breeding, back grounding, feedlotting, slaughter to our retail and formal markets.

6. Genetic restocking to our producer base through bull and heifer sales to all provinces.

7. All current assets have been acquired by seasonal finance indicating a solid business model. Long term finance will allow us to fulfill our potential growth for our business.

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These factors combined, have contributed to our social responsibility aimed at producers and consumers. Our efficiency has enabled us to provide a viable service to both ends of the market.

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Despite our achievements, there are still areas hindering our effectiveness and competitiveness that can be improved:

1. Currently our total capacity utilization for our infrastructure is at 50%.

2. Our average annual slaughter weight for 50 000 head is at 180kg.

3. Presently only killing 25% of our cattle from our feedlots at 240kg CDM.

4. The return on this venture is 22%.

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How to change.

1. By growing our own food and efficient utilization of available products which can reduce our stock feed bill by 40%.

2. With this saving we can add value through our feedlots so that we slaughter 85% of our through-put from this facility.

3. This will enable us to pay our producers 10% more than the slaughter price for low-grade cattle.

4. We would be able to sell a better carcass at the best value compared to traditional feed rations which are bought out of bags from stock feed companies.

5. With adequate funding, this can be achieved faster than the development phase, as the capital infrastructure has been completed and all of our energy can now be focused on production. This will mean a faster capital turn around with better efficiency.

 

The future relationship and support we hope to build with our associates over the coming years can lead to achieving the above milestones. We hope that it will continue as, thus far, it has had far reaching affects for the new era of Zimbabwe under Zimasset and contributes to the nation as a whole.

 

We have developed a strong house-hold brand across Zimbabwe. Despite these achievements we still have a long way to go to complete the full vision of further development and maintaining and growing our market share, increasing efficiency for the benefit of both the supplier / producer and consumer.