ZAMBEEF Products Plc will this year invest US$2.5 (about K1.2 billion) in boosting its Palm Plantation in Mpika, which when operational would be the lead exporter of crushed palm oil in the region.

Zambeef chief executive officer, Francis Grogan said in a statement that the 20,000-hectare plantation which was launched in 2008 would be boosted further this year to make it achieve its potential and produce the long-term benefits.

Mr Grogan, however, said some of the biological stock which was planted had suffered due to adverse weather and would need replacing this year but said the setback would not affect the crop health and yield.

“Zambeef remains committed to develop its palm plantation and apart from the K15 billion we have already invested, we have budgeted $2.5 for it in 2011. Due to adverse weather and factors outside normal operations, part of the biological stock will need replacing,” he said.

Zambia and a number of countries in the region are among the largest importers of palm oil from Asia with Zambeef itself importing large stokes of the oil from Malaysia which it uses in its limping Zamanita.

Mr Grogan said because of the need to achieve a healthy crop yield, Zambeef had engaged palm experts from Palm Oil Technology of South Africa, one of the leading palm consultants in the world to guide the project to its fruition end.

The firm earmarks to invest a $41 million total investment for palm oil production, which would include setting up a processing mill.

Zambeef’s subsidiary, Zampalm Limited, had planted the first 3,000 hectares of palms. Currently, Zambia imports around 60,000 tonnes of cooking oil per annum. Zambeef feels that not only can these imports be substituted once Zampalm Limited commences production but Zambia could become a net exporter of the product.

He said the palm oil project would not benefit Zambeef in terms of exports, but would also play a key role in the operation of fellow subsidiaries like Zamanita, whose profits are yet to hit the highs the group expected from it.

Zamanita last year posted a drop in gross profit of about 39 per cent down to K36 billion in a year it was expected to perform better having survived the record high crop prices of soya beans the previous year.

Zamanita, which is the only limping unit of Zambeef’s 14 subsidiaries, has been affected by high import tariffs on palm oil
which it brings in from Malaysia.

Zamanita is, however, expected to grow, especially that its products like water, margarine and edible oils will be sold in all
Zambeef outlets and the demand for animal feed cake is rising, especially from Novatek.

Source: Times of Zambia