Zambeef division promoting local management

LUSAKA, ZAMBIA – Trusted Mwiinga is Zambia’s first ever plantation manager, managing Zambeef Products’ massive 20,000-hectare Zampalm plantation in Mpika.

With over 25 years’ of experience in agriculture, Mwiinga considers himself privileged to be the first Zampalm manager and a part of the model approach pioneered by Zambeef.

“I’m very happy that my legacy will remain even after I leave Zampalm,” said Mr Mwiinga, who has overseen development of the farm from a barren and remote area of plain into a thriving plantation that has brought new development to the people in the area.

Originally from Mazabuka’s Mbozi village of Chief Mwanachingwala’s district, the 52-year-old began his career in agriculture as a ranch and crops manager at the then African Properties Meyerton Farm – now Ibis Gardens in Chisamba.

His journey with Zampalm however, was not to begin until 2009 when joined the company as the plantation manager.

Mr Mwiinga’s passion for agriculture began in his secondary school years when he was accorded the opportunity to work with a Japanese non-governmental organisation (NGO) to combat foot and mouth disease in his home area.

“I was employed as a dip tank supervisor in Ngwezi settlement, extension B, where my parents own a family farm. This was the beginning of my agriculture career,” recalled Mwiinga.

The realisation of his passion for farming led him to pursue studies in agriculture at Palabana Dairy Training Institute, achieving the best student award in pastures and cropping from 1988 to 1990. He went on to undertake various other programmes over the years and is currently studying for a Bachelors in Business Management with the University of Africa in Zambia.

When Mr Mwiinga and his team took on the role he was quick to admit that the task before them had not been an easy one looking at the fact that the project was a pioneer project and anything could happen; and indeed it did as seeds planted in the first 1,800 were lost to water stress. It was a steep learning curve, but one that has ultimately benefited the business.

“We started our planting at a very large scale with a nursery of 500,000 palm trees in 2009. 1,800 hectares were planted but wrongly done. The plants suffered from water stress and damage from rats. Besides that, they were planted at a tender age of one year from the nursery. There was no other option but to start afresh. We did not lose hope but continued to learn from our mistake until we found the formula of how the plantation could be properly established under guidance of a consultant from Costa Rica,” he recalls.

Infrastructure in the area also posed a challenge as it is a sparsely populated and isolated area.

“We had no communication network, one had to go to the Boma to make a phone call, which can be very difficult on the family man as that was only possible once a week in the beginning. We also didn’t have five star accommodation or power,” he said of the early days.

Aside from these, there were challenges with the labour as most of the employees were untrained and had never had formal work before. They comprised mostly of small-scale farmers, fishermen and hunters, absenteeism and time-keeping posed a problem at first, but with time employees understood the work requirements and adjusted their lifestyle.

“Regardless of the hardships that I and my colleagues endured during the inception period of the plantation, I am glad to see the plantation taking its shape and now looking forward to see a drop of palm oil that will be produced here,” said Mwiinga.

The success of the project has resulted in improvement in social amenities such as accommodation, water and power on the plantation and surrounding areas. Over the three years of its existence in the area, Zampalm has employed local people in its nursery, plantation and workshop. There are currently 120 permanent employees and 400 seasonal workers with these numbers expected to rise as the harvesting and production begin.

And the community residents were able to benefit from skills training in various areas such as weeding, spraying, chipping and construction, all of which were needed for the plantation to operate smoothly. Given that the machinery in question was something that they had never seen before, the training was imperative for a safe working environment.

The Zampalm project was launched in 2009 and currently has some 370,900 palms planted over an area of 2,612 hectares in the main plantation, with another 39,000 seedlings in the main and pre-nursery. Zampalm owns 20,238 hectares of titled land, and the intention is to plant a total of 4,812 hectares in 2017 and similar areas in subsequent years as the business grows.

A 2-tonnes-per-hour crushing mill was built this year, with plans for a second 2-tonne plant in 2017 and a further 10-tonne plant in the following year, taking crude palm oil production up to 17,000 tonnes a year.

The total investment cost is estimated US$41.5 million, of which Zambeef has spent US$20 million so far. At current prices the average production of crude oil of 3 to 3.5 tonnes per hectare could generate more than US$170 million in revenue over the next decade.

The market for edible oils in Zambia, of which palm oil is one component, is estimated at 120,000 tonnes per year, and this is expected to continuing growing as the country develops further.

More than half of Zambia’s edible oil consumption is imported from the Far East, East Africa and South Africa.

Palm oil is the world’s most used vegetable oil and has many different uses in addition to cooking oil. Palm oil and its derivatives are found in foods such as margarines and ice cream, used as a thickener, preservative and antioxidant; as well as in personal care products such as shampoo, and cosmetics; industrial products such as lubricants paints and inks; and as a renewable fuel.

Once fully operational the plantation will contribute to substitute 70,000 tonnes of imported cooking oil into Zambia, saving the country around US$70 million (K511 million) in foreign exchange outflows every year.

While Zambia is not a traditional growing region for palm oil, lower yields are expected to be outweighed by the competitive advantage of being closer to consumers in the region given that the cost of importing edible oil from the Far East can account for around a third of its retail price.

In addition to the commercial and economic benefits of the Zampalm plantation the initiative has provided a number of social and environmental benefits, including the creation of employment and infrastructure in the remote community in the area, which has high poverty levels.

Traditionally, the Bisa people in the sparsely populated area of Senior Chief Kopa were fishermen, hunters or cassava farmers. Since Zampalm was launched there are now shops springing up and economy growing, changing livelihoods.

There are two government health posts that are 15 and 20 km away but Zampalm has provided transport to the clinics, including an ambulance to Kopa clinic and Mpika District Hospital; this year a further clinic and police post will be built by the company.

Zampalm is also planning an outgrower scheme with the company providing seedlings. It has already given the nearby school 100 seedlings to plant.

-Ends-

About Zambeef Products Plc
Zambeef Products Plc is the largest integrated agribusinesses in Zambia.
The group is principally involved in the production, processing, distribution and retailing of beef, chicken, pork, milk, dairy products, eggs, stock feed and flo ur. The group also has large row cropping operations (principally maize, soya beans and wheat), with approximately 8,350 hectares of row crops under irrigation and 17,000 hectares of rain-fed/dry-land crops available for planting each year. The group is also in the process of rolling out its West Africa expansion in Nigeria and Ghana, as well as developing a palm project in Zambia.
It slaughters more than 80,000 beef cattle and 6 million chickens, and processes 8 million litres of milk per year. The company has 122 retail outlets throughout the country, along with three wholesale depots.
More information is available at www.zambeefplc.com.

About Zampalm
Zambeef Products plc subsidiary Zampalm Ltd is developing a 20,000 hectare palm oil plantation in Mpika District, of which some 2,612 hectares is already planted as part of a rolling plan of expansion. A crushing plant has been installed, with production expected to begin in September 2015.
The total investment cost is estimated at US$41.5 million, of which Zambeef has invested US$20 million to date. The project is expected to generate more than US$170 million in revenue over the next decade and save the country some US$70 million per year in foreign exchange outflows through import substitution.

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