Zambeef pumps K13bn in palm plantation
January 12th, 2012
ZAMBEEF Products Plc has pumped more than K13 billion into the Palm plantation pilot project in Mpika to develop a raw material base for its palm oil requirements and cut down on imports.
Palm oil is the main ingredient used in the manufacture of cooking oil and stockfeed and Zambeef currently imports its raw materials for its Zamanita edible oil plant in Lusaka from East Asia.
Zambeef Chief Executive Officer Francis Grogan said up to US$2.6 million has so far been pumped into the 4,000 hectare land in Mpika which if successful, would see the development of more land for palm tree plantation.
“The pilot phase of the 4,000 hectare land is underway with $2.6 million already spent on it in 2011 alone. Should this be successful, it will lead to the development of the other land that we have,” he said.
He said Zambia and the region remained a major importer of vegetable oils and that Zambeef was currently a large importer of palm oil from the Far East for its edible oils division.
“Once yields of palm fruit commences, it will allow us to substitute imported palm oil and thereby improve on margins through an extension of primary commodity production and processing.
The 4,000 hectares of land being used in the pilot project is just one-fifth of the total land the Group has reserved for the palm tree plantation bringing the total land for the project to 20, 000 hectares.
Should the entire 20,000 hectares become productive, Zambeef would then start feeding the entire region through exports
And in order to meet the anticipated increase in processing palm oil from the Zampalm project, Zambeef has also invested K30 billion into upgrading and expansion of its Zamanita plant.
Through an investment of more than K30 billion, Zamanita will increase its crushing capacity and production efficiencies as the investment was expected to raise the production capacity to 100, 000 tonnes per annum from well below 50,000 tonnes.
Source: Times Of Zambia
