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 owns and operates the Vanduzi feedlot, located near to Chimoio, Central Mozambique.

The Vanduzi feedlot has capacity to provide over 1,000 animals per month to the abattoir. The majority of the animals are purchased from rural and commercial farmers in surrounding areas for fattening in the feedlot. The increase in the animals’ weight through the fattening process, and the related variable and fixed costs of the feedlot, enables the operation to contribute to the net cash generation of the beef operations.

In conjunction with the feeding pens, Vanduzi also has 1,050 hectares of land for pasture and production of feed. This helps to keep feed costs down and maintains an integrated operation. Furthermore, the feedlot works strategically with other companies in the Group, for example by using bran, the by-product from the grain processing facilities, as a feed supplement for the cattle.

Mozbife operates an abattoir at Chimoio and various retail units across Mozambique, to ensure the Group benefits from the full value uplift of the butchered product.

The Vanduzi feedlot provides ~1,000 animals per month to the abattoir and this is further supplemented by native animals from the local community, including goats.

Mozbife operates four retail units in Chimoio, Manica, and Nampula (two units). The retail units, which are supplied with carcasses from the abattoir, are a key facet of Mozbife’s integrated, “field to fork” strategy. The retail units perform strongly for the Group, underpinned by the domestic demand for meat.

The abattoir is Halal certified ensuring meat can, in future, be exported to the rapidly growing Middle Eastern market in addition to satisfying local demand.

Mozbife has ranches / farms (the ‘Farms’) covering approximately 20,350 hectares in the Manica Province of Mozambique, at the following locations:

• Mavonde – 2,350 Hectares
• Inhazonia – 2,500 Hectares
• Dombe – 15,500 Hectares

The Mavonde farm has approximately 370 hectares of irrigated pasture and benefits from a 48 billion litre dam. The dam has the capacity to irrigate in excess of 4,000 hectares. The Inhazonia farm has approximately 120 hectares of irrigated pastures, with water supplied all year round by river running through the property.

The Farms were previously utilised for cattle ranching, an activity suspended by the Group in June 2016 as a result of the military and political tension experience in Mozambique at that time. The Farms are currently in ‘care and maintenance’, or utilised for minimal background feeding of animals prior to them being taken to the Vanduzi feedlot.

In the longer term, the Farms remain an important asset to the Group, in order to supply our retail outlets and capitalise on potential export opportunities with high quality beef products. The 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.

In the short term, we are assessing alternative uses for the Farms, including possible cash crops.