Zimbabwe's Beef Industry: New joint venture to inject $130 million over the next 5 years

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02:15

Zimbabwe's government has approved a joint venture between state-owned Cold Storage Company and British firm, Boulstead Beef. The deal will see $130M injected into the ailing meat processor over the next five years. The rehabilitation of the company will open up more markets for smallholder livestock farmers. CGTN's Farai Mwakutuya has more.

Once producer of internationally sought after meat, Zimbabwe's beef industry has been trying to recover from setbacks including disease outbreaks and the collapse of the country's largest meat processor. With the contagion mostly under control pen fattening for beef production is emerging as a profitable venture for smallholder farmers again.

JAMES HANYIRE SMALL HOLDER LIVESTOCK FARMER "It's creating employment and has allowed us to earn much more. We can even send our children to school all the way to university."

The farmers who are part of a cooperative in Buhera, in Manicaland province hope the revamped CSC will offer them a better deal.

PHIBION CHIWA CATTLE FARMER "If it offers good prices then it's a good thing because we have had some bad experiences with some of the other abattoirs we have dealt with before."

JAMES HANYIRE SMALL HOLDER LIVESTOCK FARMER "We used to take whatever price the butcheries offered us and we were left in the dark as to how much they would realize from the beast."

Under a cabinet-approved joint venture, Boulstead Beef will invest 130 million dollars into CSC, 42 and half million of which will extinguish outstanding debt. Boulstead will take over and run seven CSC ranches and four abattoirs for a period of 25 years. The company plans to reopen exports to Europe, China and the SADC region.

FARAI MWAKUTUYA BUHERA, ZIMBABWE "The recapitalization of CSC has been welcomed across the board as the revival of a strategic national asset but also a reason for local livestock farmers to be bullish about the future. FM, CGTN, B, Z."