daniel chigunweBusiness Writer
COLCOM Foods Limited says it has embarked on a capital expenditure drive valued at US$18, 3 million upgrading some of its production units stemming from sustained demand for fresh pork products.
This strategic decision comes in response to the sustained consumer demand for fresh pork products, positioning the company to strengthen its market footprint further.
The investment aims to consolidate the company’s market share while enhancing production volume, operational efficiencies and overall product quality.
Of this total investment, US$7 million is allocated specifically for pig production, while another US$3.8 million is earmarked for the breeding units.
Additionally, Colcom is committing US$7,5 million towards expanding its pie factory, demonstrating a comprehensive approach to growth across multiple product lines.
These investments will also see the construction of a genetic multiplier unit where Colcom will produce its genetics to derisk on imported genetics, and all breeders will be managed from one site.
This move is designed to mitigate the risks associated with reliance on imported genetic material, ensuring a more controlled and sustainable breeding process.
These developments come on the heels of Colcom Foods experiencing a notable increase in demand for fresh pork during the first half of the 2024 financial year.
As a result, the company recorded an overall volume growth of five percent compared to the same period in the previous year.
This resulted in an overall five percent volume growth over the comparative year, the processed product categories also performed well, with a marked improvement in volumes of polonies, bacons, hams and sausages, indicating a robust market performance.
Although the overall pig volumes at Triple C maintained similar levels to the previous year, the total pork supplied improved due to increased pig weights and enhanced operational efficiency in upstream piggery operations.
This improvement reflects Colcom’s commitment to optimising its production processes.
In recent years Colcom Foods Limited has embarked on a substantial phased programme to upgrade its technologies and equipment, install new machinery for new products, refurbish its refrigeration systems and packing line ensuring that the company stays competitive in a rapidly evolving market.
At the same time, the group has evolved to meet changing market demands and customer preferences, to support these initiatives marketing and sales activities have been aggressively used to promote and support the brands and products across all market segments.
This multi-faceted approach not only enhances Colcom’s production capabilities, but also fortifies its pole position in the fresh pork product market.
“There is a US$7 million investment in pig production unit in progress coupled with US$3,8 million in breeding unit and US$7,5 million for pie factory expansion.
“The expansion programme will continue at Colcom in the year ahead, with the establishment of additional upstream breeding and pig production facilities, as well as further factory capacity and capability enhancements,” said Innscor chairman Addington Chinake in the group’s 2024 annual report.
Some of Colcom’s investments in progress include the establishment of 4,41 MWh solar facilities at three sites alongside National Foods and AMP’s Zimnyama Abattoir.
Colcom falls under Innsccor’s protein division along with Irvine’s Zimbabwe, and Associated Meat Packers Group (AMP), which includes the Texas Meats branded store network.
Firm processes over 100 000 pigs annually with the bulk of its pig supply sourced from its own farm, Triple C Pigs, but it supplements this with purchases from third-party producers.
Colcom is involved in the production, processing and marketing of pork and related food products.
The Colcom Division comprises Colcom Foods and the Triple C Pigs production operations.
Innscor Africa Limited acquired all the minority interests in Colcom Holdings Limited in 2018 such that it became a wholly owned subsidiary.
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