DECA

Mozbife is a vertically integrated business, purchasing cattle from local rural and commercial farmers, and processing them through our feedlot, abattoir and wholesale and retail operations. Mozbife also has over 20,000 hectares of ranch / farm assets.

Mozbife was established to supply beef products to both the domestic market in Mozambique as well as for export. Beef consumption in Mozambique has been steadily rising and is forecast to continue to grow in the future as living standards across the country improve, coupled with the growth uplift that is expected from the development of the natural gas industry in the north of the country.

The Group's current strategy is to purchase cattle from local farmers, fatten at the Vanduzi feedlot, and slaughter and butcher at the Chimoio abattoir, which in turn supplies the retail units and wholesale market. Our current focus is on the wholesale market, but we continue to assess new retail units in strategic locations to take advantage of regional development opportunities. This integrated business approach enables the Group to maximise revenues and margins from the entire value chain, while minimising additional new investment.

Mozbife was previously also engaged in the development of beef ranches / farms, with a growing breeding herd. This development was suspended in June 2016 due to the political and military tension experienced in Mozambique during the 2015 and 2016 calendar years. The infrastructure at the ranches has been maintained and we continue to assess our farming estate which, in the longer run, remains an important asset in order to supply our retail outlets and capitalise on potential export opportunities with high quality beef products. This established infrastructure and capacity potential mean that we are well placed for growth once appropriate investment conditions for this more rural infrastructure are re-established in Mozambique.

Mozbife

Beef consumption in Mozambique has been steadily rising and is forecast to continue to grow rapidly as the country experiences rapid growth from the development of natural gas resources and as living standards improve.