The Board believes that beef ranching offers a material value opportunity in Africa and its beef business, which comprise three ranches, a feedlot facility, abattoir and retail units in Mozambique, remains an area of significant expansion and investment for the Group. The Company's objective is to build a total herd in excess of 10,000 head by 2015.
Mozbife was established to supply premium beef 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. The Company is in the process of building a sizeable herd of pedigree Beefmaster cattle, which has been developed for its high quality meat, top weight gaining ability and suitability to hot climates such as Mozambique.
The Group's strategy is to leverage value from being a vertically integrated producer, supplemented by local purchasing of cattle. Agriterra rear and breed the beef cattle at the Mavonde, Inhazanoia and Dombe ranches, fatten at the Vanduzi feedlot, and slaughter and butcher at the Chimoio Abattoir, which in turn supplies the retail units in Chimoio,Tete, Manica and Beira. This integrated business approach enables the Group to maximise revenues and margins from the entire value chain.
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.